204: How To Optimize Your Business In Light Of Your Tax Situation

Overview

Welcome to a new season of STC! During the time off, I focused on rest, self-care, and family. I also spent time working on the STC Directory, trying to bring improvements that will benefit all of us. Today’s conversation is a relevant topic for every business owner. We’re discussing how to optimize your business in light of your tax situation.

Opher Ganel is a previous guest on the show, as he was here last time to talk about setting fees. His wife is a therapist in private practice, so he has helped set up her practice and has vast experience in setting up small businesses. Opher has a wealth of knowledge, even though he is not an accountant. The information in today’s show is presented for educational purposes only. We are discussing why it is important to optimize our tax setup and whether you should be classified as a sole proprietor, an LLC, or an S-corp. I hope the show brings you helpful guidance and clarity.

What We’ll Learn

  • Why it’s important to optimize our tax setup as business owners
  • Why you MUST be careful not to misclassify employees as independent contractors—or pay big IRS consequences!
  • How do you know if you should be a sole proprietorship, LLC, or S-corporation?
  • Questions your accountant should be asking, depending on the laws in your state
  • Business structures, descriptions, and pros/cons of each:
    • Sole proprietorship–easy to set up, no forms to file, no special accounting required, but has no protection from business creditors
    • LLC–simple forms to file, protects from business creditors but is considered a “disregarded entity” by the IRS
    • LLC taxed as an S-corporation–for people earning higher salaries, has access to tax advantages, gives protection against creditors
    • S-corp–has tax advantages, but requires annual meetings and bookkeeping
  • A “defensible salary”—what does it mean?

Resources Mentioned

Learn more at Opher Ganel

Check out the resources available at Taxes Case Study

Find the STC directory

Check out Brighter Vision for website help—and get your first month free!  Brighter Vision

Thank You for Listening

I know that our lives are busy, and I’m grateful that you took the time to listen to this week’s podcast. If you enjoyed today’s episode, please share it with our colleagues and friends using the social media buttons on this page. Please consider leaving an honest rating and review for the podcast on iTunes as this helps the podcast reach more of our colleagues who want to build successful practices. Finally, feel free to join over 4,000 of our colleagues who are signed up for the Selling the Couch newsletter. You’ll learn valuable tips to build and grow your practice and get the podcast episodes delivered right to your inbox. You’ll also get FREE access to The Tax Write-Off Check List for Mental Health Private Practitioners.

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