1

Business Basics & Tax PlanningAnswers for the Small Business Owner

Presented By: IFS Consulting Group, LLC

2

With SCORE, You Are Not Alone on Your Journey

For over 50 years, SCORE has served

as America’s premier source of free

business mentoring and education.

As a resource partner of the U.S.

Small Business Administration (SBA),

SCORE has helped more than 11

million entrepreneurs through

mentoring, workshops and educational

resources since 1964.

3

SCORE Can Help You Find the Way Ahead

• Free one-on-one business

counseling and mentoring

• Business advisory services

• Low cost local workshops

• Free templates and recorded

webinars

To meet with a mentor or learn more

about SCORE’s resources, visit

washingtondc.score.org

4

Self Employed Professionals Have Three Common Struggles

• Managing their tax liability

effectively

• Planning for retirement

• Getting loans and financing

*This workshop is intended to provide basic information to address each area

5

Getting Started

6

Do You Want to Be in Business or Do You Want to Have a Company?

• Business – is the activity of making

one’s living or earning money by

producing or buying and selling

products (goods and/or services).

• Company – a legal entity made up of

an association of people, be they

natural, legal, or a mixture of both for

the purpose of carrying on a

commercial or industrial enterprise.

7

8

9

10

Seek Professional Guidance

Score Mentors

SBA

Small Business Development Centers

Shopkeep Small Business 101

Business USA

Entrepreneur.com

Trusted Experienced Business Owner

11

Guidance Should Help You:

• Identify where you are

• Clarify where you are going

• Understand what’s needed to help

you get where you are going

• Simplify the process of getting

there

12

John Doe

is not

“aka”

JD Enterprises

13

Establishing the Businesses Identity

• Create a distinguishable business name & logo

• Create business letterhead

• Establish a company website & email address

• Business name on business cards

• Establish a business address office away from home

• If appropriate wear clothes with the company name & logo

• Establish a separate social media identity for the company

• Business bank account, credit cards, debit cards, etc.

• Have a separate business phone number

• Use public listings sources e.g. yellow book, white pages, etc…

14

15

The Importance of Being Organized

Time is not money, but time spent needlessly

because of inefficient processes and poor

management strategies can be and often is very costly!

16

The Importance of Being Organized

• Maintain income statements & balance

sheets

• Always use contracts and agreements

when applicable

• Establish a designated voicemail for the

company

• Use the company mailing address for

business

• Define & list the company’s business

hours

• Use stationary with the company’s

name & logo

Operate as a company

17

Establish a System of Paying, Receiving & Recording Compensation

18

Use Expense Sheets to Record, Track, & Manage Expenses

19

Income Statements & Balance Sheets

20

21

Tax Strategies for

Self-Employed

Professionals

22

Tax Cuts & Jobs Act Impact on Business Owners

• Changes in the corporate tax rates

• 20% Deduction for pass through

entities

• 100% depreciation option

• Reduced individual rates

• Bigger vehicle tax breaks

• No more client entertainment

deduction

23

What can I

do to lower

my tax rate

24

Income Shifting

25

Reclassifying Expenses

This is not a vacation….

I’m working in the field…

26

Tax Planning Strategies Continued…

• Using dividends

• Company

contributions

• Qualified savings plan

27

The Advantage of Dividends

28

Retirement….

It’s all on you!!!

29

This doesn’t have to be your Your Retirement

Plan?

30

Retirement Savings

As “Old” Joe Friday Would Say …!

31

The Individual 401(K)

32

Individual 401(k) vs SEP

Contributions using an Ind-K

33

Individual 401(k) vs SEP

34

Questions?

35