The end of the year is fast approaching, and if you haven’t already done so, it’s time to plan for 2018. Business planning can be a complex process, especially when it comes to setting financial goals and minimizing tax obligations. However, when you have access to all the information you need and consult with your attorney about the intricate legal implications of your business operations, you can put together an ironclad plan to implement in the new year.
Get Your Books Together
Your first item of business is to make sure your books are in order. Careful record keeping is key to effective tax planning, and having all your financial documents, receipts, invoices, and other records in one place will help considerably when it comes to minimizing obligations to the IRS and preserving your bottom line.
In addition to financial records and statements, you will also need to get all necessary tax documents together. The forms you use will depend largely on the sources of the income you’ve received throughout the year, what shares in entities you have, whether you have employees, and so forth. Some of these forms include:
- 1099s of numerous types for various forms of income
- 1095-A for health coverage
- 1098s of various types for interest, tuition payments, etc.
- Schedule K-1s for ownership interest in entities
- W-2 if you’re an employee
These forms are crucial for reporting income and putting together an effective tax plan for the new year. Not only are they a necessary part of filing for your return, but they can also give you a clear picture of what your finances look like and how they will impact the way you handle your finances in the future.
Assess Your Finances and Goals
Once you have all your documentation in one place, you’ll need to compare your financial situation to your goals for the year. Adjustments may be needed when it comes to setting goals for the coming year, especially if you earned more or less from one source or another than you anticipated.
In addition, your business entity type will have a significant impact on your tax obligations, and it may be time to make some changes to your corporate structuring if you wish to minimize that liability. A skilled corporate attorney can assist you through that process, including navigating the administrative requirements and paperwork necessary to incorporate within the state.
Consult with an Expert
Your tax preparer or a tax attorney can assist you throughout the process of getting ready for the new year. There are numerous laws to bear in mind, and the tax code itself is constantly evolving, meaning you need someone who is up to date on current legislation. An experienced corporate tax lawyer will remain meticulously current on the latest changes in the law while also providing you with time-tested tactics for improving your bottom line and reaching your goals for the new year.
Whether you are considering updating your business’s structure or simply need advising on how the current IRS code applies to your situation, Hart David Carson can provide you with the legal advising you need when planning for the new tax year.