Does Your Business Cash Flow Need a Tourniquet?

Ok, you’ve stopped the bleeding from high overhead cost.

So why are you still hemorrhaging cash?
It could be due to TAXES.  The typical business pays most of these taxes:

  1. Income Tax (highest rate of 39%)
  2. State Income Tax
  3. FICA, or self-employment, taxes (highest 15.3%)
  4. Property Tax (about .1% of assessed value)
  5. Unemployment Tax (6.2%)
  6. Sales Tax (about 9% in LA)
  7. Franchise Tax

After accounting for payments to all applicable taxing authorities, some companies routinely bleed
away 65% of potential bottom-line income.

Unpleasant? Yes! Necessary? No!

No American individual is obligated to pay any more than his/her share of tax. Unfortunately, tax law has grown so complex that it is easy for anyone to commit blunders that cost them tax money. No one at the IRS or state revenue department is going to tell taxpayers that they could be keeping more money by arranging their affairs more tax-efficiently. They are neither obligated  nor trained to to tell you that.

You need someone with advanced training to make sure you don’t miss planning opportunities.  Certified Public Accountants (who are tax specialists), tax attorneys, and estate attorneys are worth their weight in gold when it comes to decisions regarding matters with tax implications. From entity choice and fringe benefits to compensation structure and federal tax elections, there are plenty of
ways to save money with smart planning!

Contact Person CPA Group today to schedule your 5-point Profitability Check Up and get your business tax liability under control.

David W Huff, CPA, PFS, MS is a partner at Person CPA Group. He provides clients with tax preparation and consulting services, accounting services, retirement plan and benefit consulting, accounting software technical support and training, and management advisory services. His specialty is helping new businesses organize their operations to maximize tax savings and move quickly fromstart-up to profitability.  You can reach David by email at: david@personhuffcpa.com