Business strategy, financial management and marketing and sales! You have started your business and you have successfully transitioned from an employee to a business owner. What are the key differences to think about during tax planning?
The key differences between a business owner and an employee during tax planning:
- Business owners often have more control over their taxable income through strategies such as expense management, where as an employee typically has a set salary
- Business owners may have access to more tax deductions such as business expenses, whereas employees typically have limited deductions
- Business owners may have more options for retirement savings including self-employed retirement plans, whereas employees typically rely on employee preferred plans
- Business owners have more control over their investment strategies including the types of investments and the timing of the investment decisions, whereas employees have limited control over these decisions
- Business owners have more control over the structure of their business such as whether to operate as a sole proprietor, company, trust, which can affect their tax liability. Employees do not have this level of control
Let’s chat about your plans for EOFY or to chat about a tax planning strategy for you and your business.
All information provided is for informational and general purposes only, and shall not be relied upon as personal financial advice.