Mid-Year Tax Planning for Entrepreneurs

Law Days & Lattes

Episode 14: Mid-Year Tax Planning for Entrepreneurs

Host: Sidney Wheelan

Sponsor: Wheelan Law Firm of Moberly, Missouri

Key takeaways:

• This episode focuses on tax planning strategies for entrepreneurs, specifically those related to business structures, retirement accounts, and health savings accounts (HSAs).
• Business structures:
• LLCs are popular for startups due to their simplicity and pass-through taxation (profits/losses pass through to owners' personal tax returns).
• S corporations can be beneficial for tax savings on self-employment taxes, but come with additional complexities and limitations.
• You can potentially combine the advantages of LLCs (ease of management) with S corporations (tax benefits) by electing S corp tax treatment for your LLC.
• Retirement accounts:
• Traditional IRAs, Roth IRAs, 401Ks, Solo 401Ks, SEP IRAs, and SIMPLE IRAs are all explored, with contribution limits and tax advantages explained for each.
• Choosing the right retirement account depends on your individual circumstances and business structure.
• Health savings accounts (HSAs):
• HSAs offer tax-deductible contributions, tax-free growth on earnings, and tax-free withdrawals for qualified medical expenses.
• To be eligible for an HSA, you must be enrolled in a high-deductible health plan.
• HSAs can be a powerful tool for saving for medical expenses in retirement.

Call to action:

• Review your previous tax returns and explore ways to reduce your taxable income for the current year.
• Consider the strategies discussed in this episode, such as restructuring your business or setting up retirement accounts.
• Share your own tax planning strategies with the host.

Contact information:

• Contact The Wheelan Law Firm, LLC for more information or legal help.

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This podcast episode contains general information for discussion purposes only. Each case is different and must be judged on its own merits. Missouri rules generally prohibit lawyers from advertising that they specialize in particular areas of the law. This article should not be construed to suggest such specialization. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create an attorney-client relationship, and the listening or viewing of this podcast does not constitute an attorney-client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements.