What Are the Best Tax Planning Strategies for New Businesses?

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What Are the Best Tax Planning Strategies for New
Businesses?
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• Starting a new business is an exciting
  opportunity. It affords you the chance to nurture
  an idea and a mission into a company that grows
  with your efforts, creates value, and can even
  offer opportunities to benefit others. However,
  no matter your mission statement, making money
  effectively is always a fundamental goal and the
  engine driving the machinery of your business. To
  set the stage for and safeguard your success,
  its important to plan, even from the beginning.
• For example, how will you handle the tax burden
  your business may face? Having a sense of the tax
  planning strategies you should use to keep your
  obligations low will help you avoid costly
  pitfalls in the future. Lets consider a few of
  the key approaches you can use to your advantage.

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• Plan to Make Frequent Retirement Contributions
• Saving up for retirement can be about more than
  building a nest egg for the future. Making
  contributions today aids in reducing the
  reportable income your business generates for you
  and offsets some of your current tax burdens.
  Youll pay tax on these contributions later, but
  only when you make a withdrawal.
• Earn Tax Credits with Routine Charitable
  Donations
• While substantial tax credits arent always
  within reach for every business, making
  charitable contributions can earn you deductions
  that help come tax time. At the same time, you
  can engage your business with the local community
  to generate goodwill a win-win for any growing
  company.

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• Know When to Claim a CCA
• Did you know you can carry forward capital cost
  allowance claims to future years? There are
  complex rules surrounding CCAs, but you dont
  have to take the full deduction in the first year
  you can do so. By carefully planning your CCAs,
  you can create a contingency accessible for a
  future tax year that could be more financially
  burdensome.

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• Build a Family Business
• When it makes sense for your business, employing
  and paying family members in functional job roles
  can reduce your tax burden. Like other
  strategies, this effort focuses on reducing
  business income. However, by paying family
  members, you can offer valuable employment
  opportunities while tapping into skills you need
  from someone you trust.

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• Explore Incorporation When the Time is Right
• Incorporating your business can offer tax
  advantages sometimes. The numbers must make
  sense for your business. There are some cases
  where incorporation may not impact your tax
  burden at all, and others where it could offer an
  adequate reduction. Speaking to a tax
  professional about analyzing these numbers can
  make it easier to decide how to proceed.

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• Seeking Help for Better Strategy
• Every new business faces different circumstances
  and growing a small business into a successful
  platform for stability requires navigating many
  challenges. Appropriate tax planning implemented
  in the early stages of your growth makes it far
  easier to accomplish your goals as you work hard
  but it can also be a stumbling block.

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• Reion Accounting Professional Corporation is
  focused on providing high-quality service and
  customer satisfaction - we will do everything we
  can to exceed your expectations. By offering a
  variety of services including accounting,
  bookkeeping and tax planning in Calgary, you know
  your finances are being looked after by a team
  dedicated to your success. Our firm has adapted
  to the fast pace of the world we live in now, and
  assists small and medium business owners with a
  streamlined approach to their tax preparation and
  accounting needs. To learn how our Calgary
  accountants can assist you and which roles we can
  play in supporting your business, please get in
  touch today.