Category: Business Planning
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Thinking of Selling Your Startup? How QSBS Lets You Keep More of Your Profit.
Taxes are a crucial piece of selling a business. As a result, the more planning done ahead of time before selling could have massive swings in the amount owed after the sale. If done correctly, Qualified Small Business Stock (QSBS) may be one of the best planning ideas to reduce taxes. While there are requirements…
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Is Your Cash Flow Holding You Back? A 3-Level Roadmap for Business Owners.
Cash flow may be the single most important financial topic for small business owners. Without money moving through the business, there is no business. Yet, many owners have found a way to consistently keep the lights on without consistently making a profit. If you feel like your company takes every dollar of revenue to run,…
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Is Buying Rental Properties a Good Idea? Why Business Owners are Drawn to Real Estate.
Why do so many business owners buy real estate? Usually, when I am reviewing the total assets of a business owner, inevitably, they own real estate outside of their home. That could be residential or commercial real estate, and usually more than one. While real estate is one of many investments, some owners value the…
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Planning to Exit Your Business? How Owners Structure Their Deals for More Post-Tax Dollars.
Different types of business sales can have dramatically different outcomes. After valuing a company and a potential buyer wants to purchase the business, the next step is structuring the type of sale between the buyer and seller. One of the most important goals for sellers is to minimize the amount of taxes on the sale.…
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How Much is Your Business Worth? The Power of Knowing the Value of Your Business.
Do you know the value of your business? Most owners don’t, and it could cost them. Even though most businesses in the US are technically small businesses, understanding the true value of these companies has not been generally accepted. Every owner who wants to sell their company will eventually go through the valuation process. However,…
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Why Should You Sell Your Business? How Business Owners Know It’s Time to Move On.
Selling a business can be a major financial life event. Especially for those who have built their business from the ground up over decades, it can be a monumental undertaking. While at some point every business owner thinks about selling their business, recognizing the right time is often a much harder problem. There is no…
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Why is Your Tax Bill Higher Than You Expected? Understanding NIIT and Additional Medicare Tax.
If you’re a high-income earner or business owner, you may have looked at your tax return and wondered, “Why does this number feel bigger than it should be?”. After accounting for income tax and capital gains tax, there are two additional taxes that get added to those with high enough incomes: Net Investment Income Tax…
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Did You Finish Your Taxes? What Kentucky Business Owners Need to Know Before November.
Shortly after all the storms in February, the IRS and the State of Kentucky delayed the tax return dates. While most people still tried to get all their taxes done before Tax Day, the truth is they technically did not need to rush. Understanding what happened, whether you are going to owe more taxes, and…
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What is Tax Loss Harvesting? A Smart Way to Cut Taxes Without Hurting Your Investments.
When markets get choppy, some clients ask for proactive ways to take advantage of everything going on. For business owners and professionals with money in brokerage accounts, they could have an opportunity to lower their taxes without altering their overall investment plan. Tax loss harvesting is a strategy that lets you use temporary losses to…
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Maxing Out Your 401k? The Mega Backdoor Roth Might Let You Save Even More
For business owners and high-income professionals looking to maximize their retirement savings, traditional options like a 401k or a Roth IRA often come with frustrating contribution limits. But what if there was a way to contribute significantly more to a tax-advantaged account? The mega backdoor Roth strategy could allow you to do so. If your…
TC Falkner 