Client had done their own books for the previous year. Once they filed for their taxes, they felt the tax bill was higher than they anticipated. They had us do an audit of their previous year’s books and we found over $17,000 in missed deductions. We then set them up correctly as an LLC with an S-Corp election to ensure we could increase their tax efficiency moving forward.
Client received an additional $7,600 in tax savings for the previous year. Then, with proper entity structure saved even more money from eliminating a good portion of self-employment tax within their business. We also set them up on an appropriate salary to maximize tax efficiency. Through implementing a few creative tax strategies we were able to move more money from her business account to their personal, income tax free.