Business owners are taxed differently

Small business owners often think of their cash and their corporation’s cash as the same. But you are taxed differently than your corporation.

You are two different legal entities.  The cash the corporation generates and the cash you take out are often two different accounts.  As a business owner, you often have choices about how you take your money out of the company.

During this time of year, we see a lot of business owners come to us to get both their corporate books done, as well as their personal taxes done.

If you wait until after the year is over, you will almost always pay more tax.

Why is this? If you are proactive, then you will see the options available to you, and you can predict how much money you will pay in tax based upon those options.

If you are reactive (doing it after December), then you are limiting the options available to you, and you may no longer have the flexibility needed to save tax.

Want to save tax? It’s simple. Be proactive.

As a business owner, save money on tax by doing the right thing.  Be proactive. Know what you will pay for your taxes before the end of the year. Plan. Plan. Plan.  And then when you think you have it, plan again.  Your bookkeeper or accountant can help you decide what payment or payroll profile is the best for you.