Financial Planning for Business Owners

If you own a business, your taxes are inherently more complicated than those of a W2 employee, but you also have excellent opportunities to lower your tax bill that the W2 employee does not have at their disposal. You can also exercise a greater degree of control and flexibility over your retirement

Financial Planning for Business Owners

Owner Income Deferral

Many business owners can utilize defined benefit plans (such as a cash balance plan) to defer a much larger portion of their income than what is allowed with a 401(k), SEP IRA, or other commonly recommended retirement plans. In addition, did you know that you have until your tax filing deadline, including extension, to establish and fund a cash balance plan for the previous year?


Ben, a 40 yr. old entrepreneur wants to defer as much of his 2021 income as possible. He is a sole proprietor and files a Schedule C. It is July of 2022, and he has filed an extension. The IRS algorithm allows him to establish and fund a cash balance plan deferring nearly $302,000 of his 2021 income. This saves Ben over $100,000 in taxes for 2021. FYI, this could not have been accomplished with a traditional retirement plan.

*This is a hypothetical example and is not representative of any specific investment. Your results may vary. 

Business Succession Planning

A good financial plan begins with the end in mind. You may plan to sell your business, pass on ownership to your children or employees, take your company public, or explore other options. Thinking clearly about your future and eventual pathway to retirement allows us to identify the best tax-saving opportunities for you and structure your plans to give you the flexibility you need.

Employee Stock Ownership Plan (ESOP)

Is it time to take some chips off the table? An ESOP is an excellent way to do exactly that, unlocking countless opportunities to take your business, your employees, and your community to the next level.

An Employee Stock Ownership Plan, or ESOP, is an employment benefit that allows a company's employees to own shares in the business and benefit from potential share growth in value over time. ESOPs are qualified plans with defined contributions, meaning they meet the IRS standards for receiving special tax exemptions and benefits. Ultimately, you the business owner receive a big pay day today while maintaining control of the business if you desire

A Better Way for Your Business to Pay For Major Purchases

What if paying cash for purchases isn't the best way? After all, every time you pay cash for an item such as equipment or inventory, opportunity cost is incurred on the money spent is incurred. That is, the opportunity to earn on your money had it stayed invested is now gone forever. And the meter on opportunity cost doesn't end until you die. For example, if you could earn 5% on your money, paid $100,000 cash for a business purchase, were 50 years old, and lived to age 90, your total opportunity cost would be $635,842. But what if instead we showed you how to build an equity base and then borrow against it to make that same $100,000 purchase, essentially leaving your money to compound while paying back "your bank" the same money you've been putting away to begin with? And what if you personally lend the money to your business, charge your business a fair interest rate for borrowing, and your business could write off the interest payments? How much value could this strategy bring to you and your business?

Business SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats)

Our extensive experience working with business owners allows us to bring a bird's eye perspective to the critical areas of your business that may need attention, such as insurance coverage, liquidity risk, employee benefits, and utilizing your capital in the most effective way. 

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