Most business owners think that the only time to think about their taxes is when its time to do their taxes but waiting till you do your taxes to hope that you get the maximum credits and deductions is actually the latest opportunity to minimize your tax liability. A top reason that most business owners overpay on taxes is that they have the incorrect business tax structure.

Wondering what is the best way to give the IRS more of your hard earned money, its by having your business reported on a Schedule C. If that's you, chances are you are overpaying on taxes. Not only are you paying more on taxes, but you also have the highest chance of being selected for an IRS audit compared to those that have their businesses structured differently.

When you don't set up a business tax structure for your business, the IRS default is reporting on the Form Schedule C and as a result the IRS is helping you put more money in their pocket instead of in yours.

When your business is restructured to be a Partnership, S Corporation or sometimes C Corporation depending on your specific business, you are able to maximize on the IRS tax code savings meant for YOU. The IRS default of having your business be a Sole Proprietor with reporting on your personal return is a common way that businesses report their business when they are unaware of a better way or dont want change. The best way to increase your business bottom line aside from increasing in revenue and decreasing expenses is to have a tax plan in place to lower your tax bill so that you are confident knowing that as you grow your business you are using more of your profit for yourself and your business instead of paying too much tax.

Interested in learning more about if you have the right business structure and need assistance making a change?