Because there is more to your business than tax compliance.
As a business owner, your to-do list may never end. But there’s one item you can check off right now: your taxes. Our team provides small business tax solutions for all entity types across a variety of industries. For example, we serve clients in the retail/wholesale, construction, real estate development, and manufacturing industries, just to name a few. The bottom line is that with JAK + Co. on board, you’re free to focus on what you do best.
Our small business tax services include, but aren’t limited to:
Reduce Tax Bill with Professional Tax Preparation and Planning
Filing taxes—and meeting tax deadlines—is simply part of being a business owner. But taking on tax preparation by yourself can leave you with headaches and, if your tax filings are deemed noncompliant, much worse. When you work with our tax consultants, you can relax knowing you’ll be kept up to speed with the latest tax laws, tax deadlines, and tax forms. What’s more, our tax planning strategies could even help you reduce your tax bill.
Be Proactive with Tax Planning
Creating an ongoing strategy is one of JAK + Co.’s specialties. We understand taxes are a process and not simply a one-time event. To make a meaningful impact for our clients, we take the time to learn about each of our client’s businesses. This means exploring a business’ current situation as well as the expectations its owners and leadership team have for the future. Understanding where the business is headed allows the JAK + Co. team to help determine which tax strategy is best for each client.
Could You Benefit from the R&D Tax Credit?
If your business is involved in engineering, design, or manufacturing activities, it’s worth looking into the R&D tax credit. Our R&D tax consultants can help you determine whether or not your business qualifies, as well as aid you in R&D tax credit calculation. You can learn more about the R&D tax credit on our blog.
Identify Available Business Owner Tax Deductions
The IRS defines business expenses as “the cost of carrying on a trade or business,” and notes these expenses can generally be deducted by for-profit businesses. It’s a broad definition, which means it can be difficult to determine if an expense truly qualifies. Getting this right is important for many reasons. For one, getting it flagrantly wrong could put you at risk for criminal fraud. Our tax consultants in St. Paul & Minneapolis can help you identify which business owner tax deductions are available for you.
Yes, your company could benefit from the R&D tax credit if it qualifies. If your company is involved in any of the following activities, you may be able to claim the R&D tax credit:
Developing an innovative, new-to-market product
Engineering and designing a new product
Designing product alternatives
Evaluating product alternatives
Designing, constructing, and testing preproduction prototypes and models
Engineering activity to advance the product’s design to the point of manufacture
Experimenting with new technologies
Engineering to evaluate new or improved specifications/modifications in terms of performance, reliability, quality, and durability
Developing new production processes during prototyping and preproduction phases
Conducting research aimed at significantly cutting a product’s time to market
Business succession planning is more than just taking a step back from your business and setting a retirement date. Business succession planning s the process that helps you identify new leaders who can step in when you vacate your position. By planning in advance, you have more control over this critical transition. Find out more about business succession planning here.
Yes! From identifying future leaders to developing a viable succession plan, JAK + Co. can help you map out a succession plan that meets your business and retirement needs.
As a business owner, you might consider an ESOP as a way to provide a valuable benefit for your employees. But this isn’t the only reason why an ESOP might make sense. If you already thinking of an exit strategy, you want to retain quality employees, you want to diversify your investment or gain a competitive advantage – then an ESOP might be right for your business. Read this blog post for an in-depth look at why an ESOP could be right for your business.
Yes! Deciding on a business entity type isn’t as glamorous as deciding colors for your logo, but it’s just as important. The entity you choose—whether it’s an “S” corporation, LLC, or sole proprietorship—comes with longstanding tax implications, both good and bad. Our tax consultants can help you evaluate the pros and cons of each one, so you can choose the most advantageous entity type for your business. Click here to learn more about starting your business.
Yes, we can. By taking a deep dive into your business and expenses we can help determine which items are deductible. This blog post has more information on determining an expense’s deductibility.
We suggest contacting and having the following individuals on your team as you start a business:
Attorney – to assist with required business filings and general legal advice.
CPA – to assist with entity type selection, tax planning and preparation, accounting and bookkeeping, and business advising.
Payroll Provider – to assist with payroll deposits and filing requirements on a monthly, quarterly, and annual basis.
Click here to read our blog post on what to do before starting your business.
The IRS defines the QBI as follows:
Many owners of sole proprietorships, partnerships, S corporations and some trusts and estates may be eligible for a qualified business income (QBI) deduction – also called Section 199A – for tax years beginning after December 31, 2017. The deduction allows eligible taxpayers to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction. For more information on what qualifies as a trade or business, see Determining your qualified trades or businesses in Publication 535
We suggest meeting with the advisors at JAK if you have any questions about your business tax deductions.
The team at JAK + Co. not only has great internal resources, but great external resources to help you with your business operation needs. We have worked along side many of these professionals for several years and decades. If you have a need, reach out to your JAK + Co. contact and we will put you in touch with the professional we see fit.
Financial forecasting is a tool that companies use to establish a plan regarding whether it is heading in the right direction. Although budgeting and financial forecasting are often used together, distinct differences exist between the two concepts. Budgeting quantifies the expectation of revenues that a business wants to achieve for a future period, whereas financial forecasting estimates the number of revenues that will be achieved in a future period.
Once you’ve decided you want to establish an ESOP, there are five main steps to follow:
Talk to a knowledgeable ESOP consultant
Perform an ESOP feasibility analysis
Organize your records
Create your team
To learn more, click here to read a details blog post on the above steps. Or go here to set up an appointment with a JAK + Co. expert.
Self-employed taxpayers are allowed an “above the line” deduction (a deduction directly from gross income) for 100% of the cost of providing medical and dental insurance for themselves and their families. S Corporation stockholders who own at least 2% of stock are considered self-employed for these rules.
Please note that the IRS has issued commentary indicating that if these benefits are not treated properly, the greater than 2% shareholder would not be entitled to applicable deductions on their tax return.
We’ve outlined IRS per diem amounts along with reporting guidelines here.
Guidelines vary based on purpose and jurisdiction. State and Federal statutes of limitations will not lapse if complete reports are not filed (for example sales tax returns). Many of the most common records are identified here.