Let’s Talk Tax Planning: What is it and how will it change in 2021?

Arron Bennett, Owner of Bennett Financials, recently had the pleasure of speaking with Victoria Caldwell from The A-Players’ Podcast about tax planning for businesses and how they may be affected under the new Biden Administration.

In this podcast, he explains what tax planning actually is, when the best time is to start your business tax plan, and discusses what we know so far about Biden’s proposed tax changes and how it may affect your business.

Whether your business is new or has been around for a while, you’ll find value in this podcast. Arron shares his expertise on how to maximize cash flows, reduce tax liability, track and organize finances responsibly (and efficiently), along with many other valuable strategies.

Tax Planning Topics

Below are helpful timestamps on each topic that is discussed in the podcast:

02:21 – What is tax planning?

03:09 – Deferments reduce taxes in the current year in favor of paying those taxes in future periods.

05:18 – Are the taxes on a personal level or on a business level?

05:52 – How does the new administration affect tax planning in 2021?

08:46 – Do the tax laws traditionally change with each administration change?

10:29 – What is the optimal time to do tax planning?

15:09 – For established businesses, what is the best thing to do now?

18:39 – Should the business be structured as an LLC, an S Corp, or a C Corp?

22:19 – Is there an ideal revenue for switching from LLC to S Corp?

23:20 – Tax planning won’t work without a certain amount of cash in the business.

25:16 – What is an accountable plan?

26:11 – Augusta strategy explained.

31:45 – Good strategies for smaller businesses to save on taxes.

35:32 – Why Arron doesn’t recommend going from S Corp to C Corp.

36:32 – You should do tax planning every year.

37:53 – Does intellectual property factor into the business structure and tax planning?

39:29 – What if those structures are not earning income and they’re trying to protect the asset itself?

About Bennett Financials: Based in Oak Ridge, Tennessee, Bennett Financials is an innovative financial services provider excelling at helping service-based businesses grow and operate as cost-efficiently as possible. Through their consultative approach to tax planning and CFO services, they are quickly emerging as an industry leader.

This article is for informational purposes only and not intended to be legal or official tax advice. We always recommend discussing with your attorney or tax professional to determine how this information affects your specific situation.

If articles like these interest you, consider subscribing to our blog. We also have valuable resources and downloadable guides that may be of interest to you. We also offer FREE tax planning consultations. Give us 45 minutes, and we can show you how much you could be saving in business taxes.