Each business has the option to elect a variety of tax status. The first thing you should do is look at the type of business that you are engaging in and which tax status is going to offer the overall savings for your type of operation. That’s an issue that should be reviewed on an annual basis as operations and income expenses change. The tax laws are in constant flux so you should also take a look every year at what’s going on with the tax laws. Are there particular bonus depreciation options or energy credits available this particular year, and use those. Be proactive and take a look at your business every year before year-end. You can still do something if you look at it in December, but it might be too late in January. Do look at retirement plan options and all of your employee benefit plans. Those may be able to save you quite a bit in taxes.
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