Tax Incentives for Business Owners

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Many Business Owners Unaware of Tax Advantages of Offering Benefits

As a business owner, the federal government encourages you to provide benefits to employees by offering tax incentives. What some owners don’t realize is that the tax advantages may offset some, or in a perfect scenario, all of the costs associated with implementing these plans.

Often, and particularly for smaller companies with fewer employees, the cost of the employee benefit can be partially or completely offset by the tax advantage to the shareholders, owners, and highly compensated employees of the company. Tax advantages are also available to sole proprietors.

The first step in determining if any of these benefits may be appropriate for your company is to perform an analysis of the current plans in place and see if implementing additional programs would make practical and economic sense.  For example, instituting and maintaining a qualified retirement plan can provide you, as the employer, with benefits that enable you to make the most of your business’s assets in addition to saving for the future. Such benefits may include:

– Tax-deferred growth on earnings within the plan.

– Current tax savings on individual contributions to the plan.

– Immediate tax deductions for employer contributions.

There are different types of plans and different benefits associated with each: Defined Benefit, Defined Contribution, SIMPLE, SEP, 401k, Profit Sharing plans, etc. As a business owner, one of the most important steps you can take is to seek the advice of an accountant, attorney, benefits specialist, or financial advisor before implementing any plans into your current business structure. Rules and regulations for group benefits vary and are complex. It is important to understand the different types of plans and the tax benefits associated with each.

Niche Registered Investment Advisory Services, LLC advises business owners and sole proprietors in what types of employer level benefits may be applicable to their individual situations. There is no fee for an initial consultation.

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Whether you’re considering making a change or still evaluating the alternatives, Niche Registered Investment Advisory Services, LLC can help you make an informed decision.

Download the FREE Business Owners Guide: “Tax Advantages of Group Benefits”(PDF)

This informative guide provides an overview of some of the tax advantages available to business owners.  


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Download the complimentary guide:

“Tax Advantages of Group Benefits for Business Owners” – PDF