Tax planning is the work that happens before the year ends, when the numbers can still be changed. Preparing a return reports what already happened; planning decides what happens next. I offer it to Cleveland area small business owners as a separate, flat-fee engagement, so you pay for it only when you want it, and it is most effective for clients whose books I already keep, because the numbers are current and trustworthy.
Call (216) 249-6013 or request a planning review.
What a planning engagement covers
- Entity choice and S corporation elections. Whether an LLC should elect S status, what a reasonable salary looks like for your industry and income, and when a C corporation actually makes sense (rarely, but sometimes).
- Owner compensation. Salary versus distributions, payroll tax exposure, and the retirement contribution room each choice creates.
- Retirement and benefit plans. Solo 401(k), SEP IRA, SIMPLE, and when a defined benefit plan is worth the cost for a high-income owner.
- Equipment and vehicle timing. Section 179 and bonus depreciation, and whether buying in December or January is the better answer this year.
- Ohio-specific moves. The Ohio pass-through entity tax election and its federal deduction, the Ohio business income deduction, RITA and CCA exposure when you add remote employees, and Commercial Activity Tax thresholds as revenue grows.
- Estimated payments. A quarterly schedule built from your actual numbers, so April brings neither a penalty nor a large refund you lent the government for free.
- Family and household items. Paying children who genuinely work in the business, health insurance deductions, HSAs, and education accounts.
- Exit and transition planning. Preparing a business for sale, bringing in a partner, or passing it to the next generation, with the tax cost of each route laid out in advance.
How it works
- Review. I read the last two returns and the current-year financials and build a projection of this year’s tax under the current setup.
- Options. You receive a short written plan: each recommended move, what it saves, what it costs, and the deadline to act on it. No forty-page report.
- Decisions. We talk it through, usually in one meeting, and you decide what to do.
- Follow-through. Elections get filed, payroll gets adjusted, estimates get updated, and the return the following spring reflects the plan.
What it costs
Planning is quoted as a flat fee before we start, based on the complexity of the business and the number of entities and owners involved. It is not included in monthly bookkeeping or in tax return preparation, and I will tell you plainly if a planning engagement would not pay for itself; for many small businesses, a single conversation during tax preparation covers what they need.
Who benefits most
Owners with net income above roughly $75,000 who are still taxed as a sole proprietor; S corporation owners who set their salary years ago and never revisited it; businesses adding employees in other Ohio cities or other states; owners within five years of selling or retiring; and anyone who was surprised by their tax bill last April.
Frequently asked questions
When is the best time to do tax planning?
September through November, when there is enough of the year on the books to project accurately and enough time left to act. A second, shorter check in the spring catches changes early.
Do I need to be a bookkeeping client?
No, but it helps. Planning from clean, current books is faster and more accurate, and the fee reflects that. If your books are behind, a catch-up project usually comes first.
Is this the same as the free advice during tax prep?
No. During tax preparation I point out obvious issues as a courtesy. A planning engagement is a projection, a written plan, and follow-through, with time set aside for it.
Can you work with my financial advisor or attorney?
Yes, and for retirement plans and exit planning that is usually the best arrangement.
Get started
Call (216) 249-6013 or use the contact form. Josh Katz, CPA, 3401 Enterprise Pkwy, Suite 340-387, Beachwood, OH 44122. See also monthly bookkeeping and tax preparation.
