First, a CPA can help you develop a tax strategy. A tax strategy is different than tax planning, since a tax strategy takes things a step further. It’s a plan of action to accomplish a specific purpose, to build massive wealth and reduce taxes.
The next thing to think about is how you implement your tax strategy. To do this, you’ll need to develop your team, which will consist of you, your tax advisor, a bookkeeper, an attorney, and a banker.
Besides you and your spouse, your tax advisor is the next most important member of your team. Your tax advisor is instrumental in helping you understand and discover actions to take to reduce your taxes and relieve stress. Regular communication with your tax advisor is vital.
Tom talks with his clients on a monthly basis. Having a regular conversation allows your CPA to ask questions, learn anything that’s new with your business, and develop more actions to take.
Regular communication with your bookkeeper is important as well. Your bookkeeper and your CPA should also be communicating on a regular basis.
You need to hire an attorney and a banker to complete your team. Your attorney needs to be either a transactional attorney or an asset protection attorney. It is imperative your attorney understands and deals in multiple states as well as works well with the rest of your team. Your attorney is vital for helping you set up your entity structure.
With your direction, your attorney can help with documenting your entities, with registering with your state’s Secretary of State, and with transferring the title of assets into those entities. Your banker can help set up a new bank account for each new entity.
Once you’ve put together your team, it’s time to start taking the steps to put your plan into action. Make sure you keep track of and document your expenses. Make it a habit to scan your receipts and to look for business deductions on a daily basis.
Once you have implemented the basics of your strategy, take action every day.
Start by making it a mental habit to keep track of your documentation and discover how you can make your expenses deductible. For example, you can make your vacation deductible by choosing to talk about and do business on your vacation and having the appropriate documentation.
If you’re ready to learn how to achieve massive wealth and reduce your taxes, schedule a call with TFW Advisors® today to see how we can help you achieve your financial goals!