Can a CPA Help with Asset Protection Strategies?
CPA help comes in various service packages, and some include help with asset protection strategies. Business owners are constantly seeking ways to cut expenses, and at times that is accomplished through selection of service providers that package multiple services for that business type. It is logical to wonder if CPA help with asset protection strategiesi are a good combination.
CPA Help with Business Structure
The business’ legal structure is one primary and highly valuable service provided by CPA firms. It is also one of the most common and valuable asset protection strategies. The sole proprietorship business structure and most partnerships offer no protection of the business owner’s personal assets. Everything the owner(s) have is at risk from business creditors or lawsuits.
CPA help involves discussions with the business owner of other legal structures that can work for the business and offer asset protection. Corporations, LLCs (Limited Liability Companies), and S-Corporations all offer levels of protection from creditors and adverse legal action.
CPA Help with Trust Structures
Trusts are another extremely popular way in which assets can be protected. They also are scrutinized by the IRS, as there can be tax advantages in trust formations to go along with asset protection goalsii. When it comes to taxes and the IRS, you want a CPA firm on your side to help in formulating strategies and in proper reporting of taxes. Also, the CPA that is approved for practice in front of the IRS can be with you in audit situations to explain tax form entries and answer questions.
Overlooked Asset Protection Strategies
At the Taxhive website, there is a highly informative article titled “The 4 Most Overlooked Asset Protection Strategies.” The CPA firm can help both with taxes and protecting your valuable possessions from creditors and lawsuits. Four overlooked strategies are:
- Qualified Retirement Plans – IRS qualified plans include money purchase plans, profit sharing plans, pension plans, 401(k)s, or 403(b)s.There are some lucrative taxation benefits that your CPA firm can explain.
- Fringe Benefit or Non-Qualified Plans – Though the IRS does not recognize some fringe benefit and some retirement plans as qualified, there are still tax savings advantages involved. Get CPA help with this.
- Captive Insurance Companies – For businesses that have significant expense line items for insurance such as malpractice, liability, or litigation, owning an insurance company and purchasing coverage from it is an excellent strategy.
- Cash Value Life Insurance – This type of insurance policy offers a few financial benefits as well as asset protection features in some states.
CPA firms like those at Taxhive are experts at all aspects of business finances, taxation, and asset protection. The wise business owner will seek expert advice, preferably before making decisions in regard to asset protection. CPA help for asset protection strategies is valuable as a protective strategy as well as for tax savings.
Phrase CPA help at 1.6%
Phrase “asset protection strategies” at 1.4%