Can Professional Tax & Accounting Help with Asset Protection?
Tax and accounting 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 tax and accounting help with asset protection strategiesi are a good combination.
Tax and Accounting Help with Business Structure
The business’ legal structure is one primary and highly valuable service provided by tax and accounting organizations. 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.
Tax and accounting 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.
Tax and Accounting 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 tax and accounting organization on your side to help in formulating strategies and in proper reporting of taxes. Also, the tax and accounting organization 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 Tax Hive website, there is a highly informative article titled “The 4 Most Overlooked Asset Protection Strategies.” The tax and accounting group 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 tax and accounting group 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 professional 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.
Tax and accounting groups like those at Tax Hive 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. Tax and accounting help for asset protection strategies is valuable as a protective strategy as well as for tax savings.