Welcome to Renancial: Your Complete Tax Planning Partner
At Renancial Consulting, CPA, we specialize in strategic tax planning services tailored for both individuals and businesses, aimed at optimizing savings, minimizing liabilities, and securing long-term financial success. Our expertise extends beyond traditional tax compliance; we’re dedicated to crafting personalized tax strategies that align with your unique financial goals.
Individual and Business Strategic Tax Planning Services:
From individuals seeking to optimize personal tax planning to businesses aiming for strategic tax management, Renancial Consulting, CPA, offers tailored services. Our approach revolves around delving deep into your financial situation to create strategies that maximize benefits while minimizing tax liabilities, irrespective of whether you’re an individual or a business entity.
Tailored Strategies for Maximum Benefits
Our team is adept at identifying opportunities for tax optimization for both individuals and businesses. By staying updated with the latest tax laws and industry trends, we ensure that our strategies are not only effective but also compliant with the ever-evolving tax landscape, offering personalized solutions for each client’s unique situation.
Your Trusted Remote Financial Partner
Renancial Consulting, CPA, isn’t confined by geographic boundaries. While rooted in Frisco, Texas, our remote services extend across all states, providing our expertise to clients nationwide. Whether you’re an individual seeking personal tax planning or a business in need of strategic tax management, our team is equipped to serve you remotely with the same high-quality services.
Experience, Success, and Client Satisfaction
With decades of collective experience in accounting and finance, Renancial Consulting, CPA, has a proven track record of success. We’ve guided numerous individuals and businesses toward significant savings through our strategic tax planning services, contributing to their financial growth and success stories.
Renancial Consulting, CPA, invites both individuals and businesses to explore the possibilities of strategic tax planning. Contact us today to schedule a consultation and discover how our remote services can revolutionize your financial outlook, regardless of your location. Let’s navigate the intricacies of tax planning together and pave the way for a financially secure future.
S-Corp. – Reducing Self-Employment Tax
S-Corporation is one of the most effective tax planning tools. While it is not a legal form, it is a tax status and it is chosen primarily for tax savings. S-Corps allow business owners to reduce their self-employment tax burden. Self-employment tax covers both the employee and employer portions of Social Security and Medicare taxes, and this can be significant for small business owners who are sole proprietors or partners. By electing S-Corp status, a business owner can divide their income into two parts: salary and dividends. The salary is subject to self-employment tax, but the dividends are not. This allows business owners to potentially save on self-employment tax (only on dividends).
But can I classify all their income as dividends and avoid self-employment taxes? The IRS does not allow that, actually taxpayers who attempt this run the risk of making all their income subject to self-employment taxes.
It is important to highlight that that the self-employment tax rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on self-employment income up to the Social Security earnings cap. If your self-employment income exceeds the cap, which is expected to reach $160,200 for 2023 (Yes, it may vary from one year to another), you will still be subject to the 2.9% Medicare tax on the entire income. Accordingly, the highest savings are realized if a tax payer makes an annual income close this cap.
The tax savings are less if the annual income is significantly lower that the cap (because the reasonable salary will be too low to realize any benefits) or if the income is way higher than this cap because in this case the reasonable salary may be higher than the cap itself! In this latter scenario the benefits still exist but it will have a lower impact because the taxpayer has already reached the cap for SS tax anyway, so instead of saving the full 15.3% the tax payer will only safe the 2.9% Medicare portion.
LLC vs.S-Corp Election
It’s important to note that business owners need to form an LLC before they can elect S-Corp status. An LLC is the base structure, and you can then choose S-Corp taxation by filing the necessary paperwork with the IRS. This combination provides the liability protection of an LLC while taking advantage of the potential tax savings offered by S-Corp status.
Count on Renancial Consulting, CPA as your steadfast ally. Schedule your complimentary consultation today and experience our unwavering commitment to your financial success. https://renancial.com/contacts/
Ryan Osman, CPA, MBA https://www.linkedin.com/in/raafat-osman-cpa-mba-b0991423/
Q&A about Tax Planning Services:
Q: Can Renancial Consulting help me if I am not located in Texas?
A: Our motto is “local roots, national reach!”
During the pandemic many companies adjusted to cope with the remote work requirements. At Renancial we didn’t just cope, we embraced the remote work culture and developed the tools to maximize work productivity. Today we stand to offer our clients seamless experience at very competitive rates.
Q: Does Renancial offer tax planning services to small businesses?
A: Yes, we offer tax planning services to small business owners and to individuals as well.
Q: How does Renancial Consulting, CPA, approach strategic tax planning differently for individuals and businesses?
A: Our approach involves tailoring strategies to fit the unique needs and objectives of individuals and businesses. For individuals, we focus on optimizing personal deductions and retirement savings, while for businesses, we aim to enhance cash flow and investment opportunities.
Q: Can Renancial Consulting, CPA, provide specialized tax planning for different business sizes and structures?
A: Absolutely. Our expertise covers a broad spectrum, allowing us to cater to businesses of varying sizes and structures, offering customized tax planning strategies aligned with their specific requirements.
Q: What are the benefits of strategic tax planning for individuals and businesses?
A: Strategic tax planning can significantly impact savings. For individuals, it can maximize deductions and retirement savings, while for businesses, it can improve cash flow, investment opportunities, and overall financial health.
Q: How does Renancial’s business accounting services support small businesses without dedicated accounting teams?
A: Our tailored bookkeeping services are designed specifically for small companies, streamlining financial records and ensuring efficient management of finances without the need for a dedicated accounting team.
Q: Can Renancial assist businesses in managing cash flow effectively?
A: Absolutely. Our treasury services focus on mastering cash flow management, supporting businesses in ensuring a healthy and sustainable financial position.
Q: How does Renancial ensure personalized solutions for businesses with unique needs?
A: Renancial’s client-centric approach involves a deep understanding of each business’s financial requirements, enabling us to craft bespoke solutions that align with their specific objectives and challenges.
