With the corporate filing deadline a few days away and personal taxes due in a little more than a month … you can’t deny that tax time is here. Bootstrapping teaches owners to try and keep expenses low. This is generally a good thing unless you’re planning on preparing your own taxes. As a small business or startup you really should have the input of a CPA. Even if you’re revenues are small it’s important to have someone who stays on top of the changes in the tax laws and knows the best way to structure transactions in ways that maximize your upside and minimize the downside. One area that many small business owners get into trouble is in the over use of draws in a S-Corp. If not done correctly you could expose yourself to personal tax liability unnecessarily. Instead of spending $80 on software that will help you do the math…it’s better, in my opinion, to spend $600 and get professional advise. Your tax situation is unique and the cookie cutter approach is a recipe for disaster. Don’t under estimate value of professional advise. It often pays for itself very quickly.
