With the exceptions of the IRS and accountants no one may love taxes. However, it is impossible to ignore the massive differences in tax burdens and net wealth between those that tackle them, and leverage the legal tools at their disposal, and those that bury their heads in the sand.
Aside from have a great tax accountant, five of these tax tools which can be specifically beneficial for many Long Island small business owners are…
1. Startup NY
Startup NY could offer many Long Island entrepreneurs some serious tax freedom. Those starting new businesses, expanding existing New York companies or relocating in, could find corporate and income tax breaks, as well as new space to house their operations.
2. Self-Directed IRAs
Self-directed retirement accounts provide control over investments for securing superior performance, while enjoying tax free or tax deferred returns. Through their self-directed IRAs Long Islanders can invest in a wide variety of products from real estate to mortgage notes and more.
3. 1031 Exchanges
These tax exchanges haven’t found much room in the media lately, but have been used for deferring taxes when restructuring portfolios for years. Why take the big tax hit when you don’t have to?
4. Captive Insurance
Captive insurance companies have experienced major growth in the last few years. As more business owners come to understand the wide variety and depth of their benefits, which go far beyond taxes, more and more are being set up. While the majority of Fortune 500 companies use them, these giants are now far outnumbered by smaller family run businesses. America is now home to 4 of the top six international domiciles of captive insurance companies.
5. Property Tax Grievances
Many Long Island business owners are also homeowners, yet forget to watch the tax that is attacking them in their own back yard. Property tax are a huge drain on both businesses and the individuals that run them. From CEO to secretary those hit hard by high property taxes suffer. Everyone takes home less money, and then pays out more of that on their residences. On Long Island it is no secret that many bills are incorrect each year. With the help of a LI property tax adjuster bosses and their crews can enjoy keeping more of what they earn by filing a grievance and correcting tax assessments.