Listener Q&A with Mike Jesowshek CPA

In this episode, Mike Jesowshek answers various listener questions regarding tax strategies, S corporation elections, hiring children for tax benefits, and setting up retirement plans for businesses with non-owner employees. The episode emphasizes the importance of structuring businesses correctly to maximize tax savings, including the considerations for S corporation status, late elections for business structures, the benefits of hiring family members, and the intricacies of purchasing a business and tax implications. Mike also discusses the potential of setting up retirement plans for employees as a tax-advantageous move for small businesses.[00:00 - 00:36] Introduction to Q&A Session[00:36 - 10:10] Q&A with Mike Jesowshek, CPA part 1Mike discusses the permanence of S corp elections and the possibility of revoking them.He explains the conditions under which a late S corp election can be made for businesses already in operation.Employing your children in your business for tax advantages has benefits.Mike discusses the tax implications of seller-financed business purchases and the importance of understanding the nature of the purchase (asset vs. stock sale).How the capitalization policy for items under $2,500 affects tax deductions.[10:10 - 23:50] Q&A with Mike Jesowshek, CPA part 2Owning multiple LLCs under one holding company can simplify tax filing and considerations for asset protection.Separating entities based on active participation versus passive income sources, such as rental properties is important.Mike gives an overview of retirement plan options for small businesses and the tax benefits associated with offering them to employees.What is the best setup for businesses operating between California and Florida?Mike’s advice on consolidating tax filings for multiple LLCs under a Wyoming LLC, emphasizes the need for legal advice on asset protection.What about hiring young grandchildren and its tax implications?Setting up a separate LLC for Airbnb or furnished property businesses.What are the tax benefits and options for setting up retirement plans for small business employees?[23:50 - 24:14] Closing SegmentDirect Quotes:"Hiring your kids is potentially a great way where you can get a business deduction and they pay no income taxes on that income, again, potentially." - Mike Jesowshek, CPA"You cannot save taxes by simply learning tax strategies. You save taxes when you learn them and then you implement them." - Mike Jesowshek, CPA"If you're starting a new business, start that business where you're operating. That's going to be the easiest piece." - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/IncSight Packages (Full-Service): https://incsight.net/pricing/Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com/@TaxSavings