Anna and John were both small business owners in their own right, although not yet established as such. Each were self-employed, independent contractors who were facing significant tax liability in the form of both income and self-employment tax.
They were referred to Rich & Company because they were looking for some fresh insight on creative tax planning with hopes of growing their side hustle into a legitimate business but without plans of how or where to start.
Given a more thorough review of their annual income and expenses we were able to lower their individual tax bill 30% in the first year alone. We also reviewed which entity structure would provide the most tax benefit and flexibility in terms income and self-employment tax for the years ahead. By taking a look at income projections and developing a business plan they were confident in making the decision to move forward knowing they wouldn’t be haunted by unnecessary tax burden.