As a small business owner, you may do your own taxes, or you may have someone prepare your taxes for you each year. However, you should give consideration to using a tax consulting service company. Not only will they prepare your taxes, but they can give you advice in many areas of your business that can save you tax dollars. They can also advise how to plan for the growth of your business that will minimize your tax bill in the future. The following are just a few things that a tax consultant can do for your business.

They can provide you with tax advice on equipment purchases

There may be equipment you want to purchase in the near future that may help your business expand. For example, you may be thinking about buying a used piece of equipment that will increase your business's productivity. A tax consultant may explain that when you factor in the tax implications of this type of purchase, it may be a better idea to purchase a new piece of equipment because of the tax write-off for depreciation. In general, every purchase you make of an asset will have an optimal strategy related to your taxes.

They can provide you with advice on incorporation

You don't have to be a large business to incorporate; even a small business can do so. Whether it is best for you will be based upon your specific finances and tax considerations. One advantage that incorporation offers is that it will protect your private assets from a lawsuit. When someone wants to sue your business, they will have to file a lawsuit against the corporation. Your private assets are protected. There may also be ways that you will save money by separating your corporate taxes from your individual taxes.

They can provide you with advice on employee benefits

There are a variety of benefits that you may want to provide to your employees, including a retirement plan. A tax consultant can advise you on the type of benefits package that will be the best fit for your business. Naturally, they can integrate this advice with any tax consequences that relate to these benefits. Other common benefits provided by employers are health and life insurance. There are often tax deductions related to these employee benefits.

Without the advice of a tax consultant, you are not likely taking advantage of all the tax savings could benefit from. A tax consultant will not only prepare your taxes, but also offer valuable advice on asset purchases, employee benefits, and business incorporation.