Proactive Tax Planning for Business Owners
Most business owners are paying more in taxes than they need to, not because they’re doing anything wrong, but because their CPA is focused on compliance instead of strategy.
The difference between a tax preparer and a tax planner can be hundreds of thousands of dollars a year.
Why Most CPAs Aren’t Enough
Your CPA files your taxes, makes sure the numbers add up, and keeps you out of trouble with the IRS. That’s compliance, and it’s important.
But proactive tax planning means asking different questions: How should you structure your business to minimize taxes? What retirement plans can defer the most income? How do we use your business to build personal wealth outside the company?
At Cinder Wealth, we work alongside your CPA to bring tax strategy to life. We don’t prepare returns, but we make sure the right strategies get implemented before year-end.
Cash Balance Plans & Beyond
If you’re in the 25-30% tax bracket and just need to bring down taxable income, an Individual 401(k) might be enough. You and your spouse could each defer $50,000-$70,000 a year.
But once you’re hitting the 35%+ bracket (around $600,000-$700,000 for married couples), a cash balance plan becomes a game-changer.
Depending on your age and income, you can contribute $100,000 to $300,000+ per year. One client layered a cash balance plan on top of their 401(k) and deferred over $350,000 in taxable income annually.
That’s not retirement planning. That’s wealth building with a massive tax advantage.
At Cinder Wealth, cash balance plans are a core part of what we do. We quarterback the design, compliance, and actuarial work so you don’t have to get bogged down with the details.
LLC, S-Corp, or C-Corp?
The way your business is structured determines how you’re taxed. And for some business owners, the wrong entity could be costing them tens of thousands or millions down the road.
S-Corp: Pass-through taxation. No double taxation. Great for most small to mid-sized businesses.
C-Corp + QSBS: If you’re planning to sell your business in 5+ years, structuring as a C-Corp and qualifying for Qualified Small Business Stock (QSBS) under Section 1202 can exempt up to $10 million in federal capital gains per owner.
We helped a client setting up a new company structure their entity as a C-Corp from day one. By making the husband, wife, brother, and brother’s wife all owners, they’ll be able to exclude $40 million in capital gains when they sell. Instead of paying 25% tax on $50 million, they’ll pay 25% on $10 million. That’s a $10 million tax savings.
That’s the kind of decision that has to be made early. You can’t retrofit QSBS after the fact.
Giving Smart, Not Just Generous
Charitable giving should be strategic, not just checkbook-based.
One powerful approach: gift highly appreciated stock to a donor-advised fund, then use the cash you would have donated to repurchase the same shares. This raises your cost basis while maintaining the same charitable impact, and you get an immediate tax deduction.
Charitable Remainder Trusts (CRTs) and private foundations can also eliminate capital gains on donated assets, provide income tax deductions, and create long-term giving vehicles that align with your values.
Making Sure It Actually Happens
The strategies aren’t secret. They’re in the tax code. The problem is execution.
Most CPAs, attorneys, and financial advisors don’t communicate. You end up playing middleman, and things fall through the cracks.
At Cinder Wealth, we don’t just recommend strategies. We coordinate with your CPA and attorney to make sure they get implemented correctly and on time. We don’t write legal documents or prepare tax returns, but we make sure the right ones get done.
Because a tax strategy that doesn’t get executed is just a good idea that cost you money.
Ready to Stop Overpaying?
If you’re earning $500K+ and paying too much in taxes, let’s talk. We’ll review your situation and build a proactive plan that works with your CPA, not around them.