What are the best tax deductions and tax loopholes for concrete coating companies?
We love helping concrete coatings companies & epoxy garage floor contractors.
Whether you’re a Penntek dealer, part of Hello Garage, or any other epoxy garage floor contractor, we’d love to help your business scale forward and upward.
Concrete Coating & Epoxy Garage Floor Companies Often Overpay in Tax & Get Stuck Because of Mediocre Accounting.
We are going to provide you with the best write-offs and tax reduction strategies possible, but we wrote this so that we can actually introduce ourselves and hopefully earn your business
If you're building a serious business, you need a serious accountant.
We don't just handle the accounting and bookkeeping, we make sure that you get proactive, aggressive tax reduction strategies throughout the year.
We specialize in helping concrete coating companies with their bookkeeping, accounting and taxes - but what we really do, is serve as an outsourced accounting team that just handles everything, so your team can focus on what it does best.
Never waste admin time or energy doing bookkeeping again.
How can you reduce your federal income tax, social security tax and medicare taxes as a small business doing concrete floor coatings or epoxy garage floor coatings?
The first, and usually best” tax write off” or deduction for an Epoxy Coating Company is to maximize an S-Corp.
We help contractors setup, convert to, and maximize their S-Corporation Elections.
An S-Corp might allow you to save thousands a year in social security taxes and medicare taxes.
Is it better for a concrete coatings company to be a Sole Proprietorship or an S-Corp?
We’ll be frank, it’s almost always a good idea for concrete coating companies to convert to an S-Corp vs. an LLC.
The key is that you need to be as aggressive and shrewd as possible, while also obeying the IRS rules around taking a “reasonable salary”.
Here’s a quick summary of what it means to convert to an S-Corporation.
Out of the box, your company will be taxed as a sole proprietorship Unless you convert to an s corporation.
that means if you had gross revenue of $250,000 and you were left with a $150,000 net profit, you will owe Social Security taxes and Medicare taxes on all of that income, up to the Social Security limits.
Social Security and Medicare taxes are substantial costs for the average business.
your Social Security taxes are what fund Social Security retirement benefits as well as Social Security disability.
it's worth noting that as soon as your concrete coating company starts to have net profits higher than about 60,000, it's often worth it to consider converting to an s corporation.
as the owner of an S corporation, you will split your income in two different ways.
first, you will actually become an employee of your corporation and the company will pay you a reasonable salary and actually give yourself a paycheck.
this salary portion of your income will be subject to the Social Security and Medicare taxes that we talked about earlier.
the second type of income will be your owner's distribution, and this is not subject to self employment taxes
all the income that is taken as the owner distribution will experience about 15.3% less in taxation which can save you a ton of money.
this leads a lot of people to only pay themselves a reasonable salary that's far too low and can get themselves in trouble
the IRS understands that business owners will be enticed to take an unreasonably low salary compared to how they participate in the business, leading to unfair outcomes.
the IRS has made rules that each business owner must take a reasonable salary, which means you should dynamically measure and weigh how you participate in the business in order to compensate yourself on the payroll side.
the key to reducing taxes for concrete coating companies in an S corporation versus an llc, is to have an excellent accountant and tax strategist guide you to be as aggressive as possible while simultaneously
We will help you set up and manage your s-corp which will probably save your concrete coating company or epoxy garage floor coating a ton in taxes
For somebody making about $150,000, you might see savings in Social Security and Medicare taxes to the tune of $3,000 to $10,000 a year.
The S corporation is a dramatic tool for tax mitigation.
That's why our first and most important tax reduction strategy or tax write off for concrete coating contractors is to set up and maximize an S corporation versus an LLC.
The second vitally important tax reduction strategy or tax write-off for garage floor epoxy contractors and concrete coating companies, is to utilize small business retirement plans.
We've all heard people tell us how important it is to be investing but very few people are taught the super tax efficient small business retirement plans.
As a small business owner, you can utilize small business retirement plans to give yourself giant tax write-offs
Employer Side Contributions Are Massive Tax Write Offs!
You know the company match you used to have with your 401k?
That part of your benefits package where the company would put their own money into a retirement plan for you?
That was called the employer contribution and the part you put in was the employee contribution.
Employer contributions go from the corporation, into employees retirement plans, and they are massive tax write-offs for the business.
Your Concrete Coatings company could write off nearly $60,000 directly into an investment for owners and stakeholders
Retirement plans have many rules and constraints, so you'll want to work with a tax professional to help you understand which instruments might be right, and then you'll need to actually work with an investment professional to choose investment selections.
You have to be extra careful if you have employees
Business owners cannot discriminate and give themselves lots of contributions while ignoring their employees.
If you have W2 employees, your limitations and options for retirement plans must include them just as much as it would include you and your family.
For the most part, you have to offer your employees the same benefits you're offering yourself.
If you have all subcontractors and no W-2 employees, which means you have no statutory employees, that means you can utilize individual 401K plans from organizations like Vanguard or Schwab.
Solo 401ks are super juicy, incredibly powerful tax savings tools.
You can take up to 25% of your S corporation salary, or of your net profit in a sole proprietorship, and do a direct employer contribution from the business.
Employer contributions in a retirement plan avoid Social Security and Medicare taxes and are only taxable for the individual when you take the money out in retirement.
This means every employer contribution will enjoy a 15.3% return almost immediately (effectively)
Even if you're a small Concrete Coatings company we can help you identify the proper small business retirement plan to meet your goals, and ensure that you don't make any mistakes along the way.
Some small business retirement plans allow upwards of $60,000 or even $275,000 (defined contribution pension plan) a year to be deducted in a single year.
Don’t miss out on another tax reduction opportunity, book a tax reduction analysis call today and we’ll help you identify and implement all these great tax reduction strategies and tax write-offs / Tax Deductions.
So the second best tax write off or tax reduction strategy for an epoxy garage floor contractor or concrete coating company is to utilize small business retirement plans
If your kids work for the business the income earned up to the standard deduction will essentially be income tax free
The third best opportunity for tax write-off is to involve your minor children in your business so that you can pay them and they can enjoy the standard deduction.
it's important to note that your children need to be of the right age, and they need to actually participate in the business at an official level, and then you'll be able to pay them.
When children work, they get their own tax return, and they will enjoy the same standard deduction as you will.
In an S corporation you don't get the opportunity to avoid Social Security and Medicare taxes pay to your children, but there are exemptions for regular sole proprietorship family businesses that allow children to avoid Social Security and Medicare taxes.
There are many other considerations to make when deciding to involve your children in the business, and it's not right for every single family.
All of these tax Strategies work together and there can be trade-offs throughout the year and decades.
If you're not hiring your kids for all sorts of different things within your business, you're probably missing out on a way to enhance your business, lead your children, and enjoy some really juicy tax efficiency.
The third best tax write-off in strategy for concrete coating companies is to hire your kids and enjoy the standard deduction
The fourth best tax write-off for epoxy garage floor coating companies is to invest and Buy and Hold rental real estate and have your S corporation rent from you.
Rental income is not subject to self-employment taxes and it enjoys additional tax mitigation through depreciation, cost segregation and all sorts of business deductions.
Over the long haul, it usually makes sense for a business to strategically purchase an office building under one llc, and then have the S corporation rent from that investment property company.
This would mean that you would be shifting income from an entity that is subject to self employment taxes, over to an entity that does not have self-employment taxes.
Not only will this LLC holding real estate not be subject to self-employment taxes, but you get to enjoy the other benefits of passive income in a rental property.
One of the biggest tax efficiencies in rental income is that you get to utilize depreciation and cost segregations against the income.
You get to offset much of the income using depreciation, where the value of everything but the land, will be divided by either 27 and a half or 39 and 1/2 years, and subtracted from the net income.
What you need to know is that there are many write-offs and many tax benefits from Buy and Hold rental property, and your S corporation can be the number one tenant in your business.
If you want to build huge wealth, utilize the bank's money, and get tax efficiency like never before, you'll want to look into buying property and having your S corporation run from that company holding the real estate.
The fourth best tax write-off for epoxy contractors and concrete coating companies is to get involved into buying hold real estate and shift income from the S corporation over to that company by leasing space from it.
The fifth biggest tax deduction and mitigation tool for epoxy garage floor contractors is making shrewd purchasing decisions.
Your trucks and Equipment will enjoy depreciation, and they are vital parts of your business.
it is vitally important that you have a strategic guide when it comes to making vehicle purchases and Equipment purchases.
these purchases will fuel your growth, and they're also immense tax tools.
you should not haphazardly purchase vehicles or equipment without consulting with your accountant first.
your tax accountant will help you balance purchases with amortization schedules, along with your overarching tax plan, so that you get the best utilization out of every dollar spent on equipment
equipment tax planning is a major part of how we help epoxy garage floor coating companies and concrete coating companies
Your people, marketing, equipment and operational costs are what fuel your growth.
oftentimes concrete coating companies fail to plan accordingly for their growth, or they take on two large of operational costs and don't support it with proper advertising and marketing spend in order to keep their business afloat.
We often see garage floor epoxy companies sit on cash which eventually gets taxed rather than investing for growth in things like search engine optimization for epoxy contractors, advertising, equipment, and people.
If you're looking for ways to reduce your taxes, you need to align it to your growth plan.
Don't make the mistake of sitting on cash in your business and allowing the year to end without making the necessary Investments to fuel the following year.
Sometimes the cash in your bank account is best pumped into marketing dollars or equipment so that you can scale.
We will help you proactively manage all of these Tax Strategies so that you do everything possible to lower your taxes, keep as much of your own hard earned money, and build an amazing business.