Craig Cody Tax planning is crucial for businesses, as it's not just an annual expense but a profit center that can be leveraged to keep more of what you make. Personalized support is key in navigating the complex tax landscape, and entrepreneurs should prioritize building relationships with professionals to ensure compliance and minimize tax liabilities. Entity selection, business structure, and relationships are also important factors in business success, and entrepreneurs should have a proper business structure and build strong relationships to achieve better results and a more sustainable business model.

Here are the reasons why you should listen to the full interview

• Learn how to navigate the complex landscape of entity selection and tax planning.
• Discover the common mistakes made during tax planning and how to avoid them.
• Understand the significance of maintaining strong relationships and communication with your CPA for the benefit of your business.

Resources

• Craig Cody & Company
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Interview Highlights:

Turning taxes into a profit center for businesses

• Expert Craig Cody shares tax planning techniques for business owners.
• Daryl Urbanski and Craig Cody discuss how business owners can turn taxes into a profit center.

Taxes and business struggles with personal experience

• Daryl Urbanski shares his experience with taxes, including being advised by a friend to focus on survival rather than taxes.
• Daryl hires a freelancer on Fiverr to do graphic work for him, but his bank accounts and credit card are frozen on the last day of November.
• Daryl Urbanski shares his personal experience with taxes, detailing how he had to pay $6-10k in taxes after a government freeze on his bank accounts.
• Daryl had a stressful experience with taxes, causing him to lose a celebrated holiday season and creating financial difficulties for his business.

Tax planning and accounting business challenges

• Craig Cody started their own accounting business after working for others, saving clients 15-20k on average with proactive tax planning.
• Challenges in running an accounting business include compliance work and lack of proactivity, creating opportunities for value creation.

Common tax mistakes and how to avoid them through proper planning and communication with a CPA

• Craig Cody highlights the importance of selective hiring and systems in place to manage workload and ensure quality.
• Craig Cody identifies common mistakes made by business owners, including wrong selection and lack of systems, leading to self-inflicted wounds.
• Wrong entity selection can have significant tax implications.
• Regular communication with a CPA throughout the year can help avoid tax issues.
• Proactive tax planning can result in lower tax bills and more passive income.

Tax planning and implementation, with a focus on missed opportunities and deductions

• Daryl Urbanski questions why some people fail to take action after being advised on tax planning and financial management.
• Urbanski observes that those who pay for professional advice are more likely to follow through on recommended actions.

Entity selection for businesses, including sole proprietorship, LLC, and S corp

• Craig Cody advises against being a sole proprietorship due to high audit rates.
• Entity selection depends on individual circumstances, with LLC and S corp options discussed.
• Craig Cody explains differences between sole proprietorship, LLC, and S corporation taxation.
• Daryl Urbanski finds taxation complex and frustrating as an entrepreneur.

Building a team for a business, including an accountant, attorney, and other trusted advisors

• Craig emphasizes the importance of building a team for entrepreneurs.
• Daryl Urbanski agrees, highlighting the need for a proper exit strategy.

Building a business team with an accountant, CPA, attorney, and insurance person for liability coverage

• Daryl Urbanski emphasizes the importance of building relationships with clients.
• Daryl encourages those afraid to hire a team to take small steps and get comfortable.
• Urbanski shares a personal example of a client who benefited from hiring a tax planner.
• Daryl Urbanski and Craig discuss the importance of having a CPA, accountant, attorney, and insurance person on a business team.
• Good communication with these professionals throughout the year is crucial for preventing legal issues and ensuring financial success.

Financial planning and tax strategies for small businesses

• Craig Cody provides insights on daily communication for business owners, including financial matters and big-picture decisions.
• Craig Cody advises on best habits for business owners, such as leasing vs buying a vehicle for tax purposes.
• Daryl Urbanski and Craig Cody discuss the importance of considering tax implications when hiring someone.
• Daryl and Craig highlight the differences between contractors and employees, and the potential consequences of misclassifying workers.

Tax planning, fear of making mistakes, and the future of the industry

• Craig worries about unknowingly facing financial challenges, while Craig Cody emphasizes the importance of communication with tax professionals.
• Fear of dealing with taxes holds people back, but business owners must step up and take control of their finances.
• Daryl Urbanski emphasizes the importance of helping others to earn money, rather than solely focusing on making money.
• Urbanski predicts that the future of his industry will involve more international businesses and online sales, with potential tax implications.

Tax planning and avoiding costly mistakes for business owners with Craig Cody

• Craig highlights the importance of adapting to globalization and technology in the accounting industry.
• Craig Cody and Daryl Urbanski discuss the need for personalized one-on-one hand holding in the industry.
• Daryl Urbanski and Craig discuss tax-saving strategies and the importance of taking action.
• Craig shares his three aha moments from the interview and invites listeners to reach out for help.

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