I work with a new business that has been fairly profitable this year and they are going to have extra cash in the bank at the end of the tax year. They plan on making some capital expenditures, but no where near the total amount in the bank. They would really like to be able to use the money early next year for marketing expenditures, but the concern is a big chunk will be paid out in taxes.
The main question... How do you legally reduce your tax bill while still keeping the cash fluid for future marketing expenditures? The company is an LLC and works with several 1099 consultants. Is it possible to payout some of the money in bonuses to the owner and then next year the owner loan the money back to the business? I realize this most likely is still taxable, but does anyone have any suggestions on keeping as much of the capital as possible in order to help build the marketing budget that will be needed to really grow next year?
Spencer Hall InSite Dynamics, LLC 503-888-4598 www.insitedynamics.com | www.erange.net Web Tools: *InSite Merchandiser ~ Product Promotions & Cataloging *InSite Locator ~ Facility Locations & Directions (w/Mapping) *InSite Portfolio ~ Project Profiling & Photo Gallery (w/Before & After) *InSite Newsroom ~ Press Release Posting & Archiving *InSite Jobs ~ Job Listings & Resume Collection