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If you are a business owner in Wisconsin, taxes are a major concern. At Borakove Osman LLC, we understand the unique challenges you face, especially when it comes to the intricacies of estate planning and its tax implications. 

A well-structured estate plan can not only help you achieve your goals and secure your future but can also offer substantial tax benefits. Following are some of the key strategies we use to help our clients lower their business taxes. Contact our estate planning attorneys now to discuss how these strategies can be adapted to meet your unique needs.

1. Lower Your Gross Income through Business Structuring

A primary goal in estate planning is to minimize your taxable estate; one way to achieve this is by reducing your gross income. Our team will evaluate your current business structure. Whether your business is a sole proprietorship, an S-corporation, an LLC or a partnership, we will determine if its structure is the most tax-efficient framework for you since structuring your business effectively can help limit your estate’s exposure to high taxes by reducing your gross income. 

2. Leveraging Employee Benefits to Reduce Employment Taxes

Another, lesser-known strategy involves compensating employees with fringe benefits. Offering benefits like child care assistance, tuition reimbursement, or healthcare benefits can be more tax-efficient than direct salary increases. These benefits enhance employee satisfaction and retention while reducing your business’s taxable payroll, leading to lower employment taxes. 

3. Smart Succession Planning

We know that for you business succession planning is a critical component of estate planning. Once you become our client, we will help you develop a business succession plan that minimizes tax liabilities while ensuring a smooth transition. This might involve strategies like creating a family limited partnership (FLP) or using trusts to transfer business interests to your heirs, either of which can potentially reduce estate and gift taxes.

4. Utilizing Trusts and Estate Freezes

Trusts are a cornerstone of many estate plans, serving several important purposes, including offering control over how your assets will be distributed after your passing and effectively reducing the value of your estate, thereby lowering your estate taxes. 

5. Estate freezes 

Estate freezes are another tactic our attorneys can help you use to your advantage. An estate freeze is an asset management strategy in which an estate owner transfers assets to their beneficiaries without tax consequences. By freezing the value of your assets at current prices, you can potentially reduce future estate taxes as your business appreciates in value.

5. Charitable Giving Strategies

Incorporating charitable giving into your estate plan can also yield significant tax benefits. Options like setting up a charitable remainder trust (CRT) allow you to support a charity of your choice while receiving income during your lifetime and also reducing your taxable estate.

6. Regular Review and Adaptation

Since tax laws are continually evolving, our legal team will ensure that your estate plan adapts to remain aligned with the latest tax regulations. By working with our savvy attorneys and your chosen tax professional, you can be certain that you will remain fully informed about tax law changes that may impact your business.

7. Home Office Deduction

Many of our clients work at home; the number has increased during the COVID pandemic. If you are eligible to take a tax deduction for your home office, remember to take it. This easy step can be of value in lowering your tax liability.

Let Our Experienced Estate Planning Attorneys Help Your Business Thrive

At Borakove Osman LLC, we are committed to guiding you through the complexities of estate planning with a keen eye on the tax implications for your business. Our customized approach ensures that your estate plan not only aligns with your personal and business objectives but also maximizes tax benefits. Contact us today to discuss your best options with our knowledgeable professionals.