An Economic Wave Unleashed

Here we go! The new tax legislation has created new opportunities for small sole-proprietors to migrate to more formal business structures, but with tax savings that can offset previously punitive additional annual costs.

There are many factors involved in considering the benefits of migrating to a pass-through structure: setup and annual costs, income limits and occupational pursuits, healthcare and retirement savings needs. These, in addition to the basic protection for personal wealth an incorporated entity present, should all be considered, but there's no doubt this legislation comes at a time when many are engaged in the "Gig Economy," and supports success and growth.

If you’re a 1099 contractor, you should at least consider whether making the leap to a formal structure would be beneficial now. In addition to possible tax savings, you may reap new abilities to fund fast-approaching retirement years, write-off legitimate health insurance expenses, further legitimize your business and provide for possible succession. Additionally, with a plethora of supportive technology allowing for virtual offices almost anywhere while losing none of the functionality and reporting prowess of a base office, an ability to further leverage your most precious asset, your time, has never been better.

Through QuickBooks - QBO Self-Employed product, you can be linked to an accounting professional for support while fulfilling most of the transactional input yourself. Or, by utilizing peripheral software such as MileIQ to track and record mileage automatically, or Smartroom for a virtual file room and/or investor portal to access and facilitate document exchanges.

Anytime such a sweeping legislation is passed, such as the Tax Cuts and Jobs Act of 2017, there will be disruptions and new opportunities. Don't miss out on what clearly is intended to be a boon for small business owners and commerce in general. Find an expert you can trust to assist you in strategizing and implementing, and paddle out into the wave of economic growth rolled out for 2018 and beyond.