I used to think that I should be doing this in my taxes. Now I don’t think that I should. As a consultant, I don’t do tax planning for the purpose of selling more work, only to help the clients make better business decisions. Tax planning is a part of the business planning, but I’ve never felt I needed to do it to be successful.
I guess I’m saying tax planning should probably be done for the purpose of getting a higher tax rate on your business. But if you think the tax code is broken, you should certainly have thought about this before you hired a lawyer to get it fixed.
The problem is companies that run on the basis of having fewer employees or being cheaper on the profit side should always look at how much tax they are paying. That doesn’t mean you should just blindly hire people without any thought for their tax burden.
You really should get a lawyer to hire someone who has the skills to help you. But at least take some time to learn and work with people who don’t have any understanding of the tax laws.
The fact is it is hard to give a lawyer to hire without a huge amount of pressure to hire someone. So what’s the best way to avoid legal headaches? If it’s a “reasonable lawyer” then you just hire them. But if the lawyer doesn’t have the necessary skills and knowledge to understand the law, you are doing your very best to get the benefit of a lawyer who is willing to work for you.
At the beginning of the game, you have a lot of options to hire a lawyer. But not until you find a lawyer to hire. So for example, a person who doesnt know a damn thing about tax law is going to be pretty much out of luck if a lawyer doesnt exist. Even though it may seem like an obvious solution, you need to be prepared to do your research to find the right person.
Most lawyers arent going to be the most expensive, but they might be the most knowledgeable on the subject. They usually have a lot of experience in dealing with different areas of taxation, so you can take advantage of that. And since you are in a real-world city, you may also need to get other services like real estate, car title, and property tax help from your local police department.
One of the easiest ways to save money is to invest in a tax-deferred account like a mutual fund or exchange. They offer an automatic tax-deduction at death, meaning you can avoid paying income taxes on the profits for the rest of your life. However, you will need to be prepared to transfer the fund before you die, and most accounts offer some sort of automatic withdrawal at death.
I’m surprised the community hasn’t mentioned this before. It’s a little strange that we haven’t mentioned it before, but it’s a common feature of all of these services. So, I’ve started to think it’s an interesting piece of advice.