In this episode, Ali Katz dives deep into two essential topics for entrepreneurial lawyers: the Corporate Transparency Act and proactive tax time planning. Ali illustrates the importance of thinking ahead when it comes to taxes, a key differentiator between employees and business owners. Drawing on personal experience, Ali explains how proper tax planning in the final months of the year can save business owners from unexpected tax burdens. She also underscores the importance of complying with the Corporate Transparency Act to avoid hefty penalties, offering practical tips and resources for legal professionals to assist their clients with the necessary filings.

Key Takeaways:

Shift your tax planning mindset: As an entrepreneurial lawyer, start tax planning in October, November, and December to reduce your tax liability for the upcoming year.
Tax projections are crucial: By reconciling books and providing income and expense projections to your CPA, you can explore strategies to minimize your tax burden before year-end.
Plan for entity creation: Setting up business entities and adjusting cash flow strategies, like delaying income or accelerating expenses, are vital tools to optimize taxes.
Corporate Transparency Act compliance: Ensure your business entity files the beneficial ownership information with FinCEN, or face fines of up to $10,000.
Resources for compliance: Join our group 'Eyes Wide Open: Time, Money, and Taxes' to get more information on how to file CTA/BOI for $25.

Ali encourages entrepreneurial lawyers to adopt the mindset of a business owner by planning ahead and setting up structures that support long-term growth and legal compliance. By embracing these practices, lawyers can better serve their clients and build sustainable businesses.

31: Corporate Transparency Act & Year-End Tax Planning: Key Insights for Entrepreneurial Lawyers

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