Frequently asked question.
How do I pay myself as a business owner?
Business owners often use a mix of salary and distributions. If you’re an S-Corp, the IRS requires a “reasonable salary,” with the rest potentially taken as distributions to reduce payroll taxes.
What’s the best retirement plan for small business owners?
It depends on income and goals. Options include SEP IRAs, Solo 401(k)s, and Defined Benefit Plans. High earners may benefit from Defined Benefit Plans, while Solo 401(k)s often maximize tax savings for mid-range incomes.
How can I reduce taxes for my business?
Strategies include S-Corp salary optimization, paying family members for legitimate work, using the Augusta Rule, maximizing retirement contributions, and capturing overlooked deductions like home office or business mileage.
When should I consider exit planning for my business?
The best time is now—well before you want to sell or retire. Exit planning protects you against the “5 D’s” (Death, Disability, Divorce, Distress, Disagreement) and helps maximize business value.
What percentage of business owners actually sell their companies?
Studies show fewer than 30% of businesses that go to market successfully sell. Having a plan and building transferable value greatly increases your chances.
How do I know what my business is worth?
A formal valuation or a benchmark “business insights report” can give you an estimate. Regular valuations help track progress and prepare you for a future sale.
Can I run personal expenses through my business?
Some expenses (like business travel or a properly documented home office) are deductible. But misclassifying personal expenses as business deductions can cause IRS problems—planning helps you get it right.
What makes financial planning different for business owners?
Unlike employees, business owners must plan for variable income, tax optimization, business value, and succession—all while balancing personal financial goals.
Do you work with business owners in Concord, NC?
Yes. We partner with local blue collar businesses in Concord, Cabarrus County, and the Charlotte area, as well as business owners nationwide through virtual planning.