Fellow business owners, let’s be honest. We fear our bankers.
On a daily basis, we may give them little thought. When time comes to tell them we’re planning to exit our businesses, or when we need money, however, we may experience feelings ranging from mild anxiety to outright panic.
Why? We’ve been conditioned to believe that bankers say “no” far more often than they say yes. That may or may not be true but bankers make money by saying yes.
Minimizing Tax Exposure
You and your advisors should begin any discussion about minimizing your tax exposure with a review of your current business income tax status. From there, your CPA or CFO should be able to prepare an initial estimate of the company’s and your income tax liability.
You should then review what you are currently doing to reduce income tax liability. One of the purposes of ongoing tax planning is to avoid extreme peaks or valleys in corporate taxable income.