Q:

Subject: starting corporation

Dear Kerry,

 

I love your site, I wish you wrote books too. So to my question. I have a roofing / construction business and from your site a C corporation looks best for me. Do you know of any books, other information sites anything where I can learn more about setting up my business to reduce taxes.  I have not been satisfied at all with my accountant or lawyer. I've talked to other accounts and lawyers but I can't find a smart aggressive person to help, so I'm working to learn for myself all I can. If I was a little younger I'd consider this line of work, because there is definitely a need and demand out there. Any way if you know how I can learn more I'd appreciate it and if not thanks anyway for your site and opening my eyes to what's out there.

 

Sincerely,

A:

I'm glad you found the information I have on my websites useful.  However, it is in no way intended to replace the services of a good tax advisor who understands how to utilize corporations and other techniques to minimize tax and liability problems.  While there are a lot of good books and articles available from Nolo Press on many of the mechanics of operating a small business in the most tax efficient manner, I really don't know of any books anywhere that can take the place of an up to date person. 

The tax rules are simply too fluid for any book to have a very long shelf life.  In fact, this is the very reason that, in spite of my writing my newsletters over the past 25+ years, I have never felt comfortable with the concept of publishing a book on tax savings tips.  I have always worried about the information in my newsletters becoming obsolete soon after it is written.  With the length of time it takes to produce an actual book, I've felt that much of its content would be out-dated by the time it was available to readers.

It is hard enough for professional tax advisors to stay current on the latest laws and regulations.  Unless you intend to give up your construction business and become a full time tax pro, there is no way that you could possibly be successful at both. 

I understand your frustration at being unable to find a tax pro you feel is compatible with your tax savings goals.  I constantly rail against tax pros who seem to be more concerned with maximizing the government's take than in helping their clients save money.  However, there are plenty of other tax pros out there who share my philosophy that it is our duty to do everything that is legally possible to help clients minimize their taxes.  I am positive that you will spend less time continuing your efforts to locate such an individual than you would trying to become a tax expert yourself.  If you haven't already done so, please check out my tips for selecting a tax pro.

Good luck.

Kerry Kerstetter

Follow-Up:

Thanks for the reply, I'm not wanting to do my own taxes I was just wanting to get as much information as

possible so I'll know enough to pick a good accountant.

I'm not thinking of switching professions either, I was just noting the possibilities a good tax accountant like yourself would have and how many people he could help. I majored in accounting in college many years ago but I didn't realize how important it was then and not until after I had my own business. I think what I will do when I'm looking for a new accountant is have him go to your site and see if he's on the same page as you.

Thanks again.

Reply:

Using the info on my site as a sort of barometer to measure the attitudes of other tax pros is a very good idea.  You would be amazed by how many people, including many tax pros, consider me to be evil and unpatriotic for teaching people how to legally pay in less taxes.  You would obviously want to stay as far away as possible from those folks and hold out for someone who understands that there is no sin in using the laws to help their clients reduce their tax burden.

Good luck.

Kerry Kerstetter

 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 6/11/2005 08:00:00 PM Send this post: