Background A client operated a successful HVAC business for many years. The business generated approximately $300,000 in cash flow and was in a C-Corporation. Like many C-Corporations we come across, the prior “strategy” was to pay the profit out in W-2 wages to avoid double taxation, while overpaying FICA. The client was paying approximately $116,000 in income tax and FICA tax each year. Fortunately, they called one of our Managing Directors at Redwood Tax Specialists! The Plan The client wanted a 5-7 year exit strategy and is extremely conservative and wanted fixed/guaranteed options for any retirement balances. Based on the client’s preferences, cash flow needs, and budget, we designed their custom tax plan with:
"We reduce taxes by 50% almost 100% of the time."
Steven Crawford, Managing Director, Redwood Tax Specialists Huntersville, NC and Surrounding Areas
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