How to Fuel Growth by Reducing Taxes | PMP Industry Insider Podcast
Episode 194 - On this episode, Dan and Donnie discuss smart strategies pest control operators can use to fund their growth by reducing taxes. They cover tax rate basics, accelerated depreciation, the importance of tax planning and other tactics for reinvesting tax savings into your business to scale and improve the value of your business long-term.
Hosts:
Dan Gordon, PCO Bookkeepers & M&A Specialists
Donnie Shelton, Triangle Home Services
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In this episode we discuss:
-Common ways Dan sees PMPs using "the tax man" to help grow their business
-The power of pass-through entities (like sole proprietorships, LLCs and S corporations) and why Dan recommends them over C corporations
-The 199A deduction
-Ways to reduce taxes, such as profit sharing, pension planning, pre-paying vendors and other ways to defer revenue and accelerate expenses
-Why taxes should not be the reason you decide to do something, but if you are going to do something anyway, you should consider how it affects your taxes
-An example of getting a Section 179 tax deduction while financing a vehicle and how you can pump the available money back into your business for marketing
-Why Donnie says this approach gets more difficult as you grow due to cash flow requirements
-Why it's important to know your tax bracket and to do projections with your accountant
-The strategy of parking your money in a sweep account
-The strategy of 3.5 year leasing
-Donnie's bad experience neglecting tax planning early on in his business
For complete show notes and links to resources mentioned, visit: https://www.pmpindustryinsider.com/po...