If you’re a business principal with a recent start-up enterprise or an already ongoing and provably viable small- to medium-sized commercial enterprise in California or elsewhere, you’re undoubtedly fixated on many things.
Like profit, obviously. And expansion. And amicable employer/worker interactions.
Hiding money outside the United States to escape IRS scrutiny and lawful tax exactions is not on your list of must-do activities, nor would it be for most business owners even if they had the chance to secrete funds outside the country.
You’re not General Electric, though, or Microsoft, or Pfizer, and you don’t command a balance sheet showing billions in revenue annually.
Now, those companies play business hard ball at another level, as noted in a recent article chronicling the use of offshore tax shelters by true business behemoths that operate globally.
The size of such companies confers upon them what that article terms “a competitive advantage,” to wit: They can “book profits offshore and cut down their tax bill” in a manner that smaller business entities simply cannot emulate.
Sometimes that is lawful, and sometimes, as noted in the above media focus, it spells “the abuse of offshore tax havens.”
Either way, it cuts back on the IRS’ take, which is reportedly recouped through additional tax levies imposed on smaller businesses that cannot pursue the same strategy.
That puts any smaller entity in the hole relative to a business giant, but such has always been the case.
To compensate, comparatively smaller businesses must obviously operate smartly to improve their bottom line.
For many of them, that means working diligently from the inception of their companies to assume the proper business form, seize attractive funding opportunities, promote strategies aimed at lawful tax avoidance and take additional steps to run their companies in a sound and lean manner.
An experienced team of business attorneys who routinely help promote the goals of diverse clients can help with that.