2017 tax planning for a California business: some considerations

On Behalf of | May 15, 2017 | Business Formation & Planning |

If you’re a proven California business owner or principal, no one needs to tell you that your enterprise must be absolutely focused on state and federal tax rules and policies at all times.

That means every day of the year.

And, of course, every year.

Business-related tax implications are decidedly a big deal. Company managers who know that intuitively and routinely do whatever it takes to understand and stay abreast of tax matters — both anticipating change and fashioning strategies to timely and proactively deal with it — are generally the most successful business players.

And those who are at the opposite spectrum in savviness and proactivity, well … .

A recent media focus on business taxation and repercussions concedes that, while company executives must always have their eye on the ball regarding this important realm, it might be more important than ever to being paying acutely close attention in 2017.

Because this year — that is, the months remaining in it — could yield developments that are different from anything that has been forthcoming from the federal government in recent years.

Like a special tax on goods that are imported into the United States. The publication Accounting Today notes that such an imposition is being “hotly debated” currently, being considered as a way to compensate for government revenue that will likely be lost in the event that the corporate tax rate is materially slashed by the Trump administration.

And that could very well happen, and soon, with a commentator in the above-cited Accounting Today report stating that a significantly slashed rate intended to keep more coins in corporate coffers and jump start the economy “seems to be the one item that has the most support” in business-tax discussions.

Things might reasonably seem to be a bit uncertain and murky right now concerning what types of things might materially develop concerning tax policies and enactments, but, as Accounting Today notes, clarity could come quickly in the near future.

And if it does, the businesses that have been best preparing to adjust will obviously secure a competitive advantage.

FindLaw Network