An advisor helps prepare for a sale years in advance—structuring the company for valuation, aligning tax strategy, coordinating with legal teams, and planning for post-sale liquidity, reinvestment, and legacy goals. Timing and tax structure of the exit are critical.
Insurance coverage (liability, key person, disability), legal structures, and trusts can shield business and personal assets. As the company grows, layered risk management becomes essential, especially when income, litigation exposure, and responsibilities increase.
Tax reduction strategies include choosing the right entity type, leveraging deductions (home office, health insurance, retirement), and income-splitting with spouses. Strategic use of depreciation, R&D credits, and Section 199A can also reduce taxable income substantially.
Solo 401(k)s, SEP IRAs, and Defined Benefit Plans are strong choices. The best plan depends on income, employee count, and growth goals. These plans offer significant tax deductions and can accelerate retirement savings—especially for high earners with no or few employees.
Maintaining clear financial boundaries is essential. This includes using dedicated business accounts, proper entity structuring (LLC, S-Corp, etc.), and formal payroll for compensation. Separation protects personal assets, improves tax planning, and simplifies audits or due diligence.