Discover How You Can Protect Your Assets, Lower Risks, And Reduce Taxes On Several Fronts
We Help Privately Held Business Owners With 10+ Employees Harness The Combined Power Of Law, Tax, And Financial Strategies
As a business owners who has beaten the odds of failure, successfully navigated the ups and downs of the economy, and survived several market fluctuations with success, you've accomplished what only 10-20% of businesses have accomplished.
It takes a special type of grit and drive to build a successful business that not only make a sizable profit every year and rewards you handsomely for all the hard-work you've put in, but also contributes to the economy by creating new jobs, adding valuable products and services, drives innovation, and provides your employees with peace of mind and financial stability.
However, you may have realized that the "Silent Partner" in your business (IRS) expects a big chunk of your profits every year, or a piece of the profits when you sell an asset, and actually turn into, what we call, the Silent Beneficiary (IRS + probate court) at the time of your death!
As your net worth increases, so do your legal and tax obligations! Picture your entire portfolio in the form on an iceberg - there are taxes above the surface that are obvious, and those that lay hidden below the surface, which are less obvious and often forgotten.
At the SMB Mini Family Office™, we formulate robust law, tax, and financial strategies that not only tackle several layers of hidden taxes, but allow business owners of companies with 10+ employees to "convert" some of their business and personal tax-burden into "tax-free employee benefits" that creates a win-win on both ends.
There are three core strategic programs that we offer to business owners with thriving million-dollar companies that have 10+ employees
This approach allows us to look at the same scenario from several strategic perspectives and identify hidden gaps that could leave your wealth exposed to creditors or even unnecessary taxes
LAYER 1: Boost Your Business with Health Benefit Tax Savings Under The Expanded ACA
The Affordable Care Act (ACA) introduced key tax codes that empower employees to take control of their healthcare while offering employers significant tax savings. With the latest IRS ruling in April 2024, businesses now enjoy even greater benefits. By combining pre-tax employee contributions through Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Section 125 plans, employers can save $400-700 in FICA taxes per employee each year. This not only lowers payroll costs but also increases employee satisfaction with flexible, tax-advantaged health plans, and a slight increase in their paychecks as these benefits are deducted from "pre-taxed" income (above the line).
LAYER 2: Employment Stock Option Trusts (ESOTs) and Employee Stock Options (ESOs)
Employment Stock Option Trusts (ESOTs) and Employee Stock Options (ESOs) are both powerful tools that private business owners can use to incentivize employees while offering significant tax advantages.
Combining ESOs and ESOTs:
A private business owner can integrate both ESOs and ESOTs for even greater flexibility and tax benefits.
For example: Using ESOTs to Fund ESO Exercises: The ESOT can be structured to purchase shares or options that are then exercised by employees, thereby transferring stock ownership in a tax-efficient manner.
Creating Employee Incentives: By offering both stock options and ownership stakes through an ESOT, a business can create long-term incentives for employees while providing significant tax benefits to both the business and the owner.
LAYER 3: Advanced Integration of Trusts and Foundations To Tackle The Increase In Income and Estate Taxes In 2026
Even after the layer 1 and layer 2 layers of tax reduction strategies are leveraged, there's still a good chance that your assets might be exposed to risks and lawsuits, and you are still faced with sizable tax obligations every year. That's where the incorporation of the Mini Family Office approach really helps you and your team of experts gain more clarity in your legal and tax approach.
We examine your entire estate using the Tax Iceberg model and examine taxes that are "above the surface" and "below the surface" to map out where different legal and estate planning entities come into the picture. This ensures you and your loved ones have a smooth business succession or exit plan that allows you to pass on your wealth (and your business) to the next generation with more confidence and less legal costs involved.
Take A Second To Review How These Strategies Can Help You, Your Employees, And Your Family Thrive On Multiple Fronts
Schedule A Call To Get A Free Customized Law & Tax Evaluation Of Your Estate Using The Tax Iceberg Model
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