5 Step Tax Reduction Formula
Are you tired of watching six figures slip away to taxes every year? For service-based business owners with $1.5 million or more in revenue, this isn’t just frustrating—it’s a problem with a solution. Today, we’re uncovering the five steps of the Tax Reduction Formula that can legally cut your income taxes and put that money back to work for you.
My name is Ed Lloyd with Ed Lloyd & Associates. I’m a CPA and Certified Tax Strategist, and for over 20 years, my team and I have helped businesses across the United States rescue millions of dollars in wasted tax payments every single year.
By the way, if you’re interested in seeing how much we can save you this year, click the link below to schedule a call with my team. Just 30 minutes could save you $100,000—or more—in taxes.
Most of our tax reduction clients are in the top income tax brackets, frustrated by how much they’re overpaying year after year. But here’s the good news: there’s a proven way to change this. Therefore, we’ve developed a five-part formula to tackle the problem head-on.
If you’re overpaying $100,000 in taxes every year—and 95% of business owners we work with are—imagine the impact of redirecting that money back into your business. That’s potentially a 5x or even 10x return annually.
Here’s how we break it down:
- Assessment
We start with a one-on-one strategy session to understand your situation and goals.
In this session, we identify the pain points—typically a lack of tax planning. Think of it like running ads but never tracking click rates, show up rates, conversion rates, etc., you have no idea of your cost for conversion and what needs to be corrected—it’s a formula for overpaying.
We get into the details and explore your past strategies, current finances, and family goals to create a clear picture. By the end, you’ll know exactly how much you’re overpaying, how much we can save you, and what the investment looks like.
For example, one of our clients was overpaying by $150,000 annually. After implementing our strategies, they redirected those funds back into the business and saw a 7x return from investing these dollars back into the business. These results are possible for you too.
We also look at future projections. It’s not just about where you are now but where your business is going. Are you planning to scale? Are there upcoming investments? These factors can significantly impact your tax planning.
We also uncover potential tax-saving opportunities you may have missed. For instance, do you have a succession plan in place? If not, you could be setting yourself up for unnecessary tax burdens down the road.
- ELA Tax Reduction Blueprint
This is where we do the heavy lifting.
We review past tax returns, analyze your current financials, and gather data through our online questionnaire. Using this, we create a comprehensive Tax Reduction Blueprint, working through core and advanced strategies to slash taxes for both your business and personal income.
For instance, we’ll look into strategies like income shifting, missed deductions and credits, retirement planning, and optimizing the deductions you have—all tailored to your unique business model. It’s a level of detail you won’t get from a tax preparer.
And it’s not just about cutting taxes. It’s about reinvesting those savings into your business, retirement, or other goals.
We also analyze your asset protection strategies to ensure you’re safeguarding your business while maximizing savings. This step is critical, especially for high-income earners.
- Implementation
Creating the plan is one thing—putting it into action is where the magic happens.
We start with a total tax savings analysis to illustrate your potential savings. Then, we narrow down strategies that fit your business today. With our guidance, you’ll reduce estimated taxes and free up cash flow immediately.
For example, we might help you restructure your business entity or add another one to take advantage of lower tax rates, find deductions you are missing, optimize your retirement plan that reduces taxable income while growing your wealth and more.
This step also includes adjusting your estimated tax payments, so you’re not giving the IRS an interest-free loan.
Implementation is also about creating a sustainable system. That means training your team on what to track, automating processes where possible, and ensuring you have the tools to manage your new tax strategies.
We also provide ongoing support during this stage. Need help with your cash flow projections or understanding a specific deduction? We’re just a call away.
- Accountability
The secret to success isn’t just having a plan—it’s sticking to it.
Throughout the year, we review your strategies, measure progress, and make adjustments as needed. This ensures you stay on track with deductions and achieve your tax-saving goals. Think of it as your tax checkup to keep everything running smoothly.
One client said this ongoing accountability saved them $50,000 in missed deductions their first year alone. Staying consistent is key.
Accountability also helps you avoid surprises. By staying proactive, you can avoid last-minute scrambles at tax time.
Think of these reviews as your opportunity to spot additional opportunities. For instance, a mid-year review might uncover a new deduction based a change in your business or a change in the tax law.
- Compliance
And finally, we ensure everything is airtight.
Many tax preparers skip straight to filing returns without doing the groundwork. That’s why so many business owners overpay. We prepare your business and personal tax returns, ensuring every deduction is properly accounted for and your reduced tax bill is locked in.
Proper compliance isn’t just about reducing taxes—it’s about protecting yourself from audits and ensuring long-term success.
For example, documenting deductions properly can save you thousands if the IRS ever comes knocking.
Compliance is also about anticipating changes. Tax laws evolve, and our job is to ensure your strategies evolve with them.
So there you have it—the five steps of the Tax Reduction Formula: Assessment, Blueprint, Implementation, Accountability, and Compliance. This isn’t just a one-time fix; it’s an ongoing process to maximize savings and adjust as your business grows.
If you’re feeling like you’re overpaying in taxes—and let’s face it, most business owners are—schedule a call with my team using the link below. Thirty minutes with us could save you $100,000 or more this year.
And don’t forget to subscribe to this channel. Check out our other videos for more on the ELA Tax Reduction Method, and let’s make sure your tax dollars are working for you—not against you.
“Pay less. Keep more. Let’s get started.”
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