There is a 5 cycle lifecycle with businesses. Some businesses may skip one step, or pass through it very quickly, and some businesses, just like people, never really grow up and remain happily small and hands on.

As the business progresses through each of these stages, the business structures must change too. Many CPAs are so busy with tax compliance that they never get the opportunity to actually step back and look at where their clients are right now and what the short term and long term future look like for their client.

That’s what had happened to Bud and Sarah. Their business had a great strategy for a beginning business, but did not recognize the additional asset protection requirements and higher income they now had in their business. Additionally, they had IP sitting on the shelf and were missing a huge opportunity to convert some active income into passive income.

Within one month, we had reduced their taxes by over $30,000 by making a few simple changes. The total cost to Bud and Sarah was less than $7,000 and they were able to recognize a full $30,000 in savings for 2008. In today’s world of uncertainty and stock and real estate losses, they were happy to see that type of ROI!