Tax preparation reports what already happened. Tax planning changes what happens next. Justin Esshaki, an attorney and CPA, helps Michigan business owners structure their companies, compensation and transactions to reduce and defer taxes, legally and before the year ends.
By the time a return is prepared, most of the decisions that determine your tax bill have already been made. Entity choice, how you pay yourself, when you buy equipment, how you fund retirement and how a sale is structured are all decided months earlier. Planning moves those decisions to the front, when they can still be changed.
Some strategies reduce tax permanently, such as choosing the right entity or capturing deductions you are entitled to. Others defer tax, meaning you pay later instead of now. Deferral is valuable: it keeps cash working in your business and can shift income into years when you are in a lower bracket. Retirement plan contributions and installment sales are common examples.
Many tax strategies depend on legal structure: how an entity is organized, how an agreement is written or how a sale is documented. Because Justin is an attorney as well as a CPA, the plan and the paperwork that carries it out are prepared together.
Tax law changes, and so does your business. Most clients benefit from at least one planning meeting before year-end, and additional check-ins around major events such as a large contract, a new partner, a real estate purchase or a planned sale.
Whether your current structure still fits your income, and whether an S corporation election makes sense.
Setting salary and distributions for S corporation owners in a way that can be supported if questioned.
Comparing options such as SEP IRAs, Solo 401(k)s and defined benefit plans for owners who want to defer more income.
Equipment purchases, depreciation choices and the timing of income and deductions around year-end.
Spreading the gain from a sale over several years and structuring transactions for the after-tax result.
Whether to own property inside or outside the business, and the tax effects of each approach.
State and city income tax exposure for businesses with customers, employees or owners in multiple places.
A structured review of the year with time left to act on what we find.
Strategies that require a new entity, agreement or election are implemented by the same advisor who designed them.
Recommendations are based on your actual financials and projections, with the expected savings estimated in advance.
Through Esshaki & Associates, the plan carries through to the return, so nothing is lost between planning and filing.
We review your returns, current-year numbers and goals.
You receive specific strategies with estimated savings and trade-offs.
We prepare any elections, agreements or entity changes the plan requires.
We revisit the plan before year-end and when major events occur.
Tax preparation reports the past year on a return. Tax planning happens during the year and focuses on decisions that can still change the outcome, such as compensation, purchases, retirement contributions and transactions.
Deferral means postponing tax to a later year rather than paying it now. Common examples include contributions to retirement plans and installment sales, where gain is recognized as payments are received. Deferral is not avoidance; the tax is generally paid later.
Ideally before the end of the tax year, while there is still time to act. Many strategies, including some retirement plan contributions and equipment purchases, depend on actions taken before December 31.
It can for some owners, because profit paid as distributions is not subject to self-employment tax. But you must pay yourself reasonable wages through payroll, and there are added costs. Whether it saves money depends on your profit level and situation.
Yes. We can coordinate with your current tax preparer, or your returns can be prepared through Esshaki & Associates if you prefer one team.
No. Small businesses and self-employed professionals often benefit the most, because a few decisions about structure and compensation can make a meaningful difference each year.
Tell us briefly about your business and what you need. We’ll reply within one business day.