Do you know the difference between tax planning and tax preparation? If you're like most people, you probably think they're the same thing. But in reality, they're very different. And when you combine the two, that's how you can maximize your personal and business income investments even after you pay your taxes. So, what is tax planning? Tax planning is creating a strategy to minimize your tax liability. Legally, we execute strategies and minimize your tax burden. And this is actually a year-round process. It's not something you do right before your tax return is due.

When you work with a tax planner, they consider current laws, new laws and regulations, and your current situation. The aim is to prepare you for the lowest tax liability possible, while still keeping you within the current tax regulations. For business owners, tax planning is especially important. We have to not only look at where you are today, but where you will be in five years. That's because oftentimes, when you elect to be in a certain entity type with the IRS, you can't switch out of it for 60 months.

So, what are some benefits of tax planning and tax preparation? Listen in to find out!

Here are some steps you need to follow to lower your tax liability, save, and save time:

1. Tax planning is creating a strategy to minimize your tax liability.

2. Tax preparation is preparing your tax return for filing by the tax deadline.

3. Filing your tax return and ensuring adherence to federal and state law.

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