How Can I Utilize a Board Meeting for Tax Savings?

10/19/22 • 12 min

Being an entrepreneur can be challenging and having a board of advisors is a great way to get guidance and outside perspective that can positively impact your business. In this episode, we tell you all about its benefits: from tax deductions to personal and professional growth.

[00:58] Tax Advantages of Board Meetings

A board of advisors or advisory board is a group of people appointed to provide advice and counsel for a business
The members of your advisory board could be family members, friends, colleagues, or anyone you want to bring in
Holding regular board meetings can be a tax advantage, as all travel and expenses related to the meetings are deductible except for entertainment expenses
One way to utilize this advantage is to have board meetings at your home, which is known as the Augusta Rule

[04:41] What Documentation Should I Be Recording or Keeping?

The meetings must be ordinary and necessary
Have a record or minutes of the meeting on file to outline what was accomplished and discussed
- Include who attended, location, time spent, agenda items, outcomes, etc.
The more documentation, the better
Keep receipts and store them digitally

[05:53] The Power of Having a Board of Advisors

With a board of advisors, you get insights from others
- Depending on your entity structure and location, you may actually be required to hold the annual meeting
You are held accountable and become motivated to get things done
Board meetings can also help with planning and alignment because you have the opportunity to think about the future of the business
It provides stress relief

[08:29] Final Thoughts

Consult your attorney to know which type of board would be the best for you and how to set it up

Key Quotes

“What better way to not only get a tax deduction but you’re getting your family involved in your business, and they could potentially be better prepared to pass it on in the future to future generations.” - Mike Jesowshek

“If you're having these monthly meetings, it helps keep you accountable. Your board wants to see what was accomplished. They want to see the progress, and this can help move you along.” - Mike Jesowshek

“You can have anybody on your board that you want, as long as you think they're going to be able to provide some great guidance to you and really be a stamping point to help your business out.” - Mike Jesowshek

Resources Mentioned

Blog Posts:

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale

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Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to

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[00:58] Tax Advantages of Board Meetings

A board of advisors or advisory board is a group of people appointed to provide advice and counsel for a business
The members of your advisory board could be family members, friends, colleagues, or anyone you want to bring in
Holding regular board meetings can be a tax advantage, as all travel and expenses related to the meetings are deductible except for entertainment expenses
One way to utilize this advantage is to have board meetings at your home, which is known as the Augusta Rule

[04:41] What Documentation Should I Be Recording or Keeping?

The meetings must be ordinary and necessary
Have a record or minutes of the meeting on file to outline what was accomplished and discussed
- Include who attended, location, time spent, agenda items, outcomes, etc.
The more documentation, the better
Keep receipts and store them digitally

[05:53] The Power of Having a Board of Advisors

With a board of advisors, you get insights from others
- Depending on your entity structure and location, you may actually be required to hold the annual meeting
You are held accountable and become motivated to get things done
Board meetings can also help with planning and alignment because you have the opportunity to think about the future of the business
It provides stress relief

[08:29] Final Thoughts

Consult your attorney to know which type of board would be the best for you and how to set it up

Key Quotes

Resources Mentioned

Blog Posts:

--------

Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale

-------

Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

--------

To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to

Previous Episode

What Do I Need to Maintain My Corporate Entity?

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On this episode Mike Jesowshek, CPA talks with Attorney Andrew M Ayers about things you need to have in place to maintain your corporate entity.
1) Your Corporate Binder
2) Why Do I Need to Keep Corporate Records?
3) Do I Need to File My Corporate Records with the State?

LINKS FROM THE SHOW

Show Blog: https://www.taxsavingspodcast.com/blog/what-do-i-need-to-maintain-my-corporate-entity

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Article: https://www.taxsavingspodcast.com/blog/what-do-i-need-to-maintain-my-corporate-entity

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
--------
To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: [email protected]

Next Episode

What Health Related Tax Strategies Should I Consider for 2022?

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Health care matters not just for you but also for your business. In this episode, we examine how employers can set up medical plans based on their business structure and what strategies to apply to save on taxes.

[01:28] Self-Employed Health Insurance Deduction

If you're self-employed, you will always get a business deduction for the health insurance costs that you incur
For Sole Proprietorship or Single Member LLC: deduct self-employed health insurance premiums on Schedule 1 of your personal tax return (1040)
For S Corporation Owner:
- Have the S Corp pay for the insurance
- Add it to your W2 payroll as S Corp owner self-employed health insurance. Your payroll provider should know how to handle this.
- Deduct on your personal tax return (Schedule 1)
If you are providing health insurance for non-owner employees, include those on their W2, in Box 12 with code DD

[04:21] Options Available to Business Owners With High Medical Costs

You can utilize a Section 105 plan to turn personal medical expenses into a business deduction and be able to reimburse employees for medical costs incurred

[06:16] Options are Available for Small Businesses With Employees

Some options are: group health insurance, increased wages, HRA or QSEHRA
For small businesses with less than 50 full-time employees that don't offer a group health insurance policy:
- With a QSEHRA, employers reimburse employees tax-free for medical expenses
- You can offer yearly allowances of up to $5,450 for single employees and $11,050 for employees with a family

[10:27] What Is An HSA and How Do They Work?

If you contribute to an HSA, withdrawals are tax-free when used for qualified medical expenses and interest or earnings are NOT taxed
The maximum you can contribute to an HSA for 2022 is $3,650 for self-only or $7,300 for families
An HSA is a great savings vehicle because there is no tax on the interest or gains earned within it

[13:00] Final Thoughts

Start thinking about these health insurance options and be on top of tax planning

Key Quotes

“Taking care of your health is so important, and oftentimes as a busy professional, that's something that gets put to the side. And so there's also tax planning that comes into play when we talk about various aspects of health.” - Mike Jesowshek

“I was afraid to bring employees simply because of this little piece of medical. I was afraid would cost too much. But there are options out there.” - Mike Jesowshek

Resources Mentioned

Blog Posts:

--------

Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale

-------

Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

--------

To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a ca