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Tax loss harvesting might sound like a strategy reserved for Wall Street, but it’s a powerful tool that small and medium-sized businesses can leverage to keep more capital where it belongs—in your business. How Tax Loss Harvesting Works: It’s simple: sell underperforming assets at a loss to offset capital gains from your profitable investments. This tactical maneuver helps minimize taxable income, reduce your tax bill, and improve cash flow without impacting your operational performance. Key Benefits for SMBs: 1) Offset Gains, Lower Taxes: Harvest losses to directly offset your gains, effectively lowering your taxable income. 2) Beyond Capital Gains: Excess losses can reduce up to $3,000 of ordinary income annually—every bit counts in lowering your tax obligations. 3) Future Savings: Unused losses can be carried forward to offset future gains, providing long-term tax efficiency. 4) Mind the Wash Sale Rule: Careful planning is essential to avoid the IRS wash sale rule, which disallows claiming a loss on a security repurchased within 30 days. Why SMBs Should Care: - Enhance Cash Flow: Keeping more money in your business helps you fund growth initiatives and avoid unnecessary cash drains. - Strategic Tax Management: Don’t let taxes dictate your financial outcomes—control them with proactive, informed decisions. Tax loss harvesting isn’t about timing the market; it’s about timing your strategy. Let Lemoti guide you through the nuances of tax planning and make your business more financially resilient. #SMBStrategy #TaxPlanning #TaxLossHarvesting #Lemoti #BusinessGrowth

At Lemoti, we believe that innovation should be rewarded, not taxed. Many businesses miss out on valuable R&D tax credits that can directly reduce your tax bill and fuel future growth. Whether you’re enhancing existing products, streamlining operations, or developing new technologies, these credits can significantly impact your bottom line. What Qualifies for R&D Tax Credits? 1) New or Improved Products: From initial designs to prototypes and testing, any steps taken to develop or enhance products can qualify. 2) Process Optimization: Efforts to improve manufacturing processes, increase efficiency, or reduce costs through innovation are often eligible. 3) Software Development: Creating new software, upgrading existing systems, or integrating new technologies are perfect examples of claimable activities. 4) Solving Technical Challenges: If you’re working through technical uncertainties or experimenting to eliminate unknowns, these efforts can unlock significant tax savings. Why R&D Credits Matter for Your Business: 1) Reduce Your Tax Liability: Every dollar saved in taxes is a dollar that can be reinvested into growing your business. 2) Improve Cash Flow: Reinvest those savings into R&D, hiring, or scaling operations to stay ahead of the competition. 3) Claim Past Credits: Missed opportunities? You can retroactively claim credits for past years and capture the benefits of your previous innovations. At Lemoti, we’re here to help you identify and maximize these credits, ensuring you’re leveraging every opportunity to reduce costs and invest back into your business. Ready to see how much you could save? Contact us today. #Lemoti #InnovationTax #RnDCredits #BusinessGrowth #TaxPlanning

SBA loans offer flexible funding solutions with competitive rates and repayment terms designed to support small business growth while preserving cash flow. Choosing the right loan can be crucial in meeting your business’s financial needs. Here’s an in-depth look at the primary SBA loan types, including their sizes, terms, and common use cases: 1. SBA 7(a) Loans: The SBA 7(a) loan is the most versatile of the SBA loan programs, offering businesses up to $5 million in funding. Repayment terms can extend up to 10 years for working capital and equipment, and up to 25 years for real estate purchases. This loan is ideal for businesses seeking a broad range of funding solutions, whether it’s expanding operations, purchasing equipment, refinancing existing debt, or acquiring real estate. 2. SBA 504 Loans: The SBA 504 loan program is designed specifically for funding major fixed assets, like commercial real estate or heavy equipment. Businesses can access up to $5.5 million with repayment terms ranging from 10 to 25 years, and fixed interest rates offer predictability in payments. Common use cases include purchasing large facilities, renovating properties, or investing in long-term equipment upgrades. 3. SBA Microloans: SBA Microloans are aimed at startups and smaller businesses needing lower amounts of capital, with loans available up to $50,000. Repayment terms are generally capped at six years, making them suitable for short-term financing needs. Microloans are commonly used for working capital, inventory, supplies, or small equipment purchases. 4. SBA Express Loans: SBA Express Loans are tailored for businesses needing quick access to funds, offering up to $500,000 with a streamlined application process and decisions within 36 hours. Repayment terms are up to 7 years, with options to extend if used for equipment or real estate. This loan is ideal for immediate working capital needs, business expansion, or short-term projects. Selecting the right SBA loan can provide your business with the capital it needs to grow strategically. Interested in weighing different options? Reach out to our team to see which loan makes the most sense for your business. Lemoti can help put your financials together to strengthen your loan application and guide you through the process. #SBALoans #BusinessFinancing #SmallBusinessGrowth #Lemoti

Did you know that 82% of businesses fail due to poor cash flow management? Financial Planning & Analysis (FP&A) isn’t just for big corporations—it’s a game-changer for SMBs too. By implementing the right models, you can make data-driven decisions that improve cash flow, control costs, and fuel your growth. Here’s why 5 essential FP&A models matter for your business in 2024: 1) Cash Flow Forecasting Cash flow forecasting allows you to predict future cash movements and avoid unexpected shortages. In 2024, 60% of SMBs that consistently update their cash flow forecasts are less likely to face cash crunches, helping them remain solvent and operational even during tough times. 2) Budget vs. Actuals Analysis Comparing your actual performance against your budget helps you identify areas where you’re overspending or underperforming. This continuous feedback loop led to a 21% reduction in operational costs for companies actively engaging in this analysis, making it an essential practice for businesses looking to stay lean and efficient. 3) Profit Margin Analysis Understanding your profit margins on different products, services, or business units helps you focus on what drives the most value. In 2024, companies that actively monitor and adjust their profit margins saw a 15% increase in profitability, as they could swiftly shift resources to the most profitable areas of their business. 4) Scenario Planning (What-If Analysis) Scenario planning empowers you to test different business decisions and prepare for unforeseen circumstances. In 2024, 85% of SMBs engaged in scenario planning reported being better equipped to handle economic volatility, giving them a strategic edge in navigating market changes. 5) Customer Lifetime Value (CLV) Forecasting Understanding the long-term value of your customers helps you make informed decisions about customer acquisition and retention strategies. Businesses that focus on CLV forecasting in 2024 are seeing up to 20% better ROI on their marketing and sales efforts, as they can invest strategically in the customers who bring the most value over time. FP&A isn’t just about crunching numbers—it’s about turning those numbers into actionable insights that drive your business forward. Let Lemoti help you implement these models and elevate your financial planning to the next level. Ready to make smarter decisions? #FinancialPlanning #SMBSuccess #Lemoti #CashFlow #ProfitMargin #ScenarioPlanning #CLV #BudgetVsActuals

As an entrepreneur, every dollar counts. Whether you're reinvesting in your business or planning your next big move, optimizing your tax strategy is crucial. One of the most powerful—and often overlooked—tools at your disposal is Qualified Small Business Stock (QSBS). What is QSBS? QSBS offers substantial tax incentives for founders and investors in qualifying small businesses. Imagine excluding up to 100% of the gain from the sale of your stock from federal taxes. Yes, you read that right—100%. This tax break could be a game-changer, especially when planning an exit strategy or attracting new investors. Who Qualifies? To take advantage of QSBS, your business must meet specific criteria: - Entity Type: Your business must be structured as a C corporation. - Gross Assets: At the time of stock issuance, your company's gross assets cannot exceed $50 million. - Business Activities: The majority of your company's assets must be used in active business operations within certain industries. - Stock Holding Period: The stock must be held for at least five years to qualify for the full tax exclusion. - Eligible Investors: QSBS benefits aren't limited to founders—early-stage investors can also take advantage of these tax incentives. Why It Matters: For high-growth startups, QSBS can translate into millions in tax savings when selling your stake. This is money that could be reinvested into your next venture, expanding your business, or securing your financial future. At Lemoti, we're dedicated to helping entrepreneurs navigate complex tax strategies like QSBS. Not sure if you qualify? Schedule a consultation with us today to explore if this incentive applies to your business. #QSBS #TaxSavings #Entrepreneurs #Startups #TaxPlanning #SmallBusiness #FinancialPlanning #Lemoti

As your business evolves, your current structure may no longer be the most tax-efficient. Entity restructuring is more than just a formality; it’s a strategic move to optimize tax exposure and align your structure with long-term goals. Key Benefits: 1) Tax Optimization: Different entities (C-Corps, S-Corps, LLCs) offer unique tax advantages. Restructuring helps you leverage the most suitable entity type to minimize your tax burden. 2) State Tax Efficiency: By strategically shifting income to states with lower tax burdens, you can reduce your overall state tax obligations. 3) Asset Protection: A well-considered entity structure can provide stronger protection for personal assets and improve liability management. 4) Succession Planning: Facilitate smoother ownership transitions and improve estate planning, potentially reducing tax liabilities. At Lemoti, we delve into the technical details to ensure your restructuring drives real tax savings. Some of our technical considerations include: 1) IRC Section 368 Reorganizations: We help businesses perform tax-free corporate restructurings under specific conditions, ensuring compliance and maximizing benefits. 2) IRC Section 351 Transfers: We facilitate tax-free asset transfers into corporations, ensuring control requirements are met. 3) QBI Deduction: For pass-through entities, we analyze eligibility for up to a 20% deduction under IRC Section 199A, ensuring you maximize this opportunity. 4) Multi-Entity Structures: We explore the benefits of a multi-entity structure, such as holding companies, to strategically allocate income and optimize tax positions. 5) State Nexus & Apportionment: With businesses often operating in multiple states, we ensure compliance while strategically reducing state tax liabilities through careful evaluation. At Lemoti, we tailor entity restructuring strategies to align with your business’s unique needs. Our technical expertise ensures your structure is optimized for tax efficiency and growth. Is your current structure aligned with your business goals? Reach out to discuss how strategic restructuring could unlock new opportunities for your business. #TaxStrategy #EntityRestructuring #BusinessGrowth #TaxPlanning #Lemoti

Did you know that, according to Forbes, 93% of small business owners overpay on their taxes? That’s capital that could be fueling growth and new opportunities. At Lemoti, we’re experts at uncovering these hidden savings. Imagine redirecting those extra funds into new hires, R&D, or simply improving your cash flow. Our goal is to help you keep more of what you earn and reinvest it where it counts most—back into your business. If you suspect you’re overpaying on taxes, don’t leave it to chance. Reach out to our team for a complimentary assessment of your current tax strategy, and let’s make sure you’re maximizing your potential. #SmallBusiness #TaxSavings #Entrepreneurship #TaxPlanning

At Lemoti, we understand the unique challenges faced by SMBs. That’s why we’re here to provide the financial expertise you need to not just survive—but to thrive. What We Bring to the Table: 1) Bookkeeping That Works for You: Accurate, timely, and hassle-free bookkeeping, so you can focus on what you do best—growing your business. 2) Strategic Tax Planning: We help you keep more of your hard-earned money with customized tax strategies that align with your business goals. 3) Fractional CFO Services: Gain access to executive-level financial insights without the full-time cost. Our Fractional CFOs provide the guidance you need to make informed decisions that drive profitability and growth. We’re not just your accountants; we’re your financial partners, committed to helping you navigate today’s complex business environment. Ready to take control of your financial future? Let’s chat about how we can support your business with the right financial strategies. 📈 #SmallBusiness #SMB #Bookkeeping #TaxPlanning #FractionalCFO #BusinessGrowth #Accounting