Did you ever think that your business or company might be entitled to tax credits? We hear about them, but how does one qualify to receive them?
It all starts by determining whether the location of your business is located in one of the State of California’s 42 Enterprise Zones (EZ). Virtually any taxpaying business can benefit (even Realtors and Real Estate Companies may qualify) under California’s Enterprise Zone Program.
Equity owners of S Corps, LLC’s, Partnerships or even sole proprietorships, with employees or equipment operating in any one of the 42 state EZ’s can secure these EZ tax benefits. Your workers and the community can also benefit from the program.
These tax credits help business owners improve their cash flow, lower their after-tax wage costs, lower their effective tax rates, and improve their company valuations.
Why did it start?
The California's Enterprise Zone program was established in 1984 to stimulate business investment in depressed areas of the State and create job opportunities for Californians. This was done in an effort to allow market forces to revive the local economies.
The Enterprise Zone program helps businesses (and their owners if the business is an S Corp or LLC) reduce their State income taxes in a variety of ways such as providing:
•Hiring tax credits -where, over a five year period, an employer can earn up to $37,400 in state income tax credits per qualified employee, and
•Sales and Use tax credits - where the sales tax paid on up to $20 million ($1 million for S Corp or LLC) in qualified equipment and machinery purchases each year provides dollar for dollar tax credits.
The Enterprise Zone program allows businesses to go back 4 years to claim tax credits and generate refunds (to the extent the zone was approved and the business operated in the Enterprise Zone during the 4 year "look back" period).
Why isn’t everyone participating in this tax credit program?
Getting a complete understanding of the system is complex. Like anything in government, they don't make things easy and the compliance with tax rules and regulations can be quite cumbersome.
There are companies that help clients navigate the complex waters of the Enterprise Zone tax credit program. Before exploring whether you qualify or not, it is extremely important to locate and work with a knowledgeable tax consultant company. They should be willing to give a free evaluation, and if you qualify, you should avoid paying any upfront fees.
Tax consultants companies like Converj LLC specialize in Enterprise Zone tax credits and their fee structure is subject to a successful outcome. If they cannot find any credits for your company or if the government doesn’t certify their finding, you owe them nothing, it’s that simple. Much like us real estate agents, we don't earn our fee until the sale as closed!
As a real estate business with employees who operate in an enterprise zone will qualify, it is even quite possible for agents (those with teams) who employ their own staff may also qualify.
To learn more about this program check out http://converjnow.com
See, there really is assistance out there for small business owners.
If they ask how you heard about them, let them know about this ActiveRain blog.
To your success.