Tax Strategies & Entity Structuring

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Tax Strategies


Compass Crossing offers tax strategies and entity structuring to ensure our clients are implementing the most recent and advantageous tax savings strategies. We work with former IRS attorneys who know the intricacies of the IRS code and can best help you strategize on how to use that code to your advantage.


By showing business owners how to categorize their business expenses properly, and taking advantage of all the legal deductions currently available under the tax code, we enable them to capitalize on savings and only pay the correct amount of tax each year!


For most businesses, taxes are their single largest expense. Compass Crossing partners with tax experts who offer lawful, strategic ways to legally deduct: golf, theatre, professional sports, mileage, auto expenses, travel, cell phone and long distance charges, gifts, education and tuition, medical expenses, home improvements, computers, and more!


Save Money Now


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Entity Structuring


Are you struggling to make ends meets as a sole proprietor in business? Are you tired of the high taxation and unlimited liability sole proprietorship brings? It’s time to take your business to the next level. Compass Crossing offers resources to ensure your business is structured in a way to ensure you are optimizing on your profits and protection.


If you are currently running your business as a sole proprietor, you are missing out on tax savings and advantages. Other business entities such as a limited liability company offer your business limited liability protection and pass-through taxation. Compass Crossing explores and assists each business owner’s situation to find the best fit for their business entity needs.


There are 3 types of entities to consider for your business:


Limited liability Company


As its name implies, the limited liability company provides limited liability for its members and owners, similar to how a limited partnership provides for its limited partners or a corporation provides for its shareholders. The difference is found in the LLC’s members’ ability to manage or control direction of the company, a privilege not enjoyed by the limited partner. small calc


The LLC can choose to either choose how it wishes to be taxed as a “pass through status” like that of an S-Corporation or as an entity which pays its own taxes. The LLC has fewer restrictions on membership than an S-Corporation. This relatively new form of entity is available in all fifty states while it is still finding its own in the governing laws of the individual states.


Strategies for multiple business entities may prove advantageous to your business for various reasons. Compass Crossing helps many business people to understand and implement multiple entity strategies. This may include forming subsequent entities in a tax-free or otherwise advantaged state, such as Nevada.


We also provide formation and registered agent services for all types of entities in every state. We also assist with business license and permit registration issues particular to any state as well. Our goal is to provide advise on different entity types for business activity use, liability, an asset advantage, tax and estate planning to help move your business forward to greater success.


S-Corporation


S-Corporation is a regular corporation that files IRS form 2553 to elect a special tax status with the IRS. This allows the S-Corporation to become a “pass through” entity-meaning that the income or loss generated by the business is reflected on the personal income tax return of the owners. small chartThe articles of incorporation filed with the state are the same as those filed on a C-Corporation. An S-Corporation is also considered a separate legal entity by the state and offers the same amount of protection for its shareholders in regards to debts and liabilities of the business.


Just as a C-corporation, the S-corporation must keep up to date on the appropriate forms and compliance required by corporations, namely meeting minutes, by-laws and proper bookkeeping. The S-Corporation is restricted to no more than 100 shareholders and none of the owners must be U.S. citizens or U.S. legal residents. Moreover, S-Corporations cannot be owned by C-Corporations, other S-Corporations, many Trusts, LLC’s or Partnerships. The election is made by filing form 2553. If the election is made within 75 days of the incorporation date, the election will be effective for the next calendar year.


C-Corporation


The most common corporate entity type is the “C” corporation or general corporation. This entity is widely used by companies planning to issue large quantities of stock in either a private or public forum as there is no limit to the number of stockholders the company is allowed to have. Because a corporation is a separate legal entity under the law, their personal liability of shareholders is limited to the amount they have invested in the company.


The C-Corporation pays taxes on the income it receives. This means that after payroll and other deductions, the c-corporation pays corporate taxes on all profits accumulated throughout its fiscal year. The benefit of this is, the income is taxed at a lower rate than that imposed on a sole proprietor or self-employed person. Also, the c-corporation has its own tax life, meaning; it has the ability to continue on forever and its stock passed on to others with ease. C-Corporations can also cover items such as pension and medical plans for its employees as well as college assistance programs and other insurance premium deductibles with pre-tax dollars.


Capitalize on Lower Tax Rates


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Cost Segregation


Have you built, purchased or renovated your commercial property in the past 10 to 20 years? If your answer is “yes,” it is likely you are paying too much federal income tax. Compass Crossing offers commercial property owners and their CPA’s from across the nation to increase cash flow from constructed buildings, purchased properties and renovations by accelerating depreciation expense deductions.


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Through what is called “cost segregation”, the components of a building are reclassified into proper classes according to the modified accelerated cost recovery system, case law and IRS revenue rulings through the tax reform act which went into effect, December 31, 1986. Cost segregation analysis’ and reports must be performed by practitioners who are either certified appraisers or engineers according to the IRS code. Maximize tax benefits and increase your cash flow!


“Cost segregation studies are a lucrative tax strategy that should be used in almost every major purchase of commercial real estate.” ~ US Treasury Dept


Cost segregation can reduce federal income taxes for owners of commercial or multi-family real estate by correctly calculating real estate depreciation. Compass Crossing can assist your business in increasing depreciation and improving the tax benefits of commercial and multi-family properties by affecting tax reduction and deferring the payment of federal income taxes.

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Property Range on Year 1 Tax Savings
Type (100,000-500,000 sq. ft. property size)
Office $35,500 – $160,000
Apartment $19,240 – $96,200
Retail $36,500 – $182,600
Industrial $10,800 – $54,000


Typical first year tax savings are 4:1 to 50:1


If you own or lease a facility, the depreciation deduction is one of the most significant, but often overlooked opportunities to reduce the income tax liability. Whether you are buying, building, or improving a building, Compass Crossing can help maximize your income tax deductions through our in-depth cost segregation service.


Clients have saved hundreds of millions of dollars as a result of cost segregation studies. We use IRS guided procedures for gather data, calculating the market value of components which can be segregated and compiling results into a report. After performing thousands of reports, our results have not been revised in the handful of related audits. Request a complimentary analysis for your commercial building today to ensure you are capitalizing on your cost segregation savings!


Get Cost Savings Analysis


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Self-Directed IRA’s


Compass Crossing partners with retirement experts who specialize in pension rescues and self-directed IRA’s and ROTH conversions, where income limits and tax-filing restrictions literally disappear! small hammockThe main focus of our experts is to ensure we help you achieve your financial goals. In addition to educating on proper entity structuring, planning for legitimate tax mitigation, we handle self-directed IRA and ROTH conversions while utilizing benefit plans to fuel wealth.


Our expert consultants work closely with partnered attorneys, CPAs, financial educators and investors to provide sound, up-to-date and custom financial engineering for each client. Because of this, even small businesses or modest investors are able to realize the power of Compass Crossing strategic team, united with the common goal of financial success for you. Take advantage of tax-deferred growth, tax-free withdrawals and no required minimum distributions. You owe it to your business and yourself to realize your financial goals.


Plan Your Own Retirement