Jason Monroe Smith

Certified Public Accountant, Jason Monroe Smith, Talks Estate Planning for the Closely Held Business Owner

Jason Monroe Smith Scottsdale

Certified Public Accountant (CPA), Jason Monroe Smith of Scottsdale, Arizona discusses tax strategies for the closely held business owner.

A closely-held business owner is a business entity that has a small number of stockholders. The shares of stock are generally not traded on the public stock market. Other closely held businesses can be sole proprietorships, a business that is owned by a single owner, and S-corps.

“Closely held businesses need a well-developed estate plan to ensure they are set up for post-generational success,” said Jason Monroe Smith, CPA. “The plan should include a revocable trust, medical directive, will, and powers of attorney. Most importantly the owner needs to ensure assets are properly designated with beneficiaries to ensure the plan is activated.”

If there are multiple owners, Jason Smith explains that the estate plan becomes even more trickier and owners need to know what questions they need to ask, including:
– What happens to the stock or other assets at the time of death?
– Will the other owner or the company be the ones to buy the stock from the trust or estate?
– Will there be enough cash to pay estate taxes?

“If there are multiple owners involved, it is extremely important to have an open discussion with a tax expert and estate planner to determine the best legal action,” said Jason Smith. “The failure of an estate plan can result in a liquidation of the business, throwing your legacy and hard-earned assets all out the window.”

Jason Smith explains that an agreement can come in many ways, such as a buy-sell agreement, the stockholder agreement, or a restricted stock agreement. Regardless, certain provisions must be made clear across parties.

“Owners need to think about restrictions around interest transfers, mechanisms that mitigate deadlocks, and what right the company or owner has in acquiring an outgoing owner’s interest,” said Jason.

“There are a large number of important to ask,” said Jason. “I highly recommend speaking with a trusted tax expert to help get the process started.”

Want to learn more about estate planning as a closely held business? Contact Jason Monroe Smith today.

About Jason Monroe Smith, CPA, and CFP

Jason Monroe Smith is a Certified Public Accountant and Certified Financial Planner with over 17 years of experience. Located in Scottsdale, Arizona, Jason specializes in tax and financial planning. Jason Monroe Smith’s in-depth CPA work has led to diverse experience and enabled him to work as an independent contractor where he prepares taxes, provides public accounting services, and performs financial planning services for small to mid-sized businesses.

Certified Public Accountant, Jason Monroe Smith, Discusses How S-Corps Can Reduce Self-Employment Taxes

Certified Public Accountant (CPA), Jason Monroe Smith of Scottsdale, Arizona helps S-Corps reduce self-employment taxes. Small business corporation, Subchapter S corporation, or S-Corp is a special tax designation that allows corporations to pass their corporate income, credits, and deductions through to their shareholders.

“As with many tax laws, designating your business can be confusing and runs the risk of being double taxed and losing out on savings,” said Jason Monroe Smith, CPA. “A CPA can help consult you and walk you through the steps of which designation is best, will save you the most money, and set you up for success long term.”

Corporations are typically taxed at both the corporate and individual level. Subchapter S corporations help businesses avoid just that, which is beneficial to small or individually-ran businesses.

Jason Smith explains. “A sole owner that acts as the only employee generally pays a tax of over 15% on all profits. This includes Medicare and Social Security. With an S corporation, the taxes are split between the employee and corporation–7.65% respectively. Additionally, the S corporation does not need to use all of its profits as employee salaries. Some earnings can be used to pay shareholders. This type of payout is called a distribution and is not subject to the same self-employment taxes as the corporation and employee.

To qualify for S corporation status, Jason Monroe Smith explains that business must meet a set of strict requirements, which include the following:

  • The business must be a domestic corporation
  • The business must only have allowable shareholders. These include individuals, certain types of trusts and estates. Partnerships, corporations, and non-resident alien shareholders are not allowed.
  • The business must have no more than 100 shareholders.
  • The business must have only one class of stock.
  • The business must be an eligible corporation. Certain financial institutions, insurance companies and international sales corporations are not eligible, for instance.

Want to learn more about becoming a designated S corporation? Contact Jason Monroe Smith today.

About Jason Monroe Smith, CPA and CFP

Jason Monroe Smith is a Certified Public Accountant and Certified Financial Planner with over 17 years of experience. Located in Scottsdale, Arizona, Jason specializes in tax and financial planning. Jason Monroe Smith’s in-depth CPA work has led to diverse experience and enabled him to work as an independent contractor where he prepares taxes, provides public accounting services, and performs financial planning services for small to mid-sized businesses.

Jason Smith, CPA Helps Businesses Protect Assets and Secure Wealth

Jason Monroe Smith Scottsdale

Certified Public Accountant (CPA), Jason Monroe Smith of Scottsdale, Arizona helps local businesses and individuals protect their assets and wealth by implementing reliable strategies and comprehensive plans.

“Asset protection is about using techniques that are within the limits of the law to protect assets of people and businesses from legal action and the threat of litigation,” explained Jason Smith, CPA and CFP. “These strategies will also protect against creditors.”

Individuals should consider asset protection strategies when they have a sudden windfall of money such as through an inheritance or lawsuit. If this wealth is a new experience, Jason Smith urges individuals to start the protection process right away.

“Assets deal predominantly with large sums of money but can also encapsulate rental property, owned property, contacts for service, and more,” continued Jason Smith. “Whatever it might be, if someone or a business has something of significant monetary value, it would be wise to protect their wealth and protect it wisely.”

Jason Monroe Smith uses proven strategies to protect assets. His arsenal includes ethical tools that help shield valuable assets from legal action and creditors. Jason has worked with hundreds of clients to form plans and achieve financial goals. Some of his techniques include utilizing trust options, regional laws, liability and professional insurance, and more. His services help clients in pre-planning and during times of litigation.

“The most important thing to do when it comes to asset planning is to plan, plan, and plan some more,” said Jason Smith. “If a plan is not in place at the time of a litigation, assets of the debtor can be at serious risk and at the mercy of the judge.”

If litigation does occur, Jason Smith is available to help his clients navigate those waters. He ensures that his clients are properly insured–raising the liability insurance if needed. Jason recommends that clients purchase a coverage policy of at least five million or more to ensure that the totality of wealth is covered. He will also review client property and joint accounts, ensuring that proper entities are in place to separate personal and business assets in order to reduce the risk that the litigation may impose.

About Jason Monroe Smith, CPA and CFP

Jason Monroe Smith is a Certified Public Accountant and Certified Financial Planner with over 17 years of experience. Located in Scottsdale, Arizona, Jason specializes in tax and financial planning. Jason Monroe Smith’s in-depth CPA work has led to diverse experience and enabled him to work as an independent contractor where he prepares taxes, provides public accounting services, and performs financial planning services for small to mid-sized businesses.

Scottsdale Certified Public Accountant, Jason Monroe Smith, Offers Expert Chief Financial Officer Outsourcing Services

A freelance accountant for over 12 years, Jason Monroe Smith of Scottsdale, Arizona helps local businesses overcome financial challenges by providing Chief Financial Officer (CFO) services on a temporary basis.

“By outsourcing CFO services, small to mid-sized businesses can remain focused on growth while financial goals, and all the tedious reporting that goes with it, are managed by a financial expert,” said Jason Monroe Smith, Certified Public Accountant (CPA) and Certified Financial Planner (CFP) of Scottsdale, Arizona.

Jason Monroe Smith’s CFO services begin by reviewing the organization’s financial goals and strategizes on what exactly is needed to take the company from where it is currently to where it needs to go. He uses analysis and strategic understanding to provide a detailed financial roadmap to achieve these goals, while also offering an in-depth study of the business’s competitive landscape. Jason can also evaluate his client’s financial systems to ensure they are designed for the company’s growth and can be enhanced to contribute to a paperless environment. He will even help select and negotiate with a software provider, remaining active in the implementation to ensure a smooth transition and any required training.

“Digitization is key if businesses want to thrive and accelerate their growth,” said Jason. “A paperless environment streamlines operations and helps create an efficient and productive workforce.”

As a CFP, Jason Monroe Smith helps Scottsdale businesses plan out projected financials through budgeting.

“A budget is essential to the everyday actions of an organization,” said Jason. “As a strategic CFO, I use financial forecasts as an iterative budget to ensure financial performance remains aligned to my client’s goals.”

Jason Monroe Smith’s other services include facilitating and analyzing financial reporting for key takeaways, which gives businesses an opportunity to re-evaluate business needs and be made aware of important events. He helps raise capital through his network of financiers and can facilitate capital restructuring. If the business is in the process of a transition, Jason Monroe Smith can serve as an interim CFO where he helps maintain financial alignment.

Jason Monroe Smith will also help with cash flow restructuring. From renegotiating vendor contracts, analyzing commission structures, to supply chain management and revenue attributes, Jason takes a deep dive and comes back up with actionable solutions.

“Cash flow is a common business challenge,” said Jason. “It requires a deep understanding of expenditures and where they are required and where they can be let go or reduced. But in the end, this is a highly important process to ensure a company is aligned to its growth trajectory.”.

Jason offers businesses an outsider’s perspective, oftentimes using this objective point-of-view to consult on strategic cost cuts that are sustainable and drive his client’s business growth forward.

About Jason Monroe Smith Scottsdale, CPA and CFP

Jason Monroe Smith is a Certified Public Accountant and Certified Financial Planner with over 17 years of experience. Located in Scottsdale, Arizona, Jason Monroe Smith Scottsdale specializes in tax and financial planning. Jason Monroe Smith’s in-depth CPA work has led to diverse experience and enabled him to work as an independent contractor where he prepares taxes, provides public accounting services, and performs financial planning services for small to mid-sized businesses.

CPA, Jason Smith: Life Insurance Policies that Fit Your Needs

Life insurance is something that many people take for granted, not realizing its importance for their beneficiaries and peace of mind. There are several different types of life insurance. CPA, Jason Smith explains a few of the options.

 

Jason Monroe SmithJason explained, “Whole Life insurance requires one to pay premiums throughout their life. In order to grow the cash reserve substantially, the premiums are higher than the fixed death benefit cost. Along with Whole Life, there is also Limited-Payment Whole Life. Limited-Payment Whole Life is essentially the same as Whole Life but is paid over a certain period, rather than up until death. With higher premiums, it guarantees the reserve to remain in power once they are paid out.

 

“Term insurance has premiums that are specifically for the death benefit; however, if death doesn’t occur within the term, the benefit is null and void. Usually, individuals can renew this policy or convert it into a cash value insurance plan. 

 

“Universal Life, otherwise known as Flexible Premium Life’s premiums, are adjustable meaning that higher amounts can be paid if the owner deems fit, as well as smaller amounts if necessary.” Jason Smith continued, “The owner can also change the death benefit denomination at their discretion. There are also options for payout.”

 

Jason Smith - Life Insurance Policies
Jason Smith – Life Insurance Policies

Jason explained further, “Determining the right life insurance for your specific needs is essential. It’s best to work with a professional that has life insurance expertise to walk with you through the ins and outs of tax requirements and the best options that fit your needs.”

 

Jason Monroe Smith is a Certified Public Accountant with over 17 years of experience. He specializes in tax and financial planning. Having completed a Master of Business Administration degree and a Master of Science degree Jason Smith is a highly motivated professional that takes great pride in his tax preparation and unparalleled public accounting experience.

 

Jason Smith’s in-depth CPA work has provided relevant experience and enabled him to work as an independent contractor preparing taxes, providing public accounting services, and performing financial planning services.

Jason M. Smith - Charitable Remainder Trusts

Jason M. Smith, CPA Explains the Specifics of Charitable Remainder Trusts

Jason Monroe Smith ScottsdaleJason Monroe Smith has over 17 years of CPA and CFP expertise. With an extensive accounting, tax, and financial planning career history, he owned and operated a financial advising website with one of the most highly recognized investment advisors in the nation. Jason M. Smith’s investment performance as a CFP has earned him a lucrative reputation due to the high level of training he received and his ambition. Jason Smith details the ins and outs of Charitable Remainder Trusts.

“An irrevocable trust cannot be terminated, amended, or changed without the beneficiaries. All of the legal rights to the assets and trust ownership have been designated to the beneficiary by the grantor. With a Charitable Remainder Trust (CRT), this falls under the category of irrevocable. However, a charitable remainder trust allocates funds to the designated beneficiaries over a predetermined, specified period and then distributes the remainder of the trust to a preset charity or charities.” said Jason.

“A Charitable Remainder Trust is an excellent way to lower the tax burden when gifting funds. Because it is irrevocable, the grantor will not have the capability to change the trust details once put in place. These can be set up in multiple ways, for example, unitrusts will distribute a fixed annual balance based on the total amount, or they can be annuity based, which distributes a fixed yearly annuity amount, just to name a few.

“Additionally, the grantor can name themselves in the Charitable Remainder Trust and use it over a specified period of time as income. The maximum income stream time allotment is 20 years, and then the named charity will inherit the rest.” Jason continued, “The income stream cannot be more than 50% of the entire trust. Grantors can fund their trust with real estate, cash, specific stocks, and other assets. It’s an excellent option for asset diversification, alleviating initial tax burdens, and allocating certain assets without capital gains.”

“If you are interested in supporting charities, this is a great way to secure your opportunity to give back. If you have concerns about your limitations in changing your Charitable Remainder Trust, you can also pair it with other trusts to ensure more flexibility.”

Jason Monroe Smith specializes in tax and financial planning. Having completed a Master of Business Administration degree and a Master of Science degree Jason M. Smith is a highly motivated professional that takes great pride in his tax preparation and unparalleled public accounting experience.

Jason Smith - Tax Strategies for the Highly Compensated

Jason Smith, CPA details Tax Strategies for the Highly Compensated

Jason Monroe Smith is a Certified Public Accountant with over 17 years of experience.

He specializes in tax and financial planning. Having completed a Master of Business Administration degree and a Master of Science degree Jason Smith is a highly motivated professional that takes great pride in his tax preparation and unparalleled public accounting experience.

Jason Monroe Smith ScottsdaleWhen it comes to tax strategies, Jason Smith has some advice for the highly compensated.

“It’s essential to reduce risk by taking a well-directed approach to an individual’s overall compensation and deductions, estate planning, charitable gifts, as well as general planning strategies. Perusing deferred income, equity-based, and retirement plans are also critical components of comprehensive preparation and planning.”

Mr. Smith Continued, “Getting my clients, the lowest tax cost and burden are my top priority. They are confident with my recommended strategies because I lay out a clear, concise plan that we work through together.”

With his drive to succeed and to ensure client satisfaction, Jason M. Smith decided to take his CPA endeavors to new levels. As an inherent entrepreneur, Mr. Smith has become an independent, private accountant to better serve his client’s needs.

Jason Smith has developed a diversity of cross-functional skills, which enables him to relate well with clients and work independently. Mr. Smith shared, “I am an analytical thinker with an intrinsic accountant mindset; I’m able to communicate positively and professionally with people at all levels because I make it a priority to understand their specific needs and demands. In fact, before returning to school, I worked in insurance sales for about a year, and in spite of fierce competition, I quickly became recognized as a top sales representative. My ardent fervor for success leans to my need to make others satisfied and content by going steps above what they expect.”

Jason Smith explained further, “I learned the fundamentals of accounting, tax and financial planning throughout my education and career history. In addition, I owned and operated a financial advising website with one of the most highly recognized investment advisors in the nation. My investment performance as a CFP from 2007 to 2009 has been stellar thanks to the high level of training I have received.”

Jason Smith’s in-depth CPA work has provided relevant experience and enabled him to work as an independent contractor preparing taxes, providing public accounting services, and performing financial planning services.