What is corporate tax planning?

Corporate tax planning is a strategy used by businesses to try to minimize their taxes. This is done by legally utilizing deductions and credits and other tax benefits available under laws in the state of Washington. It is important for businesses to understand their legal obligations in regards to taxes, so they can properly plan for them in advance. Tax planning is a process that includes researching, analyzing and planning taxes that must be paid throughout the year. This usually includes setting up the most advantageous business structure for tax purposes, taking advantage of business deductions and credits, and making payroll and documentation decisions. Business owners in Washington have to pay state and local taxes and might be able to take advantage of certain tax deductions, credits, and incentives. For example, businesses in Washington can take advantage of deductions for business meals, employee benefits, and research and development expenses. Some businesses might also qualify for reduced taxes by forming a partnership or corporation. An important part of corporate tax planning is understanding Washington’s law concerning business formation. The business structure chosen can determine how much in taxes the company must pay. Corporate tax planning allows businesses to make informed decisions on how to legally reduce the amount of taxes that must be paid.

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What is corporate tax planning?

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