Million Dollar Mistakes: How We Saved This NC Manufacturer Over $8.5M.

Million Dollar Mistakes TrustBGW

Background

A successful mid-sized business with multiple entities engaged our accounting firm for tax strategy and compliance. They suspected they were overpaying in taxes but weren’t sure how to uncover missed opportunities. Our deep-dive discovery session uncovered over $8.5 MILLION in tax savings.

Solutions

Through our Tax Discovery Process, we identified and implemented the following strategies:

  • Switching to Cash Basis Accounting: This allowed them to defer $275K in income taxes.
  • S-Corp Election vs. C-Corp Planning: We identified that by making the S-election, they could shield future income from double taxation, saving $980K.
  • Estate Planning Adjustments: By taking action before the 2025 estate tax exclusion reduction, we helped the owners secure $4.8M in estate tax savings.
  • Optimizing Real Estate Holdings: We advised restructuring the ownership of a key property, reducing tax exposure and allowing for a $320K tax deduction.
  • Implementing a Captive Insurance Company: This allowed the business to shift income into a more taxefficient vehicle, generating $1.7M in savings.

Conclusion

Our strategic tax planning helped this client not only save millions but also position their business for longterm success.

Solutions

Challenges

  • Using an outdated accounting method that increased taxable income unnecessarily
  • Unoptimized corporate structure leading to double taxation risks
  • No clear estate planning strategy, exposing millions to unnecessary estate tax
  • Missed opportunities in captive insurance for risk management and tax savings

Benefits

  • Total Estimated Tax Savings: $8.5 Million
  • Increased Asset Protection and Reduced Exposure to Future Tax Hikes
  • Improved Business Structure for Growth & Succession Planning

Save money, make money, stay out of trouble, have fun.™

BGW Accounting Firm
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BGW is the brand name under which BGW Advisors, LLC provide professional services. BGW Advisors, LLC practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. BGW Advisors, LLC and its subsidiary entities, which are not licensed CPA firms, provide tax, advisory, and other non-attest services to its clients. The entities falling under the BGW brand are independently owned and are not liable for the services provided by any other entity providing the services under the BGW brand. Our use of the terms "our firm" and "we" and "us" and terms of similar import, denote the alternative practice structure conducted by BGW Advisors, LLC.