Manufacturing

7 Midyear Tax-reduction Strategies for Manufacturers

As the midpoint of the year fast approaches, it’s a good time for manufacturers to assess their tax status and plan appropriate strategies for reducing their 2022 tax liability. Although each situation is unique, here are seven general tax moves that could potentially lighten your manufacturing company’s tax load this year. 1. Place Business Property […]

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A Segmented Income Statement Can Be a Powerful Tool for Manufacturers

A companywide income statement may be sufficient for lenders or other outsiders to evaluate your manufacturing company’s financial performance. But from management’s perspective, a segmented income statement can provide valuable insight into key performance drivers and possible improvement strategies. Segmented vs. Traditional Income Statement A conventional income statement starts with revenue and then subtracts costs […]

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S Corporation Vs. LLC: The Way a Manufacturing Company Is Structured Affects Taxes and More

For decades, owners of small to midsize manufacturing companies have opted for the S corporation form of ownership, rather than being subject to the double taxation of C corporations. However, in recent years the limited liability company (LLC) has become another popular alternative. Let’s compare these two business structures. S Corporations Unlike a C corporation, […]

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Manufacturers: Is Your Buy-Sell Agreement Up to Date?

A buy-sell agreement is a critical tool for owners of closely held manufacturing companies. It ensures an orderly ownership and management transition when an owner dies, becomes disabled or otherwise leaves the company. And it creates a market for departing owners’ shares, providing owners and their families with liquidity and ensuring that the business stays […]

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Manufacturers Need to Act Soon to Take Advantage of 100% First-Year Bonus Depreciation

First-year bonus depreciation typically creates a powerful tax incentive for eligible manufacturers to purchase qualified property needed for business reasons. These tax write-offs can benefit a manufacturer’s cash flow, but claiming them isn’t always the best decision. In some cases, there are advantages to following the regular rules. However, if your manufacturing company wants to […]

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