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If you're reviewing your books in preparation for year-end and realizing that you've done well, you might want to check out a little-known program that can save you LOTS in taxes - the Private Employer Benefit Plan, also known as a PEB Plan. I just learned about it at a seminar given by a group of CPAs and ERISA lawyers - and they explained that it's relatively new, most large businesses take advantage of it and save hundreds of thousands if not millions in taxes, and most small businesses know nothing about it even though they can have a PEB Plan too.
A PEB Plan allows a business owner to operate her company on a pre-tax (untaxed) basis, using an employee stock ownership plan that is set up to insure that the owner retains control of her company. The benefits to EmployERs are huge (hence the capital ER in the title of this blog) - saving many thousands in taxes every year. The nature of the stock ownership plan confers benefits on the employees too - which is a good thing all around. If you've been in business for 3 years or more, expect to keep going for at least 5 years into the future, and show net annual earnings (before taxes) of at least $250,ooo, then you're probably a viable candidate for this program.
This is an exciting benefit for small business owners, well worth the effort to learn about and understand. If you think you meet the requirements for a PEB Plan and want to learn more, please contact me and I'll fill you in on the details that I learned at the seminar.
Ann Baker is CEO of Publicity Pros, and creator of the small-business publicity building services PR-123, SocialMedia-123, and WebTraffic-123. She is a Savor Mastermind Leader for Manhattan Beach, Redondo Beach, and Costa Mesa in Southern California. She can be reached at Ann@PublicityPros.net.
