D E C E M B E R 2 0 1 5

By: Matthew Murillo, Family Business Lawyer©

It can be shocking to realize that our biggest personal and business expense, bar none, is taxes. The good news is that just a little time and effort focused on strategically reducing your taxes can pay big dividends.

IN THIS

Issue How to Save Big Money on

Your Taxes This Year – Part 1

Here’s What’s Cooking – Santa Hat Brownies

The Ultimate Guide to

Office Gift-Giving Etiquette

Office Party Games

Our Holiday Gift to You and Yours!

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EVENTS

Office Party Games

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How to Save Big Money on Your Taxes This Year – Part 1

The first thing to know about taxes is that it is not illegal to strategize to save money on your taxes. Many people are held back from using creative tax strategies because they have a fear that it’s dangerous or risky. It’s not, as long as you are smart about it.

It is illegal to evade taxes. As Martin Ginsburg (my tax professor in law school and also husband of Ruth Bader Ginsburg) often reminded us “pigs get fat, hogs get slaughtered.” And since this is the most important time of the year when it comes to tax strategy, I’m going to be sharing a series of articles on how to get fat, but not slaughtered when it comes to your taxes. The first smart strategic move you can make when it comes to saving big money on your taxes is to build or rekindle your relationship with a creative financial manager / bookkeeper and a Certified Public Accountant (CPA) or Enrolled Agent (EA) for tax advice and filing your taxes. Your financial manager / bookkeeper is the person who will be managing your books on a week to week basis. Notice I did say “week to week” -- that means not month to month, or quarter to quarter. If you are in business, you need at least weekly (if not daily depending on the size and type of your business) financial management, which should include daily / weekly cash flow management, monthly review of reports and categorization of expenses and quarterly updates of forecast and projections. Your financial manager/bookkeeper works with you on these items.

Your CPA or EA (hereinafter Tax Advisor) is the person who actually files your taxes. Ideally, you meet with your Tax Advisor twice a year in May/June (after tax season and a vacation for your Tax Advisor) and then again in October or November. The May / June Meeting is for a general catch up, mid-year review that lets your tax advisor know what you are on track to do for the year, financially, so that strategy can begin to be considered. Then, when you meet again in October / November, it’s about getting down to business, projecting cash flow through the end of the year, and getting a tax estimate using different assumptions with and without tax saving strategies included. If your Tax Advisor cannot provide this and is only a tax filer, you’ll know it’s time to find a new Tax Advisor. We can help you with that, so be sure to contact us, if you find you do not have a Creative Tax Advisor. This is the first step in saving big money on your taxes. I included others steps in my online blog you can reference that will give you more a-ha’s and awarenesses when it comes to keeping more of your money in your family and business and out of the hands of the government, unnecessarily. If you have specific questions you would like answered when it comes to saving big money on your taxes, simply email me and let me know so I can be sure to address them in an upcoming article or newsletter.

Check out these three Christmas party activities that will make sure your next holiday office party has a lot of holiday cheer. These activities only require items that you probably already have, so just read the rules and with little to no preparation, you'll be ready to play.

1. Ornament Guess - A great way to start of your Christmas party is to have guests guess how many ornaments are on your tree when they walk into the party. This is a very easy game to set up and you can give a small prize to the winner.

2. Christmas Photo Props - Print out free photo props for a quick and easy way to add some fun to your Christmas party. Find a Santa beard, Santa hat, reindeer antlers, and many more props that you can print out and attach to a stick or straw. Then snap away!

3. If you have some truly outgoing guests they're going to love the Christmas party game that requires them to sing. See how well your guests can keep up as "12 Days of Christmas" is sung as quickly as possible.

Create great office party memories this holiday season!

…Continued from Page 2

Even if you're besties with the boss or a co-worker, avoid anything personal, offensive, or inappropriate — including gifts related to religion, politics, personal hygiene, or sex.

6. Go in on a group gift with coworkers.

If you want to get a gift for your boss, suggest pooling money to get a group gift. (And if someone else coordinates and asks you to participate, you should.) "Being involved with a group gift for your boss will mean less stress for not only yourself, but for everyone else in the office who may be worrying about what to get," Meador says.

7. Think simple, but significant.

Tailor your gift to the taste and personality of the recipient, Whitmore says. If you know your colleague is passionate about baking, for instance, consider getting that person a cookbook.

"Just stay away from items that are too personal in nature, such as perfume, clothing, red roses, alcohol, or tobacco products," she advises.

Meador agrees, saying that even if you choose to tailor the gift to your colleagues' hobbies or interests, it's important to remember that office gifts are best when they are simple and useful. "A gift such as a nice coffee mug or a delicious holiday treat can be a thoughtful and simple way to show appreciation during the holiday season," she says.

8. Beware of humorous or gag gifts.

This goes along with point No. 5 above. "Avoid giving a humorous gift if you don't know a person well," Whitmore says. "What you might think is cute or funny may be offensive or insulting to someone else and could quickly damage or even sabotage a business relationship."

9. When in doubt, treat with sweets.

Bringing baked goods for everyone is a great way to show your appreciation to your officemates. "Be sure to consider any office allergies so everyone can indulge," Meador says.

10. Don't feel pressure to give gifts.

If someone in the office unexpectedly gives you a gift, it's not necessary to give one in return, Whitmore says. You can always send a handwritten thank-you note to show your appreciation.

Our holiday gift to you! For the Month of December if you are one of the first five business owners to book a LIFT Start Up or LIFT Audit Session, we’ll waive our Session fee as our year-end holiday gift to you.

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DECEMBER 2015

Ingredients:

1 pan of your favorite brownies, cooled and cut into desired size and shape (I used a round cutter)

12-16 small strawberries, cleaned and hulled

vanilla-mascarpone buttercream (recipe below)

Vanilla-Mascarpone Buttercream

1/2 cup (1 stick) unsalted butter, room temperature

8 ounces mascarpone cheese, room temperature

2-1/2 to 3 cups powdered sugar

2 teaspoons vanilla extract

pinch of salt

Using a stand mixer with a paddle attachment, beat butter and mascarpone cheese until light and creamy, about 2 minutes. Add vanilla extract and salt. Add 2-1/2 cups of sugar, half a cup at a time and continue beating until smooth. Add more sugar, if needed to reach desired consistency and sweetness.

To assemble, pipe a ring of vanilla buttercream on top of each brownie. Cut off the base of a strawberry so it is flat and place it upside down on each brownie, pushing slightly to secure in place. Top the tip of the strawberry with a dot of buttercream to finish the Santa hat.

C R EA T IV E B US I NES S LAWY ER M ON T H LY NE WS LET TER

Q&A

QUESTION

Q: Should I pay bonuses to my employees and contractors during the holidays? Times are tight, but I don’t want to be a Scrooge. ~ Cash-strapped entrepreneur

ANSWER

A: Dear Cash-Strapped: The holiday season can be fulfilling emotionally but draining financially, that’s for sure. You may be facing a year-end cash slump or big expenses. Or, you may have a bunch of cash on hand and be facing a big tax bill. Assessing the reality of your current situation is the starting place. Many people believe they are cash-strapped, when really they aren’t and could actually make better decisions with the resources they do have. You may want to contact us for a resource mining session to identify what you do have and how you can use your resources in the best way possible. Regarding holiday bonuses for team members, we do not recommend it. Instead, get your team members a thoughtful gift that is within your budget based on the resources you have and the end of year tax planning you are doing. When you give holiday bonuses, they become expected rather than earned. And, if you don’t give them one year because you really are cash-strapped, feelings can be hurt. Rather, structure your compensation plan so that your team is bonused based on measurable objectives, all year long. We can help you with that, when you are ready.

About Matthew Murillo

"I became a Creative Business Lawyer™ because I wanted to make a real difference in the lives of my clients. Before making any major purchases or life decisions, you can get legal advice from your very own Creative Business Lawyer™! It's easy and affordable. Let's talk!"

HERE’S WHAT’S COOKING

Santa Hat Brownies

C R EA T IV E B US I NES S LAWY ER M ON T H LY NE WS LET TER

The Ultimate Guide to Office Gift-Giving Etiquette http://www.businessinsider.com/office-gift-giving-etiquette-during-holidays-2014-12

By Jacquelyn Smith

Ways to Help Ensure Your Business Succeeds

The following is an edited excerpt from Successfully Navigating the Downturn by Donald Todrin from Entrepreneur Press.

Here are some tips from experts Shawnice Meador and Jacqueline Whitmore:

1. Determine whether exchanging gifts is acceptable or discouraged in your workplace.

"If you are new to the company and are not sure if gifts are exchanged, my best advice would be to just ask around," says Meador, director of career and leadership services for working professionals at MBA@UNC.

"If gifts are the norm, it will usually be openly discussed around the office, which can help you get more details about types of gifts and dollar amount," she says. "If gift-giving guidelines aren't as clear in your office, you can never go wrong with giving your boss or coworkers a card or treat to wish them a happy holidays."

2. Remember that office gift exchanges should be optional.

Don't badger others for not wanting to participate in an office gift exchange, says Whitmore, an international etiquette expert and author of “Poised for Success: Mastering the Four Qualities That Distinguish Outstanding Professionals.” "Some people may not want to participate for personal, financial, or religious reasons."

3. Set a spending limit for gift exchanges.

If you determine that giving gifts is standard in your workplace, suggest to your colleagues that a price limit be set. "Limits help participants select an appropriate gift at an affordable price," Whitmore says. Without guidelines, people may feel uncomfortable or embarrassed if their gifts cost a lot more or less than everyone else's.

"Whenever you overspend, you run the risk of looking like a show-off," Whitmore says. "On the other hand, if you spend considerably below the norm, you might come off looking stingy."

4. Don't overdo it.

Regardless of spending limits, don't overdo it. "Extravagant gifts in the office can make others feel uncomfortable or as though what they may have chosen is not good enough," Meador says. "Remember office holiday gifts are about showing appreciation, not being flashy."

5. Be appropriate and play it safe.

Never, ever buy anything for your boss or coworkers that could send the wrong message.

…Continued on Page 3

DECEMBER 2015

Our Holiday Gift to You and Yours!

To give or not to give? That’s the question so many employees will ask themselves this holiday season.

Deciding whether to get your boss or colleagues a holiday gift can be difficult. And choosing the right present can be even trickier.