Business Formation & Tax Planning:
The automotive service industry has an extreme advantage as a business model – specifically, as a LLC or a Corporation, for writing off a significant amount of business expenses not available to sole proprietorships or partnerships, while protecting your personal assets from the Bureau of Automotive Repair in the event of investigations against you.
If a shop or technician is unaware of the very limited circumstances by which they may write off business expenses, and the significant allowable circumstances with liberal corporate rules for writing off business expenses, they need to start reducing liabilities and improve their bottom line.
Most accountants and CPAs are unable to make legal arguments for specific depreciation schedules for automotive equipment, instead relying on antiquate schedules using generalities of manufacturing equipment, not taking into account how quickly equipment needs to be repaired or replaced in the automotive industry.
ADS would rather see our clients purchase more equipment and tooling, expanding their business and offering a greater range of services for customers than see that money head to the IRS.
ADS can work with your tax professional or simply become your tax professional, providing specialized solutions that will save you a substantial amount of tax liability.
Furthermore, if an automotive repair dealer has not insulated themselves from liability with the umbrella of protection provided by a corporation or LLC, they need to be.