Tax planning for individuals and businesses in Southern Indiana

The return is the last step, not the plan

A tax return reports decisions you already made: how the business was structured, what you paid yourself, when you bought equipment, whether you funded a retirement account, and how much you set aside for estimates along the way. By the time a preparer opens the file, most of those choices are locked in for the year. Planning exists to make them on purpose.

For most owners in Southern Indiana, the work is a short conversation two or three times a year. We look at what the year is actually producing, compare it to the plan, and adjust what can still be adjusted before December 31.

What we review each year

• Entity structure — sole proprietor, partnership, S corporation, or C corporation — and whether the current form still fits the way the business runs.
• Owner compensation: reasonable salary, distributions, and how those two interact at both the federal and Indiana level.
• Estimated tax payments, so a good year does not turn into a penalty or an April surprise.
• Retirement plans — SEP, SIMPLE, solo 401(k) — and the contribution deadlines that come with each.
• Equipment and capital purchases, including the timing of purchases and the depreciation elections available.
• Multi-state activity: where work is performed, where property sits, and how income is apportioned.

Indiana has rules of its own

Indiana income tax begins with federal adjusted gross income and then applies its own additions and deductions, so a decision that is neutral on the federal return can still move the state result. County income taxes follow the taxpayer's county of residence, which matters for owners and employees who move or work across county lines during the year.

Businesses registered in the state also carry filing obligations beyond income tax: sales tax on taxable goods and services, withholding on wages, and annual reports through INBiz. Missing one of those is usually more expensive than the tax itself.

Accounting that holds up at filing time

The tax return can only be as clean as the records behind it. Our preference is simple: business activity in a business account, bookkeeping closed monthly, and software the owner can actually read. When we set up or migrate accounting software for a client, the goal is a set of books they can use for decisions and a set of numbers that reconciles to the return without a scramble in March.

Where a client needs ongoing bookkeeping, controller-level reporting, or fractional CFO work, that is delivered through King & King Advisory Group, a separate firm we work alongside.

Questions we hear most

Should I incorporate? Sometimes, and not always for the reason people expect. The answer depends on profit level, payroll, benefits, and how long you intend to keep the business.

Can I file an extension? Yes, and an extension extends the filing date, not the payment date. The tax is still due in April.

What if I have not filed for a prior year? Call us. Unfiled years are workable, and the sooner they are addressed the fewer penalties accrue.

How much should I set aside? For a first-year business, we build the estimate from the actual numbers rather than a rule of thumb.