I'm in the midst of expanding my company dramatically. Here's some background info:
-We are a seasonal company, and I'm the only person who works on it outside of May-August. I'm the sole proprietor.
-This year, we'll make around 80k profit.
-I plan on reinvesting 100% of our profits next spring, plus getting an additional loan of 50-100k.
-By the end of next summer, I anticipate profit of approximately 400k, most or all of which which will probably not be reinvested and will probably instead be put into index funds.
-Most of the 400k could be considered long term investments, and would be appropriate to invest in retirement accounts.
Obviously next year's profits are hard to predict, but I'm confident based on my knowledge of the industry that the number is a good ball park estimate, and I'll certainly be adjusting my plan as need be based on how things are going.
So, I'm wondering what are my options to make sure I have as much of my current cash on hand for reinvestment next spring, and my options to minimise taxes on that potentially much larger sum next year.
Thanks so much for you help!