Successful Athlete in the middle of retiring misses $464,040 in tax savings over 3 years.
Client Snapshot
Industry: Professional Athlete
Gross Revenue: $1.5m
Entity Type: Sole Proprietor
The Challenge
A successful athlete transitioning to a public figure was working as a sole proprietor and unknowingly paying far too much in taxes. Without a tax strategy, they faced higher audit exposure, weren’t on track for retirement, and had no cohesive financial team guiding decisions. The result was fear, uncertainty, unnecessary tax bills, and missed opportunities to build long-term wealth.
Encurio’s Approach
We started by getting a clear picture of their goals and overall financial situation. With that understanding, we:
- Formed the proper entity type to reduce audit exposure and save taxes
- Built streamlined accounting processes for accurate and timey records
- Helped design a retirement plan tailored to their timeline
- Employed appropriate income-shifting strategies, including properly paying their children for the work they were doing.
- Reviewed non-cash donations for proper documentation
- Helped assemble a strong financial team for coordinated planning
The Impact
The transformation of their finances during a scary transitional time in their career was meaningful.
- Annual tax savings, reduced audit exposure, and better documentation gave the Client confidence and more control.
- Their retirement path became more clear with the aid of timely and accurate financials that helped with adjusting their budget during the transition to a new career and overall financial planning.
- Their children are now paid for their meaningful participation in the Client’s business and are able to start saving for their own retirement which will give them a significant head start.
- Their financial team all communicate and collaborate to have valuable meetings to aid in decision making, which has also given the Client more clarity and control over their situation.
The numbers speak for themselves: an estimated $464,040 in tax savings over three years and an estimated 6282% return on their investment in Encurio’s Strategic Planning, and this is just the beginning. Beyond the dollars, the Client moved from feeling exposed and reactive to feeling confident, supported and future-focused.
To learn more about how Encurio’s strategies could improve your businesses finances, set a meeting with us.
