Small business owners with college-bound children can save thousands of dollars a year if they plan ahead and adopt a few simple strategies. While it’s best to plan when children are young, even some last-minute tips can cut parents’ costs. Here are some items business people should put on their to-do lists, and a few steps to avoid.
- Hold assets in your business account during the college years
- Convert a sole proprietorship to an S Corp to shelter non-retirement assets, saving thousands under FAFSA guidelines
- Restructure your business entity to reduce adjusted gross income
- Consider hiring your spouse and/or children
- Don’t save in a student’s name
- Don’t pay for college with a grandparent-owned 529
- Don’t use or borrow retirement funds
- Don’t miss out on key tax deductions & credits
- Learn the different methodologies for calculating the EFC
- Learn how to use the award appeals process
- Start early
- Become acquainted with EFC reduction strategies
Read the full article here: https://www.dhbusinessledger.com/business/20181022/how-small-business-owners-can-save-big-on-college .