Profitable Tax Strategies with Luis Corrales

Find Rocky Lalvani @ www.ProfitComesFirst.com  or email him at [email protected]

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You hit a revenue number you have been chasing for years, and it feels like proof you finally made it. Then someone finally runs the real math, and you find out that number has been quietly costing you money the whole time. That is exactly what happened to one of Luis Corrales's clients, a construction company owner who grew his business to $40 million in revenue and found out it actually cost him $41 million to get there. Two years later, after deliberately cutting revenue to $10 million, he was taking home three times the profit with far less stress.

In This Episode:

• Why the entity structure your CPA set up when you started your business may be the wrong one now
• S-corp vs. C-corp vs. entity stacking, and how each one affects what you keep at a sale
• The Qualified Small Business Stock exemption, which can shelter the first $15 million of gain from capital gains tax
• Real estate tax strategies for owner-occupied property, including cost segregation studies and the grouping election
• Why revenue growth and profit loss can happen at the exact same time, and how to catch it before it costs you a year
• Paying yourself a real salary plus a separate profit distribution, instead of one number that tries to be both
• How a portfolio line of credit lets wealthy owners access cash without selling assets and triggering capital gains tax

Key Takeaways:

• Entity structure should match your actual end game, whether that is adding partners or exiting for a specific number, not whatever your CPA defaulted to at founding.
• The QSBS exemption can shelter up to $15 million in gain if you have been a C-corp for five-plus years with under $65 million in asset value.
• It is possible to grow revenue and lose money in the same year. Most owners will not catch it without someone forcing them to look.
• You are owed a market salary for the work you do and a separate profit distribution for owning the business. Treating those as one number costs you clarity.
• Deal structure at sale, asset vs. stock, cash vs. rollover equity, changes what you actually keep after tax more than almost any other decision in the process.

About Luis Corrales:

Luis Corrales is the Founder & CEO of Corrales & Co., a boutique multi family office that helps entrepreneurs and high net worth families navigate the biggest financial decisions of their lives.

A specialist in exit planning, tax strategy, and wealth management, Luis helps business owners prepare for successful exits, reduce tax drag, and preserve wealth across generations. He is also the Founder & CEO of PineTree Asset Management, a multifamily real estate investment firm focused on acquiring and managing properties across South Florida.

Originally from Peru, Luis combines decades of experience with a practical, relationship-driven approach to advising entrepreneurs before, during, and long after a business sale. His mission is simple: help founders keep more of what they build and create lasting financial legacies for their families.

Links:

Website: https://corralesco.com/

LinkedIn: https://www.linkedin.com/in/luis-corrales-7056365/

Facebook: https://www.facebook.com/luis.corrales.908

Instagram: https://www.instagram.com/theluiscorrales/

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Music provided by Junan from Junan Podcast

Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.