Episode 166-Get Your Tax Right with Sandoval Tax
In this episode of The Prospecting Show, Dr Connor Robertson sits down with the team from Sandoval Tax to talk about one of the most overlooked topics in entrepreneurship—taxes. This conversation goes far beyond deductions and filings; it’s about building systems that keep your business compliant, efficient, and financially strong.
Dr Robertson opens the discussion with a simple truth that resonates with every business owner: “The more you grow, the more complicated taxes become. But with the right structure, they stop being a burden and start becoming a lever.”
The team at Sandoval Tax agrees. “Most entrepreneurs don’t realize how many opportunities they’re missing because they only think about taxes once a year,” they explain. “Tax planning is not a seasonal event—it’s a year-round strategy.”
The Mindset Shift: From Taxpayer to Tax Strategist
Early in the episode, the Sandoval team emphasizes the need to move from a reactive to a proactive tax mindset. “Most business owners only meet their CPA when something is due,” they say. “That’s like waiting for a fire to start before buying insurance.”
Dr Robertson echoes that sentiment: “If you’re building wealth through business ownership, you have to view taxes as part of your financial architecture.”
This shift is foundational. When business owners treat taxes as part of their ongoing strategy—like marketing or operations—they begin to make smarter, more aligned decisions.
Building a Foundation for Compliance
The first pillar of tax success, according to Sandoval Tax, is compliance. “Before you save money, you have to stay out of trouble,” they laugh. “You can’t strategize your way out of bad record-keeping.”
They outline three basic habits that every entrepreneur should follow:
- Separate business and personal accounts. Mixing funds is the fastest way to create audit risk.
- Document everything. Keep digital copies of receipts and invoices for at least seven years.
- Review quarterly. “If you wait until April to know your numbers, you’re already too late,” they warn.
Dr Robertson adds, “Those simple steps might seem small, but they’re the difference between a stressful year-end and a smooth one.”
Entity Structure: The Hidden Tax Multiplier
A recurring theme in this episode is business structure. Sandoval Tax highlights how choosing the right entity—LLC, S corporation, or partnership—can dramatically affect your tax bill.
“Most entrepreneurs start as sole proprietors because it’s easy,” they explain, “but that structure often leads to overpaying in self-employment taxes.”
Dr Robertson asks, “When does it make sense to switch to an S corporation?”
They respond, “Usually, when net income crosses the $60,000 to $100,000 mark. At that level, paying yourself a reasonable salary and taking distributions can save thousands annually.”
They clarify that structure isn’t one-size-fits-all. “The right setup depends on your goals, state laws, and income mix,” they say. “That’s why we always start with a holistic consultation.”
Tax Strategy: Playing Offense, Not Defense
Once the basics are in place, Sandoval Tax encourages entrepreneurs to move from compliance to strategy. “Compliance keeps you safe. Strategy builds wealth,” they explain.
Their favorite starting point is the “Three Buckets Framework”:
- Immediate Deductions: Expenses like advertising, travel, and software subscriptions.
- Deferred Strategies: Retirement plans, depreciation schedules, and deferrals.
- Long-Term Planning: Asset protection, trust structures, and real estate holdings.
Dr Robertson adds, “That framework works beautifully with business acquisition models—each bucket supports a different time horizon.”
They laugh and agree. “Exactly. The key is balance. Don’t chase every deduction—chase the ones that align with your business model.”
Common Mistakes Business Owners Make
One of the most valuable sections of the episode comes when Sandoval Tax breaks down common mistakes they see from entrepreneurs:
- Waiting until tax season to plan. “By then, 90% of the opportunities are gone.”
- Not paying quarterly estimates. “Ignoring estimated payments is like borrowing from the IRS—with interest.”
- Missing depreciation. “If you buy equipment or vehicles and don’t track depreciation properly, you’re leaving money on the table.”
- Poor record-keeping. “Bad data equals bad advice.”
- Not leveraging professionals. “A good tax strategist pays for themselves several times over.”
Dr Robertson adds, “The cost of ignorance is always higher than the cost of expertise.”
The Relationship Between Tax Strategy and Growth
Sandoval Tax explains that well-structured tax systems do more than save money—they enable scalability. “When your finances are organized, lenders trust you more, partners respect your data, and you make faster decisions,” they note.
Dr Robertson connects this to acquisitions. “When we evaluate companies, the ones with tight financials are worth more—period,” he says. “That’s why tax compliance isn’t just an accounting issue; it’s a valuation issue.”
The team agrees. “Clean books build credibility. Credibility builds leverage.”
Tax Planning Tools and Technology
The conversation turns practical as the group discusses tools. “Automation is your friend,” Sandoval Tax says. They recommend tools like:
- QuickBooks Online for bookkeeping
- Gusto or ADP for payroll
- Dext or Hubdoc for receipt management
- TaxDome for document storage and communication
Dr Robertson notes, “Technology bridges the gap between data and decision-making.”
They add, “Exactly. The right tools free you up to focus on growth instead of chasing paperwork.”
The Human Side of Tax Strategy
Despite all the automation, Sandoval Tax emphasizes that people still matter most. “No software replaces strategy,” they say. “Software can calculate numbers—but it can’t interpret them.”
Dr Robertson adds, “That’s the heart of entrepreneurship—using data to make human decisions.”
They continue, “Every deduction, every entity choice, every plan should align with your story. Taxes aren’t just numbers—they’re reflections of your goals.”
Lessons from Real Clients
The Sandoval team shares several anonymized examples:
- A contractor who saved $28,000 annually by converting to an S corporation and creating an accountable plan.
- A consulting firm that reduced taxable income by accelerating equipment purchases before year-end.
- A digital agency that used a solo 401(k) to defer $58,000 in taxes while building retirement assets.
“These aren’t loopholes—they’re strategies available to anyone willing to plan,” they emphasize.
Dr Robertson responds, “That’s what makes this conversation so important. These results come from being intentional, not lucky.”
How to Build a Tax-First Business Culture
One of the most powerful takeaways from the episode is the idea of a “tax-first culture.”
Sandoval Tax explains, “When your team understands the ‘why’ behind expenses, everyone becomes a steward of profitability.”
They recommend monthly finance meetings where owners and managers review both operational and tax implications. “When everyone knows how money moves, waste disappears.”
Dr Robertson adds, “That transparency also builds accountability—and investors love that.”
The Connection Between Tax Strategy and Legacy
Toward the end of the episode, the conversation gets personal. “Taxes aren’t just about saving money today,” Sandoval Tax says. “They’re about what you’ll leave behind.”
They discuss using trusts, succession plans, and charitable strategies to ensure businesses continue creating value long after the founder steps away.
Dr Robertson reflects, “That ties directly into my passion for social entrepreneurship—wealth should serve a purpose.”
Sandoval Tax agrees. “Exactly. Great tax planning is about legacy, not loopholes.”
Key Takeaways
- Treat taxes as a year-round strategy, not a seasonal task.
- Choose the right entity structure to minimize liability and maximize efficiency.
- Build habits of compliance—separate accounts, documentation, and quarterly reviews.
- Move from reaction to proactivity with tax planning.
- Invest in technology that saves time and reduces errors.
- Partner with professionals who think strategically, not just numerically.
- Use tax savings to reinvest in growth and legacy.
Dr Robertson wraps up the conversation by saying, “When you understand your numbers, you control your future. That’s the power of getting your tax right.”
Listen and Learn More
Listen to the full episode here: Get Your Tax Right with Sandoval Tax