In 1980, Lionel Engelman founded Engelman Accountancy in San Mateo, California, with the vision of creating a singular firm that applies both professional concern and personal care to every assignment. To date, the firm has met that vision for hundreds of individuals and families and for small businesses across a broad range of industries. Today, Engelman Accountancy continues providing that unique brand of service to its many clients throughout the San Francisco Bay Area and beyond.
The firm prides itself on first listening to a client’s needs and concerns, and then applying its combined financial experience and expertise to yield sophisticated solutions to individual financial issues and opportunities.
Here are a few examples of how we have helped our clients achieve greater financial security.
A Professional Family – Planning for Today and Tomorrow
A couple with a young child had been married for several years. They are both employed, and asked Engelman Accountancy to review their financial situation and make recommendations.
First we analyzed the couple’s past tax return. We noted that the couple uses a home office and described the tax benefits of this. We also pointed out that their second piece of real estate had little cash flow. As a result, it became clear to the couple that owning the second property was marginally beneficial based on their monthly cash needs and the benefits of a principal residence exclusion.
The next step addressed their desire for an estate plan that secured proper guardians for their child in case of an emergency. We helped them by recommending several estate attorneys and financial planners that could help.
In addition, Engelman Accountancy advised the couple in establishing some mid-term financial priorities. We suggested they set up a small college education plan for their child with a 529 College Fund Plan and pointed out the tax benefits.
The overall tax/financial plan is in the beginning stages, but the couple has already made progress toward a more secure future.
Combining Tax Planning with Business Plans and Estate Planning
Our client asked for advice in matching his business plans with income tax planning and estate planning, all within the context of his personal financial and retirement goals. The client’s business is mature and he is hoping for an early retirement.
After reviewing the client’s situation, Engelman Accountancy recommended eliminating a double taxation by converting the client’s regular corporation into an S-Corporation (pass-through entity). This achieved tax benefits which enabled the client to modernize and expand his business through a tax-loss pass- through to his individual return. Also, this tax program allows for the sale of the practice in a tax efficient manner.
Next, Engelman Accountancy linked the business plan with his personal retirement goals and estate planning. This began with a family wealth preservation plan to make sure that the surviving spouse is well protected.
All of these steps were integrated with real estate partnership income, to provide adequate living expense coverage in retirement and to allow for a substantial improvement to the client’s personal residence.
Privately Held, Rapidly Growing Company
A couple who had founded and owned a rapidly growing company asked Engelman Accountancy for tax planning advice related to their two, separate L.L.C. corporations and a tax audit.
As a first step, Engelman Accountancy helped the couple to set up the accounting records and a tax strategy to deal with the audit examiner. By combining the business owner’s knowledge and the firm’s experience in dealing with tax auditors, the couple received a “no change” result to the original filings.
Next, the couple engaged the firm to advise them on tax and business planning. We assisted the couple in simplifying the corporate structure of the business to enable it to provide a medical plan, reduce tax filing requirements, and reduce their everyday involvement in the accounting function. In the area of business planning, the firm assisted the client in structuring the organization to accommodate future middle management and improved structuring of independent contractor agreements. Currently, we are advising them on making the business more viable to third-party investors when the time comes.
Also, by applying our “professional team concept”, the firm recommended a wealth manager to provide personal advice, a stock brokerage firm to maximize the return on internal corporate funds, a retirement plan advisor, and an estate planning attorney. Engelman Accountancy continues to work with the couple as part of this highly valued advisory team.