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SENIOR EDITOR
Katherine Nolan
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Phoenix Global Media Inc.
P.O. Box 235, Stockton New Jersey 08559 866-418-4400 phone 973-532-0319 fax sales@americanliquidwaste.com
American Liquid Waste Magazine is published by Phoenix Global Media Inc.
Copyright 2024 by Phoenix Global Media Inc. All rights reserved. SUBSCRIPTIONS
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THE RISE OF
Imperial Restrooms in the Eastern USA
The Florida events market opened up to Edward Garcia in 2008 when he launched Imperial Restrooms early in the season and started providing upscale portable restrooms throughout the state. The business was immediately a hit. Anyone organizing an outdoor event, from wedding planners to public works agents, came to Ed for rental facilities. By the time we met Ed in 2019, he was already the seasoned owner of a thriving company that had grown northward all the way to New York.
EARLY RAPID GROWTH OF IMPERIAL LUXURY RENTAL
It’s no surprise that Garcia’s service took off so aggressively. Customers recognized the different kind of opportunity to provide such deluxe accommodations to their guests at their outdoor events. Imperial became regionally known for the superior comfort and convenience of using the luxury restrooms compared to the standard alternatives
of traditional portable toilets that still defined the restroom rental industry at that time.
Ed recalls, “A couple of years into it (around 2010), the demand became strong for our service along the East Coast, including in New York and farther northeastern areas. So, I got a New York business license and a few years later stationed someone there full-time. We rented a property and bought a house and garage zoned for mixed-use and set up full operations there.”
A couple of years into it (around 2010), the demand became strong for our service along the East Coast...
STRONG SUSTAINED GROWTH OF IMPERIAL RESTROOMS
When we met Ed Garcia in 2019, Imperial had about 3 dozen restroom trailers, including toilet and shower trailers. Imperial also had ADA units by that time. The company mostly served New York and Florida at that time. They had 7 drivers, including Ed, and 2 office workers. Their sales rep took calls and Ed personally handled the big sales calls.
SPOTLIGHT
Just 5 years later, Imperial looks like a very different operation.
Ed informs us, “We have 24 people on staff now, and 72 luxury restroom trailers (from 1-10 stalls each), plus shower trailers, laundry trailers, and 18 trucks running out of 3 eastern regions. We also now have over 1,000 plastic units (handwashing and hand sanitizing stations). We had almost none of those back then (2019). We have 6 people working in the office now. And, we’re getting ready to expand even more. From a gross revenue perspective, from 2019 to now, we’re more than 10 times what we were then.”
IMPERIAL RESTROOMS HIGH-END RENTAL PRODUCTS
In 2008, when Ed launched the startup, most of Imperial’s trailers were JAG, though the company
We talked with Ed about his preference for the pristine white gel-coated trailer exterior finish...
also had some older Forest River and Wells Cargo models. Today, Ed explains, “We’ve graduated from Wells Cargo and Forest Rivers to about 70% JAG, 20% Satellite, and a few remaining Wells Cargo and Forest River, and one Comfort of Home model.“ Imperial was also already having several trailers built with toilets and showers in the same unit for use at disaster sites and “marinas, sports events, campgrounds, and countless other places.
We talked with Ed about his preference for the pristine white gel-coated trailer exterior finish, vs. some of the mock-residential exterior coverings now offered in a few US markets. He commented, “They (the gel-coated units) last longer, and they have that higher-quality finish. We like them, and we’ve gotten great reviews on that feature of the trailers. So, we stick with JAG and the gel -coat exteriors. But, we do have a popular one with a black finish. It’s pretty unique. We’ve just ordered another one of those.” (Yes, the black gel-coated unit is beautiful and stands out from the crowd with its subtlety and sophistication. See it displayed on the Imperial website.)
THE IMPERIAL ORGANIZATION TODAY
“COVID was a pivot point for us. In March 2020, suddenly everything started canceling. But, within the same week, everything was booked again because everything we had was needed, as was everything else to aid in sanitation. Businesses and government departments that needed it just came and took most
continued on page 12
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SPOTLIGHT
of our inventory of everything and just kept it all. It was all out for a year easily. Because of that turn of events, we have since progressed into providing emergency disaster facilities.
We currently offer two 1600-gallon water tank trailers and one 4000-gallon pump truck, and 9 5500-gallon portable toilet pump trucks. We have 2 laundry trailers (with 8 washers and dryers), and we’ll soon order 2 more of those. We now have our rental units in service all along the coast and as far west as Missouri, and we’re doing work in all 5 boroughs of New York City. We’re now headquartered in Hudson, FL. and have another office in New York. We have yards in all 3 of our regional service areas. We have a 3,000 sq ft building in Hudson, FL, a 5000 sq ft building in
Saugerties, NY with 16.5 acres, a 3000 sq ft building in Tampa, FL, and a yard in Charlotte, NC.”
2024 FUTURE OUTLOOK FROM ED GARCIA
“I would say I’m always very optimistic about what the future holds. We’ve looked at how to keep pace with the growth. It’s not been easy. I definitely would have done the growth process differently to be more prepared. We had to adopt a “just get it done” attitude. Going forward, one challenge I see is that a lot of the companies that were out there five years ago are gone, sold to bigger ones. We’ve taken on help in times of need. We have great relationships with the bigger competitors. You get a reputation for what you can and will do, for not overpromising, etc. We’ve worked with a lot of larger companies, and making sure the
continued on page 14
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SPOTLIGHT
equipment is in excellent shape has been a huge point for us with them.”
Ed mentioned that the company has been providing service for the State of New York provisioning the migrant camps over the past two years, and has been serving in hurricane, flood, and other disaster areas. He said, “There’s not been a time of year that has not presented big opportunities for us to help in these areas.”
STRATEGIC PLAN FOR IMPERIAL
When we met Ed Garcia in 2019, most of his new business was from word of mouth and web marketing and those were drawing almost more traffic than the team could handle. Today, Ed estimates that about
60% of new business is coming from the web. He said he’s also gotten a lot of traction on government bid jobs where a certified disabled veteran-owned small business. Those are included in the 60%. The other 40% is from word of mouth.
His goal in 2019 was to make Imperial a nationwide company that, perhaps, his kids will one day take over, and grow it larger than that. In 2024, the broad goal for the business is the same, with a new emphasis on scaling the company’s disaster relief services.
As for the family business future, Ed is just in his 50s, so ideas of power transitions are still for the distant future. In 2024, Ed’s two kids are finishing college within the next couple of years and may or may not come on board with the business. His wife helps with the administrative office work, and his daughter helps with payroll.
(Now retired a few years from flying as part of the US Airforce Hurricane Hunters, Ed has been so busy running his business that he has not had time to fly civilian planes again but expects to make time to start again within the next 6 months or so.)
IMPERIAL TEAM BUILDING
Today, the company’s longest-term employee has worked at Imperial for 16 years. The company offers an excellent compensation package and prioritizes providing good jobs and opportunities for its employees. Ed’s expressed management philosophy from the start has been that “when you’re doing that well, everything else happens.”
But, he still finds that the biggest challenge is hiring and keeping good drivers — and “trying to get people to coexist and understand” how to work with each other, and the importance of everyone’s individual part,
continued on page 16
SPOTLIGHT
and the necessity of successful teamwork in making the business grow and everyone in it to prosper.
ALL TECH-BASED RENTAL SERVICE OPERATIONS
All Imperial telecom systems are cloud-based. The web service is via the phone system. Everything in the field documentation is performed electronically. In 2019. Ed said, “We're all driving, setting up, and putting things in place, and everyone is adept with issue handling and knows how to escalate to me, as necessary.” Today, he reflects on the team’s progress:
I constantly ask customers what they liked and didn't like throughout the process.
“Our employees have done nothing but an outstanding job, and we would not be where we are at all without our team. We had a massive movement during COVID and here in Florida during the hurricanes and everyone did an excellent job.”
Ed leads his tech-empowered team in the field, “I still drive when necessary, not as much as I used to. I’m more of a hands-on type of owner. If it’s a big job, I’ll be there defining how to get it done. As people learn more and get more comfortable with the work, then they can work more autonomously.”
IMPERIAL QUALITY MANAGEMENT
Reiterating his simple but monumental key message on quality from 2019, “Attention to detail is everything.” Ed points out that Imperial customers are renting luxury facilities for upscale events like weddings and
special company events, etc. so, they naturally expect top-quality units and service. He continues with his proven method of customer engagement and quality monitoring, “I constantly ask customers what they liked and didn't like throughout the process.” His logic on this critical point, then and now, is simple, “We want to make sure they're satisfied before they leave.”
Backing his customer satisfaction inquiries is a fulltime mechanic, a full-time trailer repair technician, a full-time trailer cleaning technician, and a full team of delivery professionals, site attendants, management staff, and Ed Garcia himself, pulling out all stops at every point to ensure quality.
IMPERIAL BRANDING
“I have gone the opposite direction from the conventional wisdom on logos, and do not put logos on my trailers. Some of the oldest of my constructiongrade toilet units have logos. But, the exteriors are pristine on the luxury units. I still do not put my advertising on the trailers.
We frequently supply them to other high-end vendors who want to put their own logos on them, So, it just makes more sense not to have ours on there. Instead, we let the customers decorate the units however they wish and then pay to restore the trailers to the condition they were in when they rented them.”
continued on page 18
THE NEXT EVOLUTION OF IMPERIAL RESTROOM RENTALS
This was Ed’s outlook in 2019. He certainly called it accurately: “Obviously, the economy is a big, big factor. We started the business in 2008, during the Great Recession. We've been able to grow the business ever since. I don't see anything else potentially limiting us in the future. Even though more people are coming into the industry, there's so much work to do, it seems like a very promising future.”
are coming to say thank you in disaster zones. It makes us feel really good being able to help provide water and essential facilities. Most people don’t know what it takes to bring all that to people over long distances.
small base camps, with generators, bunk houses, fresh drinking water tanks, and all the facilities and cleaning services needed to accommodate 250 to 1000 people temporarily living onsite in RVs. We’re growing in that direction to handle larger emergencies, week-long concert series, and more events like the Sun & Fun Fly-In Air Show we’ve done for the last three years.”
In 2019 during our original interview with Ed, he recommended being hands-on, going outside the box, and simply persevering as you manage whatever comes along. He more specifically advised, “Just be prepared to be a mobile RV repair person, a wholesaler, and to work closely with your parts distributor. Just get ready for fixing things. You need to be somewhat handy, so be prepared for that.”
business owners in the industry. He is direct, “Do what you say you’re gonna do, whether it’s for employees or customers. Offer a good quality product with great
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SPOTLIGHT
customer service. Keep your trailers in good repair. There have been times when a customer has come in unhappy with something. We provide multiple ways for them to communicate with us on issues. It’s about taking care of your employees and customers.”
IMPERIAL RESTROOMS
Ed wastes no time. He’s continuously moving forward at a pace, and he offers a crystal clear vision for the future of Imperial in the US luxury events and disaster relief markets. His insistence on quality, commitment to nurturing a customer-centric team culture, and his determination to deliver the best his company can provide consistently adds to an inspiring leadership example for all generations of employees and aspiring entrepreneurs.
We have enjoyed following the progress of Imperial Restrooms and look forward to checking in with him again through the years as the business continues to grow and serve the eastern region and the greater US market, providing good jobs and top-quality event services. And, as Ed Garcia’s company now emerges as a go-to provider in the disaster management field, we will watch enthusiastically as the enterprise expands in this important new direction to serve the public.
For information about Imperial Restrooms events rentals or disaster relief base camp facilitation, call (877) 845-6110, write sales@imperialrestrooms.com, or visit imperialrestrooms.com.
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Keynote Presentation by American humanitarian and professional mixed martial artist Justin Wren
WWETT Show Welcome Party, hosted at Lucas Oil Stadium, with pass, punt, catch competitions and expanded networking opportunities
Inaugural Young Professionals Awards to honor and celebrate rising stars making a big impact during a special ceremony at The WWETT Show 2025
TARGETED MARKETING FOR SEWER LINE REPAIRS AND REHABILITATION
SEWER LINE REPAIR IS NOT GLAMOROUS. WE KNOW THAT. IT’S NOT THE KIND OF WORK THAT GETS THOUSANDS OF LIKES
ON SOCIAL MEDIA. BUT IF YOU’RE A CONTRACTOR IN THE SEPTIC, SEWER OR PORTABLE RESTROOM INDUSTRY, YOU KNOW IT’S NECESSARY WORK. WITH THE RIGHT MARKETING APPROACH, YOU CAN ATTRACT MORE OF THE RIGHT CUSTOMERS — THOSE WHO NEED YOU WHEN THEIR BACKS ARE AGAINST THE WALL.
This article will walk you through practical strategies for creating marketing campaigns that drive leads and boost your bottom line in the sewer repair and rehab market.
KNOW WHO NEEDS YOU MOST
Before you start marketing, you need to be clear about who you’re talking to. In sewer repair, you’re often dealing with:
4 Homeowners dealing with clogs, leaks or tree root invasions
4 Commercial property owners looking for consistent maintenance and fast fixes for emergencies
4 Municipalities managing large-scale rehab projects for aging infrastructure
Your messaging should shift based on who you’re addressing. Homeowners might need to learn how to avoid costly repairs, while municipalities might want to see case studies of large-scale successes. Each audience has a different pain point, and your marketing needs to speak directly to that pain point.
NAIL YOUR LOCAL SEO
For a local service like sewer line repair, making sure your online presence pops up in local searches is a nobrainer. Here’s how to make it happen:
Optimize Your Google Business Profile
Make sure your profile is complete and up to date. Add your service areas, recent project photos (before-andafter shots grab attention) and business hours. Happy customers? Ask them to leave reviews. Good feedback makes potential clients feel more comfortable calling you.
Use Location-Specific Keywords
Sprinkle in keywords like “sewer line repair in [city name]” or “trenchless sewer rehab [city name]” throughout your website and blog posts. Keep it natural as forced keywords (and overuse!) sound awkward to both Google and people.
Write Localized Content
Does your area have clay pipes that always attract roots? Write about it. If heavy rains increase sewer issues, that’s another topic worth exploring. Showing you understand local challenges builds trust and helps your site rank better in local searches.
Each page should have a clear CTA, whether it’s “Get a Free Quote,” “Book an Inspection” or “Call Now.”
TURN YOUR WEBSITE INTO A LEAD MACHINE
Your website isn’t just an online business card; it’s your 24/7 salesperson. Here’s how to get more leads from it:
Use Clear Calls to Action (CTAs)
Each page should have a clear CTA, whether it’s “Get
a Free Quote,” “Book an Inspection” or “Call Now.” Keep it simple — don’t make visitors guess what they should do next.
Offer Something Useful
Want to collect emails? Create a PDF like “5 Tips To Avoid Costly Sewer Repairs.” This gives people a reason to share their info and helps you stay in touch. Optimize for Mobile
Most people will find you on their phones during a quick Google search. Make sure your site loads quickly, looks good on a mobile screen and has clickable phone numbers.
GET QUICK WINS WITH PAID ADS
If you want faster results, paid ads can give you a leg up. Here’s how to do it without burning cash:
BUSINESS CORNER
You might think Facebook and Instagram are just for B2C brands, but contractors can benefit too. Use these platforms to target local users...
Use Google Ads for Local Searches
Google Ads can put you at the top of search results almost instantly. Use location-based targeting to focus your budget on local searches. Add negative keywords to filter out irrelevant clicks and make your ad spend more effective.
Social Media Ads
You might think Facebook and Instagram are just for B2C brands, but contractors can benefit too. Use these platforms to target local users with ads that show off successful projects or promote limited-time offers. Video ads work well. Before-and-after transformations can grab attention.
Retargeting Ads
If someone visits your site but doesn’t call or fill out a form, retargeting ads can help keep you on their radar. This tactic can bring warm leads back to your site when they’re ready to commit.
BUILD CREDIBILITY WITH CASE STUDIES AND TESTIMONIALS
Sewer repairs require trust. Prospects want to know you can handle their issues without causing more headaches. Here’s how to show them exactly that:
Share Case Studies
Highlight successful projects, especially challenging
ones. Detail the problem, how you handled it and the final result. Case studies help potential customers see how you can help them with similar problems.
Showcase Testimonials
Happy clients are your best salespeople. Feature their testimonials prominently on your website, Google Business profile, and marketing materials. Video testimonials are even better because they add a human touch.
BUILD LOCAL PARTNERSHIPS
If you want to grow your network, think beyond traditional marketing tactics:
4 Partner with local plumbers, home inspectors or real estate agents who often encounter clients needing sewer repairs. They can refer you directly to customers in need.
4 Attend local events or trade shows and set up a booth. Meet potential clients face-to-face, hand out business cards and build community relationships.
YOUR NEXT MOVE: STAY INFORMED
Marketing sewer line repair services isn’t glamorous, but it’s necessary and can be rewarding when done right. Stick to the basics: know your audience, optimize for local search, run smart paid ads and build credibility with case studies and testimonials.
For more insights, news and updates in the septic, sewer or portable restroom industry, subscribe to the American Liquid Waste magazine. We’ll be your trusted source for info and tips to help your business grow. Don’t miss out!
THE GEAR BOX
MAXIMIZING THE LIFESPAN OF YOUR FLEET: MAINTENANCE STRATEGIES FOR LONG-TERM SUCCESS
IF YOU RUN A SEPTIC, SEWER OR PORTABLE RESTROOM BUSINESS, YOUR FLEET IS THE BACKBONE OF YOUR OPERATION. IT KEEPS THE WORK MOVING, JOB AFTER JOB. BUT WITHOUT SOLID MAINTENANCE, YOU’RE LOOKING AT BREAKDOWNS, BIG EXPENSES AND PLENTY OF HEADACHES. WANT TO KEEP YOUR VEHICLES ON THE ROAD LONGER WHILE SAVING MONEY? HERE’S HOW TO DO IT!
1. SET UP A
PREVENTIVE
MAINTENANCE SCHEDULE
A consistent maintenance schedule is key to a reliable fleet. But for heavy-duty vehicles like yours, it needs to be more than just oil changes and tire rotations. Regular oil, transmission and coolant changes help prevent engine issues, while frequent brake inspections are necessary for heavy loads. Checking tire pressure and tread depth helps avoid blowouts and keeps fuel efficiency in check. You’ll also want to inspect exhaust and emissions systems regularly, as these vehicles often idle for extended periods.
Keeping them in shape improves both compliance and performance.
Use fleet management software to automate maintenance schedules. This helps avoid missed service, reduces unexpected downtime and keeps the process efficient.
2. USE TELEMATICS TO TRACK PERFORMANCE
Telematics is more than GPS tracking. It’s a powerful tool for monitoring your fleet’s health. It provides realtime data about engine performance, fuel usage and driver behavior.
For example, telematics can send alerts about low oil pressure, engine misfires or other mechanical problems. This allows you to address issues before
continued on page 32
THE GEAR BOX
Encourage
drivers to perform quick pre-and post-shift inspections.
Catching
small issues early on can prevent bigger problems later.
they worsen, reducing the risk of major repairs. It also tracks driving habits like harsh braking or rapid acceleration, which can lead to unnecessary wear and tear. Smoother driving prolongs vehicle life and boosts fuel economy.
3. TRAIN YOUR DRIVERS
Drivers play a big role in your fleet’s longevity. Rough driving leads to more wear and tear, meaning more repairs. Regular training helps drivers adopt better habits like minimizing sudden stops, braking smoothly and loading vehicles properly to avoid putting uneven stress on the suspension.
Encourage drivers to perform quick pre- and post-shift inspections. Catching small issues early on can prevent bigger problems later. Plus, drivers who demonstrate good habits, like reducing idle time and reporting issues promptly, should be rewarded. It’s a simple way to motivate better driving practices and improve overall fleet health.
4. KEEP MAINTENANCE RECORDS UP TO DATE
Good records aren’t just for compliance — they’re vital for smart fleet management. They help you spot patterns, plan
part replacements and know when it’s time to retire a vehicle.
Track service dates, repair types and parts replacements. Knowing the average lifespan of batteries, belts and other components helps with preemptive replacements, which, in turn, reduces the chance of breakdowns. Analyzing downtime and repair costs also shows whether a vehicle is worth keeping or should be replaced.
Going digital with record-keeping makes everything faster, more accurate and easier to analyze. With better insights, you can make informed decisions that keep your fleet running efficiently.
5. CLEAN AND SANITIZE REGULARLY
Septic, sewer, and portable restroom vehicles work in
harsh conditions, so keeping them clean is vital. Regular cleaning prevents rust, keeps moving parts working and minimizes general wear. Cleaning the exterior regularly stops paint damage and rust while keeping interiors tidy helps avoid bacteria buildup. Sanitation systems, like tanks and hoses, need flushing to prevent blockages and extend equipment life. A cleaner fleet performs better and reflects positively on your business.
6. KNOW WHEN TO LET GO
No matter how well you maintain them, vehicles have a lifespan. Frequent breakdowns, increased downtime and rising repair costs are signs it might be time to consider replacements.
Mileage, age and repair costs are the main factors to
THE GEAR BOX
consider. If repairs start exceeding the vehicle’s value or safety becomes a concern, it’s time to retire the vehicle. In some cases, selling a vehicle while it still holds value is more cost-effective than running it until it’s worth nothing.
STAY AHEAD WITH PROACTIVE FLEET MANAGEMENT
Keeping your fleet in top shape requires ongoing effort, but it pays off in the long run. With regular maintenance, driver training and smart tracking, you’ll extend the life of your vehicles and save money.
BUSINESS CORNER
11 BUSINESS TAX TIPS FOR SMALL BUSINESS OWNERS FOR 2024-2025
YOU PROBABLY ALREADY KNOW YOU SHOULD CONTRIBUTE TO A RETIREMENT PLAN, CLAIM PREMIUMS YOU PAID FOR HEALTH INSURANCE, MAKE GIFTS TO YOUR FAMILY, EMPLOY AND PAY YOUR CHILDREN, ETC. YOU ALSO MAY KNOW YOU CAN MAKE CHANGES IN YOUR ESTATE AND CLAIM GIFT TAX EXEMPTIONS THAT WILL END AFTER 2025, PROMPTING YOU TO BE CREATIVE IN FINDING WAYS TO TRANSFER MORE OF YOUR BUSINESS OUT OF YOUR PERSONAL ESTATE. THESE AND MANY OTHER WELL-KNOWN STRATEGIES FOR MINIMIZING A SMALL BUSINESS OWNER’S TAX LIABILITY CAN SAVE YOU SIGNIFICANTLY AT TAX TIME. HERE ARE SOME PERHAPS LESS-FAMILIAR TAX
SAVING TIPS TO USE IN EVALUATING YOUR BUSINESS’S FINANCIAL POSITION AND APPLYING APPROPRIATE STRATEGIES TO MAXIMIZE TAX SAVINGS IN 2024 AND 2025.
You may be entitled to deduct 20% of qualified business income from your federal taxes. But, it necessitates planning. Along with other provisions of the Tax Cuts and Jobs Act (2017)...
11 TAX TIPS FOR SMALL BUSINESS OWNERS IN 2024
Whatever your small business circumstances, your tax strategies and year-end tax preparation choices can significantly impact your total tax obligation. Work with a qualified tax advisor in considering these 11 strategies to cut your tax bills for 2024 and 2025 and beyond:
1. Find out whether your business qualifies for different tax treatment.
You may be entitled to deduct 20% of qualified business income from your federal taxes. But, it necessitates planning. Along with other provisions of the Tax Cuts and Jobs Act (2017), this deduction will end after 2025. It typically applies to “passthroughs” for owners filing tax returns and paying taxes
themselves on their business’s income, vs. having the business filing the tax return and paying the tax. Work with your tax advisor to understand which deductions you’re legally entitled to claim for your business.
2. Use bonus depreciation or IRS Section 179 to deduct for fixed assets.
IRS Section 179, including bonus depreciation, is a federal tax law that allows small and medium-sized businesses to deduct the full cost of purchasing a fixed asset vs. depreciating it over multiple years. Before 2023, you could deduct 100% of qualifying purchase amounts as bonus depreciation. But in 2023, bonus depreciation became limited to 80%; for 2024, the bonus depreciation was lowered to 60%.
Section 179 enables businesses to maximize fixed asset deductions on business machinery, trucks over 6,000 pounds, and office equipment by claiming the Section 179 maximum ($1,220,000 for 2024). Businesses can also claim the bonus depreciation on the remaining amount of the equipment purchase cost (60% for 2024). The maximum spending cap on equipment purchases in 2024 is $3,050,000. The key is to complete your business’s purchases and put equipment and machines in service by December 31, 2024.
3. Develop a sound plan for paying taxes on your business income.
Prepare as early as possible in the tax year, and even before it, to avoid disruptions to cash flow. You may prefer to save money throughout the year to pay your tax bill or arrange for a line of credit to pay it when you file your business income tax return. With inflation and the resulting higher operating costs, being ready for the upcoming April tax payment
BUSINESS CORNER
...for a small business, you may be able to expense equipment investments up to about $3 million.
can prevent potential risk to liquidity. Paying periodic estimated tax payments (based on the previous year) can help in maintaining a steady cash flow during the months after tax filing. Pay at least 90% of your tax for the current year before the upcoming April tax deadline, or pay 100% of the tax on your previous
TACKLE THE TOUGHEST JOBS
year’s return to prevent the risk of underpayment penalties.
4. Claim all allowable equipment deductions –at the right time.
If you buy equipment this year, especially at the enormous cost of a new or used sweeper truck, and start using it before December 31, 2024, you could qualify to expense that purchase and claim it as a whopping federal tax deduction, per IRC Sec 179.3.
The cumulative cost of assets expensed in full is currently limited to $1,220,000 per tax year for some business entities, but for a small business, you may be able to expense equipment investments up to about $3 million. If it is more advantageous for tax purposes, you may consider delaying such purchases to more strategically practical future tax periods.
continued on page 40
BUSINESS CORNER
...if you’re anticipating high profits in 2024, it may make more sense to defer recognition of some revenues to 2025 and increase your expenses by paying some 2025 costs during 2024.
5. Defer recognition of revenue and increase expenses.
Under the Tax Cuts and Jobs Act of 2017, which ends after 2025, the top marginal income tax rate for individual taxpayers will increase from 37% to 39.6%. Therefore, if you’re anticipating high profits in 2024, it may make more sense to defer recognition of some revenues to 2025 and increase your expenses by paying some 2025 costs during 2024. Using this strategy is subject to legal restrictions, but you can potentially generate a significant tax savings in some cases, due to a lower marginal tax rate. Alternatively, if you expect a net loss in 2024, you may opt to talk with your tax advisor about carrying the loss to future years, to offset predictably higher income tax in those years.
6. Claim all allowable green energy tax credits. Commercial pavement sweeping businesses may qualify for green energy tax credits due to the contribution such operators make every year using their equipment to help maintain cleaner groundwater and waterways and the general environment. Even if
you don’t perceive your company as one necessarily dedicated to green processes and equipment, look more closely at the credits you may actually be entitled to claim. Also, consider making some green upgrades to increase your eligibility for more tax credits. The
Inflation Reduction Act (2022) allocates almost $400 billion to clean energy tax credits and other climate change mitigation incentives. Buying electric or hybrid vehicles, installing clean energy equipment, and other investments may qualify you for unexpected federal and/or state tax savings.
7. Claim your Qualified Business Income Deduction (Form 199A).
Through 2025, you can reduce your business’s taxable income by claiming the QBI deduction up to the equivalent of 20% through your personal tax return as a sole proprietor, owner in a partnership, or shareholder in an S-corp. Limitations on the income deduction do not apply to joint filers with a combined taxable income under set thresholds. For example, in 2022, the threshold was $340,100 for joint filers and $170,050 for single filers. Even if your 2024 taxable income is above the current applicable threshold, you’ll probably be eligible for some amount of deduction. The calculation is more complex in those cases, but your CPA will know what to do.
8. Employ people who qualify you for Work Opportunity Tax Credit.
You are entitled to the Work Opportunity Credit (WOTC) as a business owner who employs workers who have a state certification classifying them as members of one of the groups listed below. You can claim 40% of the worker’s first year of pay if he/she worked 400 hours or more, or 25% of pay to those who
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9. Use pass-through entity status if it can help reduce your taxes.
If your business structure is an LLC or S corp, find out if your state has enacted PTE taxes. Many have done so, and this policy provides business owners with an IRS-approved way to effectively bypass the $10k limit
If your business structure is an LLC or S corp, find out if your state has enacted PTE taxes. Many have done so, and this policy provides business owners with an IRS-approved way to effectively bypass the $10k limit on state and local deductions included in the Tax Cuts and Jobs Act.
on state and local deductions included in the Tax Cuts and Jobs Act. PTE-eligible S corps, LLCs, partnerships, and possibly others, can elect to pay a PTE tax for the business owner’s share of the business’s qualified net income. This triggers a federal deduction, which reduces the taxable income on your IRS Schedule K1 (Form 1065).
10. Change your sole proprietorship into an S-corp.
In sole proprietorships, business owners pay both self-employment tax and income tax. With an S-corp, you pay tax only on your W2 wages and salary. Making the conversion to an S-corporation is a good way to reduce your tax obligation. When you hire employees, you can show that the business’s income is due to their work, vs. only your own labor. So, the IRS can clearly recognize your own work as other than a wageearner’s level of contribution to the business’s income, which will generate payroll tax savings, among other financial benefits and legal protections.
11. Above all, get a licensed CPA. Find the right small business tax expert to advise you. Your bookkeepers may be able to enter income and expense totals on tax forms, but they’re not tax professionals. Get a licensed CPA. Over the years, your CPA service will pay for itself in cumulative tax savings for your business. And, it can help ensure that every dollar is appropriately accounted for and every deduction is properly claimed.
ON YOUR WAY TO TAX FILING…
Even when you’re working with a licensed CPA, keep your eyes and ears open, and note any recommendations or warnings you discover and discuss them with your accountant. The best
professionals don’t miss much, but you’re better off fully understanding all the possibilities that may apply to your tax responsibilities and opportunities now and in the future. So, always, ask questions, claim everything to which you’re entitled without exceeding the limits of your eligibility, and continuously strategize to minimize your tax bill.
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