Top 25 Ways For Small Businesses To Save On Taxes Today
Embed Size (px)
Transcript of Top 25 Ways For Small Businesses To Save On Taxes Today
25 Ways Small Business Owners Can Save On Taxes Everyone wants to save on taxes! If youre a small business owner, you may have more ways to save on taxes than most people. You want to make sure that your business is paying for all your business expenses. Business expenses Lower your companys profits and result in a lower tax bill for you or your company. On the other hand If youre paying for an expense with your personal money, the tax man has already gotten his share. Before you act on any ideas in this presentation please consult your tax professional! Dealing With IRS 1 File on time IRS late filing fees are substantial and can add up quickly. 2 Ask for an exception If you do file late. The IRS will normally waive penalties for you one time. Deductions 3 Take advantage of deductions For business travel and entertainment expenses. Tip from bizfilings.com 3 Take advantage of deductions For business travel and entertainment expenses. Tip from bizfilings.com 4 Use airline miles For personal travel and not business travel, when you have the choice. ou can deduct business travel expenses. Tip from David Kelsey of KelseyMedia.com 5 Have lunch meetings. When you dine with your employees or business partners, 50% of the cost is deductible, so long as they are not lavish or extravagant Tip from Kaitlin M. Newkirk of expenses. BarnesDennig.com 6 Deduct the business use of your car Tip from 1040.com 6 Deduct the business use of your car Tip from 1040.com Cellphone 7 Deduct your business cellphone use. If you use the same phone for business and personal calls, you can still deduct the business use portion of your bill. More on this here. Tip from Intuit Turbotax 8 ! Section 179 Deduction Take advantage of section 179 deduction. Tip from CPAPracticeAdvisor.com 8 ! Section 179 Deduction Take advantage of section 179 deduction. Tip from CPAPracticeAdvisor.com 9 Deduct your moving expenses If you move more than 50 miles from your current location for business reasons you can deduct the expenses. Learn more here. Tip from WorldwideERC.org 10 Take the home office deduction Tip from FitSmallBusiness.com 10 Take the home office deduction Tip from FitSmallBusiness.com 11 Insurance Insurance - Have your company pay for your health care premiums. Learn how here. Tip from MoneyCrashers.com 12 finances separate Keep your personal and business This simplifies things and makes it less likely that you will miss out on expenses that can be deducted. Tip from Kat Simpson at outright.com 13 smartphone app Use the free smartphone app Expensify to keep track of business expenses and receipts so you dont miss any. Tip from BradleyGauthier.com Hiring 14 independent contractors Use independent contractors instead of employees. There are no payroll taxes with independent contractors. Tip from Marla Harding at SmallBizSource.org 14 independent contractors Use independent contractors instead of employees. There are no payroll taxes with independent contractors. Tip from Marla Harding at SmallBizSource.org 15 Hire your children To do odd jobs for your business instead of paying them an allowance. You can deduct the cost of their salaries. Tip from Donna Laubscher of Henry & Horne LLP 16 Hire an unemployed veteran Hire an unemployed veteran and get the work opportunity tax credit. Tip from military.com Doing Taxes 17 using turbotax Do your taxes yourself using turbotax. If youre a one person business, it might make sense to do your own taxes. Tip from Josh Smith at dailyfinance.com 18 accounting software Use accounting software to record revenues and expenses. This will save you tons of time when filing your taxes, and time is money. Read our accounting software buyers guide here. Tip from FitSmallBusiness.com Business Structure 19 Choose the right state Choose the right state to incorporate in. Tip from companiesinc.com 20 business structure Choose the right business structure. How your business is structured from a legal standpoint can have a major impact on your year end tax bill. 20 business structure Choose the right business structure. How your business is structured from a legal standpoint can have a major impact on your year end tax bill. 21 umbrella company If you own multiple businesses, consider creating an umbrella company. This can simplify the filing process and allow you to offset profits in one business with losses in another. Tip from Annie Meuller of investopedia.com Manage The Timing of Business Purchases 22 revenues and expenses Manage your year end revenues and expenses. If you have had a big year, lower this years taxable income by moving up purchases you were planning on making the following year. Tip from Joseph Steinberg of Green Armor Solutions Benefits Instead Of Salary 23 additional benefits Offer employees additional benefits instead of higher salaries or bonuses. This saves you payroll taxes and you can deduct the cost of many benefits. Tip by Christina Merher of ZaneBenifits.com 24 retirement account Put money into a retirement account. Learn how to choose the right retirement plan for your business here. Tip from Robert Berger at DoughRoller.com Oops! We only have 24 tips please help us find tip number 25. Leave a comment below. Join The Community: www.FitSmallBusiness.com See the full article here Click here to tweet this presentation.