As the owner, these tax tips for small businesses are crucial for you to know.
There are five general business taxes, according to the SBA. Your business structure will determine if you pay income, self-employment, estimated, employer, or excise tax. To remain compliant, you’ll need to choose your tax year, and determine your state and federal tax obligations.
Keep reading to learn how you can improve your company’s finances. The following will help you avoid issues with the IRS. Here are seven important tax tips for small businesses.
1. Discover Small Business Tax Credits
Tax credits can reduce your business’s tax credit reports. You can be credited for small employer health insurance premiums, pension plan startup costs, employer-provided childcare, disabled access, and more.
2. Find Related Deductions
Deductions reduce the income you’ll pay taxes on. You can apply for deductions for the qualified business income, home office, your business car, Section 179, among others.
3. Keep Financial Records Clean
You need to record business receipts, donation information, payroll, and other business records to ensure your books are clean. A business account can help you track everything in one place and make paying taxes easier.
4. Donate to a 501©3 Nonprofit
When you’re ready to upgrade your business equipment and office furniture, you can donate to 501©Nonprofits to save on taxes for small businesses. Gently used can be passed on, and you can claim a Section 1231 loss after tossing out broken equipment.
5. Hire Family Members
If your business is a sole proprietorship or partnership with your spouse, you can hire family members and avoid paying certain taxes. You can also claim their payroll as a business expense for your company.
6. Utilize Write-Offs
If you’re looking to learn how to save on taxes, you can utilize qualifying write-offs. Business meals, travel expenses, business insurance, home office expenses, phone, internet, interest, and bank fees can all be written off.
7. Invest in Accounting Software
Investing in accounting software is one helpful way to avoid running into issues with business finances. They can provide information for tax deductions while storing your finances in one secure place for easier access.
Hire Experts for Tax Tips for Small Businesses
Hiring an accountant can help you grow your knowledge of small business taxes. They know how to avoid issues with the IRS, help with saving money on taxes, and can free your time so you can focus on your tasks. With an expert, you’ll find tax seasons less stressful.
You can hire tax attorneys to help with tax defense and legal matters. The Silver Tax Group has trusted experts who can help you find a resolution and avoid deeper problems.
Avoid Financial Problems Today
Now that you’ve learned all about taxes, take advantage of deductions and financial resources. You can use what you read to improve your finances today. These seven important tax tips for small businesses will help you get started.
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