Here are seven ways for owners of small businesses to save money on their taxes.
1. Incorporate Yourself: If you`re still a proprietor or partner of a business, it`s time to incorporate yourself. Not only will you limit your liability, but you may enjoy lower tax rates on small business income and other tax advantages as well.
2. Be Home Based: If possible, continue (or switch to) being a home based business. Not only will you keep your overhead down, but you will be able to write-off (or deduct) the business use of your home.
3. Income Split: Pay reasonable wages to your spouse and children. In this way, you can legally divert income taxed at your higher rate to your family members that are in a lower tax bracket.
4. Rearrange Your Affairs For Maximum Tax Savings: Can you make some changes to turn your hobby into a moneymaking business? Can you use that extra room in your house as a home office for your business? Can you arrange to use your car more for business purposes? Can you arrange for more of your entertainment expenses to be business related?
5. Document Your Expenses Well: Do you document your expenses well so that they would survive a tax audit? Have you kept a mileage log so that you can prove the percentage business use you claim for your vehicle? Have you kept receipts for all your entertainment expenses and listed the business purpose on the back of each receipt?
6. Be Punctual: File all returns and pay all taxes due (income, payroll, sales, et cetera) on time. This way, you avoid expensive late filing (and payment) penalties and interest.
7. Develop a Tax Planning Mindset: Some people only worry about their taxes during tax season. However, you will save a fortune in taxes, legally, if you make tax planning your year-round concern. Do you make business and personal purchases, investments, and other expenditures with tax savings in mind?
RESOURCE BOX:
J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty-five years.
For valuable Work at Home Small Business Ideas, visit: http://www.popeconsultinginc.com/
professional maid services Park Ridge ..The life cycle of the typical small business is short... Read More
Everyone is talking about small businesses. In 1993, when it... Read More
When starting a business, you have to determine the method... Read More
Last week's question from Anthony R. on how to choose... Read More
Unfortunately for all buyers, each selling organization and their individual... Read More
E-mail and Internet use are integral parts of the typical... Read More
Some marine biologists feel that the concentration of dead marine... Read More
Many job applicants want a job but often do not... Read More
Last summer the FTC put forth a report and then... Read More
There is significant competition in auto detailing and car washing.... Read More
If you have a busy private practice, chances are you... Read More
If you're like the rest of us, you've spent a... Read More
How do you sponsor an event and get personal introductions... Read More
You have spent considerable time pulling your business plan together,... Read More
Most of us remember going to at least one garage... Read More
I only have to point to the 555 plus failed... Read More
Gather round while I tell you the story of Kennebec... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
If you run a mobile car wash, mobile fleet washing... Read More
Who is responsible for maintaining the business relationship?Nurturing a business... Read More
Don't you find that there are so many decisions you... Read More
Most small business owners seek advisors who can help them... Read More
In a perfect world, starting a small business would be... Read More
Increase your profit potential by identifying ? and avoiding ?... Read More
What are the best methods for keeping a good business... Read More
cleaning lady near Lincolnshire ..Some marine biologists feel that the concentration of dead marine... Read More
Q: I have outgrown my home office and need to... Read More
Commonly folks have asked me what the technical difference is... Read More
Not sure how to start a small business? This guide... Read More
1. Resolve to build a consistent network system.Since referrals are... Read More
The following tips have come from a wide variety of... Read More
I frequently give presentations at small business gatherings, providing me... Read More
Search Engines account for almost 90% of all web traffic!In... Read More
How careful are you with the data you collect from... Read More
A Mattress Cleaning Business might be just for you if... Read More
So you think you're not justified in taking time away... Read More
Owning a small business in Wichita, KS might not be... Read More
For really tough boat hull cleaning you will need to... Read More
We have all seen the mobile washing units cruising our... Read More
You only have so much time in a day right?So... Read More
Ongoing support for a franchise system is omnipotent. A major... Read More
Pressure washing companies must look for customers in the retail... Read More
Many small business startups fail within the first 2 years... Read More
I believe the number one reason why a business will... Read More
The air in my client's office nearly crackled with her... Read More
If you are looking for a franchise opportunity, the choice... Read More
Before you start a business we encourage you to prepare... Read More
I was floored! I couldn't believe what they were saying!... Read More
Want your small business to flip instead of flop?! Statistically... Read More
Winning small and home based businesses today must continually shake... Read More
Small Business |