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/
cleaning service near Bannockburn ..IntroductionIt is widely recognised that Email and the Internet is... Read More
Do You Really Need a Toll-Free Number for Your Business?... Read More
Every business regardless of size needs a "Business Image Manual"... Read More
It appears the mini-blimp indoor theme and concept is making... Read More
Free money! Receive up to $25,000 that never has to... Read More
The Franchise Group at the Federal Trade Commission in all... Read More
Cash is King?That is what everyone tells us and it... Read More
Have you ever wondered what the difference is between a... Read More
"I don't know the key to success, but the key... Read More
The FTC Franchise Rule maybe changed, as the Federal trade... Read More
One way to determine your companies mission statement is based... Read More
Increase your profit potential by identifying ? and avoiding ?... Read More
Do you promote yourself as offering prompt, reliable and quality... Read More
At first blush this idea might be difficult to wrap... Read More
The story is told of a tiger chasing some goats... Read More
In the summer, I can't drive two blocks without seeing... Read More
Every company has a value proposition. That is a statement... Read More
No matter what kind of small business you have, you... Read More
First you have to start with knowing your budget and... Read More
Ok, so next to the taxman, your company payroll department... Read More
How do you find groups that are in need of... Read More
New Franchisors and Entrepreneurs need to watch out as they... Read More
Everything starts with a business plan: If you don't have... Read More
Congratulations, you are starting a small business! You are taking... Read More
The difference between rates and wages is not always clear... Read More
pet-friendly home cleaners Mundelein ..The way you manage your money is one of the... Read More
Why would you use an event pass?Event passes are often... Read More
A few years ago, I visited Beijing for the first... Read More
To get approval for your small business loan application, you... Read More
Ask anyone trapped in a cubical about their entrepreneurial dream... Read More
How do we keep track of our business deals?If you... Read More
After over 30 years of participating in hundreds of businesses,... Read More
There are many choices when thinking about a small business... Read More
One major issue not being addressed right now in the... Read More
For many small businesses, the "S" corporation is the business... Read More
In franchising an individual desirous of their own business will... Read More
One of the critical success factors for service-related businesses is... Read More
When is the Chamber ideal for your business?Joining a Chamber... Read More
Should your business have a toll free number for customers... Read More
Many of us have noticed how some nearby communities seem... Read More
Let me get right to the point. The single most... Read More
How do you find the best business partners?Finding a good... Read More
Many mobile pressure-washing companies turn to government contacts to make... Read More
Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More
Seventy percent of US households use the web when shopping... Read More
Some of the very qualities that attract people to the... Read More
What could Seinfeld possibly have to do with marketing a... Read More
Are you tired yet of all the books out there... Read More
If you're serious about wanting to start a business, the... Read More
A corporate shell could be liken to a house that... Read More
Small Business |