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/
shuttle from Midway Glen Ellyn ..Q: A friend told me that as a woman of... Read More
The choice to incorporate a small business in Florida has... Read More
A suggestion box is a really good idea for your... Read More
The modern Franchise business model and the much different business... Read More
In a quest for customers and to keep those customers,... Read More
We very much like what we see in Lubbock, TX... Read More
Are you tired yet of all the books out there... Read More
One of the great challenges for independent professionals and small... Read More
One of the first things you will need to set... Read More
SBIR vs. STTR: If you are participating in the SBIR... Read More
A solopreneur I know disappears from my radar screen for... Read More
In the 2003 Auto Laundry News Survey it was determined... Read More
If an organization lacks a mission statement, it is worthwhile... Read More
I meet and talk to hundreds and hundreds of business... Read More
Most small businesses incorporated in 2005 will fail by the... Read More
If small business had no important outside audiences, it wouldn't... Read More
There are countless ways to save your business money. Unfortunately,... Read More
Don't let your customer satisfaction research initiative collect dust on... Read More
What's your job profitability? Do you know?Many business owners are... Read More
There are only a handful of car wash franchises in... Read More
Most small business owners seek advisors who can help them... Read More
Every employee would like to earn as high a salary... Read More
Many businesses offer small business franchise opportunities. There are many... Read More
The book, "Become the Squeaky Wheel," by New Hampshire author... Read More
Aside from the fear of losing a spreadsheet or research... Read More
shuttle from O'Hare North Chicago ..Car Wash Crime in the Hood. Apparently not everyone is... Read More
The following tips have come from a wide variety of... Read More
One of the best marketing strategies a business or organization... Read More
In today's fast paced marketplace it is easy to neglect... Read More
When a regulator finds a target to go after to... Read More
Incredible as it sounds, you have a goldmine of free... Read More
As you may already know, asphalt paved parking lots do... Read More
As you may know, there are many ways to incorporate... Read More
In your small business debt collection laws will eventually become... Read More
Many times small businesses want to expand their businesses and... Read More
On June 8, 2004, the world witnessed what no one... Read More
Bookkeeping?the "dreaded" word is something we all have to worry... Read More
Why should you do informative talks to smaller groups?Informative talks... Read More
1. Don't Spend Too Much Time PlanningWhen you are entering... Read More
How do window cleaning franchise businesses start? It is a... Read More
The Franchise Group at the Federal Trade Commission in all... Read More
Business card size works well for invitations to special events.What... Read More
Hogwash!That's what I say to people who tell me that... Read More
If you run a pressure washer business you need complete... Read More
The Federal Trade Commission out of the blue decide in... Read More
When working from home, it is usual to find that... Read More
"Order Now!" "Your Business Will Fail If You Don't Have... Read More
There is a Batting Cages Business for those people who... Read More
The book, "Become the Squeaky Wheel," by New Hampshire author... Read More
Most businesses accept checks as form of payment for goods... Read More
Small Business |