Top 7 Small Business Tax Tips

Top 7 Small Business Tax Tips
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?
Top 7 Small Business Tax Tips Top 7 Small Business Tax Tips Reviewed by Henda Yesti on July 05, 2018 Rating: 5

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