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/
Cadillac Deville rentals Bingham .. Lockport Chicago limo O’HareConcrete Roof Tile Business: During the 2004 summer season, storms... Read More
The FTC, Federal Trade Commission, is considering modifying the franchise... Read More
A recent survey indicated that clean Taxi Cabs Fleets have... Read More
You are probably hard at work promoting your business (and... Read More
There is significant competition in auto detailing and car washing.... Read More
In a quest for customers and to keep those customers,... Read More
You know your prospects need what you sell. You know... Read More
There are many little details that go into making sure... Read More
After over thirty years advising small business it still comes... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
Increase your profit potential by identifying ? and avoiding ?... Read More
Every company has a value proposition. That is a statement... Read More
If you're just ramping up your small business email newsletter,... Read More
When small businesses fail, the wreckage is often assigned to... Read More
Many job applicants want a job but often do not... Read More
I only have to point to the 555 plus failed... Read More
Your grandfather probably told you to "learn something new everyday".... Read More
When do you need to get more involved with the... Read More
On June 8, 2004, the world witnessed what no one... Read More
So it's time to invest some finances into advertising your... Read More
Many small businesses do quite well due to the blood,... Read More
10 Best Practices to consider as your SBIR negotiations approach... Read More
If you are in the pressure washing business and are... Read More
IntroductionIt is widely recognised that Email and the Internet is... Read More
Passion. Passion alone can make your business successful. As an... Read More
limo rental Des Plaines ..Where would a business be without a business plan? A... Read More
When is advice free and when should you charge for... Read More
Winning small and home based businesses today must continually shake... Read More
On Monday the Department of Corporations in California revoked franchise... Read More
Most small businesses incorporated in 2005 will fail by the... Read More
If you intend to franchise your company you will need... Read More
"The way to develop self-confidence is to do the thing... Read More
If you ask most small business owners what priority CRM... Read More
Think of your business as a living, breathing, organism. It... Read More
The single most important activity you can do in your... Read More
We hear a lot of talk about junk mail nowadays.... Read More
The Federal Trade Commission out of the blue decide in... Read More
Get maximum results with minimum effort. Sounds great doesn't it?... Read More
How often have you thumbed through a business opportunity magazine,... Read More
Anyone who is serious about washing aircraft as a full... Read More
There are only a handful of car wash franchises in... Read More
At first blush this idea might be difficult to wrap... Read More
You can't imagine how many people ask me how I... Read More
Q: I have outgrown my home office and need to... Read More
You may be in Mail Order, Direct Mail, or you... Read More
What are the benefits of using a Freelance Consultant /... Read More
If you interviewed business owners of failed businesses, a majority... Read More
Buyers want both online and local information about where to... Read More
Cash is King... That is what everyone tells us and... Read More
As a Boat Detailing Specialist, you may want to offer... Read More
Small Business |