Tricks to Reduce Your Small Business Taxes

Written by Barbara Berglund on 11/25/2020. Posted in Female Entrepreneur

Do you have a small business? Maybe you’ve been running it for a while and finally feel confident in your knowledge of all the tax codes. But did you know that there are ways to reduce your taxes as a small business owner? This blog post will explore some of the most common tactics for reducing your taxes as a small business owner!

The information below is to help you reduce your small business taxes. In addition, the IRS offers a number of deductions that can be used with your tax return. Of course, you will need to consult with an accountant or bookkeeper specializing in small businesses, but this list should get you started thinking about ways to lower your tax burden.

How does a business owner pay less tax?

After establishing your small business, it’s important to keep on top of the latest tax laws. This is because they change often and can make a big difference in how much money you pay. However, there are some legal ways to reduce your taxes, especially if you’re starting or don’t have any employees yet. Here are some tips for reducing your small business taxes with ease! Here are some tips for reducing your small enterprise taxes with simplicity.

• Keep receipts for all expenses-no, matter how little and use them as deductions on your income tax returns.
• Don’t forget to check the deadlines for filing quarterly reports and getting extensions for any overdue filings.
• Make sure you take advantage of any state income tax deduction – if your state has one – by filing Schedule C instead of Schedule A. The same goes for local income taxes where applicable.
• Deductions for home office space and equipment (including depreciation)
• Deductions for advertising expenses (including depreciation)
• Deductions for supplies and other costs related to the business use of personal property, including vehicles (such as leasing fees, repairs, gas mileage, tires), overnight stays away from home while traveling on business (but not meals), laundry services at laundromats.

Ways to reduce company tax liability

You may be surprised to learn that the United States tax code is more than four million words long. That’s a lot of information to keep track of, but it’s also an opportunity for you to reduce your taxes as a small business owner or self-employed individual. Unfortunately, it cannot be easy to navigate all the loopholes and deductions available, so we wanted to share some ideas with you on how you can save money this year.

Millions of women are leaping and running their small businesses. Whether you’re a freelancer, entrepreneur, or just moonlighting on the side, there are some tax benefits for your business that you should consider before filing your taxes this year. With these deductions in mind, please take advantage of them to save money on small business taxes.

Small business taxes are a top concern for entrepreneurs. Therefore, it’s important to know your tax obligations and how you can save money on taxes through deductions, credits, and other cost-cutting measures.

What type of entity should I set up my business as?  This is a question that everyone has in the back of their mind before they start a new company or launch a side project. There are three different types of entities: Sole Proprietor, Partnership, and Corporation. Each has pros and cons, so it is important to know what best suits your needs from a liability standpoint.