If you ask me… the notion that your daily coffee is financially impacting you is BS! The truth is the amount of money your small business could be saving from learning some well-kept tax secrets is incomparable to that $4 a day latte.
Although the IRS can be intimidating, there are actually a TON of tax breaks you might be missing out on for your small business.
Here are 5 ways you can start saving money on taxes NOW:
- Employ a family member
Did you know that by hiring family members, small business owners can pay lower rates on taxes or even eliminate the tax on the income paid to their children? So, hire your 16-year-old daughter as your data entry assistant. We both know she’s been spending far too much time scrolling social media.
- Start a retirement plan
Owning your own business means you do not have the 401k luxuries you would if you were a W2 employee. A retirement plan only works in your favor when you make contributions to it. There are lots of tax-deductible retirement plan options for small business owners. A traditional IRA or SEP IRA are two different retirement plans that can offer tax-saving benefits. If opening an account online sounds daunting, talk to a rep at your local bank or consult with a Financial Advisor.
- Tax Credits
Did you know your business can get tax breaks for “doing good”? You can get tax credits for things like going green, making your spaces accessible for disabled community members, and providing health insurance for your employees! Unlike a tax deduction, tax credits reduce your tax liability dollar for dollar. Which means tax savings can add up exponentially. Talk with a tax accountant to see what credits you qualify for!
- Deduct as much as you can!
When running your own business (especially, if it’s out of your home), it can be difficult to distinguish personal expenses from business expenses. The point is, you need to keep track of everything you buy! Things like supplies, travel expenses, and electronics can all be deducted. As long as the purchase is business-related, and deemed reasonable for the business, then you want to capture it as a tax write-off. Ain’t no sense in doing business if you are paying more taxes than you should.
- Consult with a tax advisor
Taxes are confusing. Running your own business is hard enough! Don’t complicate things. Talk to someone who knows what’s up! Tax advisors can be pricey. But, they will save you money you never knew was there. A tax advisor can provide you with a tax strategy plan customized to your business. That way you know exactly what to implement throughout the year to maximize your tax savings.
If you’re anything like me, your business is your brainchild. You want to see it grow and prosper. Don’t let confusion around taxes stop you! Look closely at your taxes, there might be money you’re missing out on!
P.S. Did you know? A tax strategy plan can position you to saving 20 – 30% in taxes in your business each and every year. If you are ready to save thousands in taxes this year, apply for a Tax Strategy Plan VIP Day with me.