As a business owner, there are important items in each state that can benefit you as a corporation, partnership, and/or sole proprietor that will save you taxes each year and in some states you might not have to pay taxes on your business income at all. The tax code is approximately 70,000 pages long, making it understandable why small business owners have trouble navigating it. Here are some ways to approach the effort of saving money on business taxes.
Accountable Plans: The reimbursement for employee’s travel, entertainment, tools or other costs is best done with the accountable plan. This plan will deduct the expenses from the business rather than reporting reimbursements as income to employees. Ultimately the business will save money from the employment taxes.
Tax-Free Approaches: Consider talking to your accountant about maintaining a successful business without triggering tax. Topics may include tax-free fringe benefits and loans to you on a no or low interest basis.
Year End Planning: Tax planning is a year-round responsibility but there can be more success with savings when the actions are done at the end of the year. It is important to revalue your assets that are listed on your books as well submitting your taxes and filing them on time.
Redeveloping the Business Structure: The key to saving on taxes may result in a new business structure. This can be discussed with your accountant to sort out all the numbers.
Make sure you go to the right accountants that are there for you 24/7 and can answer all of your business and/or personal tax questions and do the job to save you the taxpayer, the most every year.
Contact us at kickstartaccountinginc.com