If you own a business, every dollar matters – especially when it comes to taxes. Whether your business is a partnership or corporation, Uncle Sam offers some sizeable deductions to lower your liability, allowing you to put those dollars toward capital and employees.
1. Keep business and personal finances separate.
A common mistake of business owners is to commingle business and personal funds. It’s important to have a separate bank and credit card account for your business. This will make things a lot easier when it comes to managing your books and getting things organized for tax time.
2. Buy to save.
Businesses can opt to deduct the full amount of certain property as expenses in the year the business began using them. This is referred to as Section 179 property and can include up to $500,000 of eligible business property.
3. Get organized.
One of the primary reasons people dread tax time is because they are not prepared. By implementing just a few things into your daily, weekly, or monthly routine you can remove the stress that tax season can bring on. Here are a couple of recommendations to get you started
4. Choose the right business structure.
Whether you’re a sole proprietorship, limited liability company (LLC), or use some other business structure, it may be time to pick a new business structure. Most people’s reasons for choosing one business structure over another is the tax bill. We suggest that you do your research on each business structure before deciding.