Small business owners often find themselves in need of expert guidance, especially if they are about to file taxes for the very first time. First-time filers face many conundrums, but they all want the same thing: to make the most of any tax benefits and save as much money on taxes as they can.
This is one of the main reasons why many first-time business owners decide to start a small business corporation, that is, form an S corp in California. S corp structure is an increasingly popular option for entrepreneurs due to its tax flexibility.
If you intend to start a small business, you are probably curious about what you can do to legally lower your business taxes. Read on to learn more!
How do small businesses pay less taxes?
It is possible for small business owners to lower their taxes in legal ways.
- Be careful about your tax election.
- It might pay off to change the business structure.
- Adjusted gross income can reduce your taxable income to a considerable extent.
- Accountable plans for employee reimbursement.
- Fringe benefit plans for employees.
- Retirement plans.
- Delay year-end billing.
- Check whether you’re eligible for Bad Debt Reduction.
- Carryovers as an option.
- Abandon property instead of selling it.
- Seek ways to get tax-free income.
It is important to schedule an appointment with an experienced tax consultant so you can safely determine what tax benefits and refunds your business is eligible for. For instance, if you choose to elect S corp for your LLC, you could end up saving a considerable amount of money.
And it’s not only about the money you’ll save this upcoming tax season. Planning ahead now can pay off down the line: if you make smart moves now, you will save a significant amount of money going forward.
What are the tax benefits of owning a business?
You have to make the most of the tax deductions, tax exemptions and tax credit available to your small business if you intend to save money on taxes. By using any tax benefits you have at your disposal, you will decrease your taxable income at the end of the year and, as an added perk, help you keep stress at bay come tax season.
So what are the tax breaks and benefits you may take advantage of if you own a business? The list of tax-deductible business and operative expenses and charges is long and varied:
- Home office deduction.
- Deductible employee expenses.
- Deductible legal and professional consultant fees.
- Tools, equipment and supplies.
- Auto expenses.
- Travel expenses.
- Meal and entertainment expenses.
Consult a tax professional to find out which ones you are eligible for.
Allow us to show you the way
The system of taxes is intricate and complicated to navigate. Unless, of course, you have a team of experienced tax consultants by your side. With us, filing taxes for the first time will run smoothly from start to finish. The same goes for business incorporation services, such is if you want to form an S corp in California. We will protect your interests and ensure you are making the best choices for your business.
We also have highly competent professionals in charge of booking and related services who will be there to lend you a helping hand. Last but not least, as our business continues to grow, we continue to take on new clients from across San Diego County. Call today to make your initial appointment!