The professionals at Las Vegas Bookkeeping primary goal is the success of you and your business. Starting a business may be rewarding, overwhelming and exiting all at once. Here are Seven Important Tax Tips for Small Businesses. This article will give small business owners information on how to stay organized and to succeed with their new small business!
1. Get Organized and Stay Organized
For a small business to run efficiently and generate income organization is vital. Good tax planning also requires effective organization………First of all, keep very good records of what you spend money on for your business! Keep a daily log of all of your expenses. It will be much easier to prepare your return, plus it is an easy way to be able to clearly see all of your legitimate business expenses.
2. Take Advantage of Tax Deductions
This is the easiest way small businesses can save money. Business owners must be of aware of all of the tax deductions that they can claim, most people do not claim everything that can. Here are some of the most common deductions for small business owners: health insurance, home office (more to come), capital assets, meals, travel, and entertainment. Be sure to ask your CPA for specific deductions for your small business.
3. Keep from being Audited
Unfortunately, sometimes small business owners can sometimes catch the IRS’s eye in regards to audits. There are certain areas these owners need to careful with. One needs to be very clear on claiming a home office deduction, refer to this link http://www.irs.gov/uac/Work-From-Home%3F-Consider-the-Home-Office-Deduction.
Another red flag to the IRS for a small business owner would be if you claimed a deduction that exceeded your income for more than one year.
Do you have health insurance for your employees? If so, you need to check and see if you would be eligible for small business health care tax credit. Please read this link from the IRS webpage for further, detailed information http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers.
5. Have a Tax Professional for Business Tax Needs
Business tax law can be complicated and is always being updated. To be sure you are doing everything you can for your small business it is wise to have a CPA that you meet with quarterly to go over specific situations or questions for your business. The tax professional will also keep your tax bill as low as well!
Payroll tax can be a common and expensive tax issue for small business owners if they use the payroll taxes withheld from the employees to finance the business costs. The IRS is always on the alert for this and can they can go after the business owner’s personal assets and they can also assess steep penalties.
As of 2015 a small business is able to deduct up to $500,000 in equipment bought as long as the business spends $2 million or less for equipment for the year. It is important to note that the cost of repairs most likely will be deducted as well. Consult with your CPA or tax consultant for further work related material cost suggestion.
Las Vegas Bookkeeping provides a full range of tax, bookkeeping and accounting services to businesses and business owners. Contact us at firstname.lastname@example.org for a free consultation!