Top 7 Small Business Tax Tips

Here are seven ways for owners of small businesses to save money on their taxes.

1. Incorporate Yourself: If you`re still a proprietor or partner of a business, it`s time to incorporate yourself. Not only will you limit your liability, but you may enjoy lower tax rates on small business income and other tax advantages as well.

2. Be Home Based: If possible, continue (or switch to) being a home based business. Not only will you keep your overhead down, but you will be able to write-off (or deduct) the business use of your home.

3. Income Split: Pay reasonable wages to your spouse and children. In this way, you can legally divert income taxed at your higher rate to your family members that are in a lower tax bracket.

4. Rearrange Your Affairs For Maximum Tax Savings: Can you make some changes to turn your hobby into a moneymaking business? Can you use that extra room in your house as a home office for your business? Can you arrange to use your car more for business purposes? Can you arrange for more of your entertainment expenses to be business related?

5. Document Your Expenses Well: Do you document your expenses well so that they would survive a tax audit? Have you kept a mileage log so that you can prove the percentage business use you claim for your vehicle? Have you kept receipts for all your entertainment expenses and listed the business purpose on the back of each receipt?

6. Be Punctual: File all returns and pay all taxes due (income, payroll, sales, et cetera) on time. This way, you avoid expensive late filing (and payment) penalties and interest.

7. Develop a Tax Planning Mindset: Some people only worry about their taxes during tax season. However, you will save a fortune in taxes, legally, if you make tax planning your year-round concern. Do you make business and personal purchases, investments, and other expenditures with tax savings in mind?

RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty-five years.

For valuable Work at Home Small Business Ideas, visit: http://www.yenommarketinginc.com/

---

Be Nice to Your Payroll Department

Ok, so next to the taxman, your company payroll department... Read More

Going Public: Now that You Have Successfully Made the Transition, What Do You Do?

Ok, you have successfully accomplished your dream of being the... Read More

Boat Hull Cleaning Procedures for Owners and Detailers

For really tough boat hull cleaning you will need to... Read More

Small Business - Is The Accounting Profession Ripping Them Off?

My 16 year-old daughter said, "Gee Dad! You look just... Read More

Shopping For a Franchise

Shopping for a franchise is easy if you know what... Read More

SBAs 8(a) Program Can Help Some Companies Compete

Q: A friend told me that as a woman of... Read More

Making Direct Mail Work for Small Businesses

If you own a small business, then you know the... Read More

The Beauty of Focus and Plan B

Did you ever have one of those days or weeks... Read More

Common Mistakes When Planning Your Medical Spa

Everything starts with a business plan: If you don't have... Read More

Sex Up Your Business Growth

A top executive called up me late in the night.... Read More

Nevada Incorporation: The Advantages of Incorporating in Nevada

Incorporation in Nevada has become an attractive option for savvy... Read More

Secrets to Washing Fleets of Trucks from a Nationwide Fleet Washing Service

Washing the exterior of a truck. Sounds easy right? Well,... Read More

Mobile Detailing VS Fixed Site Detailers

Mobile detailers will find themselves with lots of competition even... Read More

Yeah, It IS Lonely At the Top

Sometimes when you run a business you feel as lonely... Read More

There Are No Dumb Business Questions, Not!

Q: I'm curious. What is the dumbest business question you've... Read More

Facts About Starting Elderly Group Home Businesses

There's been a recent rise in the number of elderly... Read More

The 5 Traits of Baby Boomer Business Owners

As a practitioner and student of Small Business Marketing, I... Read More

Mobile Car and Truck Washing Vehicle Placement

To maximum potential profits and dollars in a mobile washing... Read More

Everything I Need to Know About Business I Learned From My Nametag

So there I was ? sitting in the audience of... Read More

Debt Collection Techniques

Here are some sound debt collection techniques that can be... Read More

The Step Zero Effect

The key to organizational focus and helping those who need... Read More

Dynamics of Daylight Savings Time on Service Businesses in the United States

The Dynamics of Daylight Savings Time changes the way we... Read More

Canon City, Colorado - Good for Small Business

Canon City, Colorado is known for it's 6 Prisons; State... Read More

Starting is the Hardest Part

You can't imagine how many people ask me how I... Read More

How to Get Maximum Results With Minimum Effort

Get maximum results with minimum effort. Sounds great doesn't it?... Read More

Franchise Sales and Use of Online Franchise Directories

Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More

Passion Is Key To A Successful Business

Passion. Passion alone can make your business successful. As an... Read More

Build Credibility with Expertise

As an Investment Representative you've worked hard to build trust... Read More

The Truth About Government Grants for Your Business

Free money! Receive up to $25,000 that never has to... Read More

4 Areas Where Your Business is Losing Money

In my 18 years of consulting I have heard it... Read More

Does Your Company Have a Business Image Manual

Every business regardless of size needs a "Business Image Manual"... Read More

How to Effectively Design Your Business Image

In many industries, image is one of the last things... Read More

Aircraft Washing Service Operations Manual

Anyone who is serious about washing aircraft as a full... Read More