Small Business Tax Benefits Means More Money

Remember Small Business Tax Benefits Help Your Bottom Line

The United States tax codes provides some reprieve for small businesses in terms of taxes but only if they obey all the rules. There are many small business tax benefits that owners and operators need to know. Small business operators must keep up with important dates, do ample research and maintain proper records if they want to enjoy beneficial tax deductions. I’ve included some common, but important deductions that small businesses should be aware of and take advantage of in order to lower their tax burden.

small business tax benefits

Travel expenses – Business trips that demand stays in hotels are fully tax deductible. Keep in mind that you can also deduct 50% of the cost of all meals when you travel for business. Other expenses such as rental cars and plane tickets are important for small businesses person to track.

Auto expenses – Cars are expensive to maintain and keep fueled up for everyone. However, when you are a small business car related expenses are a part of operating your business. So, mileage, gas and maintenance costs are all tax deductions. These add up quickly, especially if operating your small business includes a lot of long distance driving. The amount spent for auto expenses might surprise you!

Software – Businesses need computer software to run various operations that can help to maximize profit. This software can be expensive to acquire and/or it may have monthly fees involved for its use and support. This is why the government allows deductions in order to reduce small businesses tax burdens for such materials as it is key to business growth.

Healthcare – Deductibles on health care can be confusing for the small business owner but they are an essential way to save cash. Insurance premiums are fully deductible as an adjustment to income but the amount deducted cannot be higher than the total profit of your business.

Current expenses – Do not forget about ongoing, everyday expenses for your business. Rent, electricity, water and other utilities are also eligible to be used to cut the cost of your taxes. Operational costs such as these can burden a small businesses finances, but with proper record keeping it is possible to enjoy profitable tax breaks.

Bad debts – It is common knowledge, in business, that clients sometimes default on payments when you have extended credit to them. This leads to losses for you. The only problem here is that the rules on bad debt deductions primarily apply to goods and not services. The reasoning is that it is not possible to recover lost time.

There are many more small business tax benefits and it is up to you to learn how to take advantage of them. If you do not know how to go about it, enlist a professional accountant with experience who will help you follow all the rules to make your business eligible for the important deductions.

Remember, when it comes to business tax deductions knowledge is money.

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All the Things You Need to Know about Creating a Business

If you want to become financially independent, it’s great if you could create your own business. However, make sure about all the things that you have to do – it’s not complicated, but there are a certain number of steps that you have to follow to make sure you get the right results.businessimage

Starting a business requires many things, but most importantly, it requires you to be bold enough to try, because many people avoid doing this, no matter how badly they might need it.

Let’s see some tips for starting a business.

Start with an Idea

 You need to find the best idea for your business. Some people choose to do something that they already know how to do it – for example, some people are good accountants, so they could be opening this kind of business; other people love flowers and have experience in making flower arrangements, so they go for a flower shop, while some other people are good at creating websites so they will open up a small business that offers different types of website.

When you think about this, make sure you choose something that you can do with passion – something that you love doing, because passion will have to be a main ingredient in your activity.


Business-ideas-to-increase-your-revenuesThis is am important part because you will have to financially support your business until it starts producing profit. The budget should be enough to cover for all the expenses for at least a few months, depending on your type of activity. Make sure you can cover the cost of the rent (if you don’t work from home), the materials that you need, the basic stuff for opening the business, the furniture, the money for the salaries, for the lawyer and accountant and so on.

You can use your own savings, if the budget for the business is lower, but if you need a bigger budget and you don’t have the money, it’s better to go for a loan from the bank or a financial institution.

The Business Plan

Speaking of financing, you need to have a good business plan if you ever want to get a loan or find an investor. The business plan should contain all the details of the business – the name, the legal form, the location, the personnel, the domain of activity and all the rest of the things that you know.

There are many business plan models in the online environment, but if you don’t know how to properly make one, you should ask for the help of a (1)

The Lawyer

You will need a business lawyer to make sure that you cover all the legal aspects of your business. Apart from this, the business lawyer will help you in drafting the contracts that you will make but also the initial business plan.

If you can’t afford to get a permanent lawyer for your business, you can always contract one whenever you need it – the fees are minimal compared to a full-time contract, and if you use the same lawyer, he or she will know the history of your business.

The Personnel

Last, but not least, you might have the need to hire personnel to help you out in your business. When you do this, ask for a resume and don’t hire someone just because they are recommended to you.
You need to choose some criteria for hiring those people, but most importantly, be sure that those that you choose share the same passion in your domain of activity.

It doesn’t matter if you sell coffees, flowers, goods or services – what is important is that you should make a team that works well together, without problems, even when you are not around.

In the end, all it takes is some courage and some money to get it started, but be prepared to work extra hours if you want to be successful, as the real hard work comes after you have created the startup!

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