Written By: Ambrianna Freeze
Running a small business is a difficult endeavor. There are hundreds of things to remember every day, from paying the electricity bills to making sure that your employees are not haggling with clients for extra tips. Tax season is the last thing on a small business owner’s mind. Luckily, there are plenty of resources and tips available to help small business owners stay on top of their taxes as well as run their business efficiently.
Tax deductions for small businesses
The more deductions a business qualifies for, the fewer taxes the business has to pay. There are quite a few deductions that a small business can claim on their tax forms. They are enticing, and most of them will apply to a small business, but being overzealous is sometimes dangerous; a run-in with the IRS is never good for a small business.
It may be a hassle to keep up with automobile expenses all year long, but expenses related to a private vehicle used for work can be deducted. This is great for businesses that go to their clients’ homes or spend a lot of time on the road marketing.
Depending on what the small business deals in, a poor investment in a client can be deductible. This does not apply to businesses that offer services.
Fifty percent of business entertaining, like taking a group out for dinner or catering lunch, can be deducted as long as the entertainment was strictly and directly related to business.
Lots of travel-related expenses can be written off for small businesses. Things like plane fare, meals and even tips can be deducted at the end of the year, as long as the travel was mostly for business.
Business owners that move because of their job, or business, can deduct some of their moving costs. The move would have to be over 50 miles from the person’s previous home.
Tax resources for small businesses
When running a business, it is very important that a small business owner know exactly what needs to happen before April 15th. There are three fantastic resources for small business owners that are completely free.
The IRS has a fantastic online toolbox for company owners who are a little out of their depth. There are answers to nearly every question out there.
This website is a cheap and easy way to print W2 and 1099 forms. It is simple to use and very, very cheap. Plus, the forms are filed with the IRS electronically.
This service acts like a dating site for accountants and bus
iness owners. It sets up the meetings and the data sharing is secure.
Filing taxes as a small business owner does not have to be scary. With these tools and resources, tax day can be a little less frightening and maybe even less stressful. Maybe. Either way, with the appropriate deductions and some excellent help, any small business owner can find the help they need to file their taxes like a professional.