Starting your own business is one thing and while we admit that it’s tough, we think that there is something that people struggle with even more. What is it you ask? Well, it’s the taxes that come with owning any business. Working for an employer, the tax process is pretty much automated for you but when you own your own small business, that’s when you have to start figuring stuff out. Luckily, we put together a small list of a few things that you can do to save money on your business’s taxes. Ready to find out what they are? Good!
Make Claims
The first thing that you can do to save money on taxes for your business is to make claims at tax time. In other words, you need to keep receipts for all your major purchases for the year (as well as expenses) and see what you can claim as a tax deduction. An example of that would be if you had a home office and bought a new computer for $700, you could claim that as a business expense on your taxes. Trust us on this one. This is very handy!
Hire More People
Generally speaking, if you have an employee or two, it will benefit you greatly on your taxes because the government likes small businesses that create jobs. This may not end up being a huge tax break for you but it is still beneficial in its own way. If you don’t want to pay in to social security or aren’t able to offer benefits yet, hire them as an independent contractor and all you will have to do is report their earnings. They hold their own taxes.
Evolve Your Business
Over time, many businesses fail because they refuse to evolve. A food establishment that we know of was open for nearly 25 years before it went in the hole for about $700,000 due to the fact that it didn’t evolve. It served food geared towards an older generation for that area and once those people passed away and a new generation came in, this fried chicken joint went under. Don’t be scared of change and be willing to adapt or change.
Now, these are just a few tips as to how you can save money on your taxes. Saving money on taxes as an individual is pretty much the same thing but you have far more options as to what you can do. Before you start trying to claim things on your taxes though, be sure to do a little research for tax information on your state and business. A good place to start would be to get in touch with your local City Hall and have them point you in the right direction. From there, we hope it’ll be smooth sailing and you cut down on your business taxes! It’s going to save you a lot of hard earned money and get your small business ready to succeed.