Now that we have covered the Business Plan, and why it so vital to
your business taxes, in this lesson we are going to get down to the
nitty gritty about your small business taxes.
Most small business owners worry about paying taxes for their business
activities. To some, the subject itself is horrifying. As a result,
they run to the nearest Tax Office or CPA, expecting those titles to
mean that these people, or organizations know everything there is to
know about this area of taxes, and can provide all of the help they
need. Therefore the business owner may pay out huge amounts of money
to get this “expert” help; only to find that they themselves still
have to do most of, if not all of the leg work, in order for these
expensive service providers to help them! When, in reality this does
not have to be the case.
Since you have to provide these expensive service providers with the
information they need, in order to PAY them to help you, why not use
this same information, save your hard earned money, and perform these
necessary services yourself? All of the major Tax Software available
at your local Wal-Mart, Target, Best Buy, and Online, can do the exact
same thing that the expensive service providers do, for a whole lot
less money! Once you have all of the information that you provide to
the service providers, you have all of the proof you need in case of
an audit. You, the business owner, are responsible for any errors or
mistakes anyway. Yes, that is correct; even when a CPA, tax office,
or any other service provider fills out and file your taxes for you,
you are the one the IRS wants to talk to, and expect payment from!!
In order to educate you on what to document, record, organize, and
effectively prepare, so that you will be able to legitimately prove
yourself no matter how you decide to file, we can only recommend the
best program that we have ever found available for the home-based and
small business owner: Right Here !!
When you have a small business of your own you must keep up to date
on your knowledge of tax laws that pertain to “small businesses.” You
must also clearly understand tax planning. Yes, most accountants
and bookkeepers are well versed in these areas, but as a startup small
or home-based business owner, who can afford them? That is why we are
focused on helping those of you who start your small business on a
zero, or shoe-string budget. Although these valuable resources can and
will benefit those who are not starting out small, they will definitely
benefit the low budget business owner the most. Due to the fact that
any gain is a huge gain when you start with nothing!!
In other words, if you are smart enough to start your business on your
own, then you are smart enough to educate yourself and manage your
business records and taxes “on your own”! Don’t misunderstand, knowing
how to properly manage your business records and tax related documents
does not mean you have to learn how to do your own taxes: there are
thousands of software brands for that. It does mean that you will be
ready to use these different tax software much more efficiently;
simply with plugging in the info yourself, and letting the software do
Then when your business is producing a sufficient profit, to the extent
that you can afford to hire an accountant(CPA) or bookkeeper, by all
means, go for it. Pay them, and take a vacation, or three. But until
then, with enough knowledge and education, you can do it efficiently
and affectively yourself. After all, how did they become CPA’s and
bookkeepers, knowledge and education!!
Most business coaches would suggest that the best place to start would
be to sit down with one of these already rich CPA’s, and plan the
different ways that you will maintain business expenses, filing
receipts, “tax saving” investments, and a strategy for running your
business in the most beneficial way. That is not your best option when
you can’t afford it! That only adds to the frustration, and sometimes
the confusion of this whole “running your own business” scenario; not
to mention the money you will be losing! Why not take that startup
money, invest it in your own education, and become the knowledgeable
business owner you started out to be?
That is why, as business coaches and owners, we provide you with the
dire necessities that are truly necessary to get you started; help
you become self sufficient; then help you graduate into maintaining
a legal and legitimate business on your own. Saving yourself as much
as possible legally so that you can start seeing profit sooner than
Did you know that:
- According to the law you can reduce your tax liability by hiring
family members to carry out work in your business. Pay your children
and spouse to perform assigned duties. This way you can shift from
higher tax rates to lower ones.
- Hiring independent contractors instead of employees. You will save
on payroll taxes.
- You can take advantage of tax deductions allowed for charitable
donations. Make donations in November or December instead of
January so that you can include the donations for tax deductions in
the current year.
- You can maximize your expenditure on equipment and office
supplies. Buy in advance for a quarter and use the tax deductions
allowed in the current fiscal year.
- If you pay all bills due before the end of the year. Payment to
cell services, rent, insurance, and utilities related to the
business can be included for accounting and applicable tax waivers.
- By setting up a retirement plan and making payments before the
end of the year, you will reduce your income for the year and
proportionately the tax due.
- Money paid for licensing fees, businesses taxes, and annual
memberships to businesses related organizations all can be
deducted from your taxable income: along with interest paid on
borrowings for running the business, office related fees,
insurance premiums paid to insure the business office and
machinery, are all eligible for tax deductions. In addition to
a ton of other small business owner tax breaks.
- You can also deduct management and administration expenses as
well as money spent on maintenance and repairs of equipment.
The best resource to go into all of the details with you, break
it all down so that you can read and understand it, provide you
with all of the tax law changes, in real time, related to your
small business, is This Website.
In our 29 years of the tax related and home-based business arena,
this is the “Best” program we have ever come in contact with that
actually does what it claims 200% over!! Click Here Now
and learn all you will ever need to know about Home Business
Tax Breaks, Records to keep, expenses to record and how to record
them, and how to legally qualify for every home-based business
tax break available to you. Click Here Now !!
Look for your next lesson soon. We will be talking about some of
the different options available for financing your small business.