Wise small business owners don’t simply give their children an allowance for doing chores around the house. Instead, they hire them in their small businesses and give them money in the form of a paycheck. If you operate a small business and have kids who live with you or near you, it may be worth having them do some work in your company. Often called “income shifting” in … [Read more...] about Advantages of Hiring Your Kids in a Small Business
How to Reduce Tax
If you are a motivated entrepreneur with a business plan that you believe is ready to take off like a rocket, you’ll likely have to dig deep into your pockets to cover the numerous business expenses that you’ll be responsible for throughout the startup process. The good news is that you may also be able to write off many of these expenses as a tax deduction to hang on to more … [Read more...] about A Lowdown on Deducting Small Business Startup Costs
Upon launching a brand new small business, the numerous startup costs and related expenses that you’ll incur can be overwhelming. These hefty costs could even discourage some entrepreneurs from moving forward with a business. Thankfully, there is some good news in terms of how you can keep more of the hard-earned money you earn as a small business owner. Consider these tips to … [Read more...] about 4 Ways to Reduce Your Small Business Taxes
Small business owners have the ability to take advantage of many tax breaks to cut down on their tax bills and hold on to more of the money their companies generate. Some of these tax deductions are often overlooked and are never even claimed, which simply puts more money in Uncle Sam’s pockets. If you own a small business, consider claiming the following commonly missed tax … [Read more...] about 5 Commonly Missed Tax Deductions for Small Business Owners
You've heard that you can't have your cake and eat it, too. But hiring your children is one case when you can. Pay your minor or adult children to work for your business, then write it off as an expense. Many people are confused about whether it's legal to hire their children and grandchildren. Follow my advice to satisfy both the IRS and employment laws - while saving on … [Read more...] about Tax Implications of Hiring Your Children to Work for Your Business
Someone once remarked, "Next to being shot at and missed, nothing is quite so satisfying as an income tax refund." There's no question that saving money in taxes is high on everybody's list of financial priorities, especially self-employed business owners. However, unlike individuals who work as employees for an employer, business owners actually have the "luxury" of … [Read more...] about Taxation Benefits of Incorporating
The tax rules allow for deductions for the business use of your home. This is good news for home business owners. But do you really qualify for home business tax deductions? Knowing whether you are qualified to deduct the business use of your home in your tax returns is a tricky proposition. There are a number of rules that you must meet before you can deduct your business … [Read more...] about Do You Qualify for Home Business Tax Deductions?
After a careful deliberation, you have ascertained that the business use of your home qualifies for a tax deduction. Per the IRS, you can claim for home office tax deduction if your "home office" is the principal place used exclusively and regularly for your trade and business: as a principal place of business as a place to meet or deal with patients, clients or … [Read more...] about What Qualifies for a Home Office Tax Deduction?
Paying taxes are tough enough for any business owner; but more so when you are summoned by the tax man to be audited. Receiving the tax audit letter is very nerve wracking – and with good reason. The key is to remember that the IRS is watching, and is already aware of most shenanigans of entrepreneurs to try to circumvent the tax rules and regulations. How do you avoid a … [Read more...] about How to Avoid Tax Audit: Red Flags for Entrepreneurs
As an entrepreneur, you incur business expenses that are fully deductible against your business income. According to the IRS, these expenses are usually deductible "if the business is operated to make a profit." However, even if you keep a sharp eye out for deductible expenses, it is not uncommon to miss a few. You may be missing an opportunity to maximize your tax … [Read more...] about Tax Deductions: Commonly Overlooked Business Expenses