7 Ways To Reduce Tax Burden For Your Small Business

[Yusra]

1. Keep your records organized, and make sure you have up-to-date and accurate records of all income and expenses.

2. Make sure that you're saving at least 10% of every dollar that comes in, whether it's cash or accounts receivable (money owed to you).

3. Pay yourself a reasonable salary and use a payroll service to pay employees.

4. Add an employee retirement plan if it is affordable for your business size, but don't make it the only way of paying taxes on income that goes out of the company!

5. If possible, donate some of your tax-deductible donations to charity or other non-profit organizations so that they can also benefit from this deduction as well!

6. Don't forget about any stock options or other incentives you may be able to offer employees as part of their compensation package - many companies offer these types of things with very little cost for them when used properly by the company itself rather than just employees directly benefiting from them!

7. Get ready for next year's taxes now by thinking about what changes might need to be made in order to help reduce your tax burden going forward!

 

[Learners Quest]

Tax burden is a major concern for most small business owners. It's not just the taxes you pay at the end of the year but also what your tax burden is after starting the business. To help you reduce your tax burden, we've put together this list of 8 ways you can reduce your tax burden while running your small business:

1. Reduce Interest on Your Business Loan

2. Take Advantage of Tax Breaks

3. Limit Employment Taxes

4. Don't Run an Income-Based Business Entity

5. Don't Have Employees

6. Buy Stock Versus Dividend Paying Stocks

7. Use Section 179 Tax Breaks for Your Business Assets

8. Work Towards Retirement With an Individual Retirement Account (IRA) or Solo 401(k) Plan and Make Contributions, Not Loans!