Maximize Your Start-Up Profits by Reducing Your Taxes
Posted November 9, 2010on:
Taxes are unavoidable in business, (that is, unless you want to end up in prison) but businesses can drastically decrease their tax liability in a number of ways, small and large. The key to reducing your taxes is to know all of the ways you can save, keep immaculate paperwork and remember that the small savings here and there are what add up to the big savings at the end of the year.
Be Diligent About Deductions
One of the most obvious ways to save on your taxes is through itemized deductions. Unlike your personal taxes, businesses are taxed on income and then can deduct nearly all expenses, resulting in essentially just paying taxes on profits. These deductions can be anything related to running the business (from paper clips to company cars) but there are plenty of regulations and restrictions that must be followed carefully. If you’re not a serious type A personality, consider bringing in a tax professional to advise you quarterly on items you can deduct, cannot deduct and just to get an overall feel of how you’re doing.
Read about more ways to maximize your profits: http://www.homebusinessbug.com/maximize-your-start-up-profits-by-reducing-your-taxes-10155/