Smart Tax Moves to Make at Your Business
As a business owner, you have a lot on your plate. You are responsible for making sure your company is profitable and that it operates in compliance with the law. In addition to all of that, you also have to worry about your taxes. Yes, taxes can be complicated, but that doesn’t mean you should ignore them. Here are some smart tax moves that you can make at your business. By taking these steps, you can minimize your tax liability and keep more money in your pocket.
Elect to Be Taxed as an S-Corp
There are many different types of business entities, and each has its own benefits and drawbacks. When it comes to taxes, one smart move for your business may be to elect to be taxed as an S-Corp. S-Corps are pass-through entities, which means that profits and losses are passed through to the shareholders for tax purposes. This can provide significant tax advantages, especially for small businesses. In addition, S-Corps offer flexibility in how you structure your business and can help to attract investors.
With so many benefits, it’s no wonder that more and more businesses are electing to be taxed as S-Corps. If you’re looking for a smart way to reduce your tax burden, talk to your accountant about whether electing to be an S-Corp is right for your business.
Stuff Money into Retirement Accounts
One of the smartest tax moves your business can make is to stuff money into retirement accounts. By doing this, you are not only saving for the future, but you are also getting a major tax break. The IRS puts a total cap on 401(k) contributions at $61,000. This means that any money you contribute above that amount is not taxed.
This can result in significant savings for your business. In addition, retirement accounts can also help to attract and retain top talent. Employees are often attracted to businesses that offer generous retirement benefits, and by offering a competitive 401(k) plan, you can ensure that your best employees stick around for the long haul.
Leverage Business Tax Credits
The final smart tax move to make at your business is to leverage business tax credits. By doing so, you can reduce your overall tax liability and keep more of your hard-earned money. There are a variety of business tax credits available, and your tax professional can help you determine which ones you may be eligible for. Some common business tax credits include those for research and development, energy efficiency, and hiring veterans. By taking advantage of these credits, you can save money and invest in the future of your business. So don’t wait – talk to your tax professional today about how you can start leveraging business tax credits.
By taking these steps, you can minimize your tax liability and keep more money in your pocket. So don’t wait – talk to your tax professional today about how you can start taking advantage of these smart tax moves for your business.
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