4 Ways to Reduce Business Taxes
Particularly for small businesses, tax burdens can be a significant roadblock to achieving organizational goals. However, there are a number of different things that businesses can do to significantly reduce the amount they owe in taxes. The following are four of the most effective ways to reduce business taxes:
- Hiring family members: particularly effective for small businesses, there are a number of different tax benefits associated with hiring family members, including the elimination of federal unemployment taxes and Social Security and income tax withholding in some cases.
- Keep receipts to maximize deductions: the federal tax code is written in a way that is meant to be particularly beneficial for small businesses. However, many businesses aren’t as diligent as they could be in taking advantage of these deductions. Keeping receipts for all business expenses is an important way to correct this situation.
- Make donations: businesses are allowed to donate to certain charities and write the value of those donations off of their taxes. Donating outdated equipment and other business materials can lead to significant reductions in small business tax burdens.
- Pay your bills before New Years: if your bills are due in January but cover expenses incurred during the previous year, paying them off before the end of the year can allow you to write more off during the next tax season.
If you or someone you know would like to learn more about how you can reduce your tax burden, we may be able to help. Contact the tax relief attorneys of the Tax Relief Law Center by filling out our contact form, and we will get back to you shortly.