Tax Strategies for the Small Business Owner: Reduce Your Taxes and Fatten Your Profits will help the small business owner increase profits while feeling more comfortable dealing with taxes. It begins by looking at the often overlooked critical decision small business owners face when they start a business: the choice of business entity. The book then examines all the deductions that a business owner can take legally to reduce taxes. It also provides advice business owners need to make good tax-related decisions: Should I lease or buy? Should I hire an employee or outsource the task? How much will buying a building reduce my taxes and for how long?
Many people freeze up when they are forced to prepare or even think about taxes. Some receive a notice from the IRS and put it aside: They're too scared to open it! Yet taxes for the most part follow common sense rules. You just need to know what they are and how they affect your decisions. In this book, readers will learn about the different business entities, the different taxes you must deal with (primarily income taxes), documentation procedures, how to work with a tax professional, how to handle an audit, and, in general, how to use the U.S. Tax Code to your advantage. Among other things, readers learn to take full advantage of tax benefits and avoid potholes hidden in things like:
Startup and ongoing expenses
Cost of goods sold
In short, Tax Strategies for the Small Business Owner will not only help you relax when you deal with your taxes—it'll show you how to use tax law to your financial benefit.
What you'll learn
How to choose a business entity that's right for your business.
The requirements for deducting expenses.
What you can deduct (and what you can't).
How to fund your retirement with help from the business.
Using depreciation rules to reduce taxable income.
Having benefit plans (medical and retirement) while complying with tax laws.
How to take the tax implications into account when making strategic business decisions.
What to do when you hear from the IRS.
How to determine whether you need a tax professional to assist you.
Who this book is for
Taxes for the Small Business Owner is designed for owners of small to medium-sized businesses and aspiring entrepreneurs—millions of people in the U.S. This practical guide on taxation is designed for those who want to lower their tax bills by maximizing deductions. It will appeal to any owner or manager who wants to pay less tax—legally.
Table of Contents
- About the Author
Part I: Before the Business Opens
- Chapter 1: The Business Entity
- Chapter 2: An Overview of Taxation
- Chapter 3: Before Your Business Opens
Part II: Day-to-Day Expenses
- Chapter 4: The Basics of Expenses
- Chapter 5: Cost of Goods Sold
- Chapter 6: The Office
- Chapter 7: The Car
- Chapter 8: Travel
- Chapter 9: Meals and Entertainment
- Chapter 10: Fixed Assets and Depreciation
Part III: Employees, Payroll Taxes, and Benefit Plans
Chapter 11: Other Deductions
- Bad Debts
- Bank Fees
- Casualty Losses
- Charitable Contributions
- Computer Services and Supplies
- Continuing Education
- Contract Labor
- Dues and Subscriptions
- Legal and Professional Fees
- Office Expense
- Rent and Equipment Rental
- Taxes and Licenses
- Anything Else
- Chapter 12: Employees and Wages
- Chapter 13: Payroll Taxes
- Chapter 14: Medical Expenses
- Chapter 15: Retirement Plans
- Chapter 11: Other Deductions
Part IV: Other Items
- Chapter 16: Other Taxes
- Chapter 17: Dear Valued Taxpayer: When You Hear from the IRS
- Chapter 18: Other Topics
- Title: Tax Strategies for the Small Business Owner: Reduce Your Taxes and Fatten Your Profits
- Release date: January 2013
- Publisher(s): Apress
- ISBN: 9781430248422