10 Ways To Reduce Tax Burden For Your Small Business
The ideal lawyer doesn’t just have an impressive set of credentials or gold letters on the door. He will be caring, caring and devoted to her work. You must think carefully before placing your trust in a lawyer because in some cases your life, future, money or property is in their hands.
In addition to conducting extensive research to select potential attorneys, you must ensure that there are no conflicts of interest, that you understand everything that is stated in the mandate agreement, and that you have checked references and practice details.
You will know that the lawyer you have chosen is the perfect one when:
- He tries to take the time to understand your own case. He will not commission any legal counsel to record the facts.
- From experience and knowledge, he knows what is relevant and what is not. He will brush aside and ignore irrelevant personal facts, opinions and emotions that cloud the case at hand.
- He will require the footwork for this case to be thorough. All facts are to be checked for correctness and strong arguments are to be written with the support of previous decisions.
- He will not only focus on the problem at hand, but will look at the problem from all sides. This creates a complete picture that highlights all relevant factors and the different approaches to the case.
- He will act with foresight, anticipating and planning well ahead of moves of dissent or the opinion of a jury or judge. Like an accomplished chess player, he planned the case not day by day but with many hearings in advance.
- He won’t waste time beating around the bush or making long-winded statements — lots of words strung together that look impressive but don’t mean anything. He will insist that his case and arguments be presented clearly.
- He will be self-disciplined, conscientious, and confident. He is always polite and respects you and all employees who work for him.
- He was recommended not only by his friends and relatives but also by other respected professionals in his field.
- Not only does he show you his winnings, but he’s happy to tell you why and how he lost a particular case.
- He will lay the cards on the table and tell you clearly whether your case is winning or losing. He will not claim that victory is guaranteed. He will be honest and open with his opinions and advice.
The bottom line is that the lawyer must be worthy of your trust. Use your innate instincts and don’t strive for the good looks of a lawyer or a fancy car or office. After all, legal and judicial competence is important to you.
Everyone is worried about taxes and looking for ways to reduce the tax burden. If you have your own small business, you need to update your knowledge of “small business” tax laws. As a business owner, you must have a clear understanding of accounting systems and tax planning. Sit down with your accountant and plan how to maintain business expenses, file receipts, plan “tax-saving” investments, and strategize for the most profitable running of the business.
Did you know that:
- By law, you can reduce your tax liability by hiring family members to work for your business. Pay your children and spouse to complete assigned tasks. This allows you to switch from higher to lower tax rates.
- Consider hiring independent contractors instead of employees. You save income tax. But make sure you meet the IRS criteria.
- Think of “deferred income” which delays receipt of funds until January instead of December. This means that the payment received is used up for another year’s “tax” calculation. However, consult your accountant as benefits will depend on that year’s profit and loss and the legal form of your business.
- Use tax deductions for charitable donations. Donate in November or December instead of January so that you can claim the donation for tax purposes in the current year.
- Maximize your spending on office equipment and supplies. Buy for a quarter in advance and take advantage of tax deduction opportunities in the current fiscal year.
- Include business-related travel expenses in the current year.
- Pay all bills that are due before the end of the year. Payments for cell phone service, rent, insurance, and business-related incidentals may be included for applicable accounting and tax benefits.
- Plan a retirement plan and make payments before the end of the year. This will reduce your income for the year and prorate the taxes you owe. Be sure to check the limits. Plan a viable and fruitful strategy with your accountant.
- Be sure to deduct from your taxable income paid royalties, business taxes, and annual membership fees for business-related organizations. Be sure to deduct the interest paid on loans to run the business and the costs involved. Insurance premiums paid to ensure premises and machinery are tax deductible. List your memberships and check which are eligible for tax deduction.
- Check whether you have deducted management and administration costs and money for the maintenance and repair of equipment.
Decide whether your business will benefit from a cash or periodic system. The tax deduction differs depending on the system used. When starting your small business, seek advice from a tax and accounting professional on which accounting system works best.