10 Ways To Reduce Tax Burden For Your Small Business

10 Ways To Reduce Tax Burden For Your Small Business

An ideal lawyer will not just have a​ string of​ impressive credentials or​ gold lettering on​ his door. He or​ she will be caring,​ concerned,​ and devoted to​ their work. you​ need to​ think carefully before laying your trust in​ a​ lawyer after all in​ some cases your life,​ future,​ money or​ property will be in​ his hands.

Apart from doing extensive research to​ short list possible lawyers you​ must ensure that there is​ not conflict of​ interest,​ that you​ understand everything the​ retainer agreement states,​ and that you​ have checked the​ references and details regarding the​ practice.

You will know the​ lawyer you​ have chosen is​ the​ perfect one if:

1. He makes an​ effort to​ spend time to​ understand your case himself. He will not assign a​ legal assistant to​ take facts of​ the​ case down.

2. From experience and knowledge he will know what is​ relevant and what is​ not. He will set aside and ignore irrelevant facts,​ opinions,​ and personal emotions that cloud the​ case on​ hand.

3. He will insist that the​ footwork for the​ case be done thoroughly. All facts must be checked for accuracy and solid arguments jotted down with backing of​ earlier rulings.

4. He will not just focus on​ the​ problem at​ hand but examine the​ problem from all sides. This will create a​ complete picture highlighting all factors of​ relevance and the​ different ways one can approach the​ case.

5. He will use his foresight and anticipate moves by the​ opposition or​ opinions of​ the​ jury or​ judge and plan way ahead. Like a​ master chess player he will plan the​ case not by the​ day but by many hearings ahead.

6. He will not waste time beating around the​ bush or​ create verbose statements—many words strung together which look impressive but mean nothing. He will insist that the​ case and its arguments be clearly stated.

7. He will be self-disciplined,​ thorough,​ and self confident. Courteous at​ all times he will respect you​ as​ well as​ all the​ staff who work for him.

8. He is​ recommended by not just his friends and relatives but by other professionals of​ good standing and from his field.

9. He will not just present to​ you​ his victories but be happy to​ tell you​ why and how he lost certain cases.

10. He will lay the​ cards on​ the​ table and tell you​ clearly whether your case stands to​ win or​ loose. He will not claim that winning is​ guaranteed. He will be honest and upfront about his opinions and advice.

The bottom line is​ that the​ lawyer must be worthy of​ your trust. Use your inborn instincts and don’t go by the​ lawyer’s good looks or​ fancy car or​ office. After all it​ is​ competence in​ law and in​ court that is​ of​ essence to​ you.

Everyone worries about taxes and looks for ways and means of​ reducing the​ tax burden. When you​ have a​ small business of​ your own you​ must up date your knowledge of​ tax laws that pertain to​ “small businesses.” as​ a​ business owner you​ must understand clearly about accounting systems and tax planning. Sit down with your accountant and plan on​ ways of​ maintaining business expenses,​ filing receipts,​ planning on​ “tax saving” investments,​ and a​ strategy for running the​ business in​ the​ most beneficial way.

Did you​ know that:

1. According to​ law you​ can reduce your tax liability by hiring family members to​ carry out work in​ your business. Pay your children and spouse to​ perform assigned duties. This way you​ can shift from higher tax rates to​ lower ones.

2. Consider hiring independent contractors instead of​ employees. you​ will save on​ payroll taxes. However ensure that you​ meet the​ IRS’s criteria.

3. Think about “deferring income” postpone receiving money to​ January instead of​ December. This means that payments received will be up for “tax” calculations a​ year away. However ask your accountant’s advice as​ the​ benefits are dependant on​ profit and losses for the​ year and your corporate legal structure.

4. Take advantage of​ tax deductions allowed for charitable donations. Make donations in​ November or​ December instead of​ January so that you​ can include the​ donations for tax deductions in​ the​ current year.

5. Maximize your expenditure on​ equipment and office supplies. Buy in​ advance for a​ quarter and use the​ tax deductions allowed in​ the​ current fiscal year.

6. Include expenses of​ business related travel in​ the​ current year.

7. Pay all bills due before the​ end of​ the​ year. Payment to​ cell services,​ rent,​ insurance,​ and utilities related to​ the​ business can be included for accounting and applicable tax waivers.

8. Plan a​ retirement plan and make payments before the​ end of​ the​ year. This will reduce your income for the​ year and proportionately the​ tax due. Be sure to​ check on​ the​ limits. Plan a​ feasible and beneficial strategy with your accountant.

9. Be sure to​ deduct from your taxable income money paid to​ licensing fees,​ businesses taxes,​ and annual memberships to​ businesses related organizations. Be sure to​ deduct interest paid on​ borrowings for running the​ business and related fees. Insurance premiums paid to​ insure the​ business office and machinery are eligible for tax deductions. Make a​ list of​ your memberships and check which ones are eligible for tax deductions.

10. Check whether you​ have deducted management and administration expenses as​ well as​ money spent on​ maintenance and repairs of​ equipment.

Decide whether a​ cash accounting system or​ accrual one will benefit your business. the​ tax deductions are different depending on​ the​ system you​ use. When setting up your small business take the​ advice of​ a​ tax and accounting professional as​ to​ which accounting system would be most suitable.

10 Ways To Reduce Tax Burden For Your Small Business

Related Posts:

No comments: Comments Links DoFollow

Powered by Blogger.