Starting a small business can be hard enough, but getting hit with a hefty bill from the IRS at the end of the year can make a difficult situation nearly impossible. There are plenty of different strategies for minimizing your tax liability, but the most effective one is itemized deductions, and know what you can deduct is the first step to getting prepared for tax season. Here's a list of just a handful of the eligible deductions for your small business, so be sure to investigate and leave no stone unturned before you submit your tax documents at year's end.
Bad Debt
If your company sells goods, you can deduct the cost of any goods that were not payed for by a client. This doesn't make up for losing the product, but it can soften the blow
Auto Expenses
Company cars are deductible, but you can also deduct mileage, service, fuel and nearly any expense related to purchasing and operating the vehicle.
Incorporating
When you first start your business, you'll face plenty of fees along the path to incorporation; good news is these are all deductible.
Legal and Professional Fees
Whether it's a lawyer, tax professional, or the janitorial service for your offices, nearly all professional fees your business pays will be deductible.
Travel
When you travel for business, you can deduct nearly everything related to the trip. Carefully document these trips and expenses, however, because an excessive amount of deductions for travel for small businesses can be a red flag for auditors.
Interest
If you use credit or loans to finance your business, keep track of all of the interest you pay out over time as this will be deductible. Mortgage interest paid on a building your business purchases should also be deductible.
Equipment
Just like vehicles, equipment your business purchases such as computers, cell phones, printers, office furniture, etc. will all be deductible. You will have the option of deducting the entire purchase price the first year, or spreading the deduction out over several years. Your tax professional will be able to suggest the best choice here.
Advertising
When you purchase advertising for your business, it's an expense, so again it's deductible.
Entertaining
When you take a prospective client or employee out to discuss anything business related, you're entitled to deduct 50% of the bill. This is another area where the auditors pay special attention to, so write down on the actual receipt a vague description of what you and the client discussed during the meal.
This can be a lot to absorb, and this is only scratching the surface. The best option is to hire a tax professional to go through all of your expenses and receipts at the end of the year, and then also check in quarterly to make sure you're well documented on all of your expenses. This may seem like an unnecessary expense, but a good tax professional will more than pay for himself in the money you'll save year after year.
Mon, 04/2/2012 - 01:56 AM | viewed 429 times
In February, 2012, Facebook held its 'fMC Conference' which introduced upcoming features and changes to the site, including Timeline for Pages. All of these changes impact the way an entrepreneur or smb can best utilize their Facebook presence to increase traffic, interact with fans, and ultimately, convert these fans into customers. Here we'll take a closer look at the changes to Facebook, how you can use the new features to your advantage as part of your business plan, and some helpful tips on creating a successful Facebook promotion.
Sat, 03/10/2012 - 05:35 PM | viewed 502 times
In the initial stages of a business startup, most entrepreneurs recognize that they'll need the expertise of an accountant at various times, but few realize that they'll no doubt need the help of another professional, an attorney. Their logic would be that they don't plan on breaking the law or getting sued, so legal services aren't necessary. The truth is quite the contrary, however.
Sun, 03/4/2012 - 01:54 PM | viewed 541 times
Now that you've developed a great startup concept, and you're in the business plan development stage, the time has arrived to come up with the right name for your new endeavor. There are a number of differing theories on what makes a great business name, but one thing is certain, choosing the right name can play a big part in how your business is perceived by your customers, and it can make or break your image.
Sat, 03/3/2012 - 12:55 PM | viewed 415 times
On average, roughly 600,000 Americans start new businesses each year. If you're one of the millions more contemplating taking that giant step into business ownership, don't let fear of the unknown stop you. Some of the stumbling blocks for would-be entrepreneurs include indecision about the right kind of business, a fear of putting their money and time into a business that fails, or they may simply have no idea where to start. Generating an idea for a small business isn't always easy, but with some good advice and common sense, you can learn how to choose a viable concept.
Thu, 03/1/2012 - 12:16 PM | viewed 627 times
If you're a small business owner or an entrepreneur involved in your first startup, you're well aware of the impact that successful Facebook marketing can have on your bottom line. Finding your way through the maze of available apps and tools is time-consuming, tedious work. If you're on the hunt for the latest and greatest ways to reach a larger audience and build your business, check out our recommended Facebook tools and apps that are specifically geared toward taking full advantage of your fan page.
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After a week of sour trading, markets opened up Monday on a positive note as it seemed that headwinds had subsided for the moment. While major indexes appear to be find their footing, the newly debuted Facebook (FB) stock lost all momentum, sinking more than10% in early day trading, well below its IPO price. The focus for investors this week will fall outside of U.S. borders, as a number of international economies will be releasing key data points. One such economy that many will have under a microscope is the United Kingdom [see also 25 Things Every Financial Advisor Should Know About Commodities].
This article originally appeared here: China to bring future investment plans forward to stimulate economy
Also sprach Analyst - World & China Economy, Global Finance, Real Estate
Way back in 2005, I posted a graph of "the Real Estate Agent Boom". I saw the following article, and decided to update the graph of the number of real estate licensees in California.
Recent trade data out of Taiwan, South Korea and Australia doesn’t bode all that well for the Chinese economy and financial markets were relieved to hear Premier Wen talking about growth yesterday. The fact is that the Chinese economy has enough spare capacity to trundle along for the next 5 years without taking a step backwards, so growth measures are really to protect regional and global economies which are totally dependent on continued Chinese expansion.
Tarsus (LON:TRS), the business-to-business events and media group, is within touching distance of achieving its strategy of delivering 50 percent of revenues from fast growing emerging markets by 2013. According to managing director Douglas Emslie, the group is now intent on bedding down new acquisitions and consolidating its expansion work to deliver greater earnings for shareholders.
