Top 10 Tax-Saving Tips for Your Business

For most small business owners, owning and running a business of their own brings about a pride and joy like no other - along with the dreaded and worrisome fear of tax time. Taxes generally account for the majority of a small business owner's yearly expense. But with some important tips and tricks, you can gain control of your tax situation and put more of your hard-earned dollars back into your business. If your business structure is a sole proprietorship or partnership, you may want to consider the advantages of incorporating your business. Not only will you enjoy the benefits of limited personal liability, but corporations will generally pay less in taxes, namely the self-employment/FICA tax.

In addition to the family and personal benefits, home-based businesses also share in the benefits of lower tax obligations, so consider operating your small business from your home office. Not only will you keep your overhead expenses down, but it will allow you to deduct the business use of your home, provided that you have a separate space in your home solely for the operation of your business.

Make a habit of donating unused goods, equipment, supplies or other items to recognized charitable organizations, as these are tax deductible. Be sure to obtain receipts for any such donations so that your generosity will be awarded at tax time. Similarly, gifts of appreciated stock are also highly deductible-friendly, as you earn a deduction on the amount that the stock grows, not on just the price that you purchased the stock.