Small Business Tax Planning Strategies
Tan & Associates CPA Inc. Your Trusted Tax Advisor
Tan & Associates CPA Inc has 2 decades of experience to help you fill out your tax return correctly, and pay taxes on time We take our jobs as your dedicated tax professional seriously. Our goal is help you get significant tax savings. We take time to abide by all tax rules and keep up to date with any tax law and tax code changes to maximize your income and reduce tax liability.
We have experience in small business tax planning and are committed to helping you plan out what you need to correctly file your taxes and reduce your tax bill.
Tax planning is an essential aspect of running a small business, and it plays a crucial role in minimizing tax liability. As a business owner, understanding the strategies available to reduce your taxable income can help you optimize your financial situation and help you keep more of your hard-earned money.
By taking advantage of these tactics, you can ensure that your business remains financially sound while complying with all relevant tax laws and regulations.
Having trouble with tax planning? Speak with a tax advisor today.
What are Income Taxes?
Income Tax is the amount taxpayers need to pay the government in respect to their income or profits. You need to accurately indicate how much you earned in your tax return. A tax professional will help guide you on what forms to fill out to report your income taxes properly. Deadlines will vary depending on your business structure.
- Corporate income tax: If you are a corporation, you are responsible for paying corporate income tax. All corporations in the United States need to pay 21% of their taxable income to the government.
- Work Opportunity tax credit: If you are an employer, you can receive this tax credit if you’ve hired individuals from groups who have faced barriers to employment.
- Self employment taxes: If you are self-employed, you are responsible for paying Social Security and Medicare taxes. The self employment taxes rates in the United states is 15.3%. The rate consists of 2 parts – 12.4% for Social Security and 2.9% for Medicare.
- Small Businesses: If you are a start-up, tax planning can feel overwhelming. Remember to track your expenses and file the correct form to reduce tax implications. Speak with a tax advisor today learn more about small business tax strategies you can implement today and reduce your tax bill.
- Personal income tax rate: You are responsible for paying income tax depending on your salary and other earnings throughout a tax year. Tax rates vary depending on whether you are filing single or married filing jointly/separately. It also depends on factors like your annual salary. We ensure all details in the owner’s personal tax return is accurate.
Tax planning doesn’t have to be hard. Speak with a tax advisor today to learn more about tax deductible items, receiving tax credits, reduce your tax bill.
What are tax deductions and tax liabilities?
One effective tax planning strategy that small business owners can employ to minimize their tax liability is through careful consideration of tax deductions. Tax deductions are expenses that can be subtracted from your total taxable income, reducing the amount of income that is subject to taxation. By taking advantage of these deductions, you can effectively lower your overall tax liability and keep more of your hard-earned money. Tax liability is simply the amount of money or debt that an individual or entity owes the government.
There are several common tax deductions available for small business owners in Orange County. An example of a tax deduction is the home office deduction, which allows business owners who use a portion of their home exclusively for business purposes to deduct expenses related to that space. This deduction can include a percentage of rent or mortgage interest, utilities, and even repairs and maintenance costs. If you use your car to go on business meetings, then what you pay for gas is also tax deductible. Reporting these deductions correctly results in tax cuts, which decreases the amount you owe to the government for the tax year.
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Tan & Associates CPA Inc. stands out as a beacon of excellence in the realm of tax accounting. Their team's depth of knowledge and commitment to delivering results are unmatched. Whether it's navigating complex tax regulations or providing strategic financial advice, Tan & Associates consistently exceeds expectations. I wholeheartedly recommend their services to anyone seeking top-tier accounting support.
How to maximize your tax credit?
A tax credit is the amount taxpayers claim on their tax returns to reduce the income tax they owe the government. Qualified individuals can reduce what they owe and potentially increase their tax refund.
Tax credits are important to maximize your tax benefits. Common tax benefits include deductions, exclusions, credits and shelters. A Tax deduction is an incentive to deduct your taxable income taking into account all your expenses incurred to produce additional income. Reporting this correctly on your tax return can reduce your tax bill and increase your tax benefits.
Create a smart plan for paying taxes
Organize and write down all deductions related to running your business. If you work from home, home deductions will include utilities used in your office. Track your business gas mileage or any other business expense for the year. This will help reduce your tax bill.
If you make contributions with your pre-tax dollars for retirement, your taxable income taxes are reduced. Contribute to your Roth IRA to defer taxable income this means that you won't need to pay taxes on your IRA until you take it out and profit.
To file your tax return correctly, speak with a tax advisor about what you will need and how to organize your information correctly. Tan & Associates CPA Inc has over 2 decades of experience with tax planning