30 Essential Tax Tips for Small-Business Owners
Freelancers, sole proprietors, and small-business owners wear many hats. Some even choose to add accountant duties to the mix. It can be hard work, but familiarity with tax rules can help guide business owners' decisions throughout the year and lead to significant savings come tax-filing season. Here are 30 tax tips that could benefit new and seasoned entrepreneurs.
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Starting a business can be expensive. During the first year there are expenses for basic supplies, equipment, meetings with potential investors, incorporation, advertising, utilities, and more. New business owners can deduct up to $5,000 for business costs and $5,000 for organizational costs. If costs exceed profits the first year, the remaining portion can carry over to the following years. However, these write-offs taper off once startup costs exceed $50,000.