7 Smart Small Business Tax Planning Strategies to Help You Save Money

This post was originally published on On Deck

Tax season can be one of the most stressful parts of running a small business, but it’s also one of the most important. Smart tax planning creates a strong foundation for business success. By strategically managing taxes, small business owners can save money, maintain legal compliance and pave the way for long-term growth.

Let’s explore some tax strategies small business owners can use to not just survive tax season, but to save money and establish the groundwork for business success.

1. Choose the Right Business Structure

Your business structure can have a big impact on your taxes. Each option comes with different tax implications that are important to understand. It can be beneficial to consult a tax professional who can help you determine the right business structure and what it means for your taxes.

Sole Proprietorships. If your business operates as a sole proprietorship, your business income will be reported on your personal tax return. This is because sole proprietorships are not separate legal entities. When tax time rolls around, you’ll need to file a Schedule C (Form 1040) to report profits and losses from your business as well as a Schedule SE (Form 1040 or Form 1040-SR) to report

Read the rest of this post, which was originally published on On Deck.

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