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Financial Planning Insights

Tax Advice for Entrepreneurs

By Chandler and Knowles | | 0

Tax season brings a lot of unwarranted stress for small business owners and entrepreneurs alike. You have the tools and forms that you need to file your taxes, so let us give you a little help getting them organized. We’re also here to help you understand and answer any questions you may have. Before you start to pull out your hair, follow this tax advice for entrepreneurs to maximize your tax return.

Do You Have all Your Forms?

Before you start, make sure you have all the appropriate forms!tax forms, tax advice

The most common forms that most entrepreneurs and small business owners should have include:

  • Form 940 - this is the form that you file yearly to tell the federal government how much federal unemployment tax you are liable for.
  • Form 1120 and Form 1120- this is the form that you will file if you have created a corporation or an LLC—the business version of form 1040.
  • Form 1120-S is the business tax form that is filed by an S corporation.
  • Form 4868 can be a big help if you are struggling to get your tax information together, it asks for a six-month extension on your personal 1040 tax return. For business taxes, use Form 7004.
  • Form 8829 helps you to get credit for the expenses you incur with a home office. You file it with your 1040 and Schedule C.
  • Form W-4 is for your employees, they fill out a W-4 yearly to tell you as the employer how much federal tax to withhold from their pay.

Tax Savings for Your Entrepreneurial Business

Deductions are small business owners’ best friends! Are you including all the deductibles you’re eligible for? 10 of the most commonly overlooked deductions you might be eligible for include:

  • Accounting and Advertising Fees:  Most businesses no matter how large or small will benefit from using an accountant and advertising their business. Luckily these fees are deductible.
  • Building repairs and maintenance: Not all landlords take care of repairs and maintenance, especially on the interior space. Costs to make your space work for your business are deductible.
  • Cleaning/janitorial services: These services are tax deductible whether you are in a separate building or if you have an in-home office.
  • Conventions, trade shows, or business travel: Keep good records to document these expenses. Business mileage is of particular importance.
  • Depreciation: Many of the things you use in your business age and lose value. Think copies, computers, vehicles, machinery and tools.
  • Franchise Fees are deductible as both initial start-up fees and as a continuing fee but there are conditions. You should talk to your tax and accounting specialist.
  • Home office: If you maintain an office at home, you get to deduct the part of your home expenses that your office represents. This is determined by square footage.
  • Rent and Utilities: If you are renting a business space, rent, heating, electric, cooling, water, sewer, telephone, insurance and even the internet charges are all deductible.
  • Spouse on Payroll: Your spouse should be treated the same way you would treat any other employee.
  • Website design: Creating a website to increase the exposure of your business can be expensive. Luckily it is deductible.

Being a small business owner or entrepreneur doesn’t have to be stressful, especially when you have the friendly and knowledgeable staff at Chandler and Knowles CPAs, PLLC to help you navigate all the tricky forms, tax laws, and deductions.

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About Chandler & Knowles CPAs:

Chandler & Knowles CPAs is dedicated to serving our clients with an integrated approach to financial success for businesses, families and individuals. Our knowledgable team is committed to providing you with the most detailed information to answer your biggest financial questions and to help make your life less taxing.

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