Tax Reduction Strategies…

Ever wonder why some small businesses pay fewer taxes than others? It all comes down to business expenses, tax deductions, tax credits, and proper documentation. Here are some essential tax-saving strategies to ensure you're only paying what you NEED to.

Tip #1: Keep Detailed Records of ALL Expenses

Always request a receipt for every business expense. If you don't receive one, create one! In the case of an IRS audit, canceled checks and bank statements are not enough. The IRS may disallow expenses that lack physical proof of purchase.

Tip #2: Contribute to a Pre-Tax Retirement Plan

Reduce your taxable income by contributing to an IRA, 401(k), or HSA. You could save up to $6,500 tax-free, translating to $900 to $1,700 in tax savings annually!

Tip #3: Pay Your Kids to Work in the Business

Reduce your taxable income by employing your children. If your tax rate is 15–28%, your kids may qualify for a much lower rate. Consult with an accounting professional to ensure IRS compliance and proper payroll documentation.

Tip #4: Spend Wisely & Optimize Business Deductions

Make sure every dollar spent qualifies as a business deduction. The more legitimate deductions you have, the lower your tax rate. With proper planning, you may even lower your tax bracket.