All About Business Taxes
Let’s be real. Business taxes are hard.
But if you’re doing them correctly, they should excite you!
That’s because everything that you spend on business saves you money.
Here’s how business taxes work…
1. All About Expenses
Business expenses are things that you need to start + run your business:
How much it costs to make a product
Your domain name
A facebook ad
When you file your taxes, you’ll need to list your company revenue. That’s how much money your company made in sales last year.
Then, you’ll subtract all your business expenses. You’ll list everything that you bought to start + run your business this year.
The more business expenses, the less you pay in taxes.
2. Types of Expenses
The law tells you what expenses you can use.
Overall, there are hundreds of business expenses you can list.
Here are a few examples…
1.Research + Development
R+D are costs to develop or improve a product. Like ordering a new ingredient or visiting a new manufacturer.
2. Credit Card/Square Fees
That 2.9% takes a chunk out of your profits. Luckily, you can deduct it.
3. Your Accountant
You can deduct an accountant and accounting software fees.
4. Everything at Sprout Law
You can deduct all legal expenses, like contracts, trademarks, formation, and funding resources.
5. Annual Retreat
It’s important to conduct an annual review of the company’s operations. If you have an LLC or Corporation, you can deduct the cost of your annual meeting. That likely includes travel, meals, lodging, and supplies. Vegas, anyone?
6. Business Related Travel
Your flights, ubers, hotels, meals, dry cleaning, and internet charges are all covered when you’re traveling for business.
7. Subscriptions, Conferences, and Events
You can deduct online or magazine subscriptions in your industry. You can also deduct travel expenses when you attend a business convention or event.
8. Customer Gifts
You can deduct up to $25 a year in business gifts for each client.
9. Client Dinners
You can deduct food, beverages, taxes, and tips for meals with a client.
10. Employee Perks
You can deduct meals provided to employees like coffee, snacks, and beverages. You can also deduct parties, so we have a feeling the office holiday party is gonna be big this year!