accountingdsp1

The website, http://www.inc.com/guides/reduce-smb-tax.html, gives many ways for a business to reduce the end of year taxes. One that fought my attention was making sure a business changes their type at the proper time. A small business, like a sole proprietorship, gets special privileges but have to pay a higher tax rate compared to a corporation. So after a business starts growing knowing when to change business types can make a huge difference in taxes owed. 

Another tax tip offered by http://www.inc.com/guides/reduce-smb-tax.html is giving a raise in health benefits instead of a raise in pay. This way both the employer and the employee don't have to pay taxes on the increase in income. 


My last tax tip that I found intriguing was found on http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2014/03/11/17-legal-secrets-to-reducing-your-taxes.  It is a list of more tax saving tips but the one that stood out to me concerned vacations. It recommends that vacations be combined with business trips. This way some of the major expences like hotel fees and airline tickets could be counted as business expenses.