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  • Writer's pictureThe Lincoln Accounting Team

Don't miss a beat, or a deduction

Hello there,


Have you ever thought about the intricate world of small businesses mingled with taxes? It's a roller coaster, believe me.


The first thing to understand is the structure of your business. It's crucial.


You might consider being a sole proprietor, but that's akin to wearing a "I'm ready for an audit" sign on your back.


Or worse yet, a "I'm ready to lose all my personal assets" sign around your neck.


Not exactly the smartest move, is it?


Instead, think about an S-corp, a C-corp, or an LLC taxed as either.


I know, it sounds like a jigsaw puzzle. But trust me, it's simpler than it appears.


C-corps, they pay their own taxes. Take no dividends and pay no personal taxes.


S-Corps? The profits and losses trickle down to you, the individual. Same goes for LLCs.


Now, here's where the real magic begins.


There are colossal tax deductions you can avail of by being astute about your business setup.


We're discussing things like cell phones, internet services, even a designated room in your house if it's used for your business.


And best of all? These all fall under a category called an accountable plan.


Sounds rather sophisticated, doesn't it?


Not so. It's just a sophisticated way of claiming that the company can reimburse you for any expenses you incur for the business. And the best part is, you don't have to recognize that income for tax purposes.


Pretty awesome, isn't it?


So, the next time you're paying for your cell phone or your internet, remember this golden rule: if your business derives any benefit from it, it can reimburse you for the entire cost.


Now that's what I call a perfect game plan.


Keep hustling,


R&S


P.S. Eager to delve deeper into the world of small business tax deductions? Schedule a call here.

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