Tax planning for the wise business owner

Hello there,

Ever wondered about the secrets to success behind a flourishing small business?

You might be inclined to think it's all about a groundbreaking product or an unmatched service...

Well, it is, but there's more to it than just that.

It's having a strong grip on cash flows, and in particular, taxes.

I know, it doesn't have the same allure as marketing or sales, yet it's the cornerstone of your financial stability.

I frequently encounter small business owners who bombard me with a myriad of tax-related queries - let's address the most common ones.

How frequently should you pay income taxes for your fledgling business?

Every three months, unless of course you put yourself on the payroll and pay as you go.

Is it necessary to retain receipts if you make purchases with your business account?

Absolutely. They're indispensable for claiming deductions.

By the way, Lincoln can automate this for you and digitize it with our AP software.

Can your gym membership be counted as a business expense?

Only if you're flexing your muscles in a private gym situated at your business premises that's accessible to all your staff.

Is it possible to claim a deduction for your home office when it's part of your dining room?

Indeed, you can. Just make sure it's being used consistently and solely for running your business. But that's highly unlikely so stick to a dedicated office in your home.

Is leasing trucks, cars, and materials specifically for jobs tax deductible?

Without a doubt.

Are business meals deductible?

Yes, but maintain a sense of moderation. Extravagant meals can raise eyebrows.

What about presents for your clients?

You can deduct up to $25 per gift per individual.

Is business travel a write-off?

Yes, provided the expenses are business-related. Structure your personal vacation time around your business travel and reap the benefits.

In short: grasp your taxes, maximize your business deductions, and elevate your net profit.

And please, please don't wait until March or April to do so. Plan with Lincoln year-round and take advantage of our tax planning strategies for business owners.

Ryan & Scott

P.S. It's June so there's still time to get ahead of the game. Reach out today to learn more.