A Two-Part Series
Taxes are an important aspect of running a business.
You need to be aware which taxes to pay and when they are due. It can be overwhelming, but Tax planning can help you file on time and claim the right deductions.
Here experts share the most effective business tax saving tips you can try.
Below are the top 4 tips to save on business taxes, straight from the pros at Robley Baynes Tax & Accounting Services:
1. Don’t Put the Business Cart before the Tax Horse
Business owners often get bogged down with the Business Operations and lose sight of their main tax issues, sometimes to the detriment of their businesses.
For instance, Business Owners will only push the growth and development of their operations ignoring the Tax Impact on this growth, only to later discover administration and compliance costs, as well as audit risks, that will wipe out any business financial savings.
2. Register Your Business as a Limited Liability Company
Many small businesses make the mistake of thinking they are “small” and don’t understand the importance of choosing the correct corporate entity.
There are several sole proprietors who could benefit tremendously by becoming a Limited Liability Company.
This can potentially eliminate some of the self-employment tax as well as provide other tax benefits, especially since is greater number of deductibles under the Limited Liability Organisation Structure.
3. Make Use of Tax-Deferred Retirement Plans
The best proactive tax savings tool available to business owners today is retirement plans.
No other expense allows owners to claim a deduction without having to give up the money spent for the tax benefit. The money usually must be kept in a retirement account until a certain age threshold.
4. Stay Up-to-Date on Tax Law Changes
Stay Informed on Tax developments, like the Trinidad & Tobago Revenue Authority Bill (TTRA) 2019.
Being aware of the tax changes and how they might affect your small business is critical to making the right decisions that can help you during the year and in preparing your Tax Returns.