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Licensed by the Florida Board of Accountancy as a certified public accountant, Stanley Pinsker provides accounting and tax services through his practice in Coral Springs, Florida. In addition to helping clients with cumulative and monthly financial statements, Stanley Pinsker and his team advise small business owners on tax law changes that affect their companies.
As with any tax filer, small business owners want to reduce their tax liability as much as possible. Here are a few legal ways to limit a small company’s tax liability:
- Take advantage of tax-free benefits. Medical coverage, retirement plans, or health savings accounts are tax-free benefits afforded to small business owners. These plans let small business owners set aside a portion of their business income without triggering tax requirements. No- to low-interest loans from the business may also help companies save some money on taxes.
- Hire family members. Family businesses can often benefit from the tax breaks the federal government gives family businesses. This includes not having to pay unemployment taxes when employing parents or a spouse, along with not paying Social Security when employing children.
- Pay bills by the end of the year. Rent, electricity, and other business-related bills for the year are often due at the beginning of January. Instead of waiting until this time to pay those bills, business owners should pay them before the new year. This may reduce a company’s taxable income since expenses often can be deducted.
As with any tax filer, small business owners want to reduce their tax liability as much as possible. Here are a few legal ways to limit a small company’s tax liability:
- Take advantage of tax-free benefits. Medical coverage, retirement plans, or health savings accounts are tax-free benefits afforded to small business owners. These plans let small business owners set aside a portion of their business income without triggering tax requirements. No- to low-interest loans from the business may also help companies save some money on taxes.
- Hire family members. Family businesses can often benefit from the tax breaks the federal government gives family businesses. This includes not having to pay unemployment taxes when employing parents or a spouse, along with not paying Social Security when employing children.
- Pay bills by the end of the year. Rent, electricity, and other business-related bills for the year are often due at the beginning of January. Instead of waiting until this time to pay those bills, business owners should pay them before the new year. This may reduce a company’s taxable income since expenses often can be deducted.
