SMALL BUSINESS TAX DEDUCTIONS
Limit your tax liability
A clear understanding of the rules can significantly reduce your tax bill.
Common small business tax deductions
Do you have business expenses that are considered ordinary or common for the type of work you do? And are they necessary in that they help your business to succeed? Answer yes to both of those questions, and you have expenses that you can and should deduct from your taxable income.
For example, if you use part of your home for business, you can deduct a portion of your mortgage interest, insurance, utilities, internet, repairs and depreciation. A tax professional can help you to calculate how much of your home is used for work and what the resulting deduction opportunities would be. The same goes for use of your car. If you’re using it strictly for business, you can deduct the entire expense. If it’s used for both personal and business, you can still deduct a portion relative to your work usage.
Rent, employee pay, taxes, meals, interest on a loan and advertising costs are other popular small business expense deductions or tax write-offs for an LLC. Our Business Banking Specialists can connect you with vetted tax professionals so that you can take full advantage of your rights as a small business owner. The savings could be tremendous.
Keep good records
You’ll need to get organized with your record keeping. If it’s not a strength of yours, consider hiring help. Keep track of your business expenses as they occur. Save receipts. If you have to scramble to account for expenses at the last minute, you’ll likely miss some of your deduction opportunities. It’s also important not to commingle your business and personal funds. Keep separate bank accounts and pay for purchases and expenses from the appropriate account. This will help to keep your records accurate and avoid having certain deductions disallowed.
Be clear about your ask and offer
How much money are you seeking? Research your financing potential so that you have a specific ask and offer.
Know your audience
Present your business plan to lenders and investors that are good fits for your idea. Learn what types of products and industries they might consider and what kind of money they might be willing to lend or invest.
Partner with M&T Bank
M&T’s Business Banking Specialists are ready to offer you support at any stage of your business. Get to know the advantages of being an M&T Business Banking client.