If you’re concerned that your business’s tax bill is higher than need be, a meeting with a Dallas CPA will help you ensure that you’re making the right moves to lower your tax liabilities. It’s vital for businesses to address their tax situation throughout the year (not just around tax time) for the best results. Here are a few ways that a Dallas CPA can help you reduce your business’s tax liabilities.
- Help You Better Time Your Purchases
If you’re ready to invest in new equipment or services, know that the timing of these purchases impacts your tax bill. Purchases that are tax-deductible can lower your tax liability.
Perhaps you’re experiencing a profitable year. Accelerating the purchase of additional equipment is an easy way to reduce your taxable income.
Know that this strategy doesn’t involve spending unnecessary money solely for an additional tax deduction. However, if you know that this is money you’re going to spend, it’s wise to time the spending to maximize the benefits to your tax liability.
- Explore the Benefits of Employing Family Members
While it’s not always realistic for a business to employ family members, those that do can avoid paying taxes associated with hiring an employee. For example, if you employ your spouse, you don’t have to pay unemployment taxes for them. Employing your children means that you can forgo paying their employment taxes.
- Assist You with Determining the Legality of Tax Deductions
Not taking tax deductions that you’re legally entitled to means that you’re leaving money behind. However, with a frequently changing and often unclear tax code, you may not understand what deductions your business can take.
A Dallas CPA is an excellent resource for learning what deductions you can take, what deductions you aren’t entitled to, and what you can do differently to maximize your deductions.
- Make Advisements Regarding Your Business Structure
Many small businesses operate as a sole proprietorship because they believe it’s their easiest option. However, there are benefits associated with incorporating as an LLC.
For example, if you incorporate as a c-corporation, your first $50,000 in income is taxed at a lower rate. Your CPA will review your situation and offer guidance as to the best business structure for your needs.
Want more help lowering your business tax liabilities? Contact a Dallas CPA to get started!