Small business owners face an uphill battle in their first couple of years. In fact, a third of all small businesses fail in the first two years. According to a recent study, 82 percent of businesses fail due to cash flow problems. The predominant reason for cash flow problems is that their bills exceed the cash they have available to pay them. This often comes down to taxes. Paying taxes can take a big chunk out of the available resources small business owners have to continue to grow their businesses. As such, business owners need to understand their own tax burdens and how to maximize their returns. To do this, we have compiled some of the most helpful tax tips for new small business owners. Our top three tips are:
Tip One: Keep All of Your Receipts
Unfortunately, many small business owners fail to keep receipts that could help them pay less in taxes. To remedy this mistake, there are apps that can help you capture, store and organize all your business receipts in one place. These apps also sync with various tax-filing software programs if needed.
Tip Two: Contribute to Your Retirement Accounts
If you are under the age of 50, then you should contribute to your tax retirement accounts now. By doing so, you can potentially get some much-needed business tax relief. Our tax attorneys at Wiegand Attorneys & Counselors, LLC can help you pinpoint the amount of money you should contribute to your retirement funds.
Tip Three: Take Advantage of Penalty Relief
Even if you take the necessary steps, you may still incur an IRS penalty. When this happens, the IRS may allow you to take advantage of tax penalty relief. Our Denver tax attorneys at Wiegand Attorneys & Counselors, LLC can help you determine if you meet the requirements for tax penalty relief. If you do, then you can use the money you save to continue growing your small business.
Contact Our Denver Tax Planning Law Firm
If you are a small business owner and have questions about your 2020 taxes, then we want to be the first call you make. Our Denver tax planning law firm has the experience needed to tackle issues involving small business taxes. We can help you avoid tax penalties and ensure that your business assets are protected. Contact us today at (303) 625-6280 or fill out our confidential contact form. We offer knowledgeable and efficient tax tips for new small business owners, as well as quality estate planning services.