Tax Tips for New Business Owners

Each year, almost half a million new businesses are started. With the tax season in full swing, it’s critical that the taxpayers behind these new businesses know what to look for when preparing their taxes, which can make a huge difference in how much they owe.

                     

Entrepreneurs new to tax filing should keep some of the following tips in mind:

•  Any individual who is self-employed is required to pay into Social Security and Medicare.

• New business start-up costs can be deducted.

• If you started a business in 2014, consider becoming incorporated, to protect your personal assets.

• Take into consideration those doing work on your behalf, such as employees or contractors.

•  If you set up your business as an S Corporation you can avoid paying some of your profit into Social Security and Medicare.

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