Skip to content
Friday, May 9, 2025
Cash Pro Global
  • Debt
  • Bankruptcy
  • Stocks
  • Investing
  • Finance

Small Business Tax Planning Strategies in Clifton Park and Albany: Exploring Ways to Reduce Your Tax Burden

Posted on December 9, 2024 by Michele Morgan
Small Business Tax Planning Strategies

Although you have a lot on your plate as a small business owner, you must prioritize tax planning. By making a financial plan to increase your income and decrease your tax burden, you may be able to increase your business profits. Tax planning for small businesses should be done throughout the year. With proper business tax preparation in Clifton Park and Albany, you can avoid surprises comes April 15th. By using the following tax strategies, you can minimize your tax burden:

Think About Changing Your Tax Status

If you own a small business, you have many options to structure your business. These include operating as a sole proprietorship, a partnership, an LLC, an S corp, or a C corp. The structure of your business will impact the way you file the taxes of your business. 

If you have outgrown your existing business structure in the previous year, you can switch to a more suitable one. For instance, if you own an LLC, you can file Form 8832 and be taxed as a C corp. However, tax saving should not be the only factor to consider when choosing a small business structure. Before you change your tax status, speak with a tax expert who can help you analyze the costs versus the benefits of such a change. 

Leverage Tax Deductions

With the qualified business income (QBI) deductions, you can deduct up to 20 percent of your share of the income of the business. Specified service trade or business (SSTB) owners lose the deduction if they have a very high income. In general, these businesses include service-based businesses where they rely on the reputation or skill of their owners or employers. They include law firms, consulting firms, medical practices, performing artists, professional athletes, accountants, investment managers, and financial advisers.

 The QBI deduction can offer a significant tax deduction; however, determining who can claim it can be challenging. The same goes for calculating the deduction itself. Speak with your tax accountant if you believe you might be eligible for this deduction. 

Small Business Tax Planning Strategies

Take Advantage of Tax Credits

You can also reduce your tax burdens by leveraging tax credits. These credits directly decrease the tax owed. Consider the following:

  • Work opportunity tax credit (WOTC). This tax credit gives you financial incentives to recruit and retain people from specific target groups that have persistently faced serious employment barriers. These groups include felons, veterans, and those who get TANF benefits. 
  • Disabled access credit (DAC). This is meant to help owners of small businesses offset certain costs related to offering access to individuals who have disabilities. You can claim this credit if your revenue does not exceed $1 million and you have up to thirty full-time workers. 
  • Health insurance premium credit. If your small business offers health insurance benefits to employees, you may claim this tax credit. If you are eligible for this credit, you can claim up to 50 percent of the premiums paid during the year. 

Establish a Retirement Account

You can reduce the taxable income of your small business by establishing or contributing to a retirement account. When it comes to retirement savings, you have several options. Establishing a 401(k) plan before the tax year ends lets you deduct plan contributions when you file a return. If you cannot set up this plan, you can establish a SEP or simplified employee pension plan. Whichever plan you can establish, the contributions you make to it can be deducted. However, tax credits also apply to retirement plan startup costs for which you may also be eligible. Consult your accountant to know if you can take advantage of this tax credit.

Posted in FinanceTagged Retirement Account, small business, Tax Credits, taxable income

Post navigation

Previous: Comparison of Top NRI Bank Accounts in 2024 – Fees, Interest Rates, Services
Next: Tax Relief Services for Seniors and Retirees: A Guide to Navigating Tax Challenges

Related Posts

Pay Your Taxes
  • Finance

Navigating Taxes in Tampa Bay: Types and Payment Tips

  • Kevin Fobbs
  • October 23, 2024
  • 0

Paying taxes is a complicated process for everyone, but it can be exceptionally confusing if […]

The Impact of Student Loan Debt on Personal Finance
  • Finance

The Benefits of Getting a Free Property Valuation

  • Kevin Fobbs
  • January 13, 2024
  • 0

Getting a property valuation is important if a person is considering buying or selling real […]

The Importance of Portfolio Rebalancing for Long-Term Investing
  • Finance

The Importance of Portfolio Rebalancing for Long-Term Investing

  • Shirley
  • April 20, 2023
  • 0

Investing is a long-term game, and as any seasoned investor will tell you, the key […]

Categories

  • Bankruptcy
  • Business
  • Debt
  • Featured
  • Finance
  • Investing
  • Stocks
  • Latest Posts
  • Trending Posts
  • Business

Achieve Financial Freedom: Get a Month Ahead

  • Shirley
  • March 23, 2025
  • 0

Before embarking on the journey to get a month ahead on bills, it's crucial to understand your current financial situation. Start by meticulously tracking your income and expenses for at…

Read More
Tax Refund
  • Finance

Same Day Tax Refund Online – A Complete Synopsis

  • Clare Louise
  • March 13, 2025
  • 0

When the government returns your tax overpayment, it provides you with your refund amount. The normal duration for tax refund processing extends to weeks, but specific services enable users to…

Read More
Financial Decision
  • Finance

Steps to Take Before Making a Big Financial Decision

  • Latoya Tomlin
  • March 3, 2025
  • 0

Making a big financial decision can feel overwhelming. Whether it’s buying a house, investing in stocks, or starting a business, careful planning is essential. Rushing into decisions can lead to…

Read More
  • Business

How Professional Tax Planning Can Save Your Small Business Money

  • Clare Louise
  • February 22, 2025
  • 0

You want to save money for your small business. Professional tax planning can help you reach that goal. By understanding the ins and outs of tax laws, you can keep…

Read More
  • Business

Navigating Business Taxes in Shreveport, LA: Common Mistakes and How to Avoid Them

  • Latoya Tomlin
  • January 17, 2025
  • 0

Managing business taxes can be overwhelming, especially with the many rules, deadlines, and responsibilities involved. While taxes are an inevitable part of running a business, common mistakes can lead to…

Read More
  • Business

Achieve Financial Freedom: Get a Month Ahead

  • Shirley
  • March 23, 2025
  • 0

Before embarking on the journey to get a month ahead on bills, it's crucial to understand your current financial situation. Start by meticulously tracking your income and expenses for at…

Read More
The Role of Corporate Governance in Financial Decision-making
  • Finance

The Role of Corporate Governance in Financial Decision-making

  • Shirley
  • November 6, 2022
  • 0

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company's many stakeholders, such…

Read More
Understanding the Differences between Common and Preferred Stock
  • Stocks

Understanding the Differences between Common and Preferred Stock

  • Shirley
  • November 20, 2022
  • 0

When it comes to investing in stocks, there are two primary types of shares that one can purchase: common stock and preferred stock. While both types of stocks represent ownership…

Read More
Understanding the Impact of Macroeconomic Factors on Investments
  • Investing

Understanding the Impact of Macroeconomic Factors on Investments

  • Shirley
  • November 25, 2022
  • 0

Investing is not just about choosing the right stocks or bonds. Macroeconomic factors play a significant role in determining the success or failure of an investment portfolio. These factors include…

Read More
Rebuilding Your Credit After Bankruptcy: A Comprehensive Guide
  • Bankruptcy

Rebuilding Your Credit After Bankruptcy: A Comprehensive Guide

  • Shirley
  • November 30, 2022
  • 0

Bankruptcy is a legal proceeding in which a person who cannot pay their debts seeks relief from their creditors. While bankruptcy can provide a fresh start for those struggling with…

Read More

Recent Post

  • Business

Achieve Financial Freedom: Get a Month Ahead

  • Shirley
  • March 23, 2025
  • 0
Tax Refund
  • Finance

Same Day Tax Refund Online – A Complete Synopsis

  • Clare Louise
  • March 13, 2025
  • 0
Financial Decision
  • Finance

Steps to Take Before Making a Big Financial Decision

  • Latoya Tomlin
  • March 3, 2025
  • 0

Tags

accountant alternative investments asset classes Business Success Business Valuation cash flow management CFD Trading CPA in auditing CPAs CPA services credit score debt relief Defining Risk Tolerance Develop a Winning Strategy diversification diversified portfolio economic indicators estate planning expert accountant Financially Healthy financial management financial markets Financial Records financial regulations financial security financial statements Forensic accountants Forensic Accounting global economy Hardship loans for poor credit insolvency investing investments macroeconomic factors non-traditional assets Payroll services receive payments Right Market and Instruments risk management skilled accountant Small Businesses stock market Student loans at the last minute taxation Virtual Accountants

Stocks

An Overview of the Stock Market and Its Components
  • Stocks

An Overview of the Stock Market and Its Components

  • Shirley
  • March 16, 2023
  • 0
How to Evaluate the Financial Health of a Company Before Investing in Its Stock
  • Stocks

How to Evaluate the Financial Health of a Company Before Investing in Its Stock

  • Shirley
  • February 19, 2023
  • 0
The Role of Stock Splits in Investor Sentiment
  • Stocks

The Role of Stock Splits in Investor Sentiment

  • Shirley
  • January 29, 2023
  • 0

Calendar

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Mar    
Copyright © 2025 Cash Pro Global Theme: Present News By Adore Themes.