As the owner of a small business, it is your duty to declare and pay your taxes correctly. Of course, you need to make sure that you are paying your duties responsibly and at the same time, making use of your unique tax privileges as a small business owner.
Small business owners are given the privilege to “write off” or deduct all their business expenses to reduce their tax payables. For instance, costs of business equipment, employee salaries, office rent, and other direct business expenses are eligible for tax deductions. If you are going on an official business trip, all your travel-related expenses are considered to be business tax deductibles as well.
What other expenditures qualify for tax deduction? If your home also serves as your business office, be sure to have a separate room or space where you can conduct your business peacefully. For instance, expenditures spent to renovate your home-office and all equipment purchased and used in your home-office are eligible for tax deductions.
See to it that you file all your business tax returns, licenses, purchase receipts, and other business-related invoices in a safe place for at Least Seven Years. You may need to use or reference these essential documents in the future on if being audited.