When you get just getting off the ground as a new startup company, you need to make sure you make the best business decisions possible. One of the biggest benefits to starting a new business is the many tax deductions that are available to you. However, if you don’t know about them, you might be missing out on taking advantage of these tax savings. This is why it is so important to work with the right accounting firm. Mark Dicus & Company is here to talk about some tax deductions that all startup companies should know about.
Deductions All Startups Should Take Advantage of
As a new startup company, you need to be aware of the following tax deductions that are there for the taking.
– Startup Costs: During the first year of operation, the IRS will allow new companies to deduct up to $5,000 in startup costs and $5,000 in organizational costs. This is going to include things like legal fees, market research, advertising, and other expenses.
– Home Office Deduction: If you are doing business out of a home office, you can deduct part of your mortgage and other home expenses. However, it is important to note that the home office cannot be used for anything other than your business. It can’t double as a living space.
– Equipment & Supplies: There are likely a great deal of supplies and equipment that you need to purchase for your new startup. This might include things like computers, office furniture, printers and other equipment and supplies needed for your business.
– Legal Fees: You will be facing expenses in hiring accountants, attorneys and consultants when you’re getting your business up and running. These are all tax deductible as well.
– Employee Salaries & Benefits: All of the expenses that are involved in hiring an employee and paying their salary, health benefits, retirement contributions and more are going to be tax deductible.
– Travel Expenses: When you are traveling for business, you can deduct certain parts of your travel with the IRS. Things like lodging, meals, car rentals, and more can be deducted.
– Insurance Premiums: As a business owner, you are going to need to have insurance polices for worker’s compensation, liability, property and more.
– Education: Furthering your education or going through specialized training can give you an edge in your field. This is all going to be tax deductible as well.
– Software & Subscriptions: If you have online software and subscriptions that are essential for your business, it is another tax deduction to take advantage of.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
Starting a business is no small task. You are bound to have questions about all the ins and out. If you do, you can turn to Mark Dicus & Company to guide you through it and answer those questions you have. Our accounting and bookkeeping services are the best you’ll find. Call us today!