It’s true that in today’s world, everybody wants to be their own boss and many people are actualizing this dream by starting their own business; in fact, we can see lots of small startups around us. In the initial stage of any startup, we need to consider various things to run our business effectively.
One very important component that mostly self-employed professionals often forget i.e. they generally fail to pay attention to investment and tax planning. It can act as an obstacle in procuring the revenue threshold that they have planned for the business to generate.
There are numerous tax saving tips for startups and business owners that can help you to save your income legally.
- Start-up Costs
Without money, we are unable to purchase anything in today’s world and the same thing is applicable to startups too! When we start any new business venture, we need money. The start-up costs can be categorized as preliminary expenses. These expenses are the ones that you make before the commencement of the new venture and you can deduct them from your taxable income.
- Lease Paid for Office Premises
If you start your own business by renting an office space then it is also counted as a business expense. On the off chance that you own the office premises and pay property taxes for the same, you can take the deduction of that amount from your earnings.
- Expenses on Hotel/Travel
As we all know that meeting is an important part of every business and sometimes we have to travel to different places to attend it or to represent our company. Additionally, we might be required to stay in the host city for the duration of the meeting, sometimes days or even weeks. In such situation, we need an accommodation and there are some other sorts of expenses like travel, meal, and more. All of these expenses are also deductible from taxable income. You just need to keep all the receipts of your dining, hotel accommodation and taxi fares.
There you have them! And they are just some basic tips on tax savings for startups and business owners. Hope the tips will help you to save more and more!