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Money Matters |
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Running a small
business can sometimes be overwhelming when it comes
to money, retirement, and taxes. Here are a few tips
on managing your business in the smart business way!
Retirement Plan
Most people that
run at home businesses, seem to neglect a retirement
plan. Yet, they will become very important when
the business is ready to close down. These will become
vital for the business owner for their lives after the
business life!
The most common
retirement plan for a small
business is a
Simplified Employee Pension.
These plans can be ideal for small businesses, sub
contractors and consultants. A
SEP is essentially a form of
IRA since you, as the
employer, would make contributions to your own IRA.
The contributions are discretionary, that is, you are
not required to fund the IRAs each year. You can
decide whether to fund the SEP from year to year
depending on the profitability of your business. This
is something that every small business should invest
in!
Several lenders
offer SEP's. Do your research and find out if a SEP is
right for you and your business.
Tax Advantages For
Businesses
Every year at tax
time, we get tons of emails from direct sales
consultants asking what exactly can a small business
use as a tax deduction. Here are several things a
small business can deduct from the earned income.
Business Supplies-
( receipts needed)
Mailing
Supplies-(postage, stamps, etc.) (save receipts)
An Extra Phone
Line- Any phone line used for business use.
Computer Purchases-
If you have purchased a new computer for business use.
Home Offices- If
you have a room in your home, that is used as an
office.
Miles Traveled- If
you do any traveling at all, keep track of miles every
time you go anywhere business related.
Gifts- Gifts given
to hostesses can be wrote off. These are a business
expense.
Company Charges- If you are a consultant and your company charges ordering
fees or anything of that nature, save all receipts, as
these are also deductions.
Inventory- Any
inventory you have purchased and not sold.
There are many many
more. For more info on what is a deduction, visit the
IRS's website.
More To Come Soon!
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