Stop overpaying the IRS
With the economy slowing and Washington threatening to boost audits of small businesses, it's time to rethink your tax strategy.
(FORTUNE Small Business) -- There are two proven paths to building wealth: You can increase the amount of money you make, or you can increase the amount of money you keep.
Chances are you devote abundant time and energy to the first strategy, meaning you're utterly consumed with developing new products or breaking into new markets. But the second path tends to get less consideration, particularly because one of the primary ways of keeping more money is paying lower taxes.
Taxes are painful not only to pay but to think about. Taxes are complex. Figuring out ways to shave your tax bill is not why you went into business.
But ignore the subject at your peril. In an effort to shore up a record deficit, the IRS is increasingly targeting small businesses for audits and has made no secret of the fact.
Consider 2006, when the IRS audited nearly 18,000 small companies (which it defined as those with assets less than $10 million), up from 7,000 in 2004. At the same time, many small-business owners overlook key deductions and wind up needlessly giving away hard-earned cash.
To help you make the most of your tax-saving opportunities, FSB spoke with some of the nation's top experts on small-business tax issues, who offered smart moves that are often overlooked even by sophisticated entrepreneurs: under-the-rug tax credits, record-keeping tips, audit red flags, and more.
Read it - and reap.
-
Detroit's churches are plowing millions into redeveloping local housing and businesses. More -
Winepod attracted a wait list of eager buyers and millions from investors. Then came the recession. More -
As other major banks withdrew, Wells Fargo stepped up its small business lending. More -
Designer Chuck Comeau set up his manufacturing in Plainville -- 240 miles away from a major airport. More -
As staffs shrink, business owners are taking on support duties they haven't had to handle in years. More
How does a florist sell more in this economy? We changed our business to designing weddings and events only, as the everyday flowers are not selling. We had to throw out too much product at the end of the week -- flowers are perishable! More
These 7 new homeowners stepped up their house-hunting to take advantage of the first-time buyer tax credit. More
Charlotte Street in New York City's South Bronx was once world famous for its blight. Now it's a slice of suburbia in the inner city - complete with Beemers and boats. More
Critics thought homeownership would never work in the South Bronx. They were wrong. Tour the one house currently for sale on Charlotte Street. More
More Small Business
