Starting a business can be a rewarding endeavor, but doing so requires careful planning and decision-making. One of the most important items on a prospective entrepreneur’s to-do list should be tax planning, both personally and for the future business. Correct tax planning can help maximize the rewards of owning your own business.
As you consider all of the potential tax implications, be sure to consult with a tax professional. It is a good idea to establish a relationship with a tax firm early in the process. These are some important factors you should discuss:
- Your chosen business entity — How your business is formed will affect its tax treatment. Corporations are treated differently from LLCs, which may differ from sole proprietorships (or DBAs), partnerships, etc.
- Business expenses — Which expenses are deductible, and who gets to claim the deductions?
- Vehicle actual expenses versus mileage expense — Which method is best for you or your business?
- Business start-up costs — The costs of start-up may be fully deductible by you or the business. Find out which costs are deductible and who gets to claim the deductions.
- Home-based businesses — How much and what types of expenses are deductible?
- Depreciation — This can be a large figure, and you won’t want to miss this deduction if it applies to your business.
For more information about starting a business, finding the right tax professional for you, or for help with other matters related to managing your business, the attorneys at the Scolieri Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you every step of the way. Contact us today at (412) 765-0546 or via email at firstname.lastname@example.org.