This document provides tips for small businesses to save money on taxes. It recommends that business owners stay educated on changing tax laws to be aware of deductions. Specific tips include making profit-sharing contributions to 401(k) plans before the tax deadline, maximizing self-employed contributions to Solo 401(k) plans, contributing to Individual Retirement Accounts, starting a 401(k) plan to reduce future tax burdens, making charitable donations throughout the year, joining business associations and education programs for deductions, and hiring veterans to qualify for tax credits. Staying informed of tax regulations helps businesses minimize their tax liability.

1. ON, How to Save
Money on Taxes
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2. Corporate Tax Network helps small businesses with tax
advice. When tax time rolls around again there are a few
ways your business is able to cut down the amount it
owes the IRS. Corporate Tax Network stresses to its
clients that staying educated is a key component to
running a successful business. Tax laws are always
changing and there are many tax saving aspects to
business that many business owners are unaware of it
costs them a great deal of money in the end. Here are a
few ideas you may not be aware of to help save money
the next time taxes need to be filed for your business.

3. How To Save On Taxes
Know before you start: Tax laws are always being
updated, and it’s crucial to stay abreast of the latest
legislation surrounding eligible tax deductions.
IRS.gov offers the latest updates, information and
resources to equip small business owners as they
prepare for tax time.

4. Share the wealth through your firm’s
401(k):
Small businesses that offer a 401(k) plan may consider
making a profit-sharing contribution before April 15th.
Employees will appreciate the bonus, and employers will
benefit from the tax deduction (as well as the added
deposit to their own 401(k) accounts). The amount of the
profit share will lower business earnings, resulting in less
income to tax, and the money put into the 401(k) is also
tax deductible for the company.

5. If you’re self-employed,
maximize your 401(k)
contribution:
Self-employed business owners may contribute up
to $50,000 tax-deferred to their Solo 401(k) plan by
April 15th (but they must have their plans started by
the end of 2012 in order to make deductions to
2012 taxes).

6. Open and contribute to an IRA:
 A speedy way for anyone to reduce their personal
taxes for 2012 is to put up to $5,000 (the current
maximum) into an Individual Retirement Account
(IRA). If you’re 50 years of age or older, you can put
up to $6,000 in an IRA.
 Nearly half (45 percent) of small business owners had
not planned forchanges to the tax code by the end of
last year, according to the Capital One Small
Business Barometer. Taking the above steps can help
your firm save on this past year’s taxes; but to ensure
maximum benefits in the years ahead, it pays to
manage your finances year-round. Here’s how:

7. Start a 401(k):
Plan to lessen your tax burden in the years to
come. If your business hasn’t started a plan yet,
now is great time to start a low-cost plan and take
advantage of the higher tax-deferred contribution
limits for 2013. (You will likely qualify for $1,500 in
government tax credits if your business has less
than 100 employees as well!)

8. Making charitable contributions:
Charitable donations shouldn’t be limited to the
holiday season. Consider donating money
and/or usable items such as equipment,
clothing, and other goods throughout the year as
a smart way to claim a deduction for the items’
fair market value come tax time each business
quarter.

9. Join business associations or
education programs:
Those association fees and business-
related education expenses are also
tax-deductible, and they are a good
way to network and enhance your
workforce knowledge.

10. Hire a returning or disabled vet:
In November 2011, President Obama signed
into law specific tax credits for businesses that
hire unemployed veterans. The Returning
Heroes and Wounded Warrior Tax Credits
provides businesses with maximum credits of
$5,600 to $9,600 for every returning soldier
hired.

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