How to lower the US taxes I pay as a small business owner

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I need suggestions on how to lower my tax liability. My two-year-old small firm is owned by me and another person. Each of us owns 50% of the business. As of right now, we are an LLC. There are no workers here. The business has no intention of taking on any additional partners and will exclusively employ contractors.

I’ve been informed that converting to a S Corp. and forgoing payroll tax is an excellent method to reduce taxes. That is what I want to do on January 1st of this year.

This year, I’m enrolling both parties in separate 401(k)s, which should help somewhat.

What other ingenious tax-saving measures have you taken?

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my fellows my advice is maintain detailed records of all expenses related to your business, such as rent, utilities, office supplies, equipment, travel, and marketing expenditures. These expenses can be deducted from your gross income to lower your taxable income.

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You can only deduct business expenses.

Look up the costs associated with your company on Google and begin keeping track of them.

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In my experience running a small business with a partner, managing tax liability has been crucial. When considering ways to reduce taxes, transitioning from an LLC to an S Corporation was a significant decision that helped minimize payroll taxes by paying ourselves reasonable salaries and taking the remainder as distributions. Setting up separate 401(k) plans for each partner is a smart move to save on taxes while planning for retirement. Additionally, maximizing deductions for business expenses, such as office supplies, equipment, and professional services, has been effective. Exploring tax credits available for small businesses, like the Research & Development Tax Credit or Work Opportunity Tax Credit, has also helped lower our overall tax burden. Staying informed about tax laws and consulting with a qualified accountant or tax advisor regularly has been essential in implementing these strategies effectively.

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As a co-owner of a two-year-old LLC with no employees, I’m always exploring ways to minimize tax liability. Based on advice from financial advisors, we’re planning to convert to an S Corp on January 1st to benefit from payroll tax savings. Additionally, we’re setting up individual 401(k)s for both partners to maximize retirement contributions and reduce taxable income. In the past, I’ve also taken advantage of tax deductions for business expenses, such as office supplies and software, and looked into the home office deduction since we both work from home. These strategies collectively help us retain more of our earnings and reinvest in our busines

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