Note: This post has been updated for this year’s tax season.
Question: What tax breaks can I get as a small-business owner?
Answer: There are plenty of factors that can impact the tax breaks and deductions you are allowed to take as a small-business owner. Location, industry, the demographics of the owner – there is, unfortunately, no easy answer. Every state has its own tax incentives, though most states do offer special credits to minority and women-owned businesses that help alleviate some tax burden. States will also offer special incentives to particular industries – the entertainment industry, for example, enjoys a slew of credits from states trying to attract film and television productions. You can also write off business-related expenses and startup costs when filing your tax returns.
My advice is to meet with an accountant that specializes in business finance in your state, and have them help you find as many tax credits and breaks as possible. Tax law is still notoriously complex; if you choose to go it alone, you may wind up missing some great programs and incentives.
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Are you looking to open a small business? Here are a few more helpful articles from Deborah Sweeney to get you started: