How to Reduce Your Tax Burden When Operating a Business

As a business owner, you already have many financial responsibilities. Adding on the burden of taxes can be overwhelming. To reduce any stress, you need to find ways to reduce what you’re spending on taxes. 

Start a Retirement Plan 

Having a retirement plan in place can reduce taxes for you and your employees as well as your business as a whole. For example, you can offer 401k plans for their retirement. Since this counts as a benefit for your employees, all expenses related to these 401k plans can actually be deducted from your taxes. 

This includes matching contributions, management costs, and even paying a third-party consultant. You can save money on taxes via offering a retirement plan in many ways and it can even benefit you if you are the sole owner and worker in a business. 

Use The Right Structure 

There are four many types of business structures you can choose from when setting up your business and you can even change structures later on if you choose. If you want to save money on your taxes, then you need to make sure you choose the most advantageous structure. In a limited liability company (LLC), all members of the company are taxed as separate entities according to their tax brackets. 

If you favor a pass-through taxation structure, you could also choose an S-corporation structure. An S-corp allows you to only pay FICA taxes on your salary. An S-corp offers many other tax benefits as well as advantages for when you transfer or end the company. 

Save On Healthcare

Healthcare costs continue to rise and both you and your employees need ways to pay for any medical expenses. Offering a healthcare plan is one way to provide for this, but many businesses also offer an HSA (Health Savings Account). With an HSA, employees can save money in their account and this money will specifically be used for medical expenses. The benefit of an HSA is all contributions are made pre-tax and the account can grow and be withdrawn from tax-free. This gives you and your employees the money you need to cover medical expenses without needing to pay taxes on that money. 

Finding ways to reduce money going toward taxes can significantly benefit your business. With fewer expenditures, you have higher revenue and more of an opportunity to expand your business. It’s worth finding ways to reduce your tax expenses. 

Did you enjoy reading this article? Here’s more to read. WHY YOU SHOULD HIRE WORKERS FRESH OUT OF COLLEGE


All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips


Career Building

Family Businesses


Starting Your Own Business

Work-Life Balance


Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Business Blogging 101: How to Create and Sustain a Successful Blog

Business Blogging 101: How to Create and Sustain a Successful Blog

For businesses, business blogging is becoming a powerful tool to not only attract and engage new customers but also to build brand authority and ultimately grow your brand.
This comprehensive guide will equip you with the essential knowledge and strategies you need to start and succeed in the dynamic world of business blogging.

How to Protect Your Merchandise From Theft

How to Protect Your Merchandise From Theft

Protecting your merchandise from theft is a critical aspect of running a successful business. In a world where security threats are ever-present, safeguarding your inventory is essential. Not only does it protect your bottom line, but it also ensures the safety of...

Experts You Need to Have at Your Business

Experts You Need to Have at Your Business

In the dynamic world of business, having the right team of experts is not just beneficial; it is essential for success and growth. For female leaders who are carving out their paths in business, marketing, or HR, knowing which experts to have on board can make a...

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

As a woman in a medical workplace, you have a lot of responsibility, not just to yourself but to other women who will come along after you. Asserting yourself in your workplace and gaining the respect of other employees and leadership is essential to a successful career. You have worked hard to get where you are, you don’t want to lose momentum.

Continue to grow with online leadership training and more. Follow these tips to assert yourself in the medical workplace.