Do any of these situations sound familiar?
I’m the proud owner of three Subway franchises.
I just expanded my thriving Landscaping Business to a neighboring city.
I am an entrepreneur running a Design Agency
Then you’ve likely heard your fair share of haughty “business advice.” Regardless of which stage you are in the entrepreneurial process, it’s important that you understand how to make the tax code work best for you (and no, you don’t have to read all 70,000 pages of the Internal Revenue Code beforehand.) Instead, we’ve compiled the myths into 10 (easy to digest) tidbits below.
Below are 10 common tax myths you should stop believing right this minute:
- 1. All accountants are tax planners.
- 2. Small Business Owners have a higher risk for an audit.
- 3. All you need is an LLC to avoid self-employment taxes.
- 4. Retirement accounts are the same as retirement plans.
- 5. Your Dependents are only an expense.
- 6. Obamacare has eliminated all medical deductions.
- 7. Deducting your home office is an immediate “red flag”.
- 8. If there’s food involved, it must be a “meals and entertainment” expense.
- 9. Mileage is the one tax write-off you can use for your car.
- 10. If it is legal, I should know about it.
BONUS MYTH: Proactive tax planning is just for big companies.
Believe it or nor, the financial industry benefits from small business owners not understanding tax myths. Download your free eBook today to learn how to make the Tax Code work best for you.
*image by Olu Eletu