In today’s world, it takes guts to start a business.
If you’re brave enough to accept the challenges and risks that come with implementing a new tech startup, you deserve a pat on the back. And, if you’re among the startups still standing after their first grueling year in operation, congratulations! After all, many new businesses won’t make it to the place you are right now.
If you’re brave enough to accept the challenges and risks that come with implementing a new tech startup, you deserve a pat on the back. And, if you’re among the startups still standing after their first grueling year in operation, congratulations! After all, many new businesses won’t make it to the place you are right now.
Tech startups have enough hurdles to overcome without having to worry about their taxes. That’s why we’re here to lend you a hand and let you know about major tax deductions for your business that you might not be aware of.
Read on for important tax deductions every new tech startup needs to know!
1. Advertising & Promotion Expenses
No doubt you’ve spent a pretty penny promoting and advertising your new business throughout the year. Marketing a new company can take a big chunk out of your profits, especially during the startup phase.
The U.S. Small Business Administration recommends that startups spend between 7 and 8 percent of their gross revenue on marketing expenses. That can add up to equal a lot of money. But, the good news is that every penny you spend on advertising and promoting your business is tax-deductible.
This includes in-print advertising, such as brochures and business cards, as well as digital marketing costs and promotional products.
2. Startup Business Licenses & Permits
Any licenses and permits required to start your business are completely tax-deductible. This includes building permits, local and state licenses and any other types of licenses or permits that you might have needed to get your business off the ground.
3. Employee Expenses
If you’ve paid for employee meals, holiday parties, company training or offered your staff additional perks that cost you, good news. All of your employee expenses can be deducted from your business taxes.
4. Professional Fees
There’s a good chance that you’ve had to rely on the expertise of other professionals throughout the year. Lawyers, accountants, advertising agencies and other types of professional services can get pretty expensive. Luckily, these costs usually qualify as tax-deductible.
You can easily keep track of the payments you’ve made using ThePayStubs online paystub generator. This site is also helpful in producing employee tax documents and providing the 1099’s for contracted professionals.
5. Office Expenses
The money that you’ve spent on office expenses, even if you work from home, can be deducted from your taxes. This covers everything from business supplies, to rent, to internet fees.
If you operate from a home office, however, be aware that there are specific rules determining what qualifies as a deduction. For example, your home office must be used principally for business purposes and it must be a place which you work on a regular basis.
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