Small Business Tax Strategy

If your business is making less than about $40,000 in profit, you probably don't need to spend a fortune on tax strategy. You just need to make sure you aren't missing the basics.

Whether you're a sole proprietor, LLC, or S-Corp, start by looking at what you did last year. Pull out your previous tax return and look at what you deducted. Then go through your bank statements, credit cards, checkbook, and receipts.

Mileage, your phone, internet, business meals, supplies, software, advertising and other expenses you paid for because of your business can all matter. And there isn't some magic list of deductions I can give you because every business is different. The best place to start is with your actual business and where your money went.

Now remember, just because you paid for something out of a personal account doesn't automatically mean it can't be a business expense. What matters is what the expense was for and whether it was actually related to your business.

Now if this isn't enough for you, check the mid-size and large business videos to see what is best for you.