Starting a business requires an entrepreneur to wear many hats right from the onset. The demands on your time are many, and developing your business plan and hiring the right people are time consuming tasks that are very serious, and can play a devastating role if not done properly. Hiring a business coach to see you through the developing stages of a business plan, plan your goals and time stages to achieve those goals, and developing a strategic plan that will produce success for your business is a must every business should have.
5 Tax Breaks Overlooked By Small Business Owners
For the small business owner, tax season can be stressful, and the prospect of shelling out a load of money to the government is not exciting. That’s why small business owners love tax benefits. Here are 5 tax benefits that are often overlooked by small business owners that can save your business money.
Please consult your tax professional before following any of the suggestions below. If you do your taxes yourself, there is a resource which compares the online offerings of TurboTax, TaxAct, and HR Block.
1. Have Lunch Meetings
If you often buy lunch (eat-in or take-out) while you are working, you might be able to deduct 50% of meal expenses. If you and your business partners or employees have meetings, consider having meetings over lunch. As long as the dining expenses are reasonable, you are allowed to deduct 50% of meal costs when eating with business partners and employees while conducting business operations. If you buy lunch every day and spend around $8, you can deduct $4. If you do the math, that amounts to over $1000 a year in claimable deductions ($4/day x 5 days x 52 weeks).
Small business: National ombudsman helps small businesses address concerns about federal regulators
Small-business owners turn to Brian Castro when they need help collecting payments from federal contractors, are concerned about excessive fines or think a regulation is too burdensome.
Since August 2013, Castro, a Duke University law school alumnus, has led a little-known program that advocates for small businesses at the federal level. Castro is the national ombudsman and assistant administrator for Regulatory Enforcement Fairness at the U.S. Small Business Administration.
Last fiscal year, which ended Sept. 30, the office received 430 formal jurisdictional complaints and thousands of inquires, Castro said.
“We offer an informal avenue, a channel for an expedited resolution,” that is separate and apart but in addition to a company taking their concerns to court, often a long and expensive process, Castro said. “Our services are already paid for with the taxpayers’ dollars and very often are resolved or obtained within 30 to 60 days.”
Castro’s office employs seven and offers four tools to help small-business owners, nonprofit organizations and small governments address concerns about federal rules and regulators.
Tax Structure & Business Incentives
Businesses in the Columbus Region benefit from:
- No personal property tax
- No inventory tax
- No state corporate income tax
In addition to these tax savings, which are further detailed on the Tax Structure page, state and local governments offer tax incentives, credits, loans and grants to new businesses and expanding companies. State and local resources are below.
If you have questions about these programs, please contact the Columbus 2020 team. Our team of experts can help you navigate the many programs available to businesses.
Incentives
Tax credits and abatements
Job Creation Tax Credit
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150 percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s commercial activity tax liability for any given year, the difference is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.
