⁠How Can a Business Owner Reduce Taxes?

Orange Lightning

Business owners can strategically lower their tax bill by maximising deductions, depreciating assets and contributing to retirement plans, here are some things to know.

1

Maximize Deductions

This can include office supplies, travel costs, and even a portion of your home office expenses.

2

Depreciate Assets

The cost of business assets like machinery and equipment can be deducted over time through depreciation.

3

Contribute to Retirement Plans

Business owners can contribute to retirement plans significantly reducing their taxable income.

4

Hire Family

Hiring family members and paying them a fair salary can be a tax-saving strategy.

5

Invest in Growth

Many tax breaks exist for  businesses that invest in research and development or new equipment.

6

Tax-Friendly Business Structure

Sole proprietorships and partnerships pay taxes on personal income tax returns, to separate business income tax.

7

Seek Professional Advice

Tax laws are complex and consulting a tax professional can help ensure you take advantage of all available deductions.