Most small and medium business owners in Nevada and elsewhere are always on the lookout for ways to reduce taxes through legal loopholes. And, it’s perfectly understandable as tax can be a huge burden for any small business and a make-or-break factor in determining your business’s future. That’s why we’ve decided to reach out to one of the best CPA firms in Las Vegas, Radio CPA in order to gather useful information and Las Vegas professional tax reduction tips for you. And – they’ve been gracious in sharing their knowledge. So, we present you with these 5 tax reduction tips for small and medium businesses in Las Vegas – directly from the pros.
1. If You Don’t Have One Already – Get Yourself a Skilled Accountant
While this may sound like a no-brainer – this is the most important thing.
Hire an experienced accountant or lawyer annually who provides valuable expertise and make sure you get a written agreement outlining the scope of each service and rates for each hour expected to be accomplished. The expert should know about all relevant tax laws affecting your business, including both federal and state laws that may affect your business differently than others in the same industry.
Even if you already have one, it’s always a good idea to ask for a second opinion from another expert in the field to make sure you’re getting the most for your investment and you’re up to date with new tax deduction tips and legal loopholes.
2. Don’t Fall For the ‘One-Size-Fits-All Approach’
If your Las Vegas CPA firm or tax attorney isn’t giving you solutions based on your specific field and type of business – they’re not doing their job well. It’s important to recognize that there is never a “one-size-fits-all” approach when it comes to establishing a plan for reducing taxes. If you fall for it – you’ll be missing out.
In order to figure out how best to achieve this goal, you need input from a professional CPA or tax attorney in Las Vegas with experience in your specific business model and industry field. Conduct your due research and work with those tax lawyers and CPA firms in Las Vegas who best know your needs and know how to meet them.
3. Figure Out the Best Way to Pay Your Employees
Another common misconception is that workers must be paid hourly, but in Nevada, they can be salary paid, which reduces both payroll and unemployment taxes down to zero percent! Any self-employed person may qualify for this favorable treatment too, so get with your Nevada CPA to find out about it. If you can – change the payment method of your staff as this will reflect favorably on your taxes when they’re due.
4. Expenses vs. Investment – Know the Difference
One of the key tax filing mistakes to avoid in Nevada and everywhere else is recognizing and setting a clear difference between your expenses and investment. One of the common errors for tax returns regarding this is filling your marketing costs as expenses when you should be considering them as investments since they will produce more income later on. And this is just the tip of the iceberg, so make sure your CPA firm in Nevada knows exactly what legal opportunities apply to your business.
5. Choose the Right Business Model
Running your business as a corporation, rather than a limited liability company or sole proprietorship can provide substantial tax benefits to Nevada businesses. When established and operated in the state of Nevada, a corporation avoids double taxation and has substantial flexibility. Not all business owners know that they can convert their LLCs into an S-Corp for greater tax benefits. It’s also possible to set up retirement contributions for employees this way.
Tax Deduction in Nevada – The Takeaway
Tax legislation in Nevada is a complex but rewarding field if you know how to work it right or if you hire someone who does. Establishing the best approach specifically for you and your business is crucial, so don’t settle for a tax lawyer or CPA firm that presents you with a broad, universal approach. Investing in a professional CPA firm will be well worth it – it may even prove to be more affordable when you take into account all the money you’ll be saving through proper tax deduction.