Year-End Tax Planning Moves for Small Businesses
It’s hard to believe 2019 is almost over! It’s been a busy year in many sectors, often forcing small business owners to put tax planning on the back burner while they’ve tended to daily business operations.
But procrastinate no longer. Consider the following moves to lower your 2019 business tax bill before ringing in the New Year.
Time Income and Deductions from Pass-Through Entities
Most small businesses are set up as sole proprietorships or “pass-through” entities, such as partnerships, S corporations and limited liability companies (LLCs) that are treated as partnerships for tax purposes. Income and deductions from pass-through entities are allocated to the owners based on their ownership percentage in their businesses. Your pro rata share of a pass-through entity’s net income is taxed at your personal rates.