Give your financials the VIP treatment this tax season

Making the most of all your available tax deductions can save you hundreds—even thousands—of dollars at tax time. As a small business owner, it can be difficult to know what deductions are relevant to you. We’ve put together a comprehensive list of the top 17 deductions for small businesses

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Every self-employed person has to pay self-employment taxes on their self-employment earnings of $400 or more. This applies to anyone who is defined as self-employed, even if you’re a senior currently receiving Social Security benefits. The IRS considers you to be self-employed if you are a freelancer, independent contractor, or if you have your own business (sole proprietorship or partnership).

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‍Read more to find out how to calculate your self-employment taxes

Because of the difference in how LLC and S corporation owners are paid, some LLC members save money by electing to have their business treated as an S corporation. This is because S corp owners pay Social Security and Medicare taxes only on their salary, while LLC members pay self-employment taxes (the self-employed version of FICA) on 100% of their share of the LLC’s profits. However, before making an S corp election, it’s important to compare the tax benefits to the full cost of structuring your business as an S corp.

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Read more to learn about the tax benefits.

LLC tax benefits are multi-faceted, but they’re the main consideration for many business owners considering an LLC. Advantages include avoiding double taxation, the QBI tax deduction, and potentially avoiding corporate franchise tax (state dependant). Disadvantages include paying full self-employment taxes, taxation on profits regardless of your income, and paying property taxes on business holdings (state dependant).

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For the full breakdown, read our guide.

If you intend to file as a sole proprietor, a partnership, S corporation shareholder, and/or a self-employed individual, you’ll generally need to make estimated quarterly tax payments if you will owe taxes of $1,000 or more. Businesses that file as a corporation generally need to make estimated tax payments if they expect to owe $500 or more in tax for the year. If you meet these IRS minimums, then you’ll likely have to file estimated quarterly taxes.

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To find out how to calculate and pay your estimated quarterly taxes, read our guide with a free calculator.

Tax professionals may structure their service pricing differently. Many charge a flat fee per return, while others charge an hourly rate for the same task. Hiring a CPA or accountant to file your taxes costs between $220 and $800, depending on the size, complexity, and type of business. You’ll pay more for tax prep if your business records are messy or your bookkeeping isn’t accurate and tax-ready.

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You can save considerably by buying tax accounting software. The cost is much less than hiring a tax expert, and the expense is tax-deductible, but you should be honest with yourself in your confidence to file your own taxes.

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Find out more about each of your filing options in our filing guide.