Registering your business as an LLC or limited liability company can provide you with many legal and tax advantages. All profits and losses made by the company are facilitated by The Internal Revenue Service. This service directs all money and debts directly to the business owners who are then expected to report this information on their tax returns.
Equipment and Supplies
The IRS has many rules and regulations surrounding limited liability corporations. LLCs are granted the ability to write off or deduct equipment purchases and supplies used for business purposes up to $100,000. However, this is only if the purchased equipment and supplies are used within the United States borders and not in foreign countries. An LLC is also capable of deducting equipment depreciation from its taxes.
Any contribution made by the LLC towards their employee’s retirement plans can be deducted from the company’s taxes. This includes investment accounts such as a 401k or 403b. The IRS has outlined a list of permissible retirement plans that qualify for a corporate tax deduction.
Expenses to the company that provides employee or member travel can also be considered for a tax deduction. This includes airline tickets, train travel, cab fares, car rentals, parking, food, lodging, and other travel essentials that can be written off on the LLC’s tax return. In addition, any trade convention tickets, or fees can be accounted for as an allowable tax deduction.
Expenses relating to training and bolstering the workforce can be used as tax-deductible. Business training programs such as motivational speakers or employee relationship-building seminars fall within this category. Also, any programs that are aimed to assist employees with health, mental health, and career counseling are allowed tax deductibles. Moreover, events to strengthen employee morale, facilitated by the LLC such as banquets and company retreats are tax-deductible.
If the LLC chooses to invest in their members’ and employees’ education, this can be used as a tax write-off. Furthermore, the employees and members themselves can write off these expenses from their taxes, according to the. This would account for any money spent related to education, such as books, CDs, and other coursework materials.
Subscriptions and Dues
Subscriptions to magazines, newspapers, trade publications and other media that could be informative to the LLC’s business are permissible tax deductions. Furthermore, any payments towards dues for trade organizations or any other entity may be written off.
Licenses and Permits
Any payments made for licenses, permits, or other professional associations made by an LLC, are tax-deductible. This includes any fees associated with business licenses, occupational licenses, sales permits, resale licenses, and other necessary legal documentation.