Tax season has already come and gone, but implementing healthy financial habits will make the process of filing less burdensome next year. It’s something that small businesses don’t look forward to, especially if they haven’t prepared beforehand. An entrepreneur needs to be aware of which taxes to pay, how much will be paid and when to file. Mistakes can be costly, but planning ahead will save you time and money.
If you’re ready to reap the benefits of low property taxes in Alamo, then get in touch with us as soon as possible!
Texas Has No State Income Tax
Texas has no individual income tax or corporate income tax, making it one of the friendliest states to start a business in the country. Further implementing incentives for the entrepreneurial spirit, Alamo has grants for new and existing businesses, such as the Revolving Loan Program and Alamo TIRZ. Every time a small business puts a Texan to work and pays for health insurance or pension plans, their tax liability decreases.
The Early Bird Gets the Worm
This mantra is the same and can be applied to almost any situation: the best way to be successful is to set yourself up for success. Starting early will save you headaches and situations of having to dig through piles and piles of paperwork.
Benjamin Franklin said there were only two things certain in life – death and taxes. Running a business has its perks: self-fulfillment, setting your own hours and many others. Yet, it also comes with its own responsibilities, such as tax-obligations. Small business owners need to be aware of which taxes to pay at a federal and city level, and what to file. A simple mistake can cost you a pretty penny, but if you take the time to prepare, you can take home the right deductions and save some hard-earned cash.
Keep Receipts and Save Later
Running a small business comes with the chore of having to purchase supplies and equipment to help it run smoother. Things such as computers, registers and furniture are purchases you should keep receipts for. Also, make sure to write down the dates and prices with detailed records in case you will ever have to use those as deductions on your tax return. Below are some deductions to keep in mind.
- The Home Office Deduction is for entrepreneurs who are just getting their feet wet in the small business world. According to the IRS, the Home Office Deduction must be a “home office” dedicated exclusively to your business and nothing else. Also, the IRS is very strict on what it considers office space, especially if you have one computer and a household of five. Be prepared to prove that your work equipment is used for business matters only.
- The Home Office Deduction can be tricky to qualify for, but that doesn’t mean you can’t deduct office supplies. Remember to keep receipts, as expenses will offset taxable income.
- Furniture deductions are great tax-cutting perks. Up to 100% of the cost can be deducted.
- If you spend money driving to work, the IRS will also have something to give. Just remember that the IRS loves documentation. Keep receipts on miles, parking and toll costs.
- Next time you travel, don’t feel so bad about staying at a hotel. Why? It’s tax-deductible, just as any cost of travel via air, road or rail are. Life on the road (rental cars and dry cleaning) is also deductible, except meals. Those can only be deducted for 50% of the total amount.
Your Business in Alamo Means Success
The Rio Grande Valley has experienced incredible job and population growth in the last several years. There are many reasons to open up shop in Alamo, including a community that fosters the continued success of established and small businesses. Like we said earlier, Texas has no state or personal income tax, but that’s just the icing on the cake. Below are two more reasons to start you business in Alamo:
- Location – Due to Alamo’s southern location, the close proximity to the international border and the McAllen-Edinburg-Mission metropolitan area, Alamo is a great choice if you’re thinking about expanding. Plus, popular hotspot South Padre Island is just an hour away.
- A talented workforce – The newly minted University of Texas Rio Grande Valley and the future opening of the Texas A&M University campus are two of the exceptional educational perks of the Valley. South Texas is a great place to find a highly talented workforce, which will help your business experience growth with knowledgeable individuals.
Let Us Help You Grow Your Business
At the Alamo Economic Development Corporation (EDC), we can provide extra cushion to small businesses looking to expand. The City of Alamo is a great place filled with great weather, a bustling economy and unique culture. It’s what sets Alamo apart from other cities in the region. Call us at 956.787.6622 if you have questions about how your business can grow in Alamo.