Are you hoping to save on your company’s tax obligations the next time you have to pay?

While tax laws can always change you want to consider using the most popular tax incentives for businesses. This can help negate your tax responsibilities or increase your chances of getting a tax refund.

With the extra money, you’ll be able to scale your business much faster. This short guide will show you some of the tax incentives for businesses you should consider.

Here’s what you need to know.

1. Research and Development

The RD tax incentive is one of the most overlooked tax incentives for companies. If you’re looking for government grants, you might be able to do this through research and development.

If you show that part of your business involves research and development in your industry, you might qualify for a tax break.

If you’re given a government grant you might also qualify for tax refunds in the future. Ensure that you document your research and development efforts and share them with your accountant.

2. Business Expenses

This is one of the simplest methods for reducing your tax burden yet even seasoned entrepreneurs miss out on this.

Make sure you keep track of every expense you use for your business. You also want to ensure that you make purchases under your company’s name. If not, you might not be able to claim this on your taxes.

Here are some examples of business expenses that you can potentially deduct:

• Office equipment
• Stationery
• Meals
• Software
• Internet
• Office space rental/purchase
• Travel and transportation

Business expenses don’t always qualify for deductions. But it’s always best practice to keep these recorded at all times. Make sure you always keep receipts and invoices of your purchases.

3. Employees and Contractors

One of the best reasons to start a business is to create jobs for employees and gigs for freelancers.

Not only do they benefit your business but they can also help you reduce your tax burden. Make sure you keep records of your employees and contractors and how much you pay them.

When you pay them ensure that you provide them with a pay stub. In case of an audit, you’ll have these audits as proof that you sent payments.

You can receive tax deductions if you’ve created work for your fellow citizens. You want to create as many jobs and gigs as you can without it being a huge financial burden to your company.

These Are the Best Tax Incentives for Businesses

Now that you know these tax incentives for businesses you can use them to reduce your tax burden and grow your company.

If your company engages in research and development you might qualify for tax credits. You might even receive government grants if you engage in research and development.

You should also keep track of all your business expenses. This is often the easiest way to deduct your taxes. Make sure you also create as many jobs and gigs as possible to lower your tax burden.

You can find more tax tips and how to get government grants for small businesses on our blog.