What are the tax incentives available for small businesses?

What are the tax incentives available for small businesses?

There are several tax incentives for small businesses, including deductions for startup costs, the Qualified Business Income deduction, and various credits like the Research and Development tax credit.

Can you explain the Qualified Business Income deduction?

Sure! The Qualified Business Income deduction allows eligible small business owners to deduct up to 20% of their qualified business income from their taxable income.

Are there any specific requirements to qualify for these deductions?

Yes, to qualify for the Qualified Business Income deduction, your business must be a pass-through entity, like an S corporation or a sole proprietorship, and you must meet certain income thresholds.

What about tax credits? Which ones should I look into?

You should consider the Research and Development tax credit, the Work Opportunity tax credit, and the Small Business Health Care tax credit, as they can significantly reduce your tax liability.