As a woman entrepreneur, you will have many challenges and struggles to deal with, beyond juggling work and home together. However, it isn’t a man’s world anymore as women in business are making it big and proving that they aren’t lesser than their male counterparts. Moreover, the government is doing its bit to assist and encourage women entrepreneurs who want to realize their dreams. Tax breaks are a key initiative in this context, but you may end up losing out on the benefit due to sheer lack of awareness. Let us help you with some useful information on availing of these benefits and taking your business ahead.
Get certified as a woman-owned business
Even before understanding your opportunities, you need to build a foundation to capitalize on them. Start by getting certified as a woman-owned business because it will enable you to get preference in some government contracts. You will need to fulfill some essential requirements for qualifying as a woman-owned small business (WOSB), such as being at least 51% owned by females who are U.S. citizens. Although you may have to invest some effort for the certification, it is worthwhile as it opens you to tax breaks.
Secure advantage of tax credits
Another good piece of advice for women entrepreneurs is to secure the advantage of tax credits. If you are planning to hire employees for your company, tax credits are available. The Work Opportunity Tax Credit provides a credit up to 50% of wages against business income tax if you hire from populations like veterans, ex-offenders and former federal or state assistance recipients. Some states like Philadelphia and Pennsylvania offer tax credits for hiring and creating jobs. If you are offering health insurance to employees, it is worth knowing that you can avail a Health Care Tax Credit to offset costs for employees’ premiums.
Save for the future
Being smart with your taxes can also help you save for the future, which is even more crucial for women entrepreneurs who struggle a tad more in the competitive landscape. Experts at Creative Tax recommend that you should seek advantage of federal and state programs. They help in cutting the tax burden, saving for retirement and growing your business. For example, the IRS permits business owners to set aside a part of profits for investing in a tax-deferred retirement account. While these contributions cut down your current taxable income, you end up saving for the future.
Prioritize liability protection
Liability protection is an equally significant aspect of running your business as a woman entrepreneur. As your company grows, you should go the extra mile to safeguard your personal assets and prevent claims on them if lawsuits come up. Setting up as a limited liability company (LLC) is a good idea, or you can consider a change in the entity at a later stage. Advice from a tax specialist to reduce the tax liabilities of your business is also a good idea.
Being proactive about your taxes and strategic business decisions will help you stay out of trouble. Women entrepreneurs should be extra conscious about them if you want to focus on growth and stability in the long haul.
*This is a Sponsored Post – the author has requested this post be shared on WE magazine for Women and WE were compensated for sharing.