Kavan Choksi Shares Money-Saving Tips on Taxes

According to business management consultant Kavan Choksi, one way to increase your business capital is by lowering your taxes. Measures taken before the end of a tax year can help your business save money immediately.

The best part of it? It's all legal.

Kavan Choksi shares his insights to help your business, and here are some tips to reduce what your company pays in taxes.

First, you can incorporate your business by forming a limited liability company (LLC). This will help you lower your business tax. Through this, Kavan Choksi says that income from the business is passed to the company members or investors. They, in turn, claim the profits on their respective personal income tax forms.

Next, you can collect your company's "deductible expenses." These include external expenses such as business mileage, vehicle maintenance, and fuel expenses. Check the latest deductible methods. These were released by the Internal Revenue Service (IRS). With them, you can identify which expenses are deductible upon filing your yearly income tax.

Lastly, if you want to save on employment taxes, Kavan Choksi mentions that you have the option to apply for an "accountable plan." You can accomplish this through the IRS. By doing this, you can deduct employee expenses. Employee expenses include reimbursements for travel, entertainment, tools, or other costs.

While tax payables are a year-round activity, Kavan Choksi says these tips can help you achieve significant savings. That said, it's important to note that you should do it on time. It would be best if you also took the time to plan everything out properly. Make sure to put them into practice the next time you do your taxes.

Read more blogs on global finance, business, and economics from business management consultant Kavan Choksi on this page.