The filing of receipts must be properly organized for an easy checking of expenses. Most importantly, running your business in a way that is beneficial on your part is better. Cost-cutting measures must be taken into consideration for the sake of your small business.

These measures can also be done by reducing the tax burden that your business is facing. There are several ways you can adopt to avoid paying higher tax costs. In fact, three of the best ways of reducing tax are cited in this article. Consult your accountant to make it sure that all these three are applicable to your small business. However, you have to safeguard your reputation in regards with this matter. Secure to yourself that despite reducing taxes, you are not violating the tax law. Here are the three ways which are considered best in evading taxes; hiring family members, tax deductions for charitable donations and hiring independent contractors.

Hiring family members or a child in your business can save taxes, right? It is because an owner like you can deduct their compensation as part of the business expenses. Your child or even your niece will not be considered as taxpayers because they are part of the family. They are not anymore entitled of paying taxes. It means to say that you will not spend the business income in paying taxes. If you hire workers that are not part of your family, for sure you will not cut down the taxes which should be paid for.

Let us come on the second way wherein tax burden can possibly be eliminated. Tax deductions for charitable donations can be enjoyed to your advantage. Giving something to charity organizations can really make you happy as well as fulfilled. It can also provide your business a tax deduction which is essential in continuing your business. You are really lucky if you already know this one because it is a balance of give and take. Helping as well as receiving more is the principle economic idea that you can apply in your small business. Give donations during the second or last month of the year which is on December and not on January. This is a wise strategy because you can add the cost of the donations in the current’s year tax deductions.

And also, plan for hiring independent contractors instead of hiring employees. Having employees will not allow you to cut the cost on taxes. Definitely, you will save taxes on numerous payrolls for the whole year for contractual workers. In just exact months that they stay in your family business, they can be terminated right away. But be very careful of meeting the criteria of the IRS in your area. There are still other ways you can go and check for yourself. However, these three ways presented in this article can be a big help to you and to other small business owners!