Many companies struggle with the complex topic of reducing overall corporate tax liability. Corporate tax planning is one way that business owners can significantly reduce their overall corporate taxable income. It is essential to understand how the laws work and study up on the topic, however, to help, we compiled a list of relatively simple and cost-effective ways to reduce your corporate tax liability:

1. Claim all business expenses

As long as your business is profitable (even if you’re a small business owner, you can still claim deductions), you can deduct virtually every expense related to running your business. This includes:

• Equipment purchases: You can even claim the cost of purchasing computer software unrelated to your actual work, as long as it is for business.
• Telecommunication expenses: Most telecommunication costs are deductible, including internet use and telecom services.
• Travel expenses: You can claim travel expenses to conferences, business meetings, and seminars as long as they are considered essential to running your business.

2. Keep track of all monthly expenses and revenues

When conducting business, you will incur many fixed or semi-fixed expenses that you may or may not be able to capitalize on. The key is to keep accurate records of your business income and losses from month to month. This will allow you to decide which assets can be depreciated or expensed in the current year.

3. Find a corporate tax accountant

Using a corporate tax accountant exclusively to complete your corporate tax returns can reduce your overall tax liability. However, if you are self-employed, it is also essential that you understand how the laws work and make time to study the topic. To find professional services online, search for a corporate tax accountant near me. Business owners often overlook that their income taxes are now part of their business income. If your corporation is appropriately structured with the help of a qualified CPA, you can reduce your corporate tax liability. Once you have decided on your corporation structure, be sure to consult a CPA, who will help you optimize your C corp tax filing and increase your company’s value. If you don’t want the hassle of dealing with the IRS and its complex filing requirements, take the time to find an accountant who can help you stay on top of your corporate taxation.

4. Take advantage of the tax benefits

Many states offer a variety of tax breaks to businesses. In addition, many companies also offer tax filing assistance and free seminars for employees who want to learn about the best ways to save on taxes

5. Make charitable donations through your corporation

Many companies choose to be involved in philanthropy because it is one way of giving back. Many business owners will figure out how to give back by donating money, equipment, and time through their corporations. These are all expenses that you can claim come tax time to reduce overall taxable income.