Many taxpayers have already reaped the many tax benefits of owning a small business.
It sounds simple, and it is! Having a small business may allow you to convert prior personal expenses to now valid business expenses. A cell phone is a perfect example. How you structure the business can also provide opportunities to pay children or spouses. Many taxpayers also find untapped sources of wealth, income and financial independence by starting in a small business they have always dreamed of.
Again, from a tax perspective, if you have principally W-2 income and need deductions, a small business could be a huge benefit to you on your tax return. The average small business owner saves thousands of dollars a year by owning their own small business.
let's say the average cell phone bill is $60, that would be $720 a year you would not pay taxes on
If you were in a 25% tax bracket that would be $180.00 back in your pocket
Now deduct things like your car, gas or mileage, food, travel, etc.
Just owning your own small business could save you thousands a year in taxes.