Business Taxes & Write-offs
01.Tax Write-offs Explained
As a business owner, you pay taxes on your net profit, not your gross revenue. A write-off (deduction) is any ordinary and necessary expense used to run your business—like software, advertising, inventory, or a home office.
02.Keep Separate Accounts
Never mix personal and business funds! Open a dedicated business checking account and use it exclusively for business transactions. This maintains your liability shield and makes tax preparation simple.
03.Self-Employment Tax
Remember that you must pay self-employment tax (Social Security & Medicare) on your business profits, in addition to regular income tax. Set aside 30% of your profits in a business savings account for quarterly estimated tax payments.