We can all use a little help, especially when it comes to pay taxes on our business, right? Did you know that there are some small business tax dedications that you can take advantage of?
While you can’t deduct personal expenses like living and family-related expenses, for things that you use for both personal and business use, you might be able to. Here are some little known tax benefits of franchising to keep in mind.
You Can Deduct Franchise Fees
If you are a franchisee, you can deduct the fees such as the initial franchise fee and any annual residuals you pay to license your franchise unit. The IRS has more information under Section 197 Intangibles. Keep in mind though that your initial fees will need to be amortized over 15 years. All other fees that you pay on a regular basis though can be deducted as a regular business expense.
You Can Deduct Any Business Travel
Any travel you do for work is also tax-deductible. Whether you are traveling long distance on a plane or making a short local trip, it will count for a deduction, even a short business errand. Keep in my though that these are only applicable for you the business owner not your employees.
In addition, there are two ways you can figure out the deduction for business travel in your car. The first way is to record the mileage you travel and then apply the standard deduction for those miles. Keep an accurate, detailed record of dates, locations, with whom you were meeting and the start and end mileage numbers.
The second way is to figure out the percentage of time you use your vehicle for business use. For this, you will also need to keep track of the beginning and ending mileage of each business trip.
You Can Deduct Meals, But Not Entertainment
With the newest regulations, you can not now expense any sort of entertainment for clients like a day of golf or a spa day or tickets to a game or concern. However, you can still deduct business meals with both clients and employees. As with everything tax-related, be sure to keep all receipts and make note of who you met with and why.
You Can Deduct Your Home Office
Good news if you run a small business out of your home. You may be able to deduct some of the expense of setting up your home office. It has to be your main place of work and it needs to be in a separate room in the house that is only used for work. And again, it only applies if you are a business owner, but unfortunately not if you are just self-employed. Be careful with this one. Make sure all your ducks are in order so there are no red flags that bring the IRS to your doorstep.
Hiring a Management Consulting Company to Help
Do you get stressed about doing your business taxes as well as all the other financial aspects of running a business? We at MBB Management can help you with all of this as well as with all other elements of your business. MBB is an army of professionals that is built to fit your business’ needs.
As a franchise consulting company in Philadelphia, we specialize in bringing you the best tools and expert advisors to provide a solid path to success. We work primarily with restaurants looking to expand their business through becoming a franchisor. Your one location should already have been proven successful before considering franchising it. We also works with restaurants who are already franchisors, but who are looking to improve their system. Our consultants can aid you in hiring personnel as well as increasing efficiency and quality and boosting up franchise sales.
We can help you with all aspects of franchising my business and help you avoid franchising mistakes. Some of the services we offer you include franchise development for new franchise programs, strategic planning for franchise growth as well as help with all the legal documentation involved. They also offer assistance with developing operations and training documentation and franchisee recruitment marketing strategies.
We also work with other businesses looking to franchise as well, including manufacturers, dealers and distributors. For existing franchisors, services include franchise system best practices and benchmarking and organizational audits, improved franchisee support systems and franchise sales coaching.
Other services include brand development, name and logo selection and design, and due diligence assistance for mergers and acquisitions. MBB Management first made a name for itself in hospitality management, but now we also offer franchise consulting and restaurant consulting services as well.
Our restaurant consulting services include franchise development, but also so much more. Even if you are not looking for more locations right now, but are hoping to grow your restaurant in other ways or even if you are just starting out with your first restaurant, we can help.
Our experienced restaurant consultants can help re-teach your staff basic restaurant techniques and help you streamline processes both in the kitchen and in the dining room. Some of our restaurant consulting services include menu design, staff training and food distribution. We can also help you find the right balance between quality service and cost so that you don’t lose customers over poor quality dishes just to save money.
For more information about how MBB Management can help you with little known tax benefits of franchising your business, give us a call today.