Tax Tips for Freelancers and Small Businesses:
If you are working as a sole proprietor you may want to consider the tax advantages of incorporating as an S-Corporation or forming an LLC. You can form a corporation directly through the State of Wisconsin with the Department of Financial Institutions.
wdfi.org
General advice, forms and help:
legalzoom.com
nolo.com
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Mileage Rates 2011: irs.gov
Per Diem: Standard IRS Rates
Meals & Incidental Expenses Breakdown: www.gsa.gov
You can either deduct direct meal expenditures when traveling or take the standard IRS per diem rates which vary depending on the city. |
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Deductible expenses:
- Advertising.
- Insurance – workers comp, property & casualty, or business insurance. (Health insurance is filed under a separate category.)
- Bank service charges and interest on credit cards and loans.
- Legal and professional services such as legal and accounting.
- Office expenses.
- Postage and shipping
- Rent or lease other business property.
- Repairs and maintenance.
- Supplies – office supplies, etc.
- Tools and equipment (these may be depreciable).
- Travel.
- Meals and entertainment (subject to limitations, generally 50%).
- Home office - a percentage of your mortgage and utilities (for specifics see IRS Pub 587).
- Other expenses: Dues & subscriptions, web development, business telephone...
This page is not meant to replace legal advice or professional accounting services.
This page is not all inclusive. Deductible expenses vary depending on your specific business.
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