Deflate Tax Problems for Your Inflatables Business
Going into business for oneself is a dream that many have. A dream that can turn into a nightmare without the proper knowledge regarding registering the business, and how the registration – whether an Inc., LLC, partnership, or sole proprietorship affects how taxes are filed.
One of the most fun businesses that a person can go into is that of providing inflatable fun houses. Jumping castles and other inflatables are on the rise as more and more families look for fun and inexpensive ways of providing birthday party entertainment and searching for jumping castles for sale. Other popular venues for inflatables is grand openings for businesses, fundraisers, and school events. There is literally room to grow in the inflatables and jumping castles business.
It is important to be mindful, that no matter how much fun a business is or how much fun it provides, it is still serious business. What that means is taxes, business insurance, as well as health insurance for employees, registration, etc. However, all of these items can be claimed as business deductibles to reduce taxable income.
Most expenses for running a business can be deducted to reduce taxable income. It is a good idea to hire an accountant for the best advice on what is or is not deductible, and also to handle quarterly taxes. Hiring an accountant does cost, but the accountant or firm is the one who deals with the IRS in the event of any questions. Oh, and that expense is deductible too.
A short list of some of the items that can be deducted from your inflatable business:
• Inflatables themselves
• Maintenance costs
• Storage or business location rent/mortgage
• Business insurance
• Home office space (if there is no business location)
• Entertainment and meal expenses used to woo clients
• Hotel, travel, food expenses when traveling to deliver inflatables overnight.
• *Computers or other office peripherals, plus services.
• Cell phone and bill
o *It is better to buy these just for the business or you have to tabulate based upon actual usage for business. Headache.
• Salary to employees (even if family members)
• Medical insurance for employees (even if family members)
• Advertising costs
• Truck, van, sports utility used to deliver equipment
• Any related equipment
• Donating to charities
• Ongoing donation percentage of proceeds to any charity
• Donating use for charitable fundraisers
o Service organizations
o Homeless pet organizations
o Adoption fairs
If you are going into business, having a fun business is the way to go like BestInflatable.Slide. Don’t deflate your inflatable business due to tax headaches. The start off right and your business will bring years of bounce house fun to children and adults!