5 Tax Breaks for Minority-Owned Business
Running your own business can be stressful. When you are dealing with certain financial struggles, it can be a good idea to think about options to improve your available capital. If your company is a minority-owned business and is located in a specific region of economic distress, then there are some tax breaks you may want to consider for your budget.
1. Tax Credits
First, you always want to take a look at whether or not your particular business qualifies for certain tax credits. Credits are offered to those investing in specific businesses that are considered a part of new markets. Research the details of the credits available to determine whether or not your company is eligible.
2. Language Considerations
English may not be the most spoken language in a minority-owned business. If you would benefit from reviewing tax information in another language, then be sure to explore the new language gateway developed by the IRS to help people of all backgrounds gain a better understanding of complicated tax jargon.
3. Empowerment Zones
You may also want to learn if your business is located in an “empowerment zone.” These zones are areas that are considered economically distressed. Credits and benefits are offered to businesses running in this area in order to help revitalize local economies and improve the quality of living for all in the area.
4. Indian Reservations
A business operating on an Indian reservation can also be eligible for a number of specific tax programs. Hiring individuals who live on or near a reservation can qualify your business for an employment tax credit. Accelerated depreciation options are also available for businesses that fit the criteria.
5. State Regulations
Each state has unique regulations and codes aimed at helping how small businesses operate. The best way to know whether or not your company qualifies for any of these programs is by familiarizing yourself with the tax laws of your state. Hiring a professional who specializes in tax prep may help provide you with more insight and let you know which programs fit the unique needs of your minority-owned business.
Running your own company can be difficult. There are going to come times when your finances are a bit tighter than you’d prefer. Taking advantage of different tax programs and credits offered to businesses like yours can be a great way to get ahead. Do your research and look at what programs are available to help your business succeed. Find the right tax options for your needs and improve the way your company operates in no time.