10 Common Tax Deductions for Small Businesses

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It’s the time of year when US taxpayers are gathering information for preparation of annual income tax returns.  For small business owners, solopreneurs and home-based businesses, it’s the time of year to check in with your professional tax advisor.  The following information is only meant to serve as a memory jogger, and should not be considered professional advice.

Most small businesses are set up in one of two ways:

  • Independent contractor/self-employed individual

  • Business entity, such as an LLC, partnership or S Corp

With the recent changes in US tax laws, now is a good time to revisit your business structure with your tax advisor.  There may be advantages to changing your legal structure.

Hopefully, you’ve been keeping up with your estimated tax payments.

Payments made to non-employees generally do not have taxes withheld, so it’s up to the individual small business owner to track business profits and make estimated tax payments.  Staying on top of quarterly estimated tax payments reduces the risk of penalties and interest at filing time.

As you prepare your business financials for the year, consider the following common business expense deductions.  

Again, your tax advisor has the final say in whether these deductions are available to you.

  1. Cell phone and monthly service

  2. Computers, software, and subscriptions

  3. Website hosting fees

  4. Auto expenses (standard mileage or actual expenses)

  5. Marketing and advertising

  6. Professional development

  7. Business meals

  8. Interest on business loans or credit cards

  9. Dedicated home office space

  10. Required monthly purchases under distributor agreements

For example worksheets to track these expenses, download these free templates from myBeeHyve.


Jennifer Turnage is an entrepreneur, business coach, speaker, and author. As the Cofounder and CEO of myBeeHyve, she combines her experience from multiple tech company exits with her mission of empowering individuals to achieve financial independence through entrepreneurship. Connect with her on  Facebook, LinkedIn, Instagram, Pinterest or Twitter for support on your entrepreneurial journey. Download the free myBeeHyve app in the Apple or Google Play app stores to manage your prospects and customers with ease.