exhibit significant control over the businesses they manage and thus have the ability to create tax-advantageous situations. From effectively categorizing expenses to implementing matcheable retirement plans to defer taxes, owners can take multiple routes to minimize their tax liability. Here are some general tips applicable to most franchisees:

Liability Protection: Form an LLC to cleanly manage business inflows and outflows while protecting assets eductions while saving for their retirement. No tax return necessary if under $12,550 income per year

Tax Credits: Take advantage of credits like the Work Opportunity Credit to effectively scale your business while (Sole Proprietorship vs LLC vs S-Corp)

Employee Your Family: Children & Spouses can be hired through an S-Corp to maximize business dminimizing cost (25 Business Credits)

Home: Rent your home out to your S-Corp for corporation meetings and use an accountable plan to formally run office expenses through your business

Expenses: Expenses like uniforms & team building activities are fully deductible. For 2021-2022 meals are also 100% deductible

Organizational & Startup Costs: These expenses can be deducted up to a $5,000 limit

Depreciation: Expense appliances and infrastructure improvements over the lessor of their service life or lease length

Mileage: Cash out business mileage on a monthly basis by running it through your entity (sample mileage log)

Property Exchanges: Use §1031, like-kind exchanges, on property to minimize recognized gain by deferring realized gains

Retirement: Utilize IRAs and 401ks to defer paying taxes (SEP IRA, Simple IRA, S-401k)

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