Small Businesses Uncertain About New Tax Law & Other News

Small Businesses Uncertain About New Tax Law & Other News. The $1.5 billion Tax Cuts and Jobs Act, signed into law in December 2017, was the first major tax overhaul in nearly 30 years. Aiming to spur economic growth, it ushered in sweeping changes to the tax code for small businesses and corporations alike.

As with all tax regulation, this new law is complex and understanding how it will impact your business could have a dramatic affect on your bottom line.

Here are some of the biggest takeaways for small businesses:

• 20% tax deduction – Business owners receive a 20% deduction for the first $315,000 of qualified business income
• Capital expensing – The law allows business owners to immediately deduct the cost of certain equipment
• Interest deduction – The new bill caps business deduction for debt interest payments at 30%

If you’re like many Main Street business owners, you may already be planning to expand your business or invest in your employees with all the money you will be saving in taxes.

 

However,many small business owners aren’t sure how to decipher the new tax code. Without this clear understanding you won’t know how much you will have for reinvestment.

Are you still wondering what it means for your business? Read on for more on the tax law plus a roundup of other small business news.

39% of Small Business Owners Unsure About New Tax Law

The Tax Cuts and Jobs Act brought plenty of good news for small businesses this year, including a sizeable 20% deduction for pass-through entities, which account for 95% of all U.S. businesses.

If it’s unclear to you whether or not you’ll be affected, your not alone. The tax law has many small business owners still scratching their heads.

A survey by Wells Fargo and Gallup reveals that 39% of small business owners aren’t sure how the law will affect their business.

Why many small business owners are uncertain.

America’s Least Cyber-Secure Cities for Small Businesses

Depending on where you live, your small business might be at a heightened risk for a cyberattack.

Cloud security company Coronet ranked America’s most insecure metropolitan areas based on how secure individuals are while using technology in those cities.

Hackers love Las Vegas, the country’s least cyber-secure metro area. Richmond, Virginia, tops the list as the safest city for small businesses.

See where your city ranks for cybersecurity.

97% of Female Freelancers Enjoy Being Self-Employed

Once women jump into self-employment, the vast majority (97%) find it rewarding in more ways than one, according to Transpay’s Digital Women Survey.

More than half of respondents enjoy the improved physical and emotional well-being that comes with freelancing.

A flexible schedule is another added perk, with 53% of women saying they pursue self-employment for the flexibility. For 74% of women,workplace flexibility trumps higher pay.

Why self-employed women feel empowered in the digital economy.

Hispanic Small Business Owners More Optimistic Than Non-Hispanic Entrepreneurs

Entrepreneurs around the country are feeling upbeat about their businesses and the economy.

Hispanic entrepreneurs have a particularly bright outlook, with 77% planning to grow their small business in the next five years compared to 50% of non-Hispanic business owners, according to research from Bank of America.

Check out some of their biggest aspirations and concerns.

Small Business Owners Carry Double the Plastic as Consumers

As a small business owner, you probably have quite a few credit cards in your wallet.

A Nav survey reveals that small business owners carry twice as many cards as consumers—4.78 cards compared to 2.32 cards.

Small business owners are also using their personal credit to fund their business. About a quarter of them reached for their personal card the last time their business needed something.

Reaching for your personal credit card instead of the business’ has more negative impact than you might realize.

What small business owners should know about their credit cards.

Words That’ll Stick With You:

“The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it.” Debbi Fields, founder of Mrs. Fields Cookies

It’s a great time to be a small business owner, even with the uncertainty of what the new tax law might mean for your business. Small business owners around the country feel a swell of optimism about growing their company in 2018 and beyond.

Like anything when it comes to running your business, it pays to be vigilant when you consider your digital presence and your credit. Don’t unknowingly leave your business at risk for a cyberattack, and be mindful about how you’re financing your business. With extra credit cards in your wallet, it’s easy to blur the lines between your personal and business finances.

What’s your take on the new tax law? Share with us at QRCeditor@intuit.com.