Why You Should Hurry Up and Start a Small Business Already
Here's a quick summary of some of the breaks you and your investors could take if you start a business in 2010:
- Only this year, you can deduct $10,000 of startup costs, double the previous figure.
- Write off 100 percent of up to $500,000 in equipment costs your first year. If you have costs beyond there, you can write off 50 percent of them right away under the bonus depreciation clause.
- Investors can sell qualified business stock between March of this year and January 2012 tax-free. Any profit is also exempt from the dreaded Alternative Minimum Tax.
- Take a 35 percent tax credit on your company's health-insurance premiums.
- Your local community bank may have more money to lend you, thanks to $30 billion in new federal funding for small-business loans.
- Take a $2,500 hiring credit if you hire a qualified worker this year, or $5,000 next year.
- Get a credit up to $5,000 if you hire
Are you starting a business this year? If so, tell us your story in the comments. Can you take advantage of any of these credits?