Becoming a small business owner could lower your family’s taxes, even if your new business is not yet profitable.

Because a business can claim tax deductions for its share of housing, utilities, transportation, travel, and computer equipment, starting a small business can legally save you thousands of dollars in taxes on your (and your spouse’s) full-time job income. To learn more, check out our list of tax-deductible startup costs.

The government wants to stimulate the U.S. economy, so they generously give tax deductions for business startup costs and operating expenses.

Keep reading to learn about the IRS regulations regarding home businesses, side hustle gigs, part-time businesses that are allowed tax write-offs, and cautions on how to prove that your business is not merely a hobby (for which deductions are not allowed).

Understanding Tax Deductions

Tax deductions are expenses that can be subtracted from a business’s taxable income to reduce its tax liability. These deductions can be categorized into business expenses, home office expenses, and personal deductions. Understanding tax deductions is crucial for small business owners to minimize their tax bill and maximize their tax savings. By claiming the right combination of deductions, small businesses can lower their taxable income.

Benefits of Business Tax Deductions

Business tax deductions offer numerous benefits to small business owners. By claiming deductions, businesses can reduce their taxable income, lower their tax liability, and increase their cash flow. This can help businesses to invest in growth, hire new employees, and expand their operations. By taking advantage of tax deductions, small businesses can save thousands of dollars in taxes, which can be reinvested in the business.

Expenses That Qualify as Tax Deductions for Starting a Business

There are two types of expenses that you can deduct from your taxes — start up costs and ongoing operating expenses.

Startup Costs

The IRS allows three types of startup costs eligible for deductible business expenses. You can only write them off on your taxes if you actually open the business.

1. Creation – Costs for research, competitor analysis, surveying markets, and visiting possible business locations. These costs can be associated with creating a new company or investigating an existing business for investment consideration.
2. Preparation – Costs for opening your company, such as buying equipment, employee training, travel to suppliers, advertising and marketing expenses, business cards, and legal fees.
3. Organizational – Expenses for incorporating your company, registering trademarks, salaries for company directors, and accounting fees.

The IRS allows you to deduct up to $5,000 in business startup costs and $5,000 in organizational costs totaling $10,000 BUT only if your total startup costs are $50,000 or less.

If your startup costs are over $50,000, you’re not allowed these deductions. These monies can be applied to reduce your taxes in the year before you open your business in the following year.

Note that the Tax Cuts and Jobs Act is set to expire at the end of 2025. If it’s not renewed, startup deductions could be affected.

Need help calculating your startup costs? Learn how to estimate your startup costs by industry.

Business Operational Expenses

Once your business is open for customers, your list of tax deductions expands dramatically to include these expenses:

• Car Transportation – You can deduct a portion of your car expenses (including gas and oil) when you use your vehicle for business purposes such as traveling to customers, suppliers, trade shows, and delivering merchandise.
• Housing – If you have space in your home that is dedicated regularly and exclusively to your business, you can deduct the business’s proportional costs of that space (including mortgage, insurance, and property taxes) from your taxes.
• Utilities – Dedicated phone lines for businesses are legal deductions, as are a portion of the costs to heat and cool your home business.
• Travel and Entertainment – If you travel to trade shows, customer presentations, and suppliers, your travel expenses can also be used as tax write-offs.
• Eating Out – If you hold business meetings over dinner, coffee, or even smoothies, you can deduct 50% of the cost of restaurant meals.
• Computer Equipment and Furnishings – Section 179 of the tax code allows up to 100% of computer equipment to be expensed annually, up to six figures. This is good news since it means that your new computer can be deducted in the same tax year.
• Computer Software – Programs you purchase to facilitate your business operations, whether they’re a single download or a subscription service, can be deducted from your taxes.
• Office Supplies – Supplies you use regularly, like shipping boxes and packing peanuts or printer paper and toner, can qualify as deductible expenses, provided they’re used solely for your business.
• Health Insurance Premiums – Premiums for health insurance can be deducted, providing significant tax savings for business owners.
• Education – Any education that will help in your business can be expensed, from training on how to use Photoshop to classes on bookkeeping.
• Legal and Accounting Fees – The fees you pay your attorney or accountant, whether they’re a one-off service or a regular part of your business operations, are deductible business expenses.

Maximizing Tax Deductions

To maximize tax deductions, small business owners should keep accurate records of their business income and expenses throughout the year. This includes receipts, invoices, and bank statements. By keeping accurate records, businesses can help ensure that they are claiming all eligible deductions and minimizing their tax liability.

Additionally, businesses should consult with a tax professional to help check that they’re taking advantage of all available deductions. A tax professional can help businesses identify eligible deductions, prepare tax returns, and navigate the nuances of the tax code.

Best Businesses to Start Today

1. Consulting – This can be home-based, where you travel to your customers or consult via telephone and Internet. Usually, you can deduct costs for home office space, telephone lines, internet access fees, and computer equipment. Consulting businesses can also take advantage of various small business tax deductions to reduce their taxable income. For more information, check out “Reasons to Start a Consulting Business.”
2. Internet Services – This category can include website designers, coders, programmers, e-commerce store owners, online advertising agencies, and website copywriters. Read about our best online business ideas.
3. Artisan for Handmade Crafts – Create crafts and art to sell in galleries, craft fairs, and online. Deduct expenses for materials and supplies, travel to fairs, and education. Get ideas for your craft business name.
4. Services – Offer services for tutoring, organizing, event planning, carpentry, and hairstyling. Deduct all your equipment and material costs, plus your cell phone, tools, and trucks.

Can starting a small business help with taxes?

Yes, the IRS allows you to deduct up to $10,000 ($5,000 in startup costs and $5,000 in organization costs such as incorporation) from your personal taxes a year prior to opening your company, providing a significant tax deduction. Then in the same tax year that you open your doors, you can also deduct additional ongoing expenses like home office expenses (mortgage and utilities), transportation, travel, supplies, advertising costs, and equipment.

It’s important that your business is actually attempting to produce a profit; otherwise, it will be considered a hobby, which doesn’t qualify for deductions. Worse, your “hobby” could be looked at as an attempt to pull one over on the feds. This is crucial because hobby expenses are not tax deductible, and starting a business only for the tax benefits will come with penalties if investigated.

If the IRS comes knocking, they’ll look for evidence that you’re making an honest effort, regardless of your success or skill, to produce a profit. Though there’s no fast and hard list of things they will want to see, a website, accounting records, business-related receipts, a separate bank account, and activities like sales calls or marketing activities will all help to show that you’re endeavoring to create a profitable business.

One other way the IRS looks to see if your business is a bona fide business is the rule of three out of five. This is a way the IRS uses to determine profit motive (even if you don’t make a profit right away). The rule is that if your business made a profit for any three of the past five consecutive years, your company is not just a hobby.

Remember that tax laws are subject to change. Regularly reviewing the IRS official website or consulting with a tax professional cane help you stay compliant with the most recent regulations.

Considering starting your business in Delaware to save taxes? Read about the benefits and risks of starting a business in Delaware.

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• 6 Mistakes to Avoid When Starting a Small Business
• Starting a Business in Retirement: Retiree Business Ideas
• How to Get Money to Start a New Business from Your 401K Retirement

Thinking of starting an agricultural business? Looking for farming ideas to make money? We’ve got what you need right here: some of the most profitable agricultural business start-up ideas for entrepreneurs.

The agricultural industry provides essential services and opportunities for improvement in farming practices. There’s a wealth of good business ideas out there, many with low investment startup costs such as worm farming, growing mushrooms commercially, and more. There are even beginner-friendly ideas for agriculturally minded entrepreneurs, like selling at farmers’ markets and lawn care maintenance.

Want to get your best and most profitable small farming business idea to start growing your own lucrative business? Keep reading.

When retailers accept fake bills, they bear the entire burden of the loss. Although counterfeiters’ techniques are improving, the bad bills can still be detected. Here’s how to spot counterfeit money and protect your business from related losses.  

Counterfeit money is an ongoing threat retailers can’t afford to be complacent about. During the first three months of 2021, U.S. Customs and Border Protection officers seized $1.6 million in counterfeit currency in Chicago, Illinois. Another $110,000 in fake currency was seized in California.

Unfortunately for businesses, not all counterfeit bills are found and seized before getting into distribution. And when a business accepts fake money in payment for merchandise or services, they lose the face value of the money they received plus any goods or services they provided to the customer who paid with the counterfeit $20, $50, or $100 bill.

Fake money shows up in different states in different denominations at different times. Oftentimes, business owners don’t take notice of the bills because the purchases are minimal and the counterfeit money denominations are so small.  

In one case, the Connecticut Better Business Bureau (BBB) was alerted to a $100 counterfeit bill that had been passed to an unidentified retailer in Southeastern Connecticut. According to the Connecticut BBB, the phony bill began as a legitimate $5 banknote.

“The counterfeiters apparently used a technique that involves bleaching legitimate money and altering the bills to look like $100 notes,” the BBB stated in an announcement. “Many businesses use special pens to detect counterfeit currency; however, the pens cannot give a definitive confirmation about suspected altered currency, and they are not sanctioned by the U.S. Treasury.”

Large bills like $100 and $50 bills aren’t the only ones that are counterfeited, either. In December, 2019, U.S. officials seized close to $1 million in counterfeited one dollar bills.

RELATED: Learn to Spot Fake Cashier’s Checks

Understanding Counterfeit Currency

Counterfeit currency, also dubbed fake money, poses a significant threat to both the economy and individuals. It’s estimated that over $70 million in counterfeit bills are in circulation worldwide.

Counterfeiters are using increasingly advanced techniques to create fake bills that are hard to distinguish from genuine currency. This makes it crucial for business owners and individuals alike to understand the security features of genuine bills and how to spot counterfeit money. By being vigilant and knowledgeable, you can help prevent the spread of fake currency and protect your business from potential losses.

How to Spot Counterfeit Money

Business owners should train their employees to examine all bills they receive, $10 and higher. If they believe they’re being given counterfeit money, they can call the police.

Small business owners need to be aware of the many ways to detect counterfeit money. The Secret Service offers a downloadable PDF called Know Your Money that points out key features to look at to determine if a bill is real or fake. We’ll walk through some of the key techniques here.

Know the security features of genuine bills

Spotting fake money begins with knowing what the real bill should look like. Genuine currency incorporates several security features designed to thwart counterfeiters. These features include:

• Security Threads: Genuine bills have embedded security threads that glow under ultraviolet (UV) light. These threads are woven into the paper and are challenging to replicate.
• Raised Printing: Authentic bills feature raised printing that you can feel by running your fingers over the bill. Counterfeit bills often lack this tactile feature.
• Watermarks: When held up to light, genuine bills reveal watermarks that are difficult to reproduce. These watermarks are integrated into the paper itself.
• Color-Shifting Ink: Genuine bills use color-shifting ink that changes color when tilted. Counterfeit bills may either lack this feature or display it incorrectly.

These security features make it significantly harder for counterfeiters to produce convincing fake bills, helping you spot counterfeit money more effectively.

Inspecting the Bill

To determine if a bill is authentic, follow these steps to inspect its security features:

• Hold the bill up to light: Check for the security thread and watermark. These should be visible when the bill is held up to a light source. You should also see a hologram of an image that matches the person on the face of the bill. If someone has bleached and altered a $5 bill to look like a $100 bill, for instance, the hologram will display an image of Abraham Lincoln, who appears on the $5 bills, instead of Benjamin Franklin.
• Feel for raised printing: Run your fingers over the bill to detect raised printing, which is a hallmark of genuine currency.
• Tilt the bill: Observe the color-shifting ink by tilting the bill back and forth. The ink should change color as you tilt it.
• Check the serial number: Ensure the serial number is not repeated or unevenly spaced. Inconsistencies can be a sign of a counterfeit bill.
• Examine the edges: Authentic bills have crisp, well-defined edges. Blurry or uneven edges can indicate a fake bill.
• Check for microprinting: Microprinting makes bills harder to reproduce. The $5 bill has “USA FIVE” written on the thread; the $10 bill has “USA TEN” written on the thread; the $20 bill has “USA TWENTY” written on the thread; the $50 bill has “USA 50” written on the thread; and the $100 bill has the words “USA 100” written on the security thread. Microprinting can be found around the portrait as well as on the security threads.

By following these steps, you can more confidently identify counterfeit money and protect your business from potential losses.

Advanced Detection Methods

Beyond manual inspection, several advanced detection methods can help spot counterfeit money:

• Ultraviolet (UV) Light: Use UV light to detect the security thread and other embedded security features that glow under UV light. The $5 bill glows blue; the $10 bill glows orange; the $20 bill glows green; the $50 bill glows yellow; and the $100 bill glows red — if they are authentic.
• Counterfeit Detection Pens: These pens use special ink that reacts with the paper to identify counterfeit bills. However, they are not foolproof and should be used in conjunction with other methods.
• Magnetic Detectors: Genuine currency contains magnetic ink, which can be detected using magnetic detectors.
• Advanced Imaging Technology: This technology analyzes the paper and ink used in the bill to detect counterfeits.

While these advanced methods can be effective, they are not infallible. The best defense against counterfeit currency is education and vigilance. Always report any suspected counterfeit currency to law enforcement agencies to help combat the spread of fake money.

By understanding and utilizing these techniques, you can better protect your business from the risks associated with counterfeit currency.

Know what to do if you suspect fake bills

If you believe you have received counterfeit money, the U.S. Treasury advises you to do the following:

• Do not put yourself in danger.
• Observe the passer’s description — and their companions’ descriptions — and write down their vehicle license plate numbers if you can.
• Contact your local police department or call your local Secret Service office.
• Do not handle the counterfeit note. Place it inside a protective cover, a plastic bag, or envelope to protect it until you place it in the hands of an identified Secret Service Special Agent. You can also mail it to your nearest Secret Service office.

Remember, if you are passed a counterfeit bill, you own it. So when accepting cash, it pays to be knowledgeable about the crime of counterfeiting.

RELATED: Protect Yourself and Your Business From Identity Theft

Cash flow problems are a common problem for nearly any business these days, and independent retailers are no exception. Here are six things retail store owners can do to make an immediate improvement in their cash flow.

Cash flow is an ongoing challenge for independent retailers, as it is for many small businesses. Sales growth remains modest at best, and credit remains largely unavailable to many independent retailers. That puts many squarely behind the eight ball.

Here are some tips that can help you drive more dollars to the bottom line:

Understanding Cash Flow Challenges

Cash flow problems in retail can stem from a variety of sources. Poor inventory management is a common culprit, leading to either overstocking or stockouts, both of which can tie up cash unnecessarily. Inefficient payment procedures, such as delayed invoicing or lax credit terms, can also disrupt cash flow. High operational costs, including rent, utilities, and payroll, can quickly deplete cash reserves, especially during slow sales periods.

Additionally, economic downturns can reduce consumer spending, further straining cash flow. For small to medium-sized enterprises (SMEs), these challenges are often magnified due to limited resources and financial flexibility. Understanding these root causes is crucial for developing effective strategies to manage and improve cash flow.

Common Cash Flow Issues and Their Impact on Retail Sales

Retailers often face several common cash flow issues, such as insufficient cash on hand, poor cash flow forecasting, and inadequate cash reserves. Insufficient cash on hand can lead to reduced inventory levels, making it difficult to meet customer demand and potentially driving customers to competitors. Poor cash flow forecasting can result in unexpected shortfalls, making it challenging to cover operational expenses or invest in growth opportunities. Inadequate cash reserves can leave a retail business vulnerable to emergencies or economic downturns, leading to delayed payments to suppliers and decreased customer satisfaction.

Effective cash flow management is essential for maintaining a healthy cash flow, helping ensure timely payments, and investing in initiatives that drive growth and increase retail sales.

Maintaining a cash reserve is essential to cover unexpected expenses, helping ensure that your business can withstand unforeseen circumstances that could halt revenue.

Proper forecasting is crucial to prevent negative cash flow, as it helps in understanding future sales and expenses, helping ensure business sustainability.

1. Focus your retail marketing strategy on your proven customers

These are the customers who have demonstrated already that they value what you do and the merchandise you sell. What else can you offer them? These are also customers who have shared their email addresses with you. This is your list, and it’s one of the most valuable assets you have. Marketing to these customers is much less expensive (and more productive) than marketing more broadly using expensive traditional media like newspapers and magazines.

2. Turn your inventory to increase retail sales

Having more doesn’t mean you’ll sell more, especially when the extra inventory is in unnecessary depth of stock or in items at the fringes of assortments. Lean inventory, closely aligned to support prudent sales plans, promotes a greater sense of urgency with customers to buy now, when they first see it, rather than wait for when it might go on sale. Replenish more frequently, in smaller quantities, continually bringing in new, fresh, exciting merchandise.

3. Don’t compete with yourself

Many independent retailers will want to adopt a Better-Best or a Best-Only pricing structure. Offering too many options where customers can trade down to a less-expensive item leaves money on the table and slows the turn on the higher-priced offerings, thus lessening their perceived value. If consignment merchandise is part of your mix, make sure they complement rather than compete against your assortments.

4. Get paid for what you sell

Sales and promotions melt away cash flow, not to mention the fact that they lessen the perceived value of your offering and encourage customers to wait for the next sale. Getting paid also requires, however, that you fully mark up your merchandise in the first place. Markups tend to naturally erode as wholesale costs increase and retail prices don’t fully keep up, unless you actively manage your markups to keep them where you need them.

5. Make payroll a manageable expense to manage cash flow

For most independent retailers, payroll is the largest cash outflow after merchandise payables. A payroll that is primarily made up of salaried and full-time hourly employees may provide a level of stability but can be pretty inflexible and can create significant cash flow challenges, particularly during slower periods. A more balanced payroll, between salaried and full-time hourly employees and part-time employees, provides the flexibility to more closely align payroll dollars with when they’re truly needed.

6. Stop doing things the way you’ve always done them

Familiarity is comfortable, but it inevitably leads to diminishing returns. Customers thrive on newness — on new merchandise, presentations, and experiences. Repetition breeds staleness, and that will drive customers elsewhere. The most successful independent retailers are always re-inventing themselves, testing new items, programs, presentations, and concepts.

Enhancing the Customer Experience

Creating an engaging environment is key to boosting retail sales and enhancing the overall customer experience. Start by optimizing your store layout and design to ensure a smooth flow and easy navigation. Use dim and warm-colored lighting to create a welcoming atmosphere, and consider incorporating a signature scent to make your store memorable.

Technology can also play a significant role in enhancing the customer experience. Implement personalized customer service through digital tools that track customer preferences and purchase history. Offer complimentary services, such as gift wrapping or personal shopping assistance, to add value to the shopping experience. Encourage customer feedback to continuously improve and adapt to their needs. By creating an inviting and engaging environment, you can increase customer satisfaction, loyalty, and ultimately, drive sales.

Create an engaging environment to boost retail sales. A comprehensive retail marketing strategy can help connect with customers through authentic brand storytelling and understanding their desires. Additionally, a retail sales strategy centered around customer loyalty, such as implementing loyalty programs, can incentivize repeat purchases and improve customer retention. Sales associates play a crucial role in delivering personalized customer service and enhancing the shopping experience by using technology to access customer profiles and make tailored recommendations. Furthermore, having knowledgeable sales associates on the sales floor during peak hours is essential for maximizing revenue through effective upselling and cross-selling techniques.

After all that we’ve been through, how much cash flow is enough? It’s not enough just to be cash flow positive. The challenge is to generate exceptional cash flow from the sales revenue you’re generating, even as you work to grow revenues even further.

Applying for business credit? Here are four basics to consider. If you or your business are seeking credit and feel a bit nervous about your chances of getting the cash you need, pause for a moment, take a deep breath, and remember this simple acronym.

This very tight, almost non-existent lending market for small businesses invokes many emotions from business owners seeking capital to grow and expand. These emotions run the gamut from despair to downright anger.

If you or your business are seeking credit and feel a bit nervous about your chances of getting the cash you need, pause for a moment, take a deep breath, and remember a simple acronym — C.R.A.P.

C – Credit. Your personal credit matters. It matters more now than ever. Today, lenders aren’t looking for ways to say “yes”; they’re only looking for reasons to say “no.” Their easiest, quickest method is to pull your personal credit history. If your credit score is not in the excellent range, the answer is “no” — before these lenders spend both time and money performing other due diligence on you or your firm.

Lenders want to ensure that you (the borrower) put them first when it comes to allocating the money you or your business has. The best barometer of your willingness to repay your creditors is your personal credit history — period. So, before you begin talking with lenders, pull your credit report. If your score is not in the upper 2% of all borrowers, simply say to yourself, “crap,” and move on.

R – Repayment. Even with a strong credit history, if you can’t demonstrate right now that you can make minimum payments, the answer will be “no.” Lenders don’t care that you think you’ll make a million dollars with their loan proceeds sometime in the future. You have to demonstrate that you have (through personal income) or your business has (through the conversion of assets or from profits) the cash flow to repay the debt facility — right now.

Put yourself in their shoes. Banks and other lenders don’t want to be your partner and take an equity stake in your business. They want to be repaid and earn interest on the money they lend. This is their business and how they make their money. So, before you begin talking with lenders, determine how you intend to pay them back (from income — personal or business) that you earn “now.” If you don’t have income or another method of repayment, simply say to yourself, “crap,” and move on.

A – Assets. This is an asset-based lending environment. Asset-based means more than just having collateral. Lenders want to lend against specific assets that are, for the most part, guaranteed to repay their loans. Assets like business credit card receipts, accounts receivables or purchase orders, or even business property and equipment. Thus, lenders can have first-lien entitlements to these assets. They will control them to ensure that their (the asset’s) cash flow comes through them first.

For example, with accounts receivable factoring, the lender will invoice your customer, requiring that all payments go through them. Thus, the lender is paid first (you get the remaining payment). If you do not have assets, either business or personal, assets that are wholly owned by you and have significant value, simply say to yourself, “crap,” and move on.

P – Persistence. Persistence is the key to getting any loan in any environment. You will hear many “nos” before you hear one “yes.” More than likely, you will hear many “nos” before you hear even one “maybe.” Just stick with it. Each lender has its own lending policies and area of expertise. Some lenders are flush with money to lend, while others are overextended. To get the loan you need, you have to work hard and just persevere. Don’t take “nos” personally — use them as building blocks for the next time. So, if you’re unwilling to put in the time and effort, simply say to yourself, “crap,” and move on.

Understanding Business Credit

What is business credit?

Business credit refers to the creditworthiness of a business, evaluated based on its credit history, payment habits, and financial stability. Think of it as a report card for your business’s financial health. Just like personal credit, business credit is a measure of your ability to repay debts and manage finances effectively.

For small businesses, establishing business credit is essential. It opens doors to loans, lines of credit, and other financial assistance that can fuel growth and expansion. In essence, business credit is the lifeline that can help your business thrive.

Why is business credit important?

Business credit is more than just a number; it’s a key to unlocking financial opportunities. A good business credit score can help you establish a solid reputation with lenders, suppliers, and vendors. This reputation can translate into lower interest rates, better loan terms, and higher credit limits.

Moreover, having strong business credit allows you to further separate your personal and business finances, reducing the risk of personal liability. This separation not only protects your personal assets but also enhances your business’s overall financial stability. In short, a robust business credit score is a cornerstone of a successful and financially healthy business.

Establishing a Strong Foundation

The journey to building strong business credit begins with laying a solid foundation. The first steps are registering your business and obtaining an Employer Identification Number (EIN). An EIN is a unique nine-digit number assigned by the IRS for tax purposes. It’s like a Social Security number for your business. Having an EIN is important because it’s often required to open a business bank account, apply for credit, and file taxes.

To register your business, you’ll need to file Articles of Incorporation (if you’re forming a corporation) or Articles of Organization (if you’re forming an LLC) with your state government. This process officially recognizes your business as a separate legal entity. Once registered, you can apply for an EIN online through the IRS website. With your business registered and an EIN in hand, you can open a business bank account, apply for credit, and start building your business credit history.

Remember, registering your business and obtaining an EIN are just the first steps. To truly establish business credit, you need to create a business credit profile, make timely payments, and maintain a good credit history. By doing so, you’ll build a strong foundation that will support your business’s financial growth and stability.

While the above is meant to provide a bit of humor in these troubling times, the information provided is still good guidance when you are seeking credit for business growth. Therefore, instead of being surprised, shocked, or just downright angry when you get turned down, think about the acronym C.R.A.P. If you spend time ensuring that you’re creditworthy before you begin your search, not only do you stand a better chance of getting the loan you need, but you should save valuable time and energy in the process.

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If you received a PPP loan for your business during the pandemic, you may still be able to get forgiveness for the loan. We’ll discuss the requirements and steps for applying.

The U.S. Small Business Administration (SBA) has helped many businesses affected by COVID-19 with programs like the Paycheck Protection Program (PPP), COVID-19 Economic Injury Disaster Loan (EIDL), and the Targeted EIDL Advance, but those ended in 2021. However, if your business received a PPP loan, you may still be able to apply for loan forgiveness.

The PPP was intended to help businesses that have been hit hardest by the pandemic keep their workers on the payroll. It was meant to be a forgivable loan, provided certain criteria were met. The forgiveness is not automatic, however; businesses still must apply for it. If you took out a PPP loan and haven’t yet applied for forgiveness, we’ll cover the criteria and the process below.

As a first-time business owner, it’s important to keep track of your own money going into your business. To do this, you must record capital contributions, which is the money that you, the owner, use to start and maintain your business. This article will explain what a capital contribution, also known as an owner’s contribution, is and how it works, why it’s important to track deposits to your business checking account, and the potential tax benefits.

What is an owner’s contribution? 

An owner’s contribution is money that you, the owner, bring to the business. This can include money transferred from your personal account into a business checking account. It can also include other investments you make in the business or items you bring in, such as furniture or the equipment you buy for the business. When you make a capital contribution, you’re essentially investing in yourself and your new company.

How does a personal funds contribution by an owner work? 

When you make an owner’s contribution to your business, you need to create a financial record of the money you’ve invested. This financial record is important for tracking the money going into your business.

When recording an owner’s contribution, it’s also helpful to create a journal entry. This involves entering the amount into both the debit column and the credit column of your balance sheet in your accounting software to accurately reflect the transaction.

When you contribute money to your business, the bank automatically creates a record of how much you’ve invested. This record is important because it shows you how much money you’ve put into your business. Tagging the deposit as an “owner’s contribution” or “capital contribution” makes it easy to reference later.

This also helps you to keep track of how much money you’ve invested, where the money is coming from, and where it’s going. This financial record also helps prove to potential investors that you’re serious about your business. 

Why track deposits to your business checking account? 

Tracking deposits to your business checking account isn’t just another creative business idea; it’s essential for a few reasons. First, it helps you to monitor how much money is coming into your business. This is especially important if you’re relying on outside investments or loans. Secondly, it lets you keep track of expenses, which is important for budgeting and determining what needs to be paid. Finally, it helps prove to potential investors that you have invested in your business.

Owner Contributions and Business Equity

Owner contributions play a crucial role in shaping a business’s equity. When you inject personal funds into your business, it directly increases your stake in the company, which is recorded as an increase in your personal equity account. This boost in equity not only enhances your investment in the business but also strengthens the overall financial position of your company.

These contributions can be utilized in various ways, such as purchasing business assets, covering operational costs, or paying off business expenses. Each of these actions contributes to the growth and sustainability of your business. By diligently tracking your owner contributions, you gain valuable insights into your company’s financial health, enabling you to make informed decisions about future investments and strategies.

Capital Investments vs. Owner Contributions

While capital investments and owner contributions are often used interchangeably, they have distinct meanings in the realm of business finance. Capital investments encompass all funds contributed by owners, partners, or external investors to fuel the business. On the other hand, owner contributions specifically refer to the personal funds that you, as the owner, bring into the business. So, all owner contributions are capital investments, but not all capital investments are owner contributions.

Both capital investments and owner contributions can be vital for the growth and expansion of your business. They provide the necessary financial resources for innovation, risk management, and scaling operations. By recording these contributions separately, you can maintain accurate financial records and help ensure compliance with tax laws and regulations. Understanding the difference between these two types of contributions is essential for making strategic decisions about your business’s financing and investment plans.

Potential Tax Benefits 

Tracking your startup costs alongside your contributions can also provide potential tax benefits. You may be able to deduct your startup costs from your taxable income. This can be a great way to help increase your tax refund by making sure that you aren’t paying too much in taxes. 

Best Practices for Owner Contributions

To maintain accurate financial records, it’s essential to track owner contributions regularly. Use a reliable payment method, such as a bank account transfer or personal funds transfer, to help ensure transparency and traceability. It’s also advisable to maintain a separate equity account dedicated to recording owner contributions, which helps in tracking changes in ownership interest over time.

When recording owner contributions, be meticulous about including the date, amount, purpose of the contribution, and the payment method used. This level of detail helps ensure that your financial records are comprehensive and accurate.

Additionally, consider consulting a tax accountant or lawyer to ensure compliance with relevant laws and regulations. By following these best practices, you can help ensure that your owner contributions are accurately recorded and your financial records remain up to date and compliant with regulatory requirements.

How to Track or Record Contributions in an Equity Account

You can track your contributions by keeping a detailed record of all the deposits you’ve made to your business checking account. You should include the amount and date of the contribution, as well as the source of the money (such as personal savings or loans). You can also use accounting software, like Money Pro, to track your contributions. Accounting software can help you keep a detailed record of all of your investments and help ensure that you’re claiming the correct deductions on your taxes.

When you track money for owner contributions, it’s important to create detailed journal entries. If you use personal money for business expenses, make sure to record these transactions accurately. Additionally, when you transfer money from your personal account to your business account, document the transfer to maintain clear financial records.

Conclusion 

As a first-time business owner, it’s important to track the money going into your business. Capital contributions are a great way to do this, as they are the money that you, the owner, bring to the business. Tracking your capital contributions helps you to keep track of how much money is coming into your business, where it’s coming from, and where it’s going. It also shows potential investors that you’re serious about your business.

Everyone makes big-ticket purchases at some point in their lives; we all need items like vehicles, houses, and equipment. Big-ticket items are called “big” because you typically have to invest more time and money to buy these goods than you do your other purchases. In addition, most of your big-ticket items are meant to last you quite a long time before you need to replace them. Managing finances effectively for big purchases is crucial for maintaining financial stability.

That being said, no price threshold makes something a “big-ticket item” because, at the end of the day, how expensive an item is is relative to the person buying it. For instance, something over $100 might count as a high-cost acquisition to one individual, while another considers $2,000 cheap. That said, most consumers would agree that cars and houses are always big-ticket items.

From a retailer’s perspective, a big-ticket item could be any product that has a higher price and profit margin than other merchandise in their store.

Another term for big-ticket items is “durable goods.” This name fits because these goods are meant to last a long time; they’re are not intended to be replaced frequently. And due to their high cost, buying durable goods typically requires consumers to plan their purchase ahead of time, save up money, or pay for their durable goods through a financing plan.

More often than not, big-ticket items are “necessary goods” and not “luxury goods”; they’re things like houses, cars, office equipment, and so on. These kinds of purchases require serious planning from both the business and the consumer. Consumers need to be aware of how they will afford the big-ticket item, and businesses need to ensure the payment process goes as smoothly as possible.

Making Life Easier for Customers

When consumers plan their purchases, they tend to factor in how they will pay for the item at hand. Customers might ask themselves many questions: What payment methods does this business accept? Does the business offer financing plans? Understanding financing options and strategies is crucial when purchasing significant assets like vehicles and homes.

It’s not feasible for every consumer to pay upfront, so companies that allow customers to pay in installments are far more likely to receive business from people who need a product.

Secure Payment Processing

From the business side, it’s important to have a secure payment processing system. In the past, businesses were more hesitant to accept and process payments via credit card, ACH, and other digital methods; these methods were more prone to fraud and chargebacks. But now there are a variety of payment processors available to businesses, making it easier than ever to securely and safely offer digital payment methods to customers.

A good payment processing system should include features that deter, detect, and prevent fraud and seamlessly align with business operations, saving time relative to traditional methods. When it comes to making big-ticket sales, significant amounts of money are on the line, so it’s essential that you have an easy-to-use yet secure platform that can process large transactions.

Paying for Big Ticket Items: Your Options

There are lots of ways to pay for big-ticket purchases, and cash is still the simplest. Some would even argue that cash is the best way to pay. After all, when you pay with cash, you don’t have to worry about paying lenders back. You also won’t have to worry about how much your interest payments accumulate over time. That said, it’s rare for someone to have enough cash on hand to buy a car, much less a house. If they can, it’s probably the result of saving for months or even years to make the purchase.

The next option (and arguably the most popular way to pay) is credit. Paying with a credit card or line of credit allows you to finance payments and potentially earn reward points. Depending on your credit provider, you could face low interest rates — or extremely high ones, which can be an advantage or disadvantage depending on the rate.

Some merchants offer their own financing plans. Merchant financing is similar to credit, but unlike credit card companies, there are no third-party underwriting transactions. Instead, customers are responsible for paying in installments. If you go this route, it’s important to understand the interest rate associated with the merchant’s loan, as it can impact monthly payments and long-term financial obligations.

If merchants and consumers want extra security, they can coordinate the transaction through an escrow service. An escrow agent is a third party that facilitates a transaction, holding the money and regulating the transfer until the transaction is considered complete. However, escrow services might charge hefty fees.

Obtaining a personal loan from a bank can provide greater flexibility and higher borrowing limits despite potentially higher interest rates and fees.

Assessing Your Finances for a Big Purchase

Before making a big purchase, it’s crucial to take a step back and assess your finances. Understanding your financial situation can help you make informed decisions and avoid potential pitfalls. Here are some key factors to consider:

• Income: Start by calculating your net income. Ensure you have a stable source of income that can support your monthly payments without straining your budget.
• Expenses: Review your monthly expenses, including essential costs like rent or mortgage, utilities, and groceries, as well as discretionary spending on entertainment and hobbies. This will give you a clear picture of your spending habits.
• Savings: Check your savings account to ensure you have enough funds for a down payment, closing costs, and other upfront expenses. Having a healthy savings cushion can make a big difference.
• Debt: Take a close look at your existing debt obligations, such as credit card debt, student loans, and personal loans. Make sure you can handle additional monthly payments without overextending yourself.

By thoroughly assessing your finances, you can determine how much you can afford to spend on a big purchase and make decisions that align with your long-term financial goals.

Managing Monthly Payments

When it comes to making a big purchase, managing your monthly payments effectively is key to avoiding financial strain. Here are some tips to help you stay on track:

• Create a budget: Allocate a portion of your income toward your monthly payments, helping ensure you have enough left for other essential expenses. A well-planned budget can help you stay organized and avoid overspending.
• Prioritize needs over wants: Be honest about what you need versus what you want. Prioritize essential expenses and cut back on discretionary spending if necessary.
• Consider interest rates: Understand the interest rates associated with your loan or credit card. If possible, negotiate for a lower rate to reduce the overall cost of your purchase.
• Make timely payments: Set up automatic payments to ensure you never miss a due date. Consider making extra payments when possible to pay off your debt faster and save on interest.

By managing your monthly payments wisely, you can avoid financial stress and make steady progress toward your financial goals.

Avoiding Financial Strains

Avoiding financial strains is essential when making a big purchase. Here are some strategies to help you stay financially healthy:

• Avoid overspending: Be realistic about what you can afford. Stick to your budget and avoid the temptation to overspend on a big purchase.
• Consider the total cost: Calculate the total cost of the purchase, including interest rates, fees, and other expenses. Make sure you can afford the full cost, not just the initial price tag.
• Build an emergency fund: Save three to six months’ worth of expenses in an easily accessible savings account. This fund can cover unexpected expenses and provide a financial safety net.
• Monitor your credit score: Regularly check your credit score to ensure you’re not accumulating too much debt or negatively impacting your credit. A good credit score can help you secure better interest rates and loan terms.

By following these tips, you can make a big purchase with confidence and stay on track to achieve your long-term financial goals.

Which payment method is the best?

What’s the best way to pay for a big-ticket item? Ultimately, it depends on an individual consumer’s financial status and which payment methods the seller accepts. Digital methods like credit or debit cards might be the most user-friendly, but there are pros and cons to cash payment or loan financing, too.

As a merchant, it’s important to have a payment-processing infrastructure that can securely process large transactions. As a consumer, it’s important to weigh your options and consider what the future consequences will be for committing to the purchase. Regardless, significant amounts of money are on the line when you make large purchases, so from the perspective of both parties involved in the transaction, you want to make sure things go as smoothly as possible.

Starting a business is costly, but some of your startup expenses are tax deductible. Make sure you don’t miss out on any tax savings by finding out which of those expenses you can write off, including how to deduct startup costs.

Did you start a business last year? Here are deductions you may be entitled to for your startup expenses (please note: be sure to check with your accountant to verify all deductions and to identify things you might otherwise overlook).

You’ve probably heard that one of the many benefits of owning your own business is the tax deductions associated with business ownership. But what are those deductions, and which affect you? The IRS distinguishes between the expenses you incur before you actually open the business and the expenses you have once you’re in an active trade or business.

Understanding Business Startup Costs

Starting a business involves a variety of expenses that can add up quickly. These business startup costs are the expenses you incur before your business begins operations. Understanding these startup costs is crucial for entrepreneurs and small business owners, as it helps in planning and budgeting for the successful launch of their business. Accurately calculating total startup costs is also important for tax deductions, as it impacts the deductions allowed by the IRS in the first year of operations.

Definition of Business Startup Costs

Business startup costs are strictly defined as the costs incurred by a business before it begins operations. These start-up expenses can include a wide array of costs, such as market research, legal fees, and equipment purchases. According to the Internal Revenue Service (IRS), business startup costs are considered capital expenditures. This classification means that these costs can be deducted from your taxable income over time, potentially providing significant tax benefits as your business grows.

Examples of Deductible Startup Costs

There are numerous examples of deductible startup costs that you should be aware of, including:

• Market research expenses
• Legal fees
• Accounting fees
• Business license fees
• Insurance premiums
• Rent or lease payments
• Equipment purchases
• Supplies and materials
• Employee salaries and benefits
• Training and education expenses
• Organization costs like creating an LLC or corporation

These costs must be classified as ordinary and necessary expenses incurred during the business’s initiation, with specific limits on the amounts that can be deducted in the first year. These expenses are essential for getting your business off the ground and can be deducted to help reduce your overall tax burden.

Personal expenses that you incur throughout the year cannot be deducted, so be sure to keep those purchases separate in your records.

Importance of Tracking Startup Costs

Tracking your startup costs is essential for several reasons. First, it ensures that you are taking full advantage of all available tax deductions, which can significantly reduce your taxable income. Additionally, keeping accurate records of your startup costs helps you budget and plan more effectively for the launch of your business. By meticulously tracking these expenses, you can make informed financial decisions and set your business up for long-term success.

Eligibility for Deducting Startup Costs

To be eligible to deduct startup costs, your business must meet specific requirements. These include:

• The business must be a new business.
• The expenses must be incurred before the business begins operations.
• The expenses must be necessary and ordinary for the type of business being started.

Meeting these criteria ensures that you can take advantage of the tax deductions available for startup costs, helping to offset the initial expenses of starting your business.

Who can benefit from the startup costs deduction?

The ability to deduct startup costs is available to businesses of all types and sizes, including sole proprietorships, partnerships, and corporations. This deduction can be particularly beneficial for new small businesses, as it helps to offset the significant costs involved in starting a business. By deducting these startup costs, you can help reduce your taxable income and improve your business’s financial health from the outset.

Types of Deductible Expenses

When starting a new business, it’s essential to understand which expenses are deductible and how to claim them on your tax return. The IRS allows businesses to deduct certain startup costs, including those related to an active trade or business and organizational costs. Knowing which expenses qualify can help you maximize your tax savings and reduce your overall financial burden.

Active Trade or Business Expenses

Active trade or business expenses are those incurred during the startup phase of a business. These expenses are considered ordinary and necessary for the operation of the business and can be deducted in the year they are incurred. Examples of active trade or business expenses include:

• Market research and analysis: Costs associated with understanding your target market and competitors.
• Advertising and marketing expenses: Expenses for promoting your business and attracting customers.
• Travel expenses related to the business: Costs for business-related travel, such as attending conferences or meeting potential clients.
• Labor supply costs: Expenses for employee training and recruitment to build your team.
• Business registration fees and licenses: Fees for registering your business and obtaining necessary licenses.
• Insurance premiums: Costs for insuring your business against potential risks.
• Professional fees: Legal and accounting fees incurred during the startup phase.

By identifying and tracking these expenses, you can help ensure that you’re taking full advantage of the tax deductions available for your business.

Organizational Costs

Organizational costs are those incurred during the formation of a corporation, partnership, or LLC. These costs can be deducted in the year they are incurred but are subject to certain limitations and phase-outs. Examples of organizational costs include:

• Incorporation fees: Costs for legally incorporating your business.
• Partnership formation costs: Expenses related to forming a partnership.
• LLC formation costs: Fees for establishing a limited liability company.
• Attorney fees: Legal fees related to the formation of the business.
• Accounting fees: Costs for accounting services during the formation phase.

Understanding and tracking these organizational costs can help you take advantage of the available deductions and reduce your taxable income.

Non-Deductible Startup Expenses

Not all startup expenses are deductible. It’s essential to distinguish between deductible and non-deductible expenses to help ensure accurate tax reporting and compliance. The following expenses are not deductible:

What startup business expenses are not deductible?

• Personal expenses: Costs such as travel and entertainment that are not directly related to the business.
• Capital expenditures: Expenses for purchasing equipment or property, which are considered capital investments.
• Expenses not directly related to the business: Costs associated with personal hobbies or investments that do not pertain to the business.
• Expenses incurred after the business starts operating: Once the business is operational, these expenses are considered regular business expenses, not startup expenses.

Keeping accurate records of all startup expenses, including those that are not deductible, is crucial for effective financial management and ensuring compliance with tax regulations. By understanding which expenses qualify for deductions, you can optimize your tax strategy and support the financial health of your business.

What expenses for starting a business are deductible when deducting startup costs?

The start-up expenses you incur to start your business are considered capital expenses. Startup expenses are a subset of capital expenses; they’re the expenses you have before you’re ready to accept customers. These business costs include various business start-up costs such as market research, legal and accounting fees, and more. While most capital expenses are not deductible, under current IRS rules, you can elect to deduct up to a total of $5,000 in business startup expenses and business organizational expenses in the year your business launches, provided your startup expenses are $50,000 or less. The $5,000 deduction is reduced by the amount your startup expenses or organizational expenses exceed $50,000.

Any startup or organizational costs in excess of the $5,000 can be amortized (deducted in equal installments) over a period of 180 months.

There may be additional rules that affect your business, so be sure to consult with a professional tax advisor while you’re planning your business, particularly if you’ll be investing a significant amount of money. Tax laws are complicated, and some decisions are irreversible.

From a tax standpoint, when does your business actually begin?

You can be in a trade or business as soon as you’re ready to accept customers. You don’t have to wait until you’ve made your first sale. The actual event that triggers you being in business (as opposed to the “starting a business” classification) will vary by the type of business and your own personal way of operating.

Something as simple as handing out business cards or setting up a website or social media business page can all signal that you are “open” and ready to accept business. Once you’re actually in business, the expenses you incur would be considered regular business expenses, not startup expenses. You can still get deductions for regular business expenses, but they have different limits.

What expenses can I deduct?

A product or service purchased for use by your business can be deductible if it’s classified as an ordinary and necessary expense and reasonable for the type of business you run. Small businesses and Schedule C filers will generally find their deductions fall into the following broad categories:

• Deductible business expenses
• Depreciable business property (See Publication 946, How to Depreciate Property)
• The home office deduction
• Business use of vehicle expenses
• Cost of goods sold (if you’re a manufacturer or carry inventory)

Conclusion

Starting a business comes with many challenges, but understanding and leveraging startup tax deductions can ease some of the financial burdens. By knowing which expenses qualify and staying diligent about tracking costs, you can maximize your tax savings and set your business up for success. Always consult a professional tax advisor to ensure you’re fully informed about the deductions available to you and how best to apply them. With the right preparation, you can confidently navigate the financial aspects of starting and growing your business. Understanding how to deduct startup costs, including the $5,000 limit for the first year and the extension of remaining costs over 15 years, is crucial for all business owners.

Additionally, using tax preparation software can help you find the deductions you’re entitled to. Also, tracking your expenses so that you can deduct them is easy with a tool like the ZenBusiness Money Pro. With a few simple clicks, you can track, categorize, and manage all of your business expenses.

Starting a business can be an exciting and rewarding journey, but it often comes with financial challenges, especially for underserved communities and minority entrepreneurs. Fortunately, there are various grants available to help fund your business dreams and make them a reality. Access to grant information is crucial for these communities to help ensure they can take advantage of available opportunities. In this article, we’ll guide you through the process of applying for grants, providing easy-to-understand steps and valuable resources to support your entrepreneurial aspirations.

1. Understand your business needs

Before getting into the grant application process, take some time to identify your specific business needs. Be clear about the purpose of the grant and how it will help your business grow. Having a well-defined plan will make it easier to find grants that align with your goals. Identifying key stakeholders is crucial for successfully completing the grant application process, helping ensure efficiency and preventing delays.

2. Research grant programs

There are numerous grants available, each with its own eligibility criteria and application process. To find the right grant for your business, explore the following resources:

• Minority Business Development Agency: The MBDA offers various programs to support minority entrepreneurs. For instance, the Capital Readiness Program funds incubators and accelerators to assist underserved businesses in launching and scaling their operations. Visit their website to explore grants tailored for minority entrepreneurs.
• SOGAL Foundation: Contact Content Manager Simona Sillah for information on their grants supporting diverse founders.
• Galaxy Grants: Hidden Star, a nonprofit organization, offers Galaxy Grants to support women and minority entrepreneurs. These grants provide valuable resources, tools, funding, and knowledge to help small businesses grow.
• Communities Foundation of Texas: Check out their grant opportunities to support businesses in Texas.

Be cautious of scams; avoid sites that may ask for payment upfront and provide no real value.

It’s important to note that the federal government generally does not provide grants to start a business. However, there are several funding programs to help entrepreneurs start, expand, or recover from disasters. The U.S. Small Business Administration (SBA) offers various funding options, including loans and grants, targeted at minority and underserved communities.

3. Prepare your business plan

Most grant applications will require the well-crafted elements of a business plan. Highlight your business’s mission, objectives, target market, and how the grant will contribute to your success. A compelling business plan increases your chances of securing funding. To learn more about creating a business plan, check out this resource.

4. Review eligibility criteria

Carefully review the eligibility criteria for each grant you’re interested in. Some grants may have geographic restrictions, industry preferences, or specific requirements for underserved communities.

5. Gather necessary documents

Grants often require various supporting documents, such as financial statements, tax returns, business licenses, and letters of recommendation. Prepare these documents in advance to avoid delays in the application process. These documents are essential for securing funds for your business, especially when applying for grants and educational funding.

6. Navigating Grant Programs

Navigating grant programs can be a daunting task, especially for those new to the process. With numerous funding opportunities available, it’s essential to understand the different types of grant programs and their requirements. Here are some key points to consider:

• Formula Grants: These grants are awarded to specific entities, such as state and local governments, based on a predetermined formula. Formula grants are often used to fund programs that benefit a wide range of people, such as education and healthcare initiatives.
• Discretionary Grants: These grants are awarded competitively, and the funding agency has discretion over which projects to fund. Discretionary grants are often used to fund innovative projects or programs that address specific needs or issues.
• Grant Programs: Grant programs are designed to support specific goals or objectives, such as education, healthcare, or economic development. Understanding the goals and objectives of a grant program can help you determine whether your project is a good fit.

To navigate grant programs effectively, it’s essential to:

• Search for funding opportunities: Use online databases, such as Grants.gov, to search for funding opportunities that align with your project’s goals and objectives.
• Review eligibility criteria: Carefully review the eligibility criteria for each grant program to help ensure your project meets the requirements.
• Understand administrative requirements: Familiarize yourself with the administrative requirements for each grant program, including application deadlines, submission procedures, and reporting requirements.

By understanding the different types of grant programs and their requirements, you can increase your chances of submitting a strong application and securing funding for your project.

7. Craft a powerful application

When filling out the application, be clear, concise, and compelling. Clearly explain how your business aligns with the grant’s objectives and how the funding will drive a positive impact.

Seeking guidance can be crucial to navigate the application process effectively, helping ensure you meet all requirements and maximize your chances of success.

8. Follow instructions to submit grant applications

Pay close attention to the application guidelines and deadlines. Late submissions or incomplete applications may disqualify you from consideration. Always be cautious of unreliable sources as well; these sites should never ask for prepayment.

Before attempting to submit grant applications, ensure you have the correct registrations and administrative prerequisites in place, such as SAM.gov and DUNS, which are essential for compliance.

9. Submitting and Tracking Your Application

Once you’ve completed your grant application, it’s time to submit it to the funding agency. Here are some key points to consider:

• Submit your application: Follow the submission procedures outlined in the funding opportunity announcement, which may include submitting your application through an online portal or by mail.
• Track your application: Once you’ve submitted your application, track its status to ensure it’s being reviewed and processed correctly. You can usually do this by logging into your account on the funding agency’s website or by contacting the agency directly.
• Respond to requests for additional information: If the funding agency requests additional information or clarification on your application, respond promptly and thoroughly.

To ensure a smooth submission process, make sure to:

• Complete all required forms: Ensure you’ve completed all required forms and attachments, including the grant application, budget narrative, and supporting documentation.
• Meet the submission deadline: Submit your application by the deadline specified in the funding opportunity announcement.
• Follow up: If you haven’t received confirmation of receipt or an update on the status of your application, follow up with the funding agency to ensure it’s being processed correctly.

By following these tips, you can ensure a successful submission process and increase your chances of securing funding for your project.

Applying for grants may seem daunting, but with determination and the right resources, it becomes an accessible path to fuel your entrepreneurial journey. By utilizing the information and links provided in this article, you can take the first steps toward securing funding and bringing your business dreams to life. Remember, there are resources like our ZenBusiness grant for our customers, further supporting them on their entrepreneurial quest. Let’s build a more diverse and inclusive business landscape together!