For Ecopreneurs, How Minding Your Own (Green) Business Preserves More Green
There are many financial benefits of becoming a business, depending on how you structure it. Not only are businesses taxed after their expenses have been deducted, but many legitimate deductions are available to a small business that reduce its reported earnings.
The IRS tax code specifies the following related to business expenses:
IRS Code Section 162(a),Trade or business expenses:
“There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.”
IRS Code Section 212, Expenses for production of income:
“In the case of an individual, there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year.”
