Many small business owners are optimistic about the good economy but still have a lot of questions about the new tax bill and how it will affect them in 2018. A lot of owners are also concerned about all the sexual harassment issues that have been headlining the news too. Here is a list of things that may affect your small business.
* Economy. Though it may not always result into more jobs, if the economy continues the way it’s going it may translate into more profits and growth. In 2017 surveys, most small businesses said that they planned to stick with their current hiring patterns, some saying they would add 1 or 2 employees in the next 6 months.
The stock market was up as was consumer spending at the end of 2017, giving a boost to those who have a 401(k) a stronger feeling of financial stability. Though in the past few weeks the markets have been fairly volatile, they seem to be stabilizing at this time. If the economy slows do you have a plan to keep your company afloat?
* Taxes. The benefits of the new tax bill aren’t across the board, even though the tax rates will change for many small business owners no matter what your entity. Some business owners will lose out because work in accounting, law, or consulting, or have income above the tax thresholds. The IRS is still in the process of writing some of the regulations for the new tax bill. There are some things that are known, such as;
* Section 179 deduction. Small businesses can get an immediate tax break on equipment purchases such as, computers, vehicles, or manufacturing equipment. This deduction doubles in 2018 to $1 million.
* Standard mileage rate. The 2018 business mileage rate is 54.5 ¢ per mile.