“American business is overwhelmingly small business.” That’s the word from the Small Business & Entrepreneurial Council which cfigured that the number of small businesses with fewer than 20 workers together with the number of nonemployer businesses makes up 97.9% of the businesses in America (remember those are numbers of businesses and not numbers of employees).
Data from the Internal Revenue Service (IRS) supports the notion that small businesses are making a significant economic impact. Of the nearly 148 individual income tax returns filed in 2014 (the last year for which complete data is available, downloads as a pdf), 46 million – or 1/3 – of tax returns reported income from a sole proprietorship, pass-through business entity (like an s corporation, partnership or LLC), rents/royalties, or farms. That’s 1 in 3 individual taxpayers who filed an individual tax return reporting business-related income. It’s no wonder that a number of the questions in our last #AskForbes Twitter chat focused on deductions for small business. To help you out, here are 10 can’t miss tax breaks for small businesses and self-employed persons: