Strategic
Tax Planning for
Small Businesses
Helping Businesses and Individuals Keep More of What They Earn
Strategic
Tax Planning
for Small Businesses
Helping Businesses and Individuals Keep More of What They Earn
Our Mission
At YBBO, we understand the unique challenges faced by small businesses, and our tailored services are designed to empower them with comprehensive tax solutions. Whether it's navigating complex tax regulations or ensuring accurate and efficient business tax returns, YBBO Tax & Business Solutions LLC is your trusted partner.
"A Passion For Helping"
Garylle's passion for financial literacy extends beyond traditional tax services, as she strives to educate clients on sound financial practices. The firm is committed to fostering a deeper understanding of financial matters, empowering clients to make informed decisions that contribute to their long-term success.
YBBO Tax & Business Solutions LLC stands as a testament to Garylle Smith's entrepreneurial spirit and dedication to making a meaningful impact in the tax industry. Join us on a journey towards financial empowerment and tax efficiency with YBBO Tax & Business Solutions LLC.
Our Services
Tax Advisory
YBBO Tax & Business Solutions LLC provides customized tax planning and advisory services to reduce clients' tax debt by utilizing the U.S. Tax Code and Case Law.
Tax Preparation
YBBO Tax & Business Solutions LLC offers tailored tax preparation for individuals and small businesses, leveraging expertise to ensure accurate returns and maximize deductions.
Bookkeeping Services
YBBO Tax & Business Solutions LLC provides optimized bookkeeping solutions for small businesses, maintaining meticulous records to support tax preparation and strategic planning.
Payroll Services
YBBO Tax & Business Solutions LLC handles full-service payroll for small businesses, seamlessly integrating with bookkeeping and tax services for efficiency.
Payroll Services
YBBO Tax & Business Solutions LLC handles full-service payroll for small businesses, seamlessly integrating with bookkeeping and tax services for efficiency.
Accounting Services
YBBO Tax & Business Solutions LLC accounting services help small businesses track finances, prepare financial statements, and inform tax strategy for maximized deductions.
TESTIMONALS
David H.
YBBO optimizes my small business taxes through strategic planning I can actually comprehend. Clear value.
Sandra D.
I was wary of accountants minimizing my freelance deductions, but YBBO maximized returns legally and ethically. High integrity.
Raven S.
First tax preparer to educate me on legal loopholes to substantially lower personal income tax burden; transformative.
Frequently Asked Questions
Find answers to common inquiries about our services.
What sets YBBO apart from other tax preparation services?
A: Our combination of strategic tax planning and financial literacy coaching empower clients with customized solutions to reduce tax debt.
What type of small business taxes can you help me with?
A: From business tax returns to payroll and bookkeeping, we offer integrated tax solutions tailored for small business owners.
How can business tax preparation help my bottom line?
A: Accurate tax returns ensure you legally maximize available deductions for big savings. Our expertise navigates regulations.
Why should I choose YBBO for personal tax filing?
A: Our tax expertise saves individuals money through credits, proper withholdings, deductions and more. We educate clients too.
How can your bookkeeping services help organize my business finances?
A: Our bookkeeping creates meticulous records that support accurate taxes. We integrate with tax services seamlessly.
What is the benefit of having your firm handle payroll?
A: Outsourcing to our experts reduces errors and workloads. Plus we integrate payroll with tax prep for major efficiency.
Daycare Business Tax Credits in Michigan: What You Need to Know
Daycare Business Tax Credits in Michigan: What You Need to Know
Running a daycare business in Michigan offers numerous rewards, from shaping young lives to being an essential service in the community. However, as any daycare provider knows, operating costs and compliance requirements can add up quickly. Luckily, tax credits can help alleviate some of the financial pressure. By understanding the available tax credits, you can reduce your overall tax liability and boost your bottom line. Let’s explore the key daycare business tax credits in Michigan that every provider should know.
1. The Child and Dependent Care Tax Credit
One of the most significant tax credits available to daycare businesses is the Child and Dependent Care Tax Credit. While this credit is aimed at parents, daycare providers play a crucial role by issuing receipts for childcare services, allowing parents to claim this credit on their taxes. The IRS provides this credit for families who pay for childcare services, enabling them to work or seek employment. By providing the necessary documentation to parents, daycare providers ensure that their clients can benefit from the credit, increasing the value of your services.
2. Employee Retention Credit (ERC)
If your daycare employs staff, the Employee Retention Credit (ERC) can provide significant savings. Although this credit was introduced to help businesses retain employees during the COVID-19 pandemic, you may still qualify by amending past tax returns. The ERC allowed businesses to claim up to 70% of employee wages during 2020 and 2021. Even though new ERC claims are no longer accepted, existing daycare providers in Michigan may still benefit by amending returns from those years.
3. Home Office Deduction for Home-Based Daycares
If you operate your daycare from home, the Home Office Deduction is a valuable credit. This deduction allows providers to claim a percentage of their household expenses, such as utilities, mortgage interest, and property taxes, as business expenses. The deduction is calculated based on the square footage of your home used exclusively for daycare purposes and the number of hours the space is used.
For Michigan daycare owners, this can significantly lower your taxable income, especially since operating a daycare often involves using your home space for both personal and business activities. Keep in mind that thorough record-keeping is essential to prove the portion of your home dedicated to your business.
4. Michigan Small Business Tax Credit
While not exclusive to daycare providers, the Michigan Small Business Tax Credit can be a useful tool for reducing your state tax liability. Michigan offers this credit to small businesses that maintain payroll for Michigan residents, making it particularly useful for daycare centers with staff. The credit allows businesses to claim a percentage of payroll expenses, including wages and employee benefits.
5. Depreciation and Bonus Depreciation
Daycare providers who invest in furniture, educational materials, or playground equipment can benefit from depreciation deductions. The IRS allows businesses to spread the cost of large purchases over several years. In addition, providers can take advantage of bonus depreciation, which allows 80% of the cost of newly purchased assets to be deducted in the year of purchase.
For daycare centers in Michigan, this means that new purchases—whether it's a set of tables and chairs or a new playground installation—can be partially or fully deducted from your taxable income, reducing your overall tax burden in the first year of the purchase.
How to Claim These Credits
To make the most of these tax credits, it's essential to maintain accurate records of your expenses, payroll, and business activities. You’ll need detailed receipts, employee records, and documentation of your home use (if applicable) to substantiate your claims. Working with a tax professional familiar with Michigan’s tax laws can also help ensure you're maximizing your eligible credits(YBBO Tax).
Conclusion
Operating a daycare in Michigan is no small feat, but understanding and taking advantage of available tax credits can help keep your business financially healthy. Whether you're running a home-based daycare or a larger childcare center, tax credits such as the Child and Dependent Care Credit, Home Office Deduction, and bonus depreciation can offer significant savings. By staying informed and organized, you can minimize your tax burden and focus on what matters most—caring for the children in your community.
If you’re unsure about which tax credits apply to your daycare, consider consulting with a professional tax advisor who specializes in childcare business tax preparation in Michigan (YBBO Tax)
Daycare Business Tax Credits in Michigan: What You Need to Know
Daycare Business Tax Credits in Michigan: What You Need to Know
Running a daycare business in Michigan offers numerous rewards, from shaping young lives to being an essential service in the community. However, as any daycare provider knows, operating costs and compliance requirements can add up quickly. Luckily, tax credits can help alleviate some of the financial pressure. By understanding the available tax credits, you can reduce your overall tax liability and boost your bottom line. Let’s explore the key daycare business tax credits in Michigan that every provider should know.
1. The Child and Dependent Care Tax Credit
One of the most significant tax credits available to daycare businesses is the Child and Dependent Care Tax Credit. While this credit is aimed at parents, daycare providers play a crucial role by issuing receipts for childcare services, allowing parents to claim this credit on their taxes. The IRS provides this credit for families who pay for childcare services, enabling them to work or seek employment. By providing the necessary documentation to parents, daycare providers ensure that their clients can benefit from the credit, increasing the value of your services.
2. Employee Retention Credit (ERC)
If your daycare employs staff, the Employee Retention Credit (ERC) can provide significant savings. Although this credit was introduced to help businesses retain employees during the COVID-19 pandemic, you may still qualify by amending past tax returns. The ERC allowed businesses to claim up to 70% of employee wages during 2020 and 2021. Even though new ERC claims are no longer accepted, existing daycare providers in Michigan may still benefit by amending returns from those years.
3. Home Office Deduction for Home-Based Daycares
If you operate your daycare from home, the Home Office Deduction is a valuable credit. This deduction allows providers to claim a percentage of their household expenses, such as utilities, mortgage interest, and property taxes, as business expenses. The deduction is calculated based on the square footage of your home used exclusively for daycare purposes and the number of hours the space is used.
For Michigan daycare owners, this can significantly lower your taxable income, especially since operating a daycare often involves using your home space for both personal and business activities. Keep in mind that thorough record-keeping is essential to prove the portion of your home dedicated to your business.
4. Michigan Small Business Tax Credit
While not exclusive to daycare providers, the Michigan Small Business Tax Credit can be a useful tool for reducing your state tax liability. Michigan offers this credit to small businesses that maintain payroll for Michigan residents, making it particularly useful for daycare centers with staff. The credit allows businesses to claim a percentage of payroll expenses, including wages and employee benefits.
5. Depreciation and Bonus Depreciation
Daycare providers who invest in furniture, educational materials, or playground equipment can benefit from depreciation deductions. The IRS allows businesses to spread the cost of large purchases over several years. In addition, providers can take advantage of bonus depreciation, which allows 80% of the cost of newly purchased assets to be deducted in the year of purchase.
For daycare centers in Michigan, this means that new purchases—whether it's a set of tables and chairs or a new playground installation—can be partially or fully deducted from your taxable income, reducing your overall tax burden in the first year of the purchase.
How to Claim These Credits
To make the most of these tax credits, it's essential to maintain accurate records of your expenses, payroll, and business activities. You’ll need detailed receipts, employee records, and documentation of your home use (if applicable) to substantiate your claims. Working with a tax professional familiar with Michigan’s tax laws can also help ensure you're maximizing your eligible credits(YBBO Tax).
Conclusion
Operating a daycare in Michigan is no small feat, but understanding and taking advantage of available tax credits can help keep your business financially healthy. Whether you're running a home-based daycare or a larger childcare center, tax credits such as the Child and Dependent Care Credit, Home Office Deduction, and bonus depreciation can offer significant savings. By staying informed and organized, you can minimize your tax burden and focus on what matters most—caring for the children in your community.
If you’re unsure about which tax credits apply to your daycare, consider consulting with a professional tax advisor who specializes in childcare business tax preparation in Michigan (YBBO Tax)