Running a small business is rewarding, but tax season can be stressful—especially if you’re not prepared. At Top Notch Consulting in Las Vegas, we work with small business owners every day who unknowingly make costly tax mistakes. The good news? Most of them are easy to avoid with the right guidance.

Here are the top 5 tax mistakes small businesses make, and how to make sure you’re not one of them:

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1. Mixing Personal and Business Finances

One of the most common mistakes new business owners make is using the same bank account for personal and business expenses. This makes it harder to track deductions, file taxes accurately, and protect yourself legally.

How to avoid it:
Open a separate business checking account and credit card. Keep all income and expenses for your business in those accounts. This simple step will save you time, money, and stress during tax season.

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2. Not Keeping Accurate Records

Every expense, no matter how small, can make a difference on your taxes. If you’re not tracking receipts, invoices, or mileage, you could miss out on valuable deductions—or worse, raise red flags with the IRS.

How to avoid it:
Use accounting software or hire a bookkeeping service to keep your records organized throughout the year. Store receipts digitally, and update your books at least once a month.

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3. Missing Quarterly Tax Payments

If you’re self-employed or run an LLC, you’re usually required to pay estimated taxes every quarter. Many business owners forget or ignore this obligation, only to face penalties and interest later on.

How to avoid it:
Work with a tax advisor to calculate your quarterly payments. Mark due dates on your calendar (April, June, September, and January) and set reminders so you don’t miss them.

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4. Misclassifying Workers

Are your workers employees or independent contractors? Misclassifying them can lead to serious fines from the IRS and Department of Labor. Many businesses do this by mistake, not realizing the legal difference.

How to avoid it:
Understand the IRS guidelines for employee vs. contractor status. When in doubt, ask an expert—misclassification can be expensive.

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5. Overlooking Deductions

Many small businesses don’t take full advantage of the deductions they’re entitled to, such as:

• Home office expenses
• Business use of your car
• Office supplies and equipment
• Business meals and travel
• Marketing and advertising costs

How to avoid it:
Keep detailed records and work with a tax professional who understands your industry. A knowledgeable advisor can help you maximize your deductions without crossing any lines.

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Final Thoughts

Taxes don’t have to be a headache—especially when you have the right support. Avoiding these common mistakes can save you thousands of dollars and keep your business in good standing with the IRS.

🎯 Need help with business taxes in Las Vegas?
At Top Notch Consulting, we specialize in helping small businesses stay compliant, reduce tax liability, and focus on what they do best—running their business.