What Kinds of Small Business Marketing Costs are Deductible?

Social media marketing is one of many types of marketing you can deduct as a small business owner.

Social media marketing is one of many types of marketing you can deduct as a small business owner.

Opening the doors to a new small business and spreading the word about it is not cheap. Fortunately, the IRS allows entrepreneurs to claim marketing expenses as a tax deduction when filing their taxes each year. No matter what type of startup venture or established company you operate, you should be able to deduct the following types of small business marketing expenses:

- Print advertising

Let’s say you run a small ad for your small business in your local daily newspaper. Maybe there’s an industry-related publication in which you buy ad space. Perhaps you print out marketing collateral or have business cards made to promote yourself. Whichever options you choose, you can write off print advertising costs as a tax deduction when filing your taxes with Uncle Sam.

- TV and radio commercials

Would you love to hear an excited narrator describe your startup venture in a booming radio voice? Want to see your products come to life via a television spot? These types of small business marketing can be costly, but they remain a very effective way to gain leads and make sales. The good news is that TV and radio advertising expenses are tax deductible. From production to buying ad time on a local or cable station, you can typically claim all of these related costs as a write-off for your business.

- Signage/billboards

If you have a retail location for your bike shop, you’ll probably need some signage on the exterior of your building with your company name and perhaps some other information. You could also have a marketing firm create a billboard ad for your company to be displayed on the side of the road. These types of marketing costs are also deductible.

- Internet/search engine marketing

The Internet is a fantastic 21st-century marketing tool. You may want a “.com” or “.mobi” website for your small business. You may choose to utilize Google AdWords or create banner ads on relevant sites as a way of driving traffic to your own website. Search engines like Google, Bing, and Yahoo offer other search engine marketing tools as well. Most forms of Internet marketing cost something, so you can deduct your online advertising costs since they’re considered a business expense.

- Social media marketing

Do you have a Facebook business page, a Twitter business account, or a LinkedIn business profile? Social media is an extremely effective and convenient way to reach your potential customers online, especially since everyone is browsing the web on every possible device these days. From Facebook ads to YouTube commercials that precede your favorite videos, social media marketing is a big industry. Thankfully, small business owners can write off these costs.

- Promotional events

If you haven’t officially launched yet, you may want to hold a “grand opening” for your new retail store or mom-and-pop restaurant. If you’re established, you may choose to hold events or attend trade shows to make others aware that you exist. Any expenses for promotional events you host or attend to get the word out about your small business are generally fully deductible.

Get more small business marketing and tax deduction tips through 1-800Accountant. Call 1-800-222-6868 or check out www.1800accountant.com.

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