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Essentially, a net operating loss arises when the amount of a current business loss is greater that what can be used in the current year (i.e., greater than taxable income), it becomes a net operating loss (NOL). Until now, if you had $1 million in revenue and $1.6 million in expenses, the $600,000 loss passed through to you would be deductible on your return (limited by your basis in the business). This is the excess of business deductions for the year over the sum of (1) gross income or gain from the business, plus (2) $250,000 for singles or $500,000 for joint filers (with these dollar amounts adjusted for inflation after 2018). So continuing the example I started earlier, under the new loss limit, instead deducting $600,000 in 2018, assuming you’re single, you’d only be able to write off $350,000 ($1.6 million – [$1 million + $250,000]).

Some small business owners may think about perks as meaning stock options, sabbaticals, athletic club memberships, and company cafeterias (some of the perks offered by some large employers). Allowing employees to work from home—some or all of the time—may be highly prized even though it may actually save the company money (e.g., needing to rent less space because of remote workers). For example, a recent Accountemps survey of job candidates found that professional development and training was especially important to younger workers (ages 18 to 34). Of course, it’s a good idea to address health coverage, retirement plan contributions, and paid leave options, all of which can be pricey.

Employees cost more because of payroll taxes and benefits, but bring things to the company that can’t be had with independent contractors: longevity, loyalty, opportunities for promotion, and in some cases, special tax breaks (e.g., tax credits for hiring workers from targeted groups, paying for health coverage, and paying wages while on family or medical leave). Even if you don’t need additional employees, you can use cash to help your current staff: If you can stash cash now, you can use your own funds for growth or other purposes and minimize or avoid the need for commercial borrowing. Doing so gives you a current tax break and the ability to build up tax-deferred income (or tax-free income depending on the retirement plan), as well as a penalty for tapping tap funds too early, which are sound incentives for this type of savings.

The deadline for filing your business’s 2017 return (and where required, furnishing owners with Schedule K-1 Assuming you report on a calendar year as most small businesses do, then if you’re a: * Partnership (or limited liability company filing a partnership return, the due date this year is March 15, 2018 * S corporation, the due date this year is March 15, 2018 * C corporation, the due date is April 17, 2018 * Sole proprietorship, one-member LLC treated as a disregarded entity, or an independent contractor, the due date this year is April 17, 2018 If, for any reason, you can’t meet this deadline, just ask for a filing extension by the deadline. So keep copies of your return, proof of filing (e.g., the IRS’s acknowledgment that your electronically-filed return was accepted), and proof of the positions you’ve taken on your return (e.g., receipts, expense accounts, and other documentary evidence).