As a small business owner, you regularly invest in property and equipment to keep your operations running smoothly. From a new computer to a company vehicle, these assets are essential. Depreciation is a fundamental tax deduction that allows your business to recover the cost of these assets as they age. Understanding how to apply this deduction correctly is key to managing your business's finances.

Choosing the right business structure is one of the most important financial decisions you'll make as a business owner. Whether you're starting your first company, branching out with a subsidiary, or looking to restructure an existing business, the entity you select will influence everything from your taxes to your legal liability. There's no one-size-fits-all solution. The best option depends on the size of your business, how it's funded, and your long-term goals. Before you make a decision, it's smart to understand the basics of the three most common structures: LLCs, S-Corps, and C-Corps.

The last thing anyone wants is a letter from the IRS. For small business owners, though, it's not just a nuisance; communication from the IRS can bring with it very real stress, anxiety, and disruption to your daily operations. Fortunately, being aware of and understanding what might prompt an audit sets you up with a better chance of avoiding unnecessary attention in the first place. If you're a small business owner in D.C. or the surrounding area, here's what you should know about the most common IRS red flags and how to steer clear of them.