Here are seven ways for owners of small businesses to save money on their taxes.

Incorporate your business: If you are still a self proprietor or in a general partnership, it's time to consider incorporate your company. This would not only limit your liability, but you may be able to enjoy saving on self employment taxes and utilizing an accountable plan to lower your taxes.

Be Home Based: If possible, continue (or switch to) being a home based business. Not only will you keep your overhead down, but you will be able to write-off (or deduct) the business use of your home as well as deducting the commuting expenses as commuting expenses becomes business travel.

Income Split: Pay reasonable wages to your spouse and children. In this way, you can legally divert income taxed at your higher rate to your family members that are in a lower tax bracket.

Rearrange Your Affairs For Maximum Tax Savings: Can you make some changes to turn your hobby into a real business? Can you use that extra room in your house as a home office for your business? Can you arrange to use your car more for business purposes? Can you arrange for more of your travel expenses to be business related?

Document Your Expenses Well: Do you document your expenses well so that they would survive an IRS audit? Have you kept a mileage log so that you can prove the percentage business use you claim for your vehicle? Have you kept receipts for all your meals and entertainment expenses and listed the business purpose on the back of each receipt?

Be Punctual: File all returns and pay all taxes due (income, payroll, sales, et cetera) on time. This way, you avoid expensive late filing (and payment) penalties and interest.

Develop a Tax Planning Mindset: Some people only worry about their taxes during tax season. However, you will save a fortune in taxes, legally, if you make tax planning your year-round concern. For example, do you make business and personal purchases, investments, and other expenditures with tax savings in mind?