Business Networking

Want to grow your business?

There are a number of ways that you can promote yourself and your business.  In my opinion, one of the most effective methods is to network.

By going to a networking event, you are likely to meet someone who is either interested in your services or who knows someone who would be interested in your services.  Of course it is difficult to get a new customer/client based on one meeting, but it can be the first step to creating a new relationship.  I have met a number of professionals at various local events, and have followed up with them through e-mails and meetings in order to find out how we both can help each other.  You never know what chance encounter you may have at a networking event that can be a major benefit to your business.

So why I am talking about business networking in a tax blog? 

It is because the costs of business networking are tax deductible.  Like other forms of advertising, the IRS treats networking as an ordinary and necessary business expense and allows you to deduct it on your tax return.

The cost of admission to a networking event...deductible.

The cost of taking someone you met at a networking event to lunch to talk business... 50% deductible.

The dues paid to a business referral group...deductible.

The cost of traveling to a networking event or business referral group... deductible.

The requirements to claim these deductions are very simple.  First, you have to be able to prove you spent the amount you are deducting (save your receipts).  Second, you have to have had a valid business purpose.  For example, if you take someone you met at a networking event out to lunch you have to talk business with that person.  You cannot simply talk about sports and the weather.

If you have any tax questions, please do not hesitate to send me an e-mail.

What are some of your favorite networking events?  Please let me know in the comment section below.