How do you operate your business? As a proprietorship? A corporation? An LLC?

It makes a difference when it comes to claiming tax deductions for the cost of a cell phone. Corporations win!

Your corporation can deduct the cost of the cell phone and its usage charges when it gives you (or reimburses you for) a business-purpose cell phone. And it can do this with virtually no recordkeeping required either by the corporation or by you, the owner-employee.

Such favorable tax treatment is not available to the sole proprietor or the single-member LLC.

How Did This Happen?

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