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Ever feel like tax season turns your calendar into a countdown of chaos? You're not alone—and you’re definitely not the only business owner wondering whether you're doing this tax thing “right.”

The truth is, most small business owners overpay taxes simply because they’re not optimizing their strategy. But here’s the good news: with a few proactive moves—and guidance from an experienced CPA—you can legally reduce your tax burden and keep more of what you earn.

Let’s break it down into real-world, practical strategies that can save you thousands.

1. Choose the Right Business Structure (It Matters More Than You Think)

Your business structure isn’t just a legal formality—it’s the foundation of your tax strategy.

Here’s a quick breakdown of how different structures can affect your bottom line:

• Sole Proprietorship: Simple to set up, but you’ll pay full self-employment taxes on all profits.

• LLC: Flexible and protective, but still taxed as a sole prop unless you elect differently.

• S Corporation: Allows you to split income into salary and distributions—reducing self-employment taxes.

• C Corporation: Flat 21% tax rate, but watch for double taxation on dividends.

Example: An LLC taxed as an S Corp can help a six-figure earner save over $5,000 annually on self-employment taxes by splitting income properly.

CPA Tip: Haven’t reviewed your entity type in the last year? Let’s talk. A quick restructuring might lead to major tax savings.

2. Maximize Every Deduction and Credit You Qualify For

There are a lot of legitimate business deductions—and you might be missing some.

Here are a few that small business owners often overlook:

• Home Office Deduction – Even a portion of your home used exclusively for business counts.

• Business Meals – 50% deductible when meeting clients or conducting business.

• Mileage or Auto Use – Track your business-related driving—it adds up fast.

• Office Supplies and Software – Computers, printers, accounting tools, and even Zoom subscriptions.

• Employee Retention Credit – Still available in some cases; ask your CPA to evaluate eligibility.

Keep detailed records. Use apps to track mileage, scan receipts, and log expenses. Strong documentation keeps your deductions IRS-proof.

3. Time Your Income and Expenses for Strategic Advantage

When you receive income or pay expenses matters—especially at year-end.

Here’s how this might work:

• If profits are high, prepay bills (like rent or insurance) or invest in new equipment.

• If you expect higher income next year, defer billing until January and push expenses forward.

Be cautious. This depends on whether you use cash or accrual accounting—and timing can impact your eligibility for certain deductions.

Ask your CPA to review your income timing strategy before making moves. Small adjustments now can lead to major savings later.

4. Pay Yourself Strategically—and Save for Retirement While You’re At It

Paying yourself isn't just about taking a check—it’s a tax strategy.

If you’re an S Corp owner:

• You must take a reasonable salary (IRS requirement).

• Income above that can be distributed, often with lower tax implications.

Don’t miss out on tax-deferred retirement contributions:

• Solo 401(k): Up to $69,000 in 2024 (with profit sharing).

• SEP IRA: Easy setup and can contribute up to 25% of compensation.

Example: If you contribute $30,000 to a Solo 401(k), that’s $30,000 off your taxable income this year.

5. Don’t Ignore Estimated Taxes

If you earn non-W2 income, the IRS expects you to pay taxes quarterly—not just in April.

Here’s how it works:

• Payments due in April, June, September, and January.

• Use IRS Form 1040-ES or let your CPA calculate safe-harbor amounts based on last year’s tax or this year’s projected earnings.

Avoid penalties by setting calendar alerts and staying consistent.

6. Take Advantage of Section 179 and Bonus Depreciation

Buying a business vehicle, laptop, or even upgrading your website? That could mean instant tax write-offs.

Here’s how it breaks down:

• Section 179: Deduct 100% of qualified equipment costs (up to $1.22 million in 2024).

• Bonus Depreciation: Currently at 60 percent—great for assets over the Section 179 cap or used purchases.

Examples of deductible items:

• Computers, monitors, printers

• Office furniture

• Software platforms

• Company vehicles used at least 50 percent for business
  
  

7. Don’t DIY This—Get Strategic Guidance from a Pro

A seasoned CPA doesn’t just file your taxes—they help you:

• Plan for the future

• Save legally and ethically

• Avoid IRS red flags and audits

Having a CPA in your corner means peace of mind, accurate filings, and smart planning all year—not just in June.

Take Control of Your Taxes Starting Now

There’s a difference between filing your taxes and strategically managing them. Whether you’re scaling a small business, freelancing full-time, or running a side hustle that’s starting to grow, you deserve a tax plan that works for you—not against you.

Ready to start saving?

Schedule your free tax strategy session today with our expert team.  We’ll help you keep more of your income, stay IRS-compliant, and take the guesswork out of taxes—once and for all.

>> Schedule Your Appointment Today