Tax Planning Strategies for Small Businesses: Build Profit, Keep More
Chosen theme: Tax Planning Strategies for Small Businesses. Welcome! Here you’ll find practical, motivating guidance to reduce tax stress, boost after-tax profit, and make smarter money moves all year long. Subscribe for ongoing tips, checklists, and stories from real owners winning the tax game.
Measure your dedicated workspace, track mileage with a reliable app, and separate personal use. Choose standard mileage or actual expenses strategically. Document how each expense supports business revenue, not merely convenience.
If you run an S Corporation, reimburse yourself for legitimate expenses paid personally—like home internet, mobile phone, and mileage—under an accountable plan. Proper reimbursements convert nondeductible costs into deductible business expenses cleanly.
Attach notes to receipts: who, what, where, and why. That context saves hours during audits and year-end reviews. Comment below with your favorite recordkeeping tool, and we’ll feature top recommendations in our next post.
Quarterly Estimates and Cash Flow Confidence
Avoid penalties by paying at least ninety percent of current year tax or one hundred percent of last year’s liability—one hundred ten percent for higher incomes. Estimate quarterly using real results, not guesswork.
Credits and Incentives You Might Be Missing
If you refine processes, build custom software, or prototype new products, you may qualify for the research credit. A small SaaS team used meticulous time tracking to offset payroll taxes, freeing cash for marketing.
Credits and Incentives You Might Be Missing
Hiring individuals from targeted groups can generate meaningful credits. Coordinate screening on or before the offer date to qualify. One roofing company expanded its team responsibly while lowering taxes and improving training investment.
Credits and Incentives You Might Be Missing
Evaluate credits for solar, electric vehicles, and energy-efficient improvements to your facility. Some utilities offer rebates, too. Share your zip code below, and we’ll highlight programs our readers have successfully claimed nearby.
Section 179 and bonus depreciation can accelerate deductions, but spreading costs may be wiser if future income will be higher. Project multi-year profits before committing, not after the shiny machine arrives.
Depreciation, Section 179, and Bonus Moves
A café owner financed a roaster in September, used bonus depreciation to offset a strong year, and negotiated service credits. The equipment paid for itself faster thanks to careful tax timing and vendor partnerships.
Depreciation, Section 179, and Bonus Moves
Owner Pay, Benefits, and Retirement
01
Solo 401(k) and SEP-IRA Contributions
Retirement plans can create large deductions while compounding future wealth. Compare SEP simplicity with Solo 401(k) flexibility for deferrals and profit-sharing. Run contribution scenarios before year-end payroll to maximize opportunities.
02
Health Insurance and QSEHRA Options
For small teams, a Qualified Small Employer HRA can reimburse premiums tax-efficiently. Document policies, set fair allowances, and communicate clearly. Healthy teams are productive teams—and smart benefits can lower overall tax burdens.
03
Dividends, Draws, and Documentation
Separate wages from owner distributions and track basis to avoid unexpected taxes. Record minutes for major decisions. Ask your question in the comments about paying yourself—let’s workshop it together for clarity and confidence.
Year-End Checklists and Midyear Tune-Ups
Close the Books in November
Schedule a pre-close review to reconcile accounts, assess profit, and decide on equipment or charitable timing. Early action keeps choices strategic, not reactionary. Share your checklist and we’ll build a community version.
