Effective tax planning can save small business owners thousands of dollars annually. These strategies help you minimize your tax burden while staying fully compliant with IRS regulations.
Choosing the Right Entity
Your business structure (sole proprietorship, LLC, S-Corp, C-Corp) significantly impacts your tax obligations. An S-Corp election can save self-employment tax for qualifying businesses.
Retirement Plan Contributions
Business owners have access to powerful retirement savings vehicles. Solo 401(k) plans allow up to $69,000 in contributions, significantly reducing taxable income.
Quarterly Estimated Taxes
Proper quarterly tax planning prevents costly underpayment penalties. Work with your tax advisor to calculate accurate estimates based on projected income.
Vehicle and Equipment Deductions
Section 179 deductions and bonus depreciation allow you to deduct the full cost of qualifying equipment and vehicles in the year of purchase, rather than depreciating over time.