Tax Income

Evaluate your current business entity (e.g., LLC, S-Corp, C-Corp) to ensure it aligns with your tax goals. Each structure has unique tax implications, so choosing the right one can reduce your tax liability.

Identify and utilize available tax credits such as research and development (R&D) credits, energy efficiency credits, or hiring credits for certain employee groups. These can directly reduce your tax bill.

Contribute to tax-advantaged retirement accounts such as SEP IRAs, Solo 401(k)s, or SIMPLE IRAs. These contributions can lower taxable income while building your retirement savings.

Maintain detailed records of all business expenses, including office supplies, travel, meals, and utilities. Many of these expenses are deductible, which can substantially reduce taxable income.

Employing family members, such as children, in your business can provide tax savings. Their wages are deductible, and they may fall into lower tax brackets, potentially reducing overall tax liability.

Take advantage of Section 179 to deduct the full cost of qualifying equipment and software purchased for your business in the year of acquisition rather than depreciating over several years.

Small business owners may be eligible to deduct health insurance premiums for themselves, their spouses, and dependents. Explore options like Health Savings Accounts (HSAs) for additional tax benefits.

If you operate your business from home, you may qualify for a home office deduction. Deduct expenses such as rent, utilities, and maintenance proportionate to the space used exclusively for business.

Strategically defer income to the next tax year while accelerating deductible expenses into the current year. This can help reduce taxable income for the current year and improve cash flow.

Collaborate with a tax professional who specializes in small businesses. They can identify tax-saving opportunities, ensure compliance, and help you stay ahead of changes in tax laws.