Smart Moves: Tax Planning Strategies for Small Business Owners
Chosen theme: Tax Planning Strategies for Small Business Owners. Welcome to your practical, friendly guide to saving taxes, strengthening cash flow, and building a resilient business—all while staying compliant and confident. Subscribe for ongoing tips and real-world examples that make tax planning feel doable.
Choose the Right Business Structure for Tax Efficiency
Each structure affects payroll taxes, liability, and paperwork. An S corporation can reduce self-employment tax via reasonable salary plus distributions, while sole proprietors keep it simple but may pay more. Ask questions, run projections, and comment with your current setup.
This is the heading
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
This is the heading
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Plan for Quarterly Estimated Taxes Without Stress
Paying a percentage of last year’s tax, or most of the current year’s, can help avoid penalties. Many owners follow the 100% or 110% prior-year rule, or 90% of current. Comment if you want a quick estimator template.
Use Retirement Plans as Tax Planning Power Tools
Solo 401(k) vs SEP IRA
Solo 401(k)s can allow higher contributions at lower incomes and Roth options, while SEPs are simple and flexible for variable cash flows. Which fits you? Comment with your goals; we’ll share a comparison matrix.
Defined Benefit Plans for High Earners
Established businesses with strong profits may consider a defined benefit plan to supercharge deductions. It adds complexity but can be a powerful lever. Ask if your income stability supports it, and we’ll break down trade-offs.
Automate Contributions to Reduce Year-End Panic
Set monthly or quarterly transfers that align with revenue cycles. Automating removes decision fatigue and locks in discipline. Share your preferred schedule, and subscribe to receive our cash flow planner template.
Payroll, Worker Classification, and Compliance Essentials
If you elect S corporation status, pay yourself a reasonable salary before taking distributions. Benchmark against duties, time, and industry norms. Share your role details, and we’ll suggest research sources to support your number.
