As the end of the fiscal year approaches, smart tax planning can significantly reduce your liability and prepare your business for long-term success. Here are five key strategies every business owner should consider:
Defer Income & Accelerate Expenses
If your cash flow allows, defer income until the next tax year and prepay deductible expenses like rent, utilities, or office supplies to reduce your current-year tax burden.
Leverage Section 179 & Bonus Depreciation
Purchasing new equipment or software? Take advantage of Section 179 and bonus depreciation rules to deduct the full purchase price this year.
Review Entity Structure
Your current business entity might not be the most tax-efficient option. Reassessing your structure (LLC, S Corp, C Corp) can unlock significant savings.
Contribute to Retirement Plans
Max out contributions to SEP IRAs, Solo 401(k)s, or other qualified plans to reduce taxable income and invest in your future.
Use Tax Credits
Explore R&D tax credits, energy efficiency incentives, or hiring credits that may apply to your industry.