Business Tax Strategy
Tax · 101
Tax Strategy Basics —
What Most Business Owners Miss
Tax preparation is what your CPA does in March. Tax strategy is what you do in January — choosing entities, retirement plans, deductions, and structures that will lower next year's bill before it's due. Most business owners overpay because they only think about taxes after the year is over.
Average annual savings from proactive tax strategy
For a profitable business owner making $200K-$500K who switches from reactive prep to proactive planning. Higher-income owners save proportionally more — six and seven figures aren't unusual for owners doing $1M+ in profit.
Three buckets where business owners overpay
Entity structure
Sole proprietor vs LLC vs S-Corp vs C-Corp — they tax differently. The wrong choice can cost a six-figure earner $10K-$30K a year in unnecessary self-employment taxes alone.
Retirement plans
Most owners use a basic IRA (limit $7K). A Solo 401(k), SEP IRA, or Defined Benefit Plan can shelter $60K-$300K per year. That's federal + state taxes you don't pay this year, growing tax-deferred for decades.
Deductions and structures missed
Home office, vehicles, retirement plans for family members, Augusta Rule, HSA, accountable plans, cost segregation on real estate. Each one is worth thousands. Most owners use 3 of 20+ available.
CPA vs Tax Strategist
Your CPA prepares returns. A tax strategist designs the year. Most CPAs aren't paid to find savings — they're paid to file on time and avoid mistakes. The two roles complement each other; you need both. The strategist plans; the CPA executes.
Get a strategy review
We'll review your entity, deductions, retirement plan, and structure — and show you what changing them would save next year.
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Sources
Educational content only. Tax strategy depends on your specific situation — always consult a licensed CPA or tax attorney before implementing.