The deadline-week scramble costs owners thousands. Here is what to handle before December 31 to keep more of what you earn.
Most business owners think about taxes in April. By then, the moves that matter are already gone. The real savings happen before December 31.
1. Time your income and expenses
If you use cash-basis accounting, you can often shift income into next year and pull deductible expenses into this one. A small timing change can meaningfully lower this year’s bill.
2. Revisit your entity structure
If you are profitable and still a sole proprietor or single-member LLC, an S-corp election may save you thousands in self-employment tax. The window to plan it is now, not at filing.
3. Fund retirement accounts
A Solo 401(k) or SEP-IRA can shelter a large chunk of profit while building your future. Contribution limits are generous for owners.
These are starting points, not advice for your exact situation. A quick planning call before year-end usually pays for itself many times over.