Essential Tax Strategies for Business Owners

Most business owners overpay in taxes—not because they’re doing anything wrong, but because they’re missing strategies that could legally reduce their tax bill. These aren’t loopholes. They’re smart, strategic moves that align your spending with tax savings and long-term financial growth.

10 Tax Strategies to Implement Today

Here are ten tax strategies you can start using right now:

1. Classic Deductions

Phones, laptops, software, business meals, and travel—if you’re already spending money for your business, you should be deducting it.

Tip: Review your last 90 days of credit card and bank statements to identify missed deductions.

2. Better Banking & Credit

One of the easiest ways to find more deductions is to separate business and personal accounts.

• Open a dedicated checking account and card for each business.

• Track cash purchases with digital receipts.

• Avoid commingling funds.

  
  

Result: Clean books make it easier to defend deductions and spot new opportunities.

3. Accountable Plans

Reimburse yourself for business use of personal assets—like your home office, phone, or internet—through an accountable plan.

Tip: Proper documentation lets you legally reduce your business’s taxable income without double-taxing yourself.

4. Healthcare Strategies

Solo business owners can use pre-tax dollars to pay for wellness expenses through:

• HSAs

• HRAs

• Medical expense reimbursement plans

  
  

Result: Major savings on out-of-pocket costs with tax-free treatment.

5. Auto & Equipment Deductions

Deduct the business use of your vehicle and large equipment purchases using:

• Section 179 expensing

• Bonus depreciation

• Mileage or actual expenses

  
  

Tip: Plan major purchases around year-end tax strategy meetings.

6. Self-Directed Retirement

Control your retirement with tools like:

• Solo 401(k)s

• Self-directed IRAs

  
  

These accounts let you invest in what you know (real estate, private equity, etc.)—not just the stock market.

Bonus: Contributions reduce taxable income now and grow wealth tax-deferred.

7. Self-Rentals & Entity Splits

Own the building your business operates in? Separate your operating company from your real estate entity and charge rent.

Use a proper lease (such as NNN) to avoid the self-rental trap and keep income deductible.

8. Travel Costs & Board of Advisors

Legitimate business travel is deductible—so are strategy meetings with your advisory board or partners.

• Keep agendas, meeting minutes, and receipts.

• Combine business with personal only when clearly separated.

  
  

Tip: A strong board adds legal protection and tax benefits.

9. Use the Trifecta Structure

Build wealth across three layers:

1. Personal

2. Operating Business

3. Holding Company (e.g., real estate, intellectual property, investments)

   
   

This structure allows you to optimize tax savings, liability protection, and long-term strategy.

10. Make More Money (Strategically)

Some of the best tax strategies are only available at higher income levels—if you plan ahead.

• Use growth to unlock better deductions.

• Balance income, salary, and distributions.

• Build a business that’s both valuable and tax-efficient.

  
  

The Importance of Year-Round Tax Planning

Most business owners treat taxes like a once-a-year event. However, smart tax planning is proactive, layered, and customized to your situation.

Why Year-Round Planning Matters

Year-round tax planning allows you to make informed decisions that can significantly impact your financial situation. By regularly assessing your tax strategies, you can identify opportunities for savings and ensure compliance with tax laws.

Implementing Tax Strategies

To effectively implement these strategies, consider working with a tax professional. They can help you navigate complex tax laws and tailor strategies to fit your unique business needs.

Next Step: Book a Discovery Call and learn how to reduce taxes and grow your business value.

Conclusion

By utilizing these tax strategies, you can minimize your tax liability and maximize your business's potential. Start planning today to ensure you're not leaving money on the table.