Smart Tax Tips for Small Business Owners: Save More in 2025

Written By LaTasha Carter

Running a small business comes with many responsibilities — from managing employees to serving customers and growing your bottom line. But one area many business owners overlook until it’s too late is tax planning.

At LC Taxes and More, LLC, we specialize in helping small businesses keep more of what they earn. Here are some smart, actionable tax-saving strategies that can help reduce your 2025 tax liability and strengthen your financial foundation.

1. Choose the Right Business Structure

Your entity type affects your taxes. If you're operating as a sole proprietor, consider whether switching to an LLC or S-Corp could save you money. For example:

  • S-Corps allow business owners to take part of their income as distributions, potentially lowering self-employment taxes.

  • LLCs offer flexibility and separation of personal and business finances.

Tip: Schedule a consultation with a tax professional to evaluate if your current structure is the most tax-efficient.

2. Keep Detailed, Year-Round Bookkeeping

Accurate records make it easier to claim deductions, track income, and avoid IRS red flags.

  • Use tools like QuickBooks Online or work with a bookkeeper to categorize expenses monthly.

  • Track all business-related purchases — even small ones add up!

  • Keep digital receipts and documentation for every deduction.

Bonus: Good records also speed up tax prep, reduce errors, and can be vital if you're ever audited.

3. Maximize Business Deductions

Some commonly overlooked deductions include:

  • Home office expenses (a portion of rent, utilities, and internet)

  • Vehicle use (mileage or actual expenses)

  • Business meals (50% deductible with proper documentation)

  • Professional services like legal, bookkeeping, and tax prep fees

  • Marketing and advertising costs, including website expenses and social media ads

4. Hire Family Members or Independent Contractors

Hiring your children or spouse (if they legitimately help in your business) can be a strategic move. Wages paid to your children (under 18) from a sole proprietorship may be exempt from Social Security and Medicare taxes.

Using 1099 contractors instead of full-time employees can also reduce payroll taxes — but be sure they meet the legal requirements of a contractor to avoid IRS penalties.

5. Consider Retirement Contributions

Small business owners can contribute to retirement plans like:

  • SEP IRA

  • Solo 401(k)

  • Simple IRA

These contributions are tax-deductible and help you build wealth for the future.

6. Deduct Health Insurance Premiums

If you’re self-employed and not eligible for an employer-sponsored plan, your health insurance premiums may be deductible, along with qualified long-term care insurance and health savings account (HSA) contributions.

7. Take Advantage of Bonus Depreciation & Section 179

Purchased new equipment, computers, or furniture? You may be able to deduct the full cost upfront rather than depreciating it over several years — lowering your tax bill significantly in the year of purchase.

8. File on Time and Make Estimated Payments

Avoid penalties by:

  • Filing your taxes or requesting an extension before the deadline

  • Making quarterly estimated payments if you expect to owe more than $1,000

  • Using the safe harbor rule (100% of last year’s tax liability or 90% of this year’s) to avoid underpayment penalties

Plan Ahead — Don’t Wait Until Tax Time

Tax savings start with planning, not just filing. At LC Taxes and More, LLC, we help small business owners create year-round strategies to reduce taxes and stay compliant.

📞 Need Help Reducing Your Tax Bill?

Let’s talk about how we can help your business grow and save:

💡 Download Our Free Small Business Tax Checklist

Stay ahead of tax season! [Click here to download the checklist]

LaTasha Carter

Empowering You to Make Smart Financial Moves.

At LC Taxes and More, LLC, we’re more than just a service provider — we’re your trusted partner in financial clarity, compliance, and growth. Founded by LaTasha Carter, MBA, Certified Notary Trust Delivery Agent (CNTDA), our firm is built on a commitment to integrity, professionalism, and personalized care.

We proudly serve individuals, small businesses, estate planning attorneys, and real estate professionals with a full suite of services including:

Tax Preparation & Planning – From W-2 earners to entrepreneurs, we handle personal and business tax filings, amendments, and tax-saving strategies that keep more money in your pocket.

Bookkeeping & Accounting Services – Customized monthly bookkeeping, financial statement preparation, QuickBooks setup, and year-end readiness tailored for small businesses.

Mobile & Remote Notary Services – Specializing in estate planning documents, real estate closings, and trust delivery — with the convenience of coming to you or connecting online.

QuickBooks Training & Financial Advisory (Coming Soon) – Education and guidance to help you understand your numbers and grow confidently.

With nationwide remote services and mobile support throughout Lake Dallas and surrounding areas, we’re here to simplify the financial side of your life and business — so you can focus on what matters most.

https://www.lctaxesandmorellc.com
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