Business Tax Planning

  Why Most LLCs Overpay Taxes—And How to Fix It Now

The IRS does not reward business owners who “do their best.”
It rewards those who plan strategically.

Most LLC owners lose $5,000 to $30,000 per year simply because they:

• file taxes without planning
• take only the default deductions
• fail to structure their businesses correctly
• don’t run payroll when they should
• don’t optimize expenses
• mix personal and business finances
• avoid proactive financial review

If you want professional help, Nationwide CFO LLC provides:

• Monthly bookkeeping
• Controller oversight
• Tax planning
• Multi-entity structuring
• S-Corp conversions
• CFO strategy sessions

1. Make the S-Corp Election (If Profits Are $40K+)

If your LLC nets $40,000–$50,000, you likely qualify to pay yourself through reasonable salary + distributions, reducing self-employment tax significantly.

Savings: $6,000–$12,000+ per year

2. Deduct Home Office the RIGHT Way

The home office deduction is legitimate when documented properly.

Calculate using:

• simplified method, or
• actual expense method (usually saves more)

Include:

utilities, Wi-Fi, HOA fees, repairs, depreciation.

3. Use the Augusta Rule (IRC §280A(g))

You can rent your personal residence to your business up to 14 days per year at market rates.
The business deducts it.
You receive the income tax-free.

Savings: $2,000–$7,000 annually

4. Deduct Equipment the Year You Buy It (Section 179 & Bonus Depreciation)

If you need equipment—computers, software, tools, vehicles—2025 is the time to deduct it fully.
Section 179 and bonus depreciation allow immediate expensing of qualifying purchases.

5. Hire Your Kids the Legal Way

Paying your child a reasonable wage for legitimate work allows the business to deduct payroll—and your child pays no tax up to the standard deduction.

Savings: $2,000–$13,000 per year

6. Create a Retirement Plan for the Business

Options include:

• SEP IRA
• Solo 401(k)
• SIMPLE IRA
• Defined-benefit plan (for higher-income owners)

This reduces taxable income AND builds long-term wealth.

7. Write Off More Vehicle Costs Than You Think

With correct logs, you can deduct:

• mileage
• a portion of insurance
• repairs
• maintenance
• fuel
• lease payments

Bonus depreciation still applies to some vehicles depending on weight and usage.

8. Use Separate Entities for Separate Purposes

A holding company and operating company structure:

• improves liability protection
• optimizes tax results
• makes accounting cleaner
• allows strategic income shifting

Nationwide CFO LLC specializes in multi-entity structures.

9. Track Every Expense (Small Expenses Add Up Fast)

Commonly missed deductions:

• business meals
• software subscriptions
• marketing costs
• continuing education
• mileage
• home office expenses
• supplies & equipment

Use a business-only bank account and card.

10. Conduct Quarterly Tax Planning (Not Once a Year)

Most IRS problems come from waiting until April.
Proactive planning avoids:

• underpayment penalties
• unexpected tax bills
• incorrect entity structures

Nationwide CFO LLC provides quarterly planning sessions.

11. Clean Your Books Monthly

Clean books = lower taxes.
Messy books = higher taxes.

Accurate month-end financials give you a clear picture and reduce tax-time stress.

12. Use a CFO-Level Tax Strategy Session Annually

One strategic meeting per year can uncover:

• hidden deductions
• restructuring opportunities
• payroll optimization
• retirement plan upgrades
• IRS compliance issues
• cash flow improvements

Most business owners save thousands after one CFO review.

Want a Personalized Tax Strategy?

During your session, we will:

• review your current business structure
• identify immediate tax-saving opportunities
• evaluate whether an S-Corp is appropriate
• check for missed deductions
• analyze your books for hidden profit leaks
• answer questions about IRS compliance

You’ll walk away with a personalized Tax Roadmap.

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