4 tax moves for founder-led businesses before year-end
The worst time to think about taxes is April. By then your options are gone. Four levers worth a conversation with your accountant before December 31.
5 min read
Tax planning is a year-round sport
The worst time to think about taxes is April. By then the year is closed and your options are gone. The best tax moves happen before December 31. Here are four worth a conversation with your accountant.
1. Time your income and expenses
If you're cash-basis and having a strong year, prepaying deductible expenses or deferring December invoices to January can shift income into a lower year. Small lever, real impact.
2. Buy the equipment you actually need
Section 179 and bonus depreciation can let you deduct qualifying purchases in the year you buy them, not over five years. If a purchase was coming anyway, timing matters.
3. Fund retirement accounts
A Solo 401(k) or SEP-IRA can shelter meaningful income while building your own wealth. Founder-owned businesses often leave this on the table.
4. Revisit your entity structure
As profit grows, an S-corp election can change how much you pay in self-employment tax. It's worth re-running the math every year, not once at formation.
None of this is advice for your specific situation, it's the checklist of levers to ask about before year-end, while you still have time to pull them.
