What is the best business structure for tax savings?

An S-Corporation election can save thousands in self-employment taxes by splitting income between salary and distributions. The optimal structure depends on your income level and business type.

How can business owners deduct equipment purchases?

Section 179 allows immediate expensing of up to $1.16 million in qualifying equipment. Bonus depreciation offers additional first-year deductions on new and used property.

Tax Strategies For

Business Owners

Tax optimization for entrepreneurs and company owners

Recommended Strategies for Business Owners

Beginner

Section 179 Deduction

Immediately expense up to $1.16M in business equipment

Potential Savings: Up to $1,160,000 immediate deduction

Intermediate

Solo 401(k)

Contribute up to $69,000 per year as a self-employed individual

Potential Savings: High annual contribution ceiling with catch-up options

Intermediate

Augusta Rule (Section 280A)

Rent your home to your business tax-free for up to 14 days

Potential Savings: $5,000 - $30,000 tax-free income

Intermediate

S-Corp Tax Strategy

Save 15.3% self-employment tax by splitting income into salary and distributions

Potential Savings: 10-15% of business income

Primary Sources To Verify Before You Act

Use primary guidance and your own records before you treat any page like a final answer. These are the source layers that should drive the decision.

Current IRS forms, instructions, and publications for the relevant tax year
Your actual account statements, payroll reports, entity records, and advisor memos

Map The Right Moves For Business Owners In Before You File

The challenge runs live March 27-29, 2026, from 10 AM to 4 PM Eastern each day. It covers how to read your 2025 return, choose the right strategies for your situation, and turn them into a dated 2026 action plan.

Get Your Seat Before You File

Educational content only. Results vary based on your facts. Always consult a qualified tax professional before making decisions.