How Businesses—New and Old—Can Save More on Taxes
Every business—whether it’s been around for decades or just launched last month—has something in common: taxes.
Taxes don’t care if you’re bootstrapping in year one or leading a multi-million-dollar operation. They show up every year, every quarter, without fail. And if you’re not intentional about managing them, they’ll quietly drain resources you could’ve put to better use—growth, hiring, reinvestment, or even just breathing room.
The good news? There are practical, legal, and often overlooked ways to reduce your tax burden.
Whether you’re trying to fix mistakes or prevent them in the first place, now’s a great time to look at how both seasoned and brand-new businesses can save more on taxes.
1. Structure Matters—And Can Be Changed
Many businesses are operating under a structure that once made sense, but doesn’t anymore. Maybe your LLC was fine in the early days, but now you’re pulling in multiple six figures and wondering where all your money went.
Changing your business structure could save you thousands (or more) every year.
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S Corporations can help reduce self-employment taxes.
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C Corporations might allow for retained earnings and different deduction rules.
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Partnerships have flexibility in income allocation and tax reporting.
Even newer businesses can benefit from choosing the right setup from the beginning. You don’t want to backtrack once revenue starts climbing.
Learn how to choose the best structure for doctors in 2025.
2. Leverage Retirement Plans—Even as a Startup
A Solo 401(k), SEP IRA, or even defined benefit plan can create major tax deductions while helping you build wealth. Too many small business owners skip this, thinking they’ll “wait until the business is bigger.”
Big mistake.
Even setting aside a few thousand dollars today can:
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Lower your taxable income
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Grow your savings tax-deferred
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Put you in a better position for funding your future exit
Check out required minimum distributions in retirement if you’re thinking long-term.
3. Use the Home Office and Vehicle Deductions (Correctly)
The IRS allows a deduction for business use of your home—but only if it’s used exclusively and regularly for your business. Don’t overreach, but don’t miss it either.
Same goes for vehicles.
Tracking actual expenses vs. mileage can be confusing. But if your car is essential to your business operations—delivery, client meetings, site visits—it’s worth reviewing annually.
Use this guide to heavy vehicle and home office tax deductions to avoid red flags while still getting the break.
4. Take Advantage of Travel and Meals Deductions
Business travel, if documented correctly, is deductible. So are meals with clients or team members (up to 50%).
But keep it clean:
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Always keep receipts
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Note the business purpose
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Don’t push the boundary with lavish spending
There are ways to take business vacations and deduct them if planned right.
5. Consider Captive or Private Insurance Models
Standard insurance isn’t your only option. High-earning or high-risk businesses can explore private insurance or even captive insurance models, which can offer:
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Better control over risk management
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Premium deductions
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Potential tax advantages
While these options are more complex, they’re becoming increasingly popular as tax-savvy owners realize the leverage they provide.
6. Dealing with Market Losses? Use Them
Business owners who also invest often miss the chance to offset gains with losses—both short-term and long-term.
Even if your business itself isn’t losing money, your investment portfolio might be.
See how market losses can become tax-saving opportunities.
7. Write Off Non-Clinical Work (Especially for Professionals)
Many professionals—especially in healthcare or law—earn side income through consulting, expert panels, or speaking.
These side gigs are often 1099-based, and can be a goldmine for deductions.
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Travel and lodging for presentations
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Software and subscriptions
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Legal, marketing, and admin help
Don’t miss the 1099 contractor tax guide if this applies to you.
8. Hire Family—The Right Way
You can legally pay your children to work in your business. If they’re under 18 and you’re a sole prop or partnership, you may not even have to pay payroll taxes.
It’s a win-win:
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Shifts income from your bracket to theirs
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Teaches them work ethic and financial literacy
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Keeps money in the family
Again—document everything. No ghost employees.
9. Take the QBI Deduction
The Qualified Business Income (QBI) deduction allows eligible pass-through business owners to deduct up to 20% of their qualified income.
Not all income qualifies, and high earners face phaseouts, but the savings can be substantial.
Ask your tax advisor if your business qualifies, or if restructuring can help you qualify.
10. Work with a Tax Advisor All Year—Not Just at Tax Time
A proactive tax advisor doesn’t just file your taxes—they strategize with you throughout the year.
What should they help you do?
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Restructure for tax efficiency
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Time deductions and purchases
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Plan for quarterly estimates
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Project future income scenarios
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Review investments and retirement options
A good advisor can tie it all together, helping you implement strategies like:
You don’t need to know every rule—just work with someone who does.
Final Thought: New or Old, Your Business Has Levers to Pull
Whether you’ve been running your company for 20 years or 2 weeks, tax savings are real—and they compound.
The trick is knowing what you can do, what you should do, and when to take action.
There’s no perfect time. There’s just right now.
And right now might be when you start saving more, keeping more, and building something that lasts.
FAQ: Business Tax Savings
What’s the best business structure for saving on taxes?
It depends on your income, industry, and growth goals. Many small businesses benefit from an S Corp election, but it’s not one-size-fits-all. This guide breaks down the options.
Can I deduct business travel and meals?
Yes—if they’re directly related to your business and properly documented. Save receipts and include the business purpose.
Should I open a retirement plan for my business?
Yes. Retirement plans like Solo 401(k)s or SEP IRAs reduce taxable income while helping you save. Don’t wait until “later.”
How can a tax advisor help my business?
A good advisor helps year-round, not just at filing time. They recommend strategies, plan deductions, review entity structure, and help you avoid costly mistakes.
Are there unique tax-saving options for doctors or consultants?
Yes. Many professionals miss deductions tied to 1099 income, private insurance, or non-clinical side businesses.
Ready to talk strategy? Start here.
Visit contact physiciantaxsolutions.com to schedule a consultation and learn how we can help you take control of your tax strategy today.
This post serves solely for informational purposes and should not be construed as legal, business, or tax advice. Individuals should seek guidance from their attorney, business advisor, or tax advisor regarding the matters discussed herein. physiciantaxsolutions.com assumes no responsibility for actions taken based on the information provided in this post.