If your tax bill this year felt way too high, you’re not alone—and you’re not stuck. Most business owners overpay in taxes simply because they aren’t planning taxes in advance. The good news? You can change that right now.
At King of Kings Firm, we help small business owners and professionals implement proactive tax strategies that reduce liabilities and boost profitability—legally and ethically. Planning taxes is about more than preparing a return; it’s about making smarter financial decisions throughout the year.
What Is Tax Planning (And How Is It Different From Filing)?
Tax planning is the process of analyzing your income, expenses, and opportunities year-round to legally minimize what you owe. Tax filing just reports what happened. 🔗 How the SBA explains business tax responsibilities.
If you wait until tax season to think about taxes, it’s already too late. By planning taxes now—during the year—you can:
Take advantage of deductions
Time income and expenses
Max out credits
Choose the right business structure
5 Tax Planning Strategies That Can Lower Next Year’s Bill
1. Adjust Your Business Structure
Are you still filing as a sole proprietor or single-member LLC? You could be overpaying in self-employment tax. Electing S Corporation status may save thousands annually, depending on your profit. We can help determine which is best for your company and make any necessary changes to your registration type.
2. Maximize Deductions You’re Probably Missing
The IRS allows hundreds of deductions, but most business owners miss them. Commonly overlooked ones include:
Business use of home or vehicle
Professional services (bookkeeping, legal, design)
Retirement contributions
Insurance premiums
Continuing education or certifications
💡 Tip: Don’t rely on your memory. Use a bookkeeping system (or hire one) to track everything accurately.
3. Time Income and Expenses Strategically
If your income fluctuates or you’re close to a higher tax bracket, shifting income or expenses from one year to another can reduce your overall liability. Prepay for services, defer invoices, or time bonuses.
4. Fund a Retirement Plan
Contributing to a Solo 401(k), SEP IRA, or other tax-advantaged retirement account can reduce taxable income while building long-term wealth.
5. Use Tax Credits Where You Qualify
Unlike deductions, credits reduce your tax bill dollar-for-dollar. Some business-friendly credits include:
R&D Credit (yes, even for service-based businesses)
Work Opportunity Tax Credit
Energy-efficient equipment and commercial property credits
The Best Time to Start Planning Taxes? Now.
Tax planning isn’t just for December. Starting mid-year or even Q2 can give you time to implement strategies like:
Estimated tax payments
Mid-year financial reviews
Legal restructuring
Adjusting payroll or distributions
Working with a tax advisor now gives you months of opportunity—not just weeks—to make smart moves before year-end.
Real Example: The “April Regret” Business Owner
Client Profile: A retail business owner in Georgia paid over $28,000 in taxes for 2024 and didn’t understand why. They had a profitable year but hadn’t reviewed their books once.
What We Did:
Identified $19,000 in missed deductions (marketing, contractor labor, insurance)
Reorganized them as an S Corp
Created a retirement plan and made pre-tax contributions
Shifted future payments to Q1 of the following year
The Outcome:
Their estimated tax bill for 2025? Under $11,000—plus they gained control and clarity.
Final Thoughts
If you felt caught off guard by your tax bill this year, don’t wait for the same mistake to happen again. Planning taxes now gives you the power to reduce what you owe, legally and strategically.
At King of Kings Firm, we’ll help you create a year-round strategy built around your goals, not just your receipts.
📞 Schedule a free consultation today and let’s create a better outcome for next year.
Frequently Asked Questions
Yes! Now is the best time to review what happened and implement changes while there’s still time to act.
Not at all. Solo practitioners, contractors, and small LLCs can all benefit from planning taxes to lower their tax burden.
In most cases, yes. Many clients save far more in taxes than they pay for expert help—and the peace of mind is priceless.
