Do you ever feel like you work really hard, but a big chunk of your money disappears at the end of the year? That’s usually because of taxes.
Think of taxes like a toll booth on a highway. Every time you make money, you have to pay a little bit to keep driving. But what if there was a map that showed you legal “shortcuts” to keep more of that money in your own pocket?
That is what Squires Tax Planning does. We help you find those shortcuts. Here are the best ways for small business owners to save money in 2026.
Pick the Right Team Name
In business, you have to pick a “structure.” It’s like picking a team name. Some names cost more than others.
- The LLC: This is where most people start. It’s simple, but sometimes you pay more in “Self-Employment tax” than you need to.
- The S-Corp: This is a special trick. If your business is making good money, turning into an S-Corp can save you thousands of dollars. Why? Because it lets you pay yourself a fair salary and take the rest of the money as a distribution, which has lower taxes.
Use the Augusta Rule (Rent Your House to Yourself)
Did you know you can rent your own house to your business for 14 days every year? It works like this: Your business pays you rent to hold a meeting at your house.
- The Business gets to count that rent as an expense (which lowers its taxes).
- You get the rent money, and the IRS says you don’t have to pay taxes on that specific income! It’s like a tax-free gift to yourself.
The New “OBBBA” Rules for 2026
There is a new set of rules called the OBBBA. It sounds like a funny word, but it’s very important. It changed how businesses buy things.
- Buying Big Stuff: If you buy a new truck, a machine, or big computers for your work, the government lets you take a “discount” on your taxes right away. This is called Bonus Depreciation.
- Researching New Ideas: If you spend money trying to build a better product or software, you can now get that tax money back much faster than before.
Hire Your Kids (Legally!)
If you have children, you can give them chores or jobs at your business like helping with social media, or modeling for photos.
- You pay them a fair wage.
- The business gets a tax deduction.
- Your kids usually don’t have to pay taxes on that money (up to about $15,000 to $16,000). It’s a great way to save for their college while lowering your tax bill today.
Don’t Wait Until April!
The biggest mistake people make is waiting until “Tax Season” to think about taxes. By then, it’s too late to change anything.
Imagine trying to win a soccer game, but you only look at the score after the game is over. You can’t change the score then! Tax Planning is like coaching during the game. We look at your money all year long to make sure you’re winning.
Summary Checklist for You:
- Check your structure: Are you an S-Corp yet?
- Plan your meetings: Can you use the Augusta Rule?
- Think about big buys: Do you need new equipment before the year ends?
- Get a coach: Talk to a pro who looks forward, not backward.
Want to see how much you could save? At Squires Tax Planning, we don’t just file forms. We build a shield around your wealth.
FAQs
1. What are the 2026 small business tax changes?
The OBBBA of 2025 made 100% bonus depreciation permanent and restored immediate R&D spending. It also raised the 1099-NEC threshold to $2,000 and increased the SALT deduction cap to $40,000 for eligible taxpayers.
2. Can I deduct 100% of equipment costs in 2026?
Yes. New laws have permanently set bonus depreciation at 100%. This allows you to deduct the full price of qualifying equipment, vehicles, and tech in the same year you buy them, rather than spreading the cost over several years.
3. How do I use the “Augusta Rule”?
Under IRS Section 280A, you can rent your home to your business for up to 14 days a year tax-free. Your business gets a deduction for the rent paid, and you don’t have to report that money as personal income.
4. When should my LLC switch to an S-Corp?
Usually, the “sweet spot” is when your business clears $60,000+ in net profit. Switching to an S-Corp allows you to save on self-employment taxes by paying yourself a salary and taking the rest as tax-advantaged distributions.
5. What is the new R&D tax break?
The Section 174A rule allows 100% immediate deduction for domestic research costs. Additionally, businesses with under $31M in revenue can now retroactively claim these deductions for the 2022–2024 tax years to get cash back.
