Business Planning
Business Tax Planning Strategies for Owners in 2026
Core business tax planning strategies: the QBI deduction, S corp owner pay, and retirement plan limits, with sources you can check.
Lenny Whiting
Expert insights on estate planning, asset protection, tax law, tax preparation, tax planning, bookkeeping, accounting practices, wealth management, and legal matters for businesses and individuals.
Expert insights on estate planning, asset protection, tax law, tax preparation, tax planning, bookkeeping, accounting practices, wealth management, and legal matters for businesses and individuals.
Showing 4 of 63 articles tagged with qbi-deduction
Core business tax planning strategies: the QBI deduction, S corp owner pay, and retirement plan limits, with sources you can check.
If you run a profitable pass-through business and earn $300,000 in qualified business income, the 20% QBI deduction puts $60,000 off your taxable income. At a 37% marginal rate, that's roughly $22,200 in federal tax savings — every single year. And starting in 2026, that benefit is no longer scheduled to disappear.The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, permanently extended the Section 199A deduction. What was set to sunset at the end of 2025 under the Tax Cuts and Jobs Act is now a permanent part of the tax code. That changes the planning calculus for every self-employed owner, S-corp shareholder, and LLC operator.But "permanent" doesn't mean automatic. The rules governing income thresholds, W-2 wage limitations, and entity structure choices still determine whether you capture the full 20% or walk away with a fraction of it. This guide breaks down exactly how to maximize your QBI deduction in 2026 — with step-by-step math and strategy.
The entity structure you choose for your business determines how much of your profit goes to taxes — and for entrepreneurs earning $200,000 or more, that difference can easily exceed $20,000 per year. Self-employment tax alone sits at 15.3% on the first $184,500 of net earnings in 2026, according to the Social Security Administration. The right entity structure either eliminates or dramatically reduces that liability.This guide covers the core tax treatment of LLCs, S-corps, and C-corps in 2026. It explains when each structure works best, how the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, changed the math on pass-through income, and what decisions need your attention now. The 2026 tax landscape is meaningfully different from prior years. The QBI deduction is permanent. Bonus depreciation is back at 100%. And the QSBS exclusion just got a $5 million increase.
According to the NSBA, 40% of small business owners spend 40 or more hours per year on federal taxes alone (NSBA via Business Initiative, Oct 2025). Most spend that time filing, not planning. That's the real problem. The average effective federal tax rate for small businesses sits at 19.8%, but founders who plan strategically, rather than reactively, can chip away at that number meaningfully and legally.Tax planning for small business isn't about loopholes. It's about knowing which tools the tax code already gives you and using them before December 31. These seven strategies are proven, legal, and actionable right now.Year-round tax planning overview - small business tax planning pillar guide