Small businesses face a wide range of tax variables in 2026, making structured planning essential. Here are some ways how:

1. Explore the Qualified Business Income (QBI) Deduction

If the 20% QBI deduction remains through 2026, ensure your business structure, payroll levels, and income thresholds are tuned to maximize this benefit.

2. Reevaluate Entity Structure

Shifts in tax brackets or deduction rules may make an S‑Corp, partnership, or C‑Corp more advantageous. The start of a new tax year is a natural point for reevaluating your choice of entity.

3. Track Expenses Meticulously

Marketing, home office use, vehicle expenses, and technology upgrades are commonly underutilized deductions. Consider developing or updating an expense‑tracking system to capture every eligible dollar.

4. Invest in Retirement Plans

Solo 401(k)s, SEP IRAs, and SIMPLE IRAs offer powerful tax‑deferral opportunities. Establishing or maximizing contributions in 2026 can reduce taxable income while strengthening long‑term financial stability.