Business CPA

Summary of What This Blog Covers:

• Understand how your business entity structure directly impacts your taxes, liability, and long-term financial goals.
  This blog explains why the structure you started with may no longer serve you and how reevaluating it can unlock tax savings and better protect your assets as you grow.
• Explore the differences between sole proprietorships, LLCs, PLLCs, and S Corporations—what they offer, when they work, and when they don’t.
  Learn the benefits, risks, and compliance responsibilities of each structure so you can make informed decisions with the guidance of a licensed CPA.
• Discover how the right structure can reduce your tax burden and align with your growth goals.
  From self-employment tax savings with an S Corp to liability protection through an LLC, this guide shows how the right setup supports your business strategy.
• Learn why revisiting your structure is part of being a strategic, future-focused business owner.
  Whether you’re scaling, bringing on contractors, or building toward long-term wealth, this blog encourages women to regularly reassess their entity with the help of a trusted tax advisor in Austin.

As a woman business owner, you’ve already overcome one of the hardest parts: getting started. You’ve put your idea into action, navigated uncertainty, built momentum, and found your voice in a space you carved out for yourself.

But now that you’re here (whether that means consistent revenue, a growing team, or your first six-figure year) it’s time to ask a deeper, more strategic question:

Is your current business structure helping you grow, or is it quietly holding you back?

The legal structure of your business determines far more than paperwork. It directly affects your taxes, your liability, your ability to access funding, and even the long-term value of the business you’re building. And yet, it’s one of the most overlooked decisions among growing entrepreneurs, especially women, who often choose ease and affordability in the beginning without fully realizing the trade-offs.

At Insogna CPA, we specialize in supporting growth-minded women entrepreneurs from service-based consultants and creatives to licensed professionals and multi-entity founders. We help you not only understand your options but choose the one that aligns with your goals, your risk tolerance, and your vision for the future.

Let’s walk through the most common business entity structures and how to determine if yours is still the best fit.

1. Sole Proprietorship: Simple to Start, Risky to Scale

Most business owners begin here, especially those who turn a freelance project or passion into a full-time endeavor. A sole proprietorship is the default structure for anyone operating a business without formally registering it.

Why It Works (at the Start):

• No setup fees or registration required
• Easy to manage and file taxes—income flows through your personal return (Schedule C)
• Total control over decisions and business management

Why It Might Be Holding You Back:

• Unlimited personal liability. If your business faces legal action or debt, your personal assets (your home, savings, or investments) can be used to satisfy those obligations.
• Higher taxes. You pay self-employment tax (15.3%) on all business profits, in addition to income tax.
• Limited business credibility. Banks, vendors, and even clients may take sole proprietorships less seriously, making it harder to access credit or high-level opportunities.

When to Consider Switching:

• You’re making more than $50,000 in annual profit
• You’re planning to hire contractors or employees
• You want separation between your personal and business finances
• You’re ready to grow but feel like your structure is still stuck in startup mode

Many women remain sole proprietors longer than they should, not realizing they’re exposing themselves to unnecessary tax burdens and personal risk. A tax advisor in Austin or your local area can help you assess whether it’s time to level up.

2. LLC (Limited Liability Company): Protection with Flexibility

An LLC is one of the most popular and versatile structures for small business owners, especially women who are looking to protect their assets, reduce tax liability, and maintain control of their operations.

Key Benefits:

• Limited liability protection. Your personal finances are legally separate from your business liabilities.
• Tax flexibility. LLCs can be taxed as sole proprietorships, partnerships, or elect to be taxed as an S Corporation.
• Professional credibility. Forming an LLC signals to clients and partners that you take your business seriously.

Important Considerations:

• Each state has its own filing fees, annual report requirements, and franchise tax
• While LLCs require more structure than a sole proprietorship, they’re still significantly more manageable than full corporations.
• You must maintain separate bank accounts and formal accounting processes to preserve liability protection.

Ideal For:

• Coaches, consultants, freelancers, and creatives
• Women entrepreneurs with consistent revenue looking for legal protection and tax flexibility
• Anyone wanting to formalize their business for access to funding, business credit, or larger clients

Working with a small business CPA in Austin can help you structure your LLC for maximum efficiency through advising on ownership shares, tax elections, and long-term planning.

3. PLLC (Professional Limited Liability Company): Designed for Licensed Professionals

If you’re a licensed professional such as a therapist, attorney, physician, architect, or CPA, your state may require that you form a PLLC (Professional Limited Liability Company) instead of a standard LLC.

What Makes a PLLC Different:

• Like an LLC, it offers limited liability protection, but with additional regulatory oversight by your professional licensing board.
• A PLLC does not protect against malpractice. you’ll still need appropriate professional liability insurance..
• You can form a group PLLC with other licensed professionals in your field.

Required For:

• Medical professionals
• Lawyers and legal consultants
• Engineers and architects
• Licensed financial advisors or tax professionals

Understanding the nuances of PLLC formation, especially across states, is something we regularly help our clients navigate at Insogna CPA. Particularly those seeking a licensed CPA in Austin, Texas with experience in professional service firms.

4. S Corporation (S Corp): The Tax-Efficient Power Move

An S Corporation is not a separate legal entity. It’s a tax classification that can be elected by LLCs or corporations once certain requirements are met. It can be an excellent option for women entrepreneurs generating $50,000+ in annual profit who want to reduce self-employment taxes and create more sustainable cash flow.

Key Tax Benefits:

• You pay self-employment tax only on your salary, not on total business profits.
• Remaining profits can be distributed as dividends, which are not subject to payroll taxes.
• You retain limited liability protection while enhancing take-home income.

What You Need to Manage:

• You must pay yourself a reasonable salary and run payroll, even if you’re the only employee.
• You’ll have to file separate business tax returns and payroll tax forms (Form 1120-S and Form 941, among others).
• S Corps require corporate formalities, such as board resolutions, meeting notes, and shareholder records.

When It’s the Right Fit:

• You’re generating reliable income and want to lower your self-employment tax burden
• You’re expanding operations, hiring employees, or investing in larger infrastructure
• You’re thinking about bringing on investors or co-owners

An experienced Austin tax accountant can model the potential tax savings of electing S Corp status, ensuring it aligns with your income level, growth plans, and admin capacity.

5. Why Entity Structure Impacts More Than Just Your Taxes

While many business owners think of their structure as a legal or tax detail, the truth is: it’s a foundational part of your financial identity.

The structure you choose influences:

• How much tax you pay and how you’re taxed
• Whether you qualify for certain deductions or tax elections
• Whether your personal assets are protected in a lawsuit
• How investors and banks perceive your business
• Your ability to plan for succession or sale in the future

Choosing the right structure is also essential for building out your team, opening business credit lines, and filing accurate 1099 NEC forms, W9 forms, and other tax-related documentation.

At Insogna CPA, we don’t just file your returns. We offer comprehensive tax services near you that support you from entity setup through every phase of growth.

Your Structure Should Match the Season You’re In

Here’s what we tell our clients all the time: just because something worked when you started doesn’t mean it’s still right today.

If your income has increased, if your risk has grown, or if your goals have changed, it’s time to revisit your business entity with the support of a knowledgeable, proactive advisor.

As a woman entrepreneur, your structure should do more than meet basic compliance. It should:

• Reflect your success
• Support your growth
• Protect your personal finances
• Create opportunities for long-term wealth building

If your current accountant isn’t having this conversation with you, or if you’ve never taken a close look at your structure, it’s time.

Let’s Build a Foundation That Supports the Future You’re Creating

At Insogna CPA, we serve as a true financial partner to women entrepreneurs. Whether you’re shifting from a sole proprietorship to an LLC, considering an S Corp election, or navigating the unique requirements of a PLLC, we’ll guide you with clarity and care.

We offer:

• Entity selection and transition support
• Tax strategy consulting for LLCs and S Corps
• Ongoing compliance and tax preparation services
• Expert support from a certified public accountant near you
• Personalized planning that puts your goals at the center

Don’t leave your structure or your tax savings to chance.

Schedule a consultation with Insogna CPA today. Let’s make sure your business entity protects what you’ve built and positions you to keep more of what you earn...

Summary of What This Blog Covers:

• Uncovers the Most Common Tax Mistakes Entrepreneurs Make
  This blog reveals ten common ways business owners and self-employed professionals overpay on taxes from missing deductions and mixing personal expenses to overlooking asset depreciation and underutilizing retirement accounts.
  
  
• Explains Practical, IRS-Compliant Fixes for Each Mistake
  Entrepreneurs learn how to correct these tax errors with actionable solutions like switching to an S-Corp, implementing accounting tools like FreshBooks and WaveApp, or leveraging deductions for insurance, travel, and home office use.
  
  
• Highlights the Value of Working with a Strategic CPA
  The blog emphasizes the critical role of a certified public accountant in delivering proactive tax planning, entity structuring, year-round support, and multi-state compliance that DIY software and generic tax tools simply can’t provide.
  
  
• Details the Essential Tax Forms Handled by Insogna CPA
  From Form 1040 and 1065 to 1120-S, 1099-NEC, W-9s, and FBAR filings, readers get a snapshot of the key forms Insogna CPA manages for business owners. Helping them avoid errors, maximize savings, and stay fully compliant with IRS regulations.

Let’s be honest: entrepreneurs hustle. You’re leading meetings, hiring talent, chasing leads, and building something that didn’t exist before. But one of the biggest mistakes we see at Insogna CPA, a leading Austin, Texas CPA firm, is this:

You’re leaving money on the table. A lot of it.

Not because you’re careless. But because the U.S. tax system isn’t exactly user-friendly and generic tax software isn’t built for business owners with real operations, vendors, remote teams, and multiple income streams.

So whether you’re a seasoned CEO or a solopreneur scaling fast, here are 10 common ways entrepreneurs overpay on taxes and how to fix them before the IRS quietly thanks you for the donation.

1. Not Claiming the Home Office Deduction (Even When You Qualify)

If you run your business out of a home office but don’t deduct it, you’re overpaying. Plain and simple.

Why Business Owners Skip It:

• Fear of an audit (myth)
  
  
• Confusion over what’s deductible
  
  
• Software doesn’t prompt them clearly
  
  

What You Can Deduct:

• Rent or mortgage interest (pro-rated)
  
  
• Internet and utilities
  
  
• Repairs to your home office space
  
  
• Cleaning services or home insurance (portion)
  
  

How to Fix It:

• Use the simplified IRS method (based on square footage) or the actual expenses method
  
  
• Keep documentation (photos, floor plans, receipts)
  
  
• Work with a certified public accountant near you who knows how to claim this confidently without triggering red flags
  
  

A seasoned Austin, TX accountant can ensure you maximize this deduction legally, especially if you’re now permanently working from home.

2. Failing to Track Every Business Expense (Yes, Even the Small Stuff)

You’d be surprised how quickly the small stuff adds up—$15 lunches, $29 software subscriptions, $6 in parking. If it’s for the business, it’s deductible.

Why This Gets Missed:

• Lack of accounting tools
  
  
• Using personal accounts for business expenses
  
  
• Relying on memory or last-minute spreadsheets
  
  

The Fix:

• Use accounting software like FreshBooks, ZohoBooks, or WaveApp
  
  
• Maintain a dedicated business credit card or bank account
  
  
• Categorize expenses monthly, not just at year-end
  
  

Working with a small business CPA Austin entrepreneurs trust can help you keep things clean, accurate, and audit-ready.

3. Mixing Business and Personal Spending

You’re grabbing office supplies from Target, but you also pick up toothpaste. Or you use your personal card for a business dinner.

Why This Matters:

• You risk losing deductions if you can’t prove they were business-related
  
  
• Blurred lines = audit risk = stress
  
  
• It weakens your liability protection if you’re an LLC
  
  

The Fix:

• Set up separate financial accounts from day one
  
  
• Don’t mix receipts
  
  
• Reconcile monthly with the help of your CPA accountant near you
  
  

A taxation accountant can also go back and help you clean up past years because better late than never.

4. Ignoring Depreciation and Section 179 Deductions

You buy a laptop, camera, or equipment but instead of deducting it, it just… disappears from your books.

Depreciation Basics:

• Larger items should be depreciated over time
  
  
• But with Section 179, you can deduct the full cost in year one (if used more than 50% for business)
  
  

What You Might Miss:

• Business vehicle write-offs
  
  
• Office furniture or equipment
  
  
• Technology upgrades
  
  
• Leasehold improvements
  
  

A CPA in Austin, Texas will run a depreciation schedule for your business and help you choose the best timing for deductions especially if you’ve got a big year coming.

5. Overpaying in Self-Employment Taxes

Sole proprietors and single-member LLCs pay the full 15.3% self-employment tax (Social Security and Medicare) on every dollar of profit.

The Fix:

• Convert to an S-Corp and file Form 2553
  
  
• Pay yourself a reasonable W-2 salary (subject to payroll taxes)
  
  
• Take remaining income as distributions (not subject to SE tax)
  
  

This strategy can easily save $5,000 to $15,000 per year for profitable businesses and your Austin accounting firm can run the numbers to prove it.

6. Skipping Out on Retirement Contributions

Here’s a tax win with future-you written all over it.

Tax-Saving Retirement Options:

• Solo 401(k) – for solopreneurs and side hustlers
  
  
• SEP IRA – ideal for those with variable income
  
  
• SIMPLE IRA – a fit for small teams
  
  

Why It Matters:

• Contributions are tax-deductible
  
  
• It builds retirement wealth tax-deferred
  
  
• Reduces your adjusted gross income
  
  

With the guidance of a CPA certified public accountant, you can structure contributions to maximize both tax savings and long-term wealth.

7. Using the Wrong Business Entity

Still a sole proprietor even though you’re pulling six figures in profit? You’re probably overpaying.

Entities to Consider:

• LLC – Easy to form but taxed like a sole proprietor unless elected otherwise
  
  
• S-Corp – Ideal for active business owners with steady profits
  
  
• C-Corp – Best for businesses planning to raise capital or offer equity
  
  

Fix It With:

• An annual review of your entity structure
  
  
• Filing the appropriate IRS forms (like Form 1120-S)
  
  
• Advice from a chartered professional accountant who knows which structure suits your growth plans

8. Forgetting to Deduct Business Travel

Flights to conferences. Hotel stays. Rental cars. Even meals on the road. If you’re traveling for work, it’s likely deductible.

What to Track:

• Airfare, baggage fees, and transportation
  
  
• Hotel bills and lodging taxes
  
  
• Meal receipts (50% typically deductible)
  
  
• Mileage if you’re driving
  
  

Too many business owners fail to track this properly or don’t deduct it at all.

Work with your tax advisor near you to create a system, and you’ll stop leaving money on the tarmac.

9. Overlooking Insurance Deductions

You’re paying for general liability insurance, cyber coverage, and maybe health insurance too. Are you deducting them all?

What You Can Deduct:

• Health insurance premiums (for self-employed)
  
  
• Liability, errors & omissions (E&O), and malpractice coverage
  
  
• Business interruption insurance
  
  
• Cybersecurity or commercial vehicle insurance
  
  

How to Fix It:

• Gather your annual policy summaries
  
  
• Classify them properly in your accounting software
  
  
• Have your tax professional near you verify deductible eligibility
  
  

Your Austin tax accountant will make sure you’re not overlooking what could be thousands in annual deductions.

10. Filing Without Expert Guidance

This one’s the big one.

If you’re relying solely on DIY tax software, you might be saving money on a subscription—but costing yourself real cash in missed deductions, compliance mistakes, or worse… an audit.

The Fix:

• Get help from an Austin accounting service that works with business owners
  
  
• Partner with a tax consultant near you who offers year-round planning
  
  
• Avoid the April rush with quarterly reviews and proactive tax moves
  
  

A CPA firm in Austin, Texas does more than file. We help business owners thrive with insight, strategy, and real support.

Bonus: The Tax Forms We File for You (So You Don’t Have To)

• Form 1040 + Schedule C – For sole proprietors
  
  
• Form 1065 – For partnerships
  
  
• Form 1120-S – For S Corporations
  
  
• Form 2553 – To elect S-Corp status
  
  
• Form 1099 NEC / 1099-K – For contractors and platforms
  
  
• Form W-9 – For vendor setup
  
  
• Form 941 / 940 – For payroll tax compliance
  
  
• Form 1040-ES – Estimated taxes
  
  
• FBAR filing – For international accounts over $10,000
  
  

Your CPA office near you will ensure these are filed correctly, on time, and in full compliance with both federal and state tax authorities.

Let’s Stop Overpaying the IRS Together

You work hard. Your business is growing. And there’s no reason your tax strategy shouldn’t be growing with it.

At Insogna CPA, we help entrepreneurs build strategies that align with their business goals, minimize their tax liability, and create sustainable wealth.

Whether you’re running a solo operation or scaling fast with a team, our Austin CPA firm is here to guide you through every season of your business.

Book a consultation today and let’s make your taxes work as hard as you do...

Summary of What This Blog Covers:

• Compares DIY Tax Software with Strategic CPA Support for Business Owners
  This blog explores why tax software may fall short for business owners with complex tax needs, and how working with a proactive CPA can uncover bigger savings, reduce audit risk, and offer a custom strategy that scales with your business.
  
  
• Highlights the Strategic Advantages of Working with a CPA Year-Round
  From S-Corp elections to multi-state franchise tax filings, the blog explains how certified public accountants offer guidance beyond April, providing quarterly planning, real-time advice, and compliance support for businesses at any stage of growth.
  
  
• Outlines Critical Areas Where Software Misses and a CPA Delivers
  Readers will learn how CPAs go beyond basic deductions, offering insights on cost segregation, proper expense classification, tax-smart compensation, and guidance on IRS forms like 1099s, 1065s, 1120-S, FBAR, and more.
  
  
• Emphasizes the Role of a CPA in Business Growth and Compliance
  The blog details how Insogna CPA helps entrepreneurs navigate expansions, real estate investments, remote teams, and evolving tax rules; making them a reliable tax partner for serious business owners seeking long-term savings and peace of mind.

You’ve got your business humming along. Maybe it’s a lean, bootstrapped side hustle that’s now your full-time gig, or you’re scaling fast, bringing on a team, and juggling vendors, platforms, and sales tax across multiple states.

And then tax season hits.

Suddenly, that “cheap and easy” DIY tax software you downloaded last year starts throwing around terms like Schedule C, Form 1065, 1099-NEC, and depreciation like you’re supposed to know exactly what to do.

Sound familiar?

At Insogna CPA, one of the most trusted Austin, Texas CPA firms, we’ve seen this movie before. Business owners come to us after a costly DIY detour: penalties, missed deductions, IRS notices, or just that lingering feeling that they’re not doing this quite right.

Here’s the truth: DIY software might help you file. But it can’t help you plan. And the difference? It’s often thousands of dollars.

Let’s talk about why hiring a CPA, one that actually gets how business owners operate, is one of the smartest decisions you can make.

1. Real Tax Strategy vs. Cookie-Cutter Prompts

TurboTax Free or TaxAct might help you plug in numbers, but they won’t suggest a business structure change, walk you through a self-employment tax strategy, or help you time that big purchase before year-end for a deduction.

What Software Can’t Do:

• Evaluate whether switching from LLC to S Corporation could save you $10K+ per year
  
  
• Analyze how your compensation (W-2 vs. draw vs. dividend) affects your tax bracket
  
  
• Recommend when to invest in retirement plans, vehicles, or equipment for Section 179 deductions
  
  

A certified public accountant (or better yet, a strategic CPA in Austin, Texas) builds a plan based on your goals, not just IRS checkboxes.

2. Audit Risk? Minimized. Errors? Caught. Peace of Mind? Restored.

DIY tax platforms don’t catch nuance. One incorrect category, one missing 1099-K, and suddenly you’re the star of your own IRS audit story.

Why It Matters:

• Audit flags can be triggered by misreported income, large deductions, or inconsistent filings
  
  
• DIY software isn’t liable if you mess up. It’s on you.
  
  
• Tax notices and audits cost more than just time. They drain resources and create anxiety.
  
  

What We Do:

• We review returns for red flags
  
  
• We track tax law changes state-by-state
  
  
• Our enrolled agents represent you if the IRS ever comes knocking
  
  

Ever Googled “tax pro near me who handles audits” in a panic? Let’s make sure you never have to.

3. Maximize Deductions Not Just the Obvious Ones

DIY tax software is built to surface the basics: office supplies, internet, mileage. But you didn’t launch your business to settle for basic.

Deductions Most Business Owners Miss:

• Cost segregation for real estate depreciation
  
  
• Deducting software tools like ZohoBooks, WaveApp, and FreshBooks
  
  
• Tax-smart treatment of home office expenses
  
  
• Write-offs for startup costs and business coaching
  
  
• Employer contributions to retirement plans and health reimbursement arrangements
  
  

A taxation accountant looks beyond standard deductions to help you capture every dollar possible. It’s why our clients don’t settle for TurboTax Free File or whatever “free” platform popped up in their social media feed.

4. Year-Round Guidance Beats April Panic Every Time

Tax software is reactive. A CPA firm is proactive.

Here’s the Difference:

• Software is there for you in April. That’s it.
  
  
• A CPA provides guidance every quarter (or every month) so there are no surprises
  
  
• We help you plan for estimated tax payments, hiring, expansion, and new revenue streams
  
  

If you’re running multiple entities, planning a real estate investment, or navigating business in multiple states, software simply won’t keep up.

And yes, we’ve had clients who used TaxFreeUSA, then called us in March with a tax bombshell. Don’t be that person.

5. Business Structure Can Save You Thousands If It’s Done Right

Stuck as a sole proprietor? Still operating as an LLC when your net profits are climbing past six figures? That’s a tax strategy problem waiting to happen.

What You Need to Know:

• Switching to an S-Corp (using Form 2553) could reduce your self-employment tax dramatically
  
  
• A C-Corp may be appropriate for raising capital, but it comes with double taxation risks
  
  
• Sole proprietors miss out on key planning opportunities and retirement contributions
  
  

What We Do:

• Review your current entity and recommend changes
  
  
• Handle S-Corp election, filings, and Form 1120-S compliance
  
  
• Help you create a compensation strategy that balances IRS compliance with tax savings
  
  

We’ve seen businesses save $8,000–$15,000 per year by switching entities. Did H&R Block near you or TurboTax Online tell you that? Nope. But a small business CPA in Austin will.

6. Handle Multi-State and Franchise Taxes the Right Way

The digital economy has no borders but the tax system? Still very state-specific.

What Business Owners Miss:

• Sales tax requirements for digital goods and drop shipping
  
  
• Franchise tax in Texas, California, and beyond
  
  
• Nexus in multiple states from remote teams or inventory storage
  
  
• Proper filing of Form 941 / 940 for payroll in different states
  
  

What We Do:

• Keep track of where you owe taxes and when
  
  
• Register your business in the right states
  
  
• File your Franchise Tax Report and state sales tax returns
  
  
• Make sure your business isn’t overpaying or underreporting
  
  

Operating in multiple states? Let a CPA near you with real multi-state tax experience guide you through it.

7. A CPA Grows with Your Business, Software Can’t

Let’s be real. You didn’t start your business to stay small.

Maybe you’re hiring. Expanding. Buying equipment. Acquiring a competitor. Selling real estate. Starting a second brand.

What Your CPA Does:

• Guides on Section 179 write-offs for vehicles and equipment
  
  
• Structures equity compensation and buy-sell agreements
  
  
• Advises on 1031 exchanges, real estate planning, or even FBAR filing for foreign holdings
  
  

Your CPA evolves as your business does. DIY software just… updates its templates.

Our team at Insogna CPA includes certified CPAs, chartered public accountants, certified general accountants, and Austin, TX accountants who are ready to grow with you no matter how fast your business moves.

Bonus: The Tax Forms We File So You Don’t Have To

Here’s what we’re filing for clients every day:

• Form 1040 + Schedule C – For sole proprietors
  
  
• Form 1065 – For partnerships
  
  
• Form 1120-S – For S Corporations
  
  
• Form 2553 – To elect S-Corp status
  
  
• Form 1099 NEC / 1099K – For contractor and platform reporting
  
  
• Form W-9 – Contractor info collection
  
  
• Form 941 / 940 – Payroll tax filing
  
  
• Form 1040-ES – Estimated tax payments
  
  
• FBAR filing – For international accounts over $10,000
  
  

Whether you’re a real estate investor, e-commerce seller, or digital agency owner, we ensure nothing slips through the cracks.

Why Business Owners Trust Insogna CPA Over Tax Software

We’re not here to just fill out forms. We’re your go-to Austin tax accountant, your sounding board for smart decisions, and your line of defense against preventable mistakes.

What You Get:

• A real person (or team of them), available year-round
  
  
• Strategies tailored to your business and industry
  
  
• Access to expert services accounting, multi-state compliance, and retirement planning
  
  
• Software integrations (we work with WaveApp, ZohoBooks, QuickBooks, FreshBooks, and more)
  
  

Whether you searched for a CPA office, a tax advisor near you, or you just realized that TurboTax Free is too basic for your business, we’re here to help.

Let’s Build a Tax Strategy That Works for You

DIY tax tools like TurboTax Online, TaxAct, or Jackson Hewitt near you might work for someone with one W-2 and no business income. But when you’re growing a company, you need more than software, you need strategy.

At Insogna CPA, we help you:

• Avoid tax penalties
  
  
• Maximize every legal deduction
  
  
• Stay compliant across states and tax years
  
  
• Build a strategy that grows as you grow
  
  

Ready to trade the stress of DIY for real clarity and savings?

Contact Insogna CPA today to schedule your tax strategy session. Let’s build something great without overpaying the IRS to do it...

You’ve worked hard to build your income so why let the IRS take more than its fair share? If you’re a high earner, chances are you’re paying way more in taxes than you need to. The secret? Tax strategy.

At Insogna CPA, a leading Austin, Texas CPA firm, we help high-income professionals and business owners maximize deductions, minimize tax liability, and keep more of what they earn without raising any red flags with the IRS.

Here are 10 legit ways to start slashing your tax bill today.

1. Max Out Your 401(k) and HSA Contributions (Because Free Money > Taxes)

Want an instant tax break? Contribute the max to your 401(k) and HSA before year-end.

 ✔ 401(k) Limit (2024): $23,000 ($30,500 if you’re 50+).
 ✔ HSA Limit (2024): $4,150 (individual) / $8,300 (family).

Why It Works: Contributions reduce your taxable income, grow tax-free, and in the case of an HSA, let you withdraw tax-free for medical expenses. It’s like a triple tax win!

2. Use a Backdoor Roth IRA to Beat Income Limits

Earn too much for a Roth IRA? The Backdoor Roth IRA is your loophole.

 ✔ Contribute to a traditional IRA (nondeductible).
 ✔ Convert it to a Roth IRA (watch out for conversion taxes).

Why It Works: Your money grows tax-free forever, and no required minimum distributions (RMDs) mean more control over your retirement funds.

3. Stock Options? Plan Your Moves Strategically

If you have stock options or RSUs, cashing out without a plan could cost you thousands in taxes.

 ✔ Incentive Stock Options (ISOs): Hold for at least one year after exercising to qualify for long-term capital gains rates.
 ✔ Restricted Stock Units (RSUs): Consider an 83(b) election to pay taxes upfront and lock in lower rates.

Why It Works: Strategic timing on stock sales shifts your tax burden from high ordinary income rates to lower capital gains rates.

4. Invest in Oil & Gas (Yes, Really.)

Oil & gas investments come with serious tax perks.

 ✔ Deduct up to 80% of your investment in the first year through Intangible Drilling Costs (IDCs).
 ✔ Claim a 15% depletion allowance on income generated from these investments.

Why It Works: These deductions can offset W-2 and other active income, meaning less money goes to the IRS and more stays in your pocket.

5. Use Conservation Easements to Reduce Taxable Income

Want to help preserve land and lower your tax bill? A conservation easement lets you donate land rights in exchange for major deductions.

 ✔ Deduct up to 50% of your AGI in the year of donation.
 ✔ Carry forward unused deductions for up to 15 years.

Why It Works: If you have capital gains, this strategy helps offset them legally while supporting conservation efforts.

6. Invest in Dividend-Yielding Stocks for Lower Taxes

Not all investment income is taxed equally and smart investors know how to play the game.

 ✔ Qualified dividends get taxed at 0%, 15%, or 20%—way lower than ordinary income tax rates.
 ✔ Reinvest dividends into tax-advantaged accounts to shield them from taxes.

Why It Works: Choosing qualified dividends over ordinary investment income means more money stays in your portfolio, not Uncle Sam’s.

7. Give to Charity the Smart Way (and Lower Your Tax Bill)

Giving back feels great and it can also slash your taxable income.

 ✔ Donor-Advised Funds (DAFs): Donate a lump sum today, get the deduction now, and distribute the funds over time.
 ✔ Qualified Charitable Distributions (QCDs): If you’re 70½+, donate directly from your IRA to avoid taxes on required minimum distributions (RMDs).

Why It Works: Bunching charitable donations in high-income years can maximize deductions when you need them most.

8. Optimize Your Real Estate Strategy for Tax Savings

If you own rental properties, you’re sitting on a tax-saving goldmine. You just need the right strategy.

 ✔ Depreciation Deductions: Write off the cost of your property over time to reduce taxable income.
 ✔ Cost Segregation Studies: Accelerate depreciation for bigger tax deductions upfront.
 ✔ 1031 Exchange: Sell an investment property and defer capital gains taxes by reinvesting in another property.

Why It Works: Real estate tax strategies can turn taxable income into tax-free cash flow while building long-term wealth.

9. Protect Your Wealth with Smart Estate Planning

High-net-worth individuals need a game plan for passing down wealth without getting hit with estate taxes.

 ✔ Gift up to $18,000 per year, per recipient tax-free.
 ✔ Use a Spousal Lifetime Access Trust (SLAT) to remove assets from your taxable estate.
 ✔ Grantor Retained Annuity Trusts (GRATs) pass wealth efficiently without triggering hefty taxes.

Why It Works: Estate planning keeps your wealth in your family and out of the IRS’s hands.

10. Work with a Proactive CPA Who Gets High-Income Tax Strategy

Here’s the deal: generic tax advice won’t cut it. If you’re a high-income earner, you need customized, proactive strategies that legally minimize your tax burden.

What a CPA Can Do for You:
 ✔ Personalized tax planning to match your income and investments.
 ✔ Proactive moves to lower your tax bill before year-end.
 ✔ Audit-proof deductions so you stay compliant while saving big.

Final Thoughts: Keep More of What You Earn

The reason high-net-worth individuals don’t overpay in taxes? They have a strategy.

At Insogna CPA, a trusted Austin accounting firm, we specialize in helping high-income earners keep more of their wealth through smart, legal tax planning.

📞 Want to start saving thousands in taxes? Schedule a call with Insogna CPA today and take control of your financial future...

So, you started an LLC—congrats! 🎉 You’re officially a business owner, calling the shots and building something great. But now it’s tax season, and suddenly, words like Form 1065, K-1s, and self-employment taxes are being thrown at you like a game of financial dodgeball.

Feeling overwhelmed? You’re not alone. Many LLC owners don’t realize their tax filing responsibilities until crunch time or worse, until they get a penalty notice from the IRS.

At Insogna CPA, a top Austin, Texas CPA firm, we help business owners like you navigate LLC taxes, avoid mistakes, and maximize deductions so you keep more of your hard-earned money. Let’s break it all down without the confusing tax jargon.

Why LLC Taxes Can Be Confusing (And How to Make Sense of It All)

Unlike corporations, LLCs don’t have a one-size-fits-all tax setup. The IRS doesn’t tax your LLC as an entity; instead, it decides how your business is taxed based on the number of owners (a.k.a. members).

Here’s Where Many LLC Owners Get Tripped Up:
 1️. Single-Member LLCs – The IRS treats you like a sole proprietor by default, meaning you report business income on Schedule C of your personal tax return. Simple enough.
 2️. Multi-Member LLCs – The IRS sees you as a partnership, which means you need to:

• File Form 1065 (the partnership tax return).
• Issue Schedule K-1s to each member, detailing their share of profits or losses.

The problem? Most multi-member LLC owners don’t realize they need to file Form 1065 until it’s too late. And missing that deadline? The IRS will happily charge you $220 per partner, per month in penalties.

The good news? With a little planning, you can avoid unnecessary penalties and confusion.

How to File Taxes for Your LLC the Right Way

Step 1: Know Your LLC’s Tax Setup

Before you file, figure out how the IRS sees your business.

• Single-Member LLC: You’ll file your taxes on Schedule C, attached to your personal return (Form 1040).
• Multi-Member LLC: You must file Form 1065 and send K-1 forms to your partners. They’ll report their share of business income on their personal tax returns.

Thinking about S-Corp status? If your LLC makes $50K+ in net profit, electing to be taxed as an S-Corp could save you thousands in self-employment taxes. But you need to file Form 2553 with the IRS to make it official. (We can help with that!)

Step 2: Get Your Financials in Order

Taxes are way easier when your books are clean. If you’ve been tracking expenses in a shoebox (or worse, not tracking them at all), it’s time for an upgrade.

What You’ll Need for Tax Filing:
 ✔ Profit & loss statements and expense reports.
 ✔ Bank and credit card statements.
 ✔ Payroll records (if you have employees).
 ✔ Receipts for major business expenses.

Pro Tip: If you’re using QuickBooks, Xero, or another accounting tool, make sure all your transactions are categorized correctly before tax time.

Step 3: File the Right Tax Forms (And Avoid IRS Penalties)

Here’s what you’ll need to file based on your LLC type:

Single-Member LLCs:

• Report your income & expenses on Schedule C, attached to Form 1040.
• Pay self-employment taxes (yep, you’re on the hook for Social Security & Medicare).

Multi-Member LLCs:

• File Form 1065 with the IRS by March 15.
• Issue Schedule K-1s to each partner, detailing their share of the business’s income.
• Partners must report their K-1 income on their personal tax returns.

Miss the deadline? You could be facing a $220 per partner, per month penalty from the IRS. Don’t wait until the last minute!

Step 4: Don’t Forget About State Taxes

Your federal tax return isn’t the only thing you need to worry about. Depending on where your LLC is registered, you may also owe state taxes.

State Tax Considerations for LLCs:
 ✔ Texas Franchise Tax: Texas doesn’t have personal income tax, but LLCs must file an annual franchise tax report to stay compliant.
 ✔ California LLC Fees: If you operate in CA, expect an $800 annual franchise tax, plus additional fees based on your revenue.
 ✔ Multi-State LLCs: If your business operates in multiple states, you might owe state taxes in each one.

Not sure what your state requires? A CPA in Austin, Texas (like us!) can help you figure it out.

Common LLC Tax Mistakes (And How to Avoid Them)

• Missing the Form 1065 deadline (for multi-member LLCs) = automatic IRS penalties.
• Forgetting state tax filings, leading to fees or even LLC suspension.
• Not tracking deductions properly, resulting in paying more than you owe.
• Skipping estimated tax payments, which can trigger IRS penalties.

The Fix: Work with an experienced Austin small business accountant (that’s us!) to handle the details so you can focus on actually growing your business.

Let’s Make LLC Tax Filing Easy

Filing LLC taxes doesn’t have to be stressful but waiting until the last minute can cost you. Whether you’re a single-member LLC, multi-member LLC, or considering an S-Corp election, we’ve got your back.

At Insogna CPA, a trusted Austin accounting firm, we:
 ✔ Make sure you file on time to avoid IRS penalties.
 ✔ Maximize deductions so you don’t overpay.
 ✔ Help you plan ahead so tax season is stress-free....

Don’t risk IRS penalties—schedule a consultation with Insogna CPA today and let’s make sure your LLC taxes are filed correctly!

Summary of What This Blog Covers:

• Breaks Down the Most Common Tax Mistakes Startups Make
  This blog uncovers the seven most frequent tax pitfalls startup founders fall into like missing key deductions, misclassifying income and expenses, and choosing the wrong entity structure—all of which can cost a startup thousands if not caught early.
• Explains How to Fix Each Mistake with Practical, Scalable Solutions
  From using QuickBooks Self-Employed to tracking expenses properly, to filing the right forms (like 1099-NEC, Form 2553, or Form 1040-ES), the blog offers startup-friendly solutions to make taxes more manageable and efficient for founders.
• Demonstrates Why Year-Round CPA Support Beats April-Only Tax Prep
  The blog emphasizes the value of having a proactive tax partner, especially a CPA in Austin, Texas who supports strategy, compliance, cash flow planning, and investor readiness all year long, not just during tax season.
• Outlines the Role of Insogna CPA in Supporting Startup Growth
  It highlights how Insogna CPA helps founders stay compliant, claim credits like the R&D tax credit, structure their businesses for tax efficiency, and avoid IRS penalties. Making them a go-to tax advisor for startups across Austin and beyond.

You’ve launched your startup. You’ve got your pitch deck polished, your MVP built, and maybe even a little revenue trickling in. You’re bootstrapping your way through development, juggling contractors, and optimizing every marketing dollar. But here’s something most founders don’t realize until it’s too late:

Taxes can quietly undo a lot of your hard work.

And no, we’re not talking about a couple of missed receipts. We’re talking about thousands of dollars lost in missed deductions, misclassifications, and preventable penalties. It happens all the time.

At Insogna CPA, one of the most trusted Austin, Texas CPA firms, we’ve worked with hundreds of founders and small business owners who were doing everything right except on the tax side. Whether you’re bootstrapping, scaling, or somewhere in between, knowing the most common tax pitfalls can save your startup major money.

Let’s talk about seven tax mistakes startups make all the time and how to avoid them like a pro.

1. You’re Leaving Free Money on the Table (AKA Missing Deductions)

Startups spend money. Lots of it. From software to branding to that standing desk you finally ordered after three weeks of back pain. But are you actually tracking those expenses and writing them off?

If not, you’re giving free money to the IRS.

Most Commonly Missed Deductions:

• Home office expenses (a portion of rent, Wi-Fi, and utilities)
• Software subscriptions (like Slack, QuickBooks, Canva, Notion)
• Marketing and branding costs (ad campaigns, logo design, email platforms)
• Startup and legal fees (LLC registration, incorporation, state filings)
• Business meals, mileage, and travel 

And don’t forget contractor payments. If you’ve paid a freelancer more than $600, you need to issue a 1099 NEC and collect a W9 form or risk IRS penalties.

The Fix:

• Use QuickBooks Self-Employed to track your expenses
• Store receipts digitally (Expensify, Hubdoc, etc.)
• Open a separate business bank account 
• Work with a small business CPA in Austin who understands startup cash flow

The difference between “I think I’m doing okay” and “I’m claiming every dollar I can” is often worth thousands.

2. You’re Misclassifying Income and Expenses

Here’s a pro tip: not all money that comes into your startup is revenue. Not all expenses are deductible in the same way. And if you’re misclassifying things? That’s a quick path to either overpaying taxes or raising red flags with the IRS.

Common Mistakes Founders Make:

• Recording investor capital or loan proceeds as revenue
• Not differentiating personal and business expenses 
• Paying team members through Venmo without proper documentation
• Reporting contractor pay as employee wages (hello, audit risk)

Why This Matters:

Misclassifying revenue or expenses can inflate your income, mislead potential investors, and cost you when it’s time to file Form 1040 or Form 1120-S.

What We Do:

As your CPA in Austin, Texas, we clean up your books, categorize everything correctly, and train you or your bookkeeper to keep things clean going forward.

If you’ve searched “tax preparer near me” and ended up with a one-size-fits-all firm, it’s time to upgrade.

3. You Haven’t Claimed the R&D Tax Credit (Yes, It’s for Startups Too)

Here’s one that makes founders’ jaws drop: the Research & Development Tax Credit can apply to your startup even if you’re not building medical devices or patenting technology.

If you’re creating software, testing new features, improving internal processes, or hiring developers to troubleshoot technical problems, you probably qualify.

Activities That May Qualify:

• Building or improving software applications
• Developing or testing prototypes
• Running A/B tests or algorithmic experiments
• Enhancing backend infrastructure

Why It Matters:

The R&D tax credit can offset up to $250,000 in payroll taxes annually, and you don’t even need to be profitable.

What We Do:

Our team of taxation accountants will:

• Identify qualifying projects
• Compile supporting documentation
• Handle IRS filings and compliance
• Maximize the value of your R&D tax credit

Need a tax advisor in Austin who understands SaaS, hardware, and e-commerce innovation? That’s us.

4. Your Bookkeeping Is a Disaster (or Just Doesn’t Exist Yet)

We get it. You’re building product, selling, managing users, fixing bugs, and chasing funding. Bookkeeping probably isn’t on your top 10 list.

But if you’re not keeping clean books, you’re going to:

• Miss deductions
• Panic during tax season
• Lose credibility with investors or lenders

Signs You Need Help:

• You don’t know how much profit (or loss) you made last quarter
• Your bank balances don’t match your books
• You’re using Excel for everything and praying you’re close

The Fix:

• Switch to cloud-based software like QuickBooks Self-Employed 
• Reconcile your accounts monthly, not just in March
• Use an Austin accounting service to review and organize your financials

At Insogna CPA, we offer services accounting packages that include real-time support, cleanup, and training. We’ll help you stay audit-ready and investor-friendly.

5. You Picked the Wrong Business Structure

Your business entity whether you’re an LLC, S Corporation, or C Corporation determines how your startup is taxed. Choose wrong, and you could be paying thousands more in self-employment taxes or facing double taxation.

What Founders Get Wrong:

• Staying an LLC when an S Corp election would cut their tax bill
• Choosing a C Corp without understanding the implications of double taxation 
• Registering in a state without understanding franchise tax obligations

When to Reevaluate:

• You’re earning $50,000+ in net profit
• You’re bringing on W2 employees or scaling operations
• You’re planning to raise venture capital or issue equity

What We Do:

As your certified public accountant in Austin, we:

• Handle Form 2553 (S Corp election)
• File your Form 1120-S or Form 1065 
• Analyze compensation strategy to reduce self-employment tax 

Need a CPA near you who knows startup entity structuring? Let’s make your tax structure work for your growth, not against it.

6. You’re Ignoring Quarterly Tax Payments

Founders often make the mistake of treating taxes like a once-a-year event. But for the self-employed (and that’s you, if you’re drawing income outside a W2), the IRS expects quarterly payments via Form 1040-ES.

What Happens If You Skip:

• You get hit with underpayment penalties
• You scramble to pay a huge year-end tax bill
• Your cash flow takes a serious hit

What You Should Be Doing:

• Estimate your quarterly tax payments based on real data
• Use a self-employment tax calculator to adjust payments as income changes
• Automate reminders so nothing slips through the cracks

At Insogna CPA, we integrate directly with QuickBooks Self-Employed to forecast your taxes based on actual performance not guesses. We’ll keep you compliant and cashflow-stable all year long.

7. You’re Only Thinking About Taxes in April

Last-minute tax prep is like trying to cram for a final exam in a class you didn’t attend. It might work, but you’ll be stressed, inefficient, and probably not getting the best results.

Why Year-Round Planning Matters:

• You can time deductions and shift income for maximum savings
• You’ll avoid surprises at filing time
• You’ll be ready for audits, due diligence, or capital raises

What Year-Round Planning Looks Like:

• Regular check-ins with your Austin, TX accountant 
• Ongoing monitoring of cash flow, tax liability, and filing deadlines
• Strategic planning for growth, hiring, and expansion

We’re not just here in April. Our team includes enrolled agents, certified general accountants, and chartered public accountants who build tax strategies that grow with your business.

Why Startup Founders Trust Insogna CPA

We’re not your average “tax preparer near you” firm. We’re your proactive startup tax strategist, and we understand that you don’t have time to babysit your books.

What You Get:

• Real-time support from certified CPAs, chartered professional accountants, and enrolled agents 
• A team that knows Austin accounting and startup tax strategy inside and out
• Experience with platforms like QuickBooks Self-Employed, FreshBooks, and Wave 
• Clarity around cash flow, payroll, taxes, and compliance so you can focus on growth

From Austin to the IRS, we’ve got your back.

Contact Insogna CPA today to schedule your tax strategy session. Let’s keep more money in your startup and less in Uncle Sam’s wallet.
.