Business CPA

Summary of What This Blog Covers:

• Unpacks six powerful but underused tax deductions for entrepreneurs
  Breaks down how to legally claim overlooked write-offs like the home office deduction, business mileage, startup costs, and Section 179 to significantly reduce your tax bill.
  
  
• Explains key strategies like the Augusta Rule and QBID with actionable guidance
  Offers real-world insight on how to properly structure and document deductions like renting your home to your business or leveraging the Qualified Business Income Deduction.
  
  
• Covers what happens when these deductions are missed or misapplied
  Details the costly consequences of poor tracking, incomplete documentation, and tax planning gaps and how a certified public accountant can fix them.
  
  
• Shows how Insogna CPA provides expert tax strategy, not just tax prep
  Highlights how our Austin-based CPA firm helps entrepreneurs uncover savings, stay compliant, and create year-round strategies that keep more profit in their business.

You’re hustling, scaling, reinvesting, and building something that matters. The last thing you want? Overpaying taxes because you didn’t know what you could legally deduct.

Let’s call it what it is: the IRS doesn’t reward ignorance, and unfortunately, the most valuable tax breaks aren’t always obvious. They’re buried in code, loaded with fine print, and easy to miss if you don’t have a strategy.

At Insogna CPA, a full-service Austin Texas CPA firm, we specialize in helping entrepreneurs keep more of what they earn. Not just by filing taxes, but by guiding smart decisions all year long.

These six overlooked deductions could put thousands back in your pocket this year. Here’s how to identify, qualify for, and maximize each of them.

1. The Home Office Deduction: Modern and Misunderstood

Yes, you can write off that beautifully efficient corner of your home where you answer emails, lead Zoom calls, and run your business empire.

But here’s where most business owners get it wrong:

• They think it’ll raise audit flags (not true when done properly)
  
  
• They don’t know how to calculate it
  
  
• Or they simply forget about it during tax prep
  
  

Two ways to calculate:

• Simplified Method: $5 per square foot, up to 300 square feet = up to $1,500
  
  
• Actual Expense Method: Deduct a percentage of your actual home expenses including mortgage interest, rent, utilities, repairs, and insurance
  
  

Key requirements:

• The space must be exclusively used for business
  
  
• It must be used regularly
  
  
• It must be your principal place of business
  
  

A CPA near you, preferably a certified public accountant in Austin, can help determine the method that saves you the most based on your space, lifestyle, and income.

2. Business Vehicle Use and Mileage But Only If You Track It

Using your personal vehicle for business whether it’s for client meetings, picking up supplies, or heading to an event? Good news: the IRS lets you deduct those miles or vehicle expenses. But (and it’s a big but), you have to keep solid records.

In 2025, you have two deduction methods to choose from:

Standard Mileage Rate (2025)

• 70 cents per mile (updated for 2025)
  
  
• Includes fuel, maintenance, depreciation, insurance, everything is built into that flat rate
  
  
• Simple, efficient, and great if you don’t want to track every receipt
  
  

Actual Expense Method

• Track actual costs: gas, repairs, insurance, registration, depreciation
  
  
• Multiply total vehicle expenses by the percentage you used the car for business
  
  
• Typically better for newer vehicles or if you have higher maintenance and fuel costs
  
  

To qualify, the IRS expects accurate, consistent logs, not your best guess.
 Use apps like MileIQ, Everlance, or QuickBooks Self-Employed to automate tracking and keep a compliant logbook.

Not sure which method will give you the bigger deduction? A small business CPA in Austin (like us) can calculate both and help you choose the one that saves you more in taxes.

3. Section 179 and Bonus Depreciation (2025): Immediate Write-Offs for Equipment

Still think depreciation means writing off a few hundred bucks a year over a decade? That’s old news.

In 2025, Section 179 and Bonus Depreciation allow you to deduct a significant portion or even the full cost of qualifying business equipment in the year it’s placed in service. These are powerful tax tools for growing businesses investing in vehicles, machinery, or technology.

Section 179 Deduction (2025 limits):

• Deduct up to $1.22 million of qualifying business purchases
  
  
• Applies to vehicles, computers, office furniture, software, and machinery
  
  
• Asset must be purchased and in use by December 31, 2025
  
  
• You must have taxable business income—this deduction can’t create a loss
  
  

Bonus Depreciation (2025):

• Allows you to deduct 60% of the asset’s cost in year one
  
  
• Can be used even if you’re running at a loss
  
  
• Applies to new and used qualified property
  
  
• No dollar limit on the total assets you can depreciate
  
  

Bonus depreciation is currently phasing down under the Tax Cuts and Jobs Act—80% in 2023, 60% in 2025, and potentially lower in future years (unless legislation changes).

Used together, Section 179 and Bonus Depreciation can significantly reduce your 2025 tax bill if you’re investing in growth.

Need help navigating which assets qualify and how to report them? A licensed CPA in Austin, Texas (like us) can walk you through the IRS rules, handle proper classifications, and make sure you document everything to stay audit-proof.

4. The Augusta Rule: Yes, You Can Rent Your Home to Your Business

It’s obscure. It’s niche. And it’s incredibly effective when done right.

The Augusta Rule (IRS Section 280A(g)) allows you to:

• Rent your home to your business for meetings, retreats, or events
  
  
• The business deducts the rent as an expense
  
  
• You, the homeowner, receive the income tax-free, up to 14 days per year
  
  

Let’s say your home rents for $600/day. Four quarterly board meetings = $2,400 tax-free income to you, and a deduction for your business.

Rules to follow:

• You must document the meeting purpose and attendees
  
  
• Charge fair market rent (based on local short-term rental comps)
  
  
• Invoice yourself and document payments
  
  

Work with a certified CPA near you to structure this properly and ensure it withstands scrutiny. When handled right, this is a completely legal tax strategy, not a loophole.

5. QBID: The Qualified Business Income Deduction (Still Powerful in 2025 If You Qualify)

The Qualified Business Income Deduction (QBID) remains one of the most valuable tax-saving opportunities available to small business owners in 2025. But let’s be honest, it’s also one of the most misunderstood.

If you’re a sole proprietor, S Corporation owner, or partner in a pass-through entity, you may be eligible to deduct up to 20% of your qualified business income right off the top of your taxable income.

But here’s the catch: eligibility depends on your income, your industry, and how your business is structured.

2025 Income Thresholds:

• $200,000 for single filers
  
  
• $400,000 for married filing jointly
  
  

If your income is below these thresholds, you likely qualify for the full 20% deduction.

If your income is above those limits, the IRS applies restrictions based on:

• Whether your business is a Specified Service Trade or Business (SSTB) (think law, accounting, consulting, health, and financial services)
  
  
• How much your business pays in W-2 wages
  
  
• The unadjusted basis in qualified property (UBIA) held by the business
  
  

Translation: The closer you get to or cross the income threshold, the more complicated the math becomes.

6. Start-Up and Pre-Launch Costs, Claim Before You Sell a Thing

Launched a business this year? You might be sitting on thousands in deductible expenses before you even opened your doors.

The IRS allows you to deduct certain start-up costs and organizational costs, including:

• Branding, logos, and early marketing
  
  
• Market research and competitor analysis
  
  
• Legal, licensing, or incorporation fees
  
  
• Travel expenses related to business setup
  
  
• Software or tools purchased pre-launch
  
  

You can deduct:

• Up to $5,000 in startup costs
  
  
• Up to $5,000 in organizational costs
  
  
• The rest can be amortized over 15 years
  
  

Keep detailed records, and work with a tax professional near you to categorize these correctly. You can only claim these in your first year of active business so don’t miss it.

Bonus Strategy: Retirement Contributions for Small Business Owners (And the Tax Savings That Come With Them)

Let’s be honest: saving for retirement sounds like one of those things you’ll get to “someday.” But if you’re a business owner in 2025, “someday” should start today because retirement contributions are one of the most underused tax-saving tools available to entrepreneurs.

They don’t just help you build long-term wealth, they also slash your current taxable income. It’s a rare win-win in the tax world.

2025 Retirement Contribution Limits:

Solo 401(k):

• Contribute up to $23,500 as an employee (if under 50)
  
  
• Add an additional $7,500 if you’re 50 or older (total = $31,000)
  
  
• Plus, contribute up to 25% of your compensation as the employer
  
  
• Maximum total contribution: $69,000 in 2025 (or $76,500 if over 50)
  
  

SEP IRA:

• Contribute up to 25% of net self-employment earnings
  
  
• Max contribution cap for 2025: $69,000
  
  

Not sure which plan makes more sense? That’s what your Austin tax accountant is here for.

Why This Matters Right Now:

Every dollar you contribute reduces your adjusted gross income, which can:

• Lower your overall tax liability
  
  
• Increase your eligibility for deductions like the Qualified Business Income Deduction (QBID)
  
  
• Help you stay under IRS income thresholds for phaseouts and penalties
  
  

At Insogna CPA, we help business owners build custom retirement strategies that:

• Maximize contributions without overcommitting cash flow
  
  
• Integrate with your S Corp or LLC compensation structure
  
  
• Ensure proper documentation and deadlines to lock in your deduction for 2025
  
  
• Coordinate with your tax preparation services for full visibility
  
  

What Happens When You Skip Deductions Like This?

Here’s what we see far too often from businesses not working with a strategic CPA:

• Entrepreneurs overpaying $10,000+ annually by missing deductions
  
  
• Incorrect depreciation schedules on equipment costing thousands over 5 years
  
  
• Sole proprietors missing QBID due to income structure errors
  
  
• 1099 contractors getting flagged by the IRS for not submitting W-9s or mileage logs
  
  
• Clients forfeiting the Augusta Rule benefit because they didn’t document properly
  
  

These aren’t edge cases. They’re common. And they’re entirely preventable with the right certified public accountant near you, someone who goes beyond basic filing and builds a tax strategy aligned with your goals.

Why Work with Insogna CPA?

We’re not just another listing in your “tax services near me” search.

At Insogna CPA, we offer:

• CPA-led tax preparation services that go beyond data entry
  
  
• Strategic tax planning that aligns with your goals
  
  
• Deep experience with FBAR filing, Section 179 strategy, QBID, and more
  
  
• Full integration with our bookkeeping and accounting services
  
  
• Proactive communication because we don’t just show up at tax time
  
  

Whether you’re looking for a tax advisor near you, a small business CPA Austin, or just someone to help clean up last year’s missed deductions, we’re ready.

Let’s Find the Deductions You’ve Been Missing

Schedule a tax strategy review with Insogna CPA, a leading Austin CPA firm, and let’s:

• Identify missed opportunities
  
  
• Build a proactive tax plan
  
  
• Align your deductions with IRS-compliant documentation
  
  
• And keep more of your profit in your business, where it belongs
  
  

No fluff. No confusion. Just smart, clean, confident tax strategy.

Book your consultation today.
 You run the business, we’ll handle the taxes.

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Summary of What This Blog Covers:

• Compare the differences between an LLC and an S Corporation to determine which structure is right for your business: This blog breaks down how each impacts your taxes, self-employment obligations, and administrative requirements, helping business owners understand when to stick with a simple LLC and when it’s time to consider S Corp status.
  
  
• Learn how S Corp status can reduce self-employment taxes and when it actually adds cost: From paying yourself a reasonable salary to managing payroll and filing Form 1120-S, you’ll get a real-world look at how S Corps save money when your business is ready, and when they become a financial burden if elected too early.
  
  
• Understand key compliance responsibilities and IRS expectations for S Corporations: The blog walks through everything from running payroll and issuing W-2s to handling 1099 NEC forms, FBAR filing, and avoiding costly mistakes that often arise after electing S Corp status.
  
  
• Explore alternatives and get expert support from a CPA firm in Austin, Texas: Whether you’re not ready for an S Corp or you’re unsure what structure makes sense, Insogna CPA offers personalized entity evaluations, Form 2553 filing, tax planning, and full compliance support to help business owners grow with confidence.

Real Talk About Taxes, Take-Home Pay, and When to Make the Switch

Let’s take it back for a second.

You launched your business with a dream and a domain name. You chose “LLC” because, well, it seemed simple. Fast forward, and now you’re making real money. Your business is growing, your tax bills are growing, and you’re hearing a lot of buzz about switching to an S Corporation to “save on taxes.”

Maybe your friend said it. Maybe your accountant hinted at it. Maybe you’ve been Googling “tax preparer near you” at 11 p.m., wondering if you’re missing out on something big.

Before you file Form 2553 and switch your entity type, take a deep breath.

At Insogna CPA, a top-rated Austin Texas CPA firm, we’ve helped hundreds of business owners navigate this exact question:

Is it time to stay the course with your LLC, or are you ready to graduate to an S Corp?

Let’s dig into the details. This blog will help you understand when switching to an S Corp is the move, and when it just adds more headaches (and higher accounting fees).

LLC vs. S Corp: Why This Choice Matters

Choosing the right business structure isn’t just a legal formality, it impacts your:

• Taxes
  
  
• Liability
  
  
• Payroll responsibilities
  
  
• Recordkeeping
  
  
• Compliance load
  
  

The good news? Both LLCs and S Corps offer liability protection and pass-through taxation. But they come with very different compliance rules, tax strategies, and levels of effort.

Whether you’re just starting out or you’re a six-figure solopreneur, understanding the LLC vs. S Corporation breakdown is crucial.

Let’s Define the Terms

• An LLC (Limited Liability Company) is a legal entity formed at the state level.
  
  
• An S Corp is a tax classification granted by the IRS to an LLC or C Corp after filing Form 2553.
  
  

S Corp status changes how your profits are taxed but it doesn’t change your LLC’s legal structure. It’s an election, not a new company.

If you’re unsure whether an LLC or S Corp works best for your goals, a licensed CPA or tax advisor in Austin can help analyze your financials.

LLC vs. S Corp: Quick Comparison

Why Most Start with an LLC

An LLC is a low-maintenance starting point. It gives you:

• Personal liability protection
  
  
• Pass-through taxation
  
  
• No payroll requirements
  
  
• Flexibility to reinvest profits
  
  

When an LLC Makes the Most Sense:

• Your net income is under $50K
  
  
• You’re still building steady revenue
  
  
• You prefer simplicity over compliance
  
  
• You’re not ready to run payroll or file corporate returns
  
  

If you’re searching “small business CPA Austin” or “tax consultant near me” because your profit is rising but you’re not sure if it’s time to switch. We’ll help you compare, side-by-side.

When an S Corp Starts Making Sense

The biggest draw of an S Corporation? Self-employment tax savings.

Sole proprietors and LLC members pay 15.3% self-employment tax on all net profit. But S Corp owners only pay those taxes on their W-2 salary. The remaining profit, taken as distributions, isn’t taxed for Social Security or Medicare.

Real Example:

You earn $100K in net profit.

• As an LLC: You pay 15.3% on all $100K = $15,300.
  
  
• As an S Corp: Pay yourself a $50K salary (taxed normally), take the remaining $50K as distributions (not taxed for SE tax).
  Savings: ~$7,650.
  
  

When It’s Time to Consider an S Corp:

• Your net profit is $50K+
  
  
• You can justify a reasonable salary
  
  
• You’re ready for payroll, tax filings, and recordkeeping
  
  

A qualified Austin TX accountant or tax professional near you can help assess your situation.

But Wait, S Corps Have Their Own Costs

Here’s where entrepreneurs often get caught off guard. S Corps save on taxes but they come with added complexity and cost.

Required for S Corps:

• W-2 payroll (even if you’re the only employee)
  
  
• Payroll provider fees
  
  
• Quarterly payroll tax filings (Form 941, state forms)
  
  
• Form 1120-S (your separate business return)
  
  
• W-2 and 1099 filings
  
  
• Annual compliance documentation (bylaws, minutes, etc.)
  
  

Cost Estimate:
 You could spend $1,500–$3,000+ annually on payroll processing, CPA fees, and compliance filings.

Still think you’re ready? Let a certified CPA near you break it down.

The Key to S Corp Success: Reasonable Salary

Here’s where a lot of S Corps get tripped up: owners try to pay themselves next to nothing and take the rest in distributions.

Bad idea.

The IRS requires you to pay a reasonable salary before taking distributions.

What’s “Reasonable”?

• Comparable to others in your industry/role
  
  
• Reflects your workload
  
  
• Backed by market data (yes, the IRS checks)
  
  

Pay too little = red flag.
 Pay too much = no tax savings.

We help you set this up with compliant W-2 payroll that’s IRS-proof, accurate, and part of your overall tax preparation services.

Don’t Forget: Forms, Filings & FBAR

Once you elect S Corp status, your tax world changes.

You Must:

• File Form 1120-S
  
  
• Issue yourself a W-2
  
  
• Issue 1099 NEC forms to contractors
  
  
• Collect W9 tax forms from every freelancer you work with
  
  
• Report foreign bank accounts over $10K with FBAR filing (FinCEN Form 114)
  
  
• Track 1099K income if you use platforms like PayPal or Stripe
  
  

This is why so many of our clients come to us after searching “CPA office near me” or “tax help near me.” Because you’re not just running a business, you’re now running a tax-compliant corporation.

What If You’re Not Ready for an S Corp?

That’s okay. There’s more than one way to reduce your tax burden without switching to an S Corp too early.

Smart Alternatives:

• Stick with your LLC, and use a Solo 401(k) or SEP IRA to lower taxable income.
  
  
• Build a plan to hit $50K+ in net profit so that switching later will deliver maximum ROI.
  
  
• Talk to a certified general accountant or taxation accountant about multi-entity strategy or deferred tax planning.
  
  

We’re not here to rush your decision. We’re here to get it right, for the long run.

What You Get with Insogna CPA

Whether you’re operating as an LLC, already an S Corp, or unsure what any of this means, we can help.

Our Services Include:

• Entity strategy sessions (LLC vs. S Corp vs. C Corp)
  
  
• Form 2553 filing and IRS correspondence
  
  
• Reasonable salary benchmarking and W-2 setup
  
  
• Full-service tax preparation services near you
  
  
• Payroll implementation and ongoing compliance
  
  
• FBAR filing, W9 collection, and 1099 NEC issuance
  
  
• Strategic tax planning from a certified public accountant near you
  
  

We’re not just one of many Austin CPA firms. We’re a team of detail-obsessed, entrepreneur-loving tax experts who speak your language.

Final Thoughts: It’s Not Just About Tax Savings, It’s About Strategy

An S Corp isn’t a cheat code, it’s a strategic move that works best when your business is ready. If you jump in too soon, it can become an expensive, paperwork-filled mess.

If you’re scaling, earning $50K+ in net profit, and ready to level up with CPA-certified support, we’ll help you transition the right way.

And if you’re not quite there yet? No problem. We’ll help you build toward it with tax savings every step of the way.

Book Your LLC vs. S Corp Consultation Today

Stop wondering. Stop guessing.

Schedule a consultation with Insogna CPA, your go-to CPA in Austin, Texas, and let’s make sure your business structure is designed to maximize your profits not your tax bill.

Because the only thing better than growing your business… is keeping more of what you earn while doing it.

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Summary of What This Blog Covers:

• Uncover when S corporation status actually saves money and when it doesn’t: This blog explores how switching to an S Corp can reduce self-employment tax, but also shows how added payroll, compliance, and tax filing costs can cancel out savings if your net profit isn’t high enough.
  
  
• Learn how to calculate a reasonable salary and avoid IRS red flags: You’ll discover why paying yourself the right amount as an S Corp owner is critical, what the IRS expects, and how a certified public accountant can help you determine the right number based on your role and industry.
  
  
• Understand the administrative and tax filing responsibilities that come with S Corp status: From Form 1120-S and W-2s to quarterly payroll filings and FBAR reporting, this guide outlines everything you need to know before making the S Corp leap.
  
  
• Get expert guidance from a licensed CPA in Austin, Texas before filing Form 2553: The blog explains how Insogna CPA helps business owners evaluate tax structure options, file S Corp paperwork, manage compliance, and optimize their tax strategy year-round.

Let’s clear the air.

You’ve been growing your business. Maybe you’re finally seeing consistent five-figure months, or you’ve hit that six-figure stride. And naturally, you’re thinking, “Time to level up. Should I switch to an S Corp?”

Your internet search results probably tell you yes. Your favorite finance influencer says absolutely. Even your neighbor with the landscaping business swears it cut his tax bill in half.

But what if I told you they might all be… partially right and also missing the bigger picture?

At Insogna CPA, a leading CPA firm in Austin, Texas, we’ve helped hundreds of business owners assess this very question. The truth is, S Corporations can save you money but only if your business is ready. Jump in too early or without a strategy, and your S Corp may cost you more than it saves.

Let’s walk through when an S Corp is brilliant… and when it’s just a shiny tax trap in disguise.

Why Everyone Talks About S Corps and What They’re Not Saying

The S Corp strategy has gone viral in recent years, especially among self-employed professionals, consultants, and small business owners.

And to be fair, there’s a reason it gets so much attention:

“Elect S Corp status, pay yourself a salary, take the rest as distributions, and save on self-employment taxes!”

Sounds amazing, right?

The theory: as an S Corporation, your business can pay you a salary, and then you take any remaining profit as dividends or distributions—which are not subject to self-employment tax. That 15.3% you’ve been paying on all your income as a sole proprietor? Gone. Or at least reduced.

So, what’s the catch?

The Real Costs Behind S Corporation Status

Before you file Form 2553 and become an S Corp overnight, you need to know what you’re signing up for. Because for every dollar you save on self-employment tax, you could be spending more than a few cents in new compliance costs.

Here’s what switching to an S Corp really means:

1. Payroll Processing Is Mandatory

Even if you’re the only employee in your business, S Corp owners are legally required to pay themselves a reasonable salary through payroll.

That means:

• Choosing a payroll provider (Gusto, ADP, etc.)
  
  
• Withholding federal and state income tax
  
  
• Paying employer payroll taxes (Social Security + Medicare)
  
  
• Filing quarterly payroll tax forms (Form 941), W-2s, and state unemployment forms
  
  

This isn’t optional. Even a single-person S Corporation needs full payroll.

Cost Estimate: $600–$1,200/year in payroll processing and employer tax obligations

2. Your Tax Return Just Got a Lot More Complicated

Unlike a sole proprietorship or single-member LLC (which files Schedule C with your personal return), an S Corp files Form 1120-S, a separate corporate tax return.

And if you’re paying yourself a salary? That means:

• Filing a W-2 as your own employee
  
  
• Preparing a K-1 to report your business earnings
  
  
• Possibly filing state S Corp returns (even if Texas doesn’t have income tax)
  
  

More forms, more paperwork, more room for error and yes, higher CPA fees.

Cost Estimate: $1,200–$2,500/year in additional accounting and tax prep costs

3. You Have More Administrative Responsibility

Running an S Corp also means:

• Holding annual meetings (yes, even if it’s just you)
  
  
• Keeping corporate minutes and bylaws
  
  
• Opening separate bank accounts
  
  
• Being prepared for an IRS audit if your salary is questioned
  
  

This isn’t casual entrepreneurship anymore. You’re running a corporation now and that comes with legal obligations.

If you’re not ready to stay organized, this can get messy fast. That’s why having a tax advisor near you who understands your entity structure is critical.

When an S Corp Actually Makes Sense

So, with all that, is it ever worth it?

Yes, but only when the math works.

Our General S Corp Rule of Thumb:

• Under $50K in net profit? Stick with your LLC or sole proprietorship.
  
  
• $50K–$75K in net profit? Run the numbers with a CPA and evaluate the break-even point.
  
  
• $100K+ in net profit? Time to seriously consider the S Corp. You’re probably ready.
  
  

Let’s say your business earns $120,000 in net income (after expenses). As a sole proprietor, you’d owe 15.3% self-employment tax on the full amount: roughly $18,360.

As an S Corp, if you pay yourself a reasonable salary of $60,000 and take the rest as distributions, you only pay self-employment tax on the salary portion, saving you roughly $9,000.

Subtract out payroll and CPA costs, and you could still walk away with $5,000–$7,000 in real annual tax savings.

That’s not pocket change and we help our clients get there.

The Importance of a “Reasonable Salary”

Now let’s talk about the IRS’s favorite phrase: reasonable compensation.

When you’re an S Corp owner, you can’t just pay yourself $10,000 and take $90,000 in distributions. The IRS watches this closely.

The Salary Must Be:

• Similar to what someone in your industry/role would be paid
  
  
• Consistent with the hours you work
  
  
• Backed by market data or benchmarks
  
  

Pay yourself too little? Risk audit and penalties. Pay yourself too much? You erase your tax savings.

At Insogna CPA, we help you determine this salary based on IRS standards, your revenue, and your role. We also make sure your payroll, W-2s, and taxes are all filed correctly.

FBAR Filing, 1099s, and Other IRS Traps

If you operate multiple entities or handle money internationally, there’s more to think about.

Additional S Corp Responsibilities:

• Collecting W9 tax forms from all contractors
  
  
• Issuing 1099 NEC forms to anyone you pay $600+
  
  
• Receiving 1099K forms from Stripe, PayPal, or Square
  
  
• Filing FBAR (Foreign Bank Account Report) if your foreign accounts exceed $10,000
  
  

A missed filing or form, especially an FBAR, can lead to penalties of $10,000 or more.

This is why working with a licensed CPA or certified professional accountant (like our team at Insogna CPA) is crucial. You need someone who watches the fine print, so you can focus on your clients and revenue.

S Corp Alternatives to Consider

Still not sure about S Corp status? That’s okay. It’s not for everyone.

Here are a few alternatives:

• Stay a single-member LLC, and reinvest profits to grow.
  
  
• Use a solo 401(k) or SEP IRA to reduce taxable income.
  
  
• Consider an LLC taxed as a partnership if you have a co-founder.
  
  

Your business structure should match your goals, income, and capacity for compliance. At Insogna CPA, we help you compare all options, not just push the “S Corp button.”

How We Help at Insogna CPA

Here’s what you get when you work with us (besides peace of mind):

• Personalized S Corp evaluation using your real financials
  
  
• Form 2553 filing and S Corp setup, handled start to finish
  
  
• Reasonable salary calculation with IRS-compliant documentation
  
  
• Complete tax preparation services, including Form 1120-S, W-2s, and payroll
  
  
• Quarterly reviews and annual tax planning
  
  
• Filing of FBAR, 1099s, and W9s, with audit-ready records
  
  

Whether you’re searching for a tax preparer near you, a CPA near you, or just someone who actually picks up the phone when you call, we’ve got you.

Final Thoughts: Know Before You Elect

Electing S Corp status isn’t something you want to undo later. The paperwork alone will make your head spin. So get it right the first time.

If your profits are steady, your admin game is solid (or your CPA is), and your business is ready for the next level, S Corps can absolutely reduce your tax burden and increase your take-home pay.

But if you’re still building, still side-hustling, or just not ready for the extra complexity, you might be better off waiting until the numbers make sense.

Book Your S Corp Strategy Session Today

Still wondering whether an S Corp will save you money or cost you more?

Let’s find out together.

Schedule a consultation with Insogna CPA, your go-to Austin, Texas CPA, and let’s crunch the numbers, evaluate the structure, and build a tax strategy that truly fits your business.

Because the only thing better than a thriving business is a thriving business with a smart, efficient tax plan.

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Summary of What This Blog Covers:

• Discover seven commonly missed business tax deductions that can significantly lower your tax bill: From home office deductions to software subscriptions, this blog walks through practical write-offs that entrepreneurs often overlook. Each with specific IRS rules and how to track them properly.
  
  
• Learn how proper documentation and form filing protect your deductions: You’ll understand why forms like the W9, 1099 NEC, 1099K, and FBAR are essential to stay compliant and support every deduction you take—especially if you work with contractors or handle international funds.
  
  
• Understand the financial impact of missed deductions on self-employment tax and audit risk: This guide explains how failing to deduct legitimate expenses increases both income tax and self-employment tax, and why inconsistent reporting may trigger an IRS audit.
  
  
• See how Insogna CPA helps service business owners optimize deductions and tax planning year-round: As a leading CPA firm in Austin, Texas, Insogna CPA provides strategic support, from identifying deductions to filing all required tax forms, ensuring clients reduce tax liability while staying compliant.

Tired of Overpaying on Taxes? Let’s Fix That.

You and I both know that you didn’t start your business so you could become an expert in tax law. You started because you’re good at what you do. You serve your clients, solve real problems, and provide value every day.

But here’s the hard truth: you might be giving the IRS more than you legally have to.

And not because you’re doing anything wrong. But because like most business owners, you’re too busy running your business to dig through every tax code nuance or hunt down every deduction.

That’s where we come in.

At Insogna CPA, a highly-rated CPA firm in Austin, Texas, we help entrepreneurs like you find and claim the deductions they’re missing and turn tax season from a pain point into a strategic advantage.

If you’ve ever Googled “tax preparer near me” or “Austin small business accountant” and felt overwhelmed by options, don’t worry. This guide is going to walk you through seven overlooked tax deductions, why they matter, and how we help you track and maximize every last one.

What’s a Business Tax Deduction And Why Should You Care?

A business tax deduction reduces the amount of income you have to pay tax on. It’s that simple.

If your business earns $150,000 and you have $50,000 in deductible expenses, you’re only taxed on $100,000. That’s less tax paid, more money kept, and less stress next April.

The IRS requires that deductions be “ordinary and necessary” for your business. That means the expense should be common for your industry and directly connected to running your business.

Don’t worry, we help interpret what that means in real life. And trust us, the IRS isn’t going to remind you what you forgot to deduct. That’s our job.

1. Home Office Deduction

You Work From Home? Let’s Deduct It Properly.

This one causes confusion because it’s so often misused. But when done right, it’s a legitimate way to save.

What Qualifies:

• A designated area used exclusively and regularly for business
  
  
• A home office that’s your primary place of business, or where you meet clients
  
  
• A workspace used for admin or management tasks if your main work happens elsewhere
  
  

Deduction Options:

• Simplified method: $5 per square foot, up to 300 square feet
  
  
• Actual expense method: Deduct a percentage of your mortgage/rent, utilities, property taxes, and insurance
  
  

Common mistake: Trying to deduct your whole house. The IRS is not a fan of that.

How We Help:

As your Austin, TX accountant, we evaluate your space and usage, calculate the most advantageous method, and ensure everything is cleanly documented to avoid red flags.

2. Inventory Obsolescence Write-Offs

Got Dead Stock? Turn It Into a Deduction.

If you sell products, your inventory isn’t just an asset, it’s a potential tax deduction when it goes obsolete.

What’s Deductible:

• Unsellable or expired merchandise
  
  
• Inventory damaged beyond repair
  
  
• Obsolete goods that can’t be sold at full value
  
  

Requirements:

• Accurate records of cost, valuation, and write-off timing
  
  
• Clear evidence that the items no longer hold fair market value
  
  

Pro Tip: Don’t just toss inventory. Document the value drop, and record the disposal if applicable.

How We Help:

We help you determine when and how to record the write-off, and how to apply it against your income to reduce your self-employment tax liability.

3. Marketing & Advertising

Growth Isn’t Free And It’s Deductible.

If you’re not writing off your marketing costs, you’re giving up one of the easiest and most IRS-approved deductions out there.

Deductible Marketing Costs:

• Facebook, Instagram, LinkedIn, and Google Ads
  
  
• Website design, branding, logo work
  
  
• CRM tools like HubSpot or Salesforce
  
  
• SEO services and digital content production
  
  
• Print materials, signage, and promotional swag
  
  

Even the monthly Canva Pro fee counts.

How We Help:

As your tax advisor near you, we’ll help you categorize these expenses correctly in your chart of accounts, track recurring charges, and separate what’s promotional from personal.

4. Business Equipment & Depreciation

Bought Big-Ticket Items? Let’s Deduct Them Properly.

When you invest in equipment: computers, cameras, office furniture, you have options for how you deduct those costs.

Your Two Main Paths:

• Standard Depreciation: Deduct the cost over multiple years
  
  
• Section 179: Deduct the full cost in the year it’s placed in service (up to a limit)
  
  

Deductible Items:

• Office equipment and furniture
  
  
• Laptops, tablets, and work phones
  
  
• Business-use vehicles (with caveats)
  
  
• Leasehold improvements and commercial build-outs
  
  

Confused about Section 179 vs. bonus depreciation? We’ll show you the side-by-side.

How We Help:

We analyze which method will save you more based on your income, growth goals, and tax bracket and ensure it’s properly documented in your return.

5. Health Insurance Premiums for Self-Employed

Yes, You Can Deduct This If You Know the Rules.

If you’re self-employed and paying for your own health insurance, it may be 100% deductible—provided you meet the criteria.

What’s Covered:

• Health, dental, and vision insurance premiums
  
  
• Long-term care insurance
  
  
• Plans covering yourself, your spouse, and dependents
  
  

Catch: If your spouse’s employer offers you coverage, you can’t claim your own.

How We Help:

As a licensed CPA in Austin, Texas, we integrate health insurance deductions into your overall tax plan and explore whether a health savings account (HSA) or defined benefit plan could boost your savings further.

6. Business Travel & Meals

That Coffee with a Client? It Might Be Deductible.

This deduction is often misunderstood but extremely valuable when done right.

Deductible:

• Flights, hotels, rental cars, and rideshare to client sites or events
  
  
• Meals while traveling for business (50% deductible)
  
  
• Client dinners or team meals (with documentation)
  
  

Not Deductible:

• Meals on personal errands
  
  
• Spouse travel (unless they’re an employee)
  
  
• Entertainment expenses (the IRS nixed those in 2018)
  
  

How We Help:

We set up clean categories in your bookkeeping software (like QuickBooks Self-Employed) to separate personal and business travel, and show you how to meet the IRS’s documentation requirements.

7. Software & Subscriptions

Monthly Fees Are Sneaky But Deductible

From task managers to finance tools, those recurring charges are tax deductions waiting to happen.

Commonly Missed Deductions:

• QuickBooks Self-Employed, FreshBooks, Xero
  
  
• Zoom, Slack, Dropbox
  
  
• Canva, Trello, Asana, ClickUp
  
  
• Adobe Creative Cloud, design tools
  
  
• Any cloud-based software used for your business
  
  

That $15/month adds up to $180/year. Across 6–8 platforms? That’s a real tax break.

How We Help:

As your certified public accountant near you, we help track and tally these expenses automatically, so nothing gets left out of your year-end deductions.

Bonus: Forms You Can’t Afford to Ignore

Every deduction you claim must be backed by clean, accurate filings.

Critical Forms:

• W9 Form: You need this before paying a contractor
  
  
• 1099 NEC: Must be sent to any contractor earning $600+
  
  
• 1099K: You’ll get this if payment processors (like PayPal, Stripe, Square) pay you more than $600
  
  
• FBAR Filing (FinCEN Form 114): Required if your foreign accounts exceed $10,000 total during the year
  
  

Miss a form or file late? Penalties range from $50 to $10,000+ per violation.

Our certified CPAs and enrolled agents prepare and file these forms accurately and handle FBAR filing if needed.

What Happens If You Miss These Deductions?

When you skip legitimate business deductions:

• You pay more income tax than necessary
  
  
• You increase your self-employment tax burden
  
  
• You may trigger an audit due to inconsistent reporting
  
  

And worst of all, you lose money that could’ve been reinvested into your business, your retirement, or your peace of mind.

That’s why working with a proactive, detail-obsessed CPA firm in Austin, Texas (that’s us) makes all the difference.

What We Do at Insogna CPA

When you work with us, you get more than tax prep. You get:

• Year-round tax planning strategy
  
  
• Deductions customized to your business model
  
  
• Clean, IRS-compliant documentation
  
  
• Expert handling of W9 tax forms, 1099 NEC forms, 1099K income, and FBARs
  
  
• Support from a full team of certified professional accountants, chartered public accountants, and Austin tax accountants
  
  

Whether you’re looking for a tax professional near you, searching for CPA firms in Austin, Texas, or ready to work with a licensed CPA who actually understands your world, we’re here.

Final Thoughts: You Work Too Hard to Give Away Tax Money

Every dollar you don’t deduct is money you’re donating to the IRS.

But when you partner with a strategic, experienced Austin accounting service like Insogna CPA, you gain more than compliance. You gain confidence.

Schedule Your Tax Planning Session Today

Let’s make this the year you stop leaving money on the table.

Book your consultation with Insogna CPA now and let’s review your deductions, optimize your filings, and build a tax plan that works as hard as you do.

Because when your tax plan is aligned with your growth, everything gets easier.

..

Summary of What This Blog Covers:

• Understand why your current business structure might be costing you more in taxes: Many business owners stick with their original entity (like a sole proprietorship or LLC) without realizing it’s no longer the most tax-efficient option. This blog explains how restructuring, especially electing S-Corp status, can help reduce self-employment tax and optimize overall tax liability.
  
  
• Learn how to pay yourself the right way to avoid overpaying: From taking a reasonable salary under an S-Corp to reimbursing personal expenses properly and leveraging retirement contributions, this blog outlines smart compensation strategies that save money and ensure compliance.
  
  
• Avoid costly mistakes with inter-entity transactions and tax forms: Whether you own multiple businesses or work with contractors, this blog covers how to correctly document transfers, handle 1099 NEC and 1099K reporting, and manage W9 forms—all with help from a certified CPA near you.
  
  
• Stay compliant across state lines and international borders: Discover how multi-state operations and foreign financial accounts (like PayPal, Wise, or crypto) can trigger tax obligations and FBAR filing requirements, and how proactive, year-round tax planning from a trusted Austin CPA firm can keep you compliant and in control.

The Right Business Structure Can Save You Thousands

We’ve known each other a while, so let me ask you straight:

Are you still running your business with the same setup you chose when you filed your first LLC on LegalZoom… and haven’t thought about it since?

If you are and business is booming, you might be doing everything right except your tax strategy.

Because here’s the truth: choosing the wrong business structure, or not optimizing it as you grow, can cost you thousands in unnecessary taxes every single year.

At Insogna CPA, a top-rated CPA firm in Austin, Texas, we work with business owners across the service industry (consultants, creatives, agency founders, coaches, and more) who want to work smarter, not harder, when it comes to taxes.

Let’s walk through the key reasons you might be overpaying and how to build a tax-efficient structure that keeps more of your money where it belongs: in your business and your bank account.

Why Business Owners Overpay in Taxes (Without Realizing It)

It’s not that you’re ignoring the IRS—far from it. You’re filing on time. You’re trying your best with QuickBooks Self-Employed and maybe a 1099 tax calculator. But those tools aren’t telling you what you don’t know.

The Most Common Reasons You’re Overpaying:

• You’re still operating as a sole proprietor or single-member LLC, paying full self-employment tax on all your profits.
  
  
• You’ve outgrown DIY tools like TurboTax, but haven’t made the leap to work with a tax advisor near you.
  
  
• You’re paying yourself the wrong way, leaving money on the table.
  
  
• You haven’t reviewed your business structure in years.
  
  
• You own multiple businesses and are moving money between them without documentation or strategy.
  
  

These mistakes don’t just cause inefficiency, they create unnecessary risk and shrink your net income.

1. The Right Business Entity Can Save You Thousands

Let’s talk structure. Most business owners choose LLC status because it’s fast, flexible, and sounds official. But an LLC is just the beginning.

Entity Options to Consider:

• Sole Proprietor / Single-Member LLC: Simple, but you’re taxed on 100% of your profits. That means 3% self-employment tax on top of your federal income tax.
  
  
• S-Corporation: The IRS allows business owners to reduce self-employment tax by splitting their income into salary + distributions. This is where the savings come in.
  
  
• C-Corporation: Offers benefits if you’re raising capital or reinvesting in the business but watch out for double taxation.

We help you run these numbers using a self-employment tax calculator and assess when it makes sense to elect S-Corp status. If you’ve crossed the $50,000 profit mark, it’s time to evaluate.

2. How You Pay Yourself Matters A Lot

Once you’re making serious money, how you take income becomes just as important as how much you make.

Common Mistakes:

• Taking all profit as personal income (which triggers full self-employment tax)
  
  
• Paying business expenses from your personal account and not reimbursing yourself
  
  
• Forgetting to make retirement contributions, which could lower your taxable income
  
  

Smart Compensation Includes:

• A reasonable salary if you’re an S-Corp owner, issued through payroll
  
  
• Distributions for the remaining profit, which avoid self-employment tax
  
  
• An accountable reimbursement plan for personal expenses paid on behalf of the business
  
  
• Contributions to a Solo 401(k) or SEP IRA
  
  

We help clients set up compliant payroll, prepare W2 forms, and track W9 forms and 1099 NEC forms for contractors. As your certified CPA near you, we structure every payment to benefit you not the IRS.

3. Own Multiple Businesses? Don’t Overlook Inter-Entity Planning

A lot of our clients have more than one business: a consulting agency, a coaching brand, and maybe a product shop on Shopify. That’s great. But how you move money between those entities matters.

Inter-Entity Mistakes That Cost You:

• Failing to document loans or reimbursements
  
  
• Charging management fees without backing them up with actual agreements
  
  
• Misclassifying expenses, which can lead to double taxation or IRS scrutiny
  
  

What We Do:

• Help you structure intercompany transfers with clean accounting
  
  
• Document loans, fees, and reimbursements with IRS-friendly language
  
  
• Ensure you’re filing all necessary forms, including 1099 forms and keeping track of contractor payments
  
  

These are the kinds of details DIY tax software won’t catch but a chartered professional accountant at Insogna CPA will.

4. Don’t Forget the Forms, The IRS Won’t

If you’re paying contractors, processing payments through platforms, or holding money in international accounts, there are forms and filings you need to stay compliant.

Important Forms You Need to Know:

• W9 Tax Form: Collect this from any contractor you pay $600+
  
  
• 1099 NEC Form: Used to report payments to those contractors
  
  
• 1099K: If you receive payments through third-party platforms like Stripe or PayPal over $600
  
  
• FBAR Filing (FinCEN Form 114): Required if you hold more than $10,000 in foreign financial accounts (even temporarily)
  
  

Missing any of these? You could face penalties even if the error was unintentional.

Our team of tax professionals near you keeps your compliance clean and your filings current whether you operate locally or globally.

5. Multi-State? Multi-Problems… Unless You Plan Ahead

Let’s say your business is based in Texas (no income tax—high five!), but you’re selling to clients in California, New York, or Florida.

If you cross revenue thresholds in other states, you might trigger:

• Sales tax nexus
  
  
• Franchise tax obligations
  
  
• State income tax filing requirements
  
  

Every state is different. And if you’re shipping goods, teaching online, or working remotely, you may owe taxes in more places than you think.

As your Austin accounting firm, we help you:

• Register where necessary
  
  
• Stay under nexus thresholds where possible
  
  
• File appropriately when multi-state activity kicks in
  
  

6. International Accounts? You Might Need to File an FBAR

The FBAR (Foreign Bank Account Report) isn’t just for big corporations with offshore bank accounts.

If you have:

• More than $10,000 across any foreign accounts, including business checking, PayPal, or Wise
  
  
• Crypto wallets hosted on offshore exchanges
  
  
• Any joint foreign financial accounts
  
  

…you may be required to file FinCEN Form 114 annually.

Non-compliance can trigger penalties starting at $10,000 per violation.

Let a licensed CPA or enrolled agent from Insogna CPA handle this filing correctly, as part of your broader tax preparation services.

7. Tax Planning Isn’t One-and-Done

If your business is growing, your tax strategy shouldn’t be the same as last year. We see too many business owners only talk to their CPA once a year, usually in March or April, and get stuck reacting instead of planning.

What Year-Round Tax Planning Should Include:

• Quarterly Reviews: Income projections, deduction optimization, and payment planning
  
  
• Estimated Tax Payment Support: No more guessing, just clean numbers
  
  
• Retirement Contribution Strategy: Build wealth while cutting taxes
  
  
• Entity Review: Is your current setup still the most tax-efficient?
  
  
• IRS Notices: We handle those too, so you don’t have to sweat the fine print
  
  

We’re a CPA firm in Austin, Texas that believes in coaching not just compliance. You don’t just get tax prep, you get a partner.

Final Thoughts: Stop Overpaying and Structure Smarter

You’ve already put in the hard work to build a successful business. Now it’s time to make sure your structure, compensation, and compliance strategy match the level you’re operating at.

What We Do at Insogna CPA:

• Evaluate your business entity and recommend changes for tax efficiency
  
  
• Set up payroll, owner distributions, and reimbursement plans
  
  
• Handle tax filings: W9s, 1099 NECs, 1099K, FBARs, and more
  
  
• Guide you through multi-state and international compliance
  
  
• Provide proactive, year-round tax strategyno t just tax season stress
  
  

Whether you’ve been Googling “CPA near me” or asking around for a tax accountant in Austin who speaks fluent entrepreneur, we’re here for you.

Book Your Strategy Session Today

At Insogna CPA, we help small businesses across industries get their tax structures right and keep more of what they earn. Whether you’re self-employed, managing multiple LLCs, or just tired of sending more to the IRS than you need to, we’re here to help.

Schedule your consultation today with a team that doesn’t just prepare your taxes, we help you master them.

Because when your business structure works for you, your money works harder too.

..

Summary of What This Blog Covers:

• Identify the most common tax pitfalls for service-based business owners: From missed deductions to confusing sales and payroll tax rules, this guide highlights how everyday oversights can cost business owners thousands and how to fix them.
  
  
• Understand the right way to handle self-employment tax, business structure, and multi-state filings: Learn how to reduce your tax burden with the right entity setup (like an S-Corp) and stay compliant across state lines with guidance from a trusted Austin CPA.
  
  
• Know when it’s time to move beyond DIY tax software: Discover the limitations of tools like TurboTax and QuickBooks Self-Employed when your business grows, and why working with a local tax professional near you makes all the difference.
  
  
• Leverage year-round tax planning to maximize savings and avoid surprises: With proactive guidance from a small business CPA in Austin, you’ll stay ahead of quarterly taxes, navigate IRS forms like the W9 and 1099 NEC, and ensure full compliance with FBAR reporting if you hold foreign accounts.

A Straight-Talking Guide from Your Favorite Austin CPA Firm

Let’s not pretend taxes are the highlight of your business calendar.

You’ve got clients to serve, schedules to juggle, invoices to send, and maybe—just maybe—some personal time to enjoy between projects. But one thing keeps sneaking up every quarter (and especially in April): your tax bill.

And it’s often more than it needs to be.

At Insogna CPA, a leading CPA firm in Austin, Texas, we’ve helped hundreds of service-based business owners (consultants, designers, fitness professionals, agency founders, therapists, coaches) get a handle on their tax strategy, reduce their self-employment tax burden, and grow with confidence.

You don’t need to be a tax expert. You just need a clear plan and the right partner. So let’s dive in.

1. Stop Leaving Deductions on the Table

You’re Probably Missing More Than You Think

You’d be shocked how many service business owners underclaim deductions. Either out of fear, confusion, or just sheer busyness.

Top Deductions You Might Be Missing:

• Home Office Deduction: If you work from home even just one room, you may qualify to deduct a portion of your rent or mortgage, utilities, and internet.
  
  
• Business Mileage: All those drives to client meetings, networking events, supply runs? Track them. Use apps like MileIQ or QuickBooks Self-Employed.
  
  
• Marketing Expenses: Paid ads, social media consultants, branding services, SEO subscriptions… it all adds up.
  
  
• Professional Services: Fees paid to your Austin Texas CPA, legal counsel, or even a business coach are deductible.
  
  
• Software & Tools: Your Canva Pro subscription? Your scheduling platform? Your CRM or Slack premium account? Also deductible.
  
  

Want to know the most common mistake we see? Business owners paying out of pocket and never logging it. If you don’t track it, you can’t deduct it.

With guidance from a certified public accountant near you, you can build a deduction plan that keeps more cash in your account legally.

2. Understand the Difference Between Sales Tax and Payroll Tax

Confuse Them at Your Peril

Many service business owners don’t know when sales tax applies, or how to properly manage payroll tax if they’ve hired help or set up an S-Corp.

Sales Tax: Do You Need to Collect It?

• In Texas, most services are not subject to sales tax but some (like data processing, IT services, and certain repair services) are.
  
  
• If you sell products (e.g., merch, kits, eBooks), you’ll likely need to collect sales tax and remit it to the state.
  
  
• Not sure? A tax consultant near you can review your offerings and advise on compliance.
  
  

Payroll Tax: This Is a Big One

• If you pay employees or if you pay yourself a salary through an S-Corp, you’re responsible for payroll tax.
  
  
• That includes FICA taxes (Social Security and Medicare), federal and state withholding, and unemployment taxes.
  
  

The IRS is serious about payroll compliance. Penalties for misclassifying contractors or missing deposits are steep.

We help you set up compliant payroll systems, whether you’re issuing W-2s or collecting W9 tax forms from contractors.

3. DIY Tax Filing Works Until It Doesn’t

When It’s Time to Graduate from TurboTax

We love a good DIY project as much as anyone, but taxes? That’s one place where guesswork gets expensive.

Here’s Where DIY Falls Short:

• Missing Deductions: Software can’t ask the right questions about your unique service business.
  
  
• Overpaying: You might not realize you qualify for special deductions, credits, or business structures.
  
  
• Triggering Audits: Innocent mistakes like misclassifying income on a 1099 NEC form or forgetting a quarterly payment can draw attention from the IRS.
  
  
• Foreign Account Reporting: If you’re holding money abroad (yes, even through PayPal or Wise), you may owe FBAR filing
  
  

Signs You’ve Outgrown DIY Tools:

• You’re earning consistent six figures or more.
  
  
• You’re hiring contractors or employees.
  
  
• You’ve received a tax notice.
  
  
• You’re filing in multiple states or managing multiple income streams.
  
  
• You just don’t want to spend 20 hours sorting it out anymore.
  
  

That’s what a tax preparer near you is for. A good CPA doesn’t just file your taxes, they help design a strategy that grows with your business.

4. You Shouldn’t Be Thinking About Taxes Only in April

Smart Business Owners Think Ahead

Reactive tax prep is the #1 reason business owners get hit with unexpected tax bills, penalties, or missed opportunities.

We believe in year-round tax strategy not last-minute stress.

What Year-Round Planning Looks Like:

• Quarterly Reviews: We review income, deductions, and projections every 3 months before problems pop up.
  
  
• Estimated Tax Payments: We calculate your quarterly payments using your actual profit, not generic formulas.
  
  
• Deductions Calendar: From year-end equipment purchases to prepaying certain expenses, we help you time deductions for maximum impact.
  
  
• Multi-State Filing Guidance: If you’re teaching online, working remotely, or have clients in multiple states, we’ll help you navigate nexus rules.
  
  

We also track tools like the 1099 tax calculator, self-employment tax calculator, and QuickBooks Self-Employed to keep your tax plan accurate and actionable.

Bonus? You get fewer surprises and better sleep. You’re welcome.

5. Your Business Structure Should Match Your Goals

And Save You Money in the Process

Too many business owners stick with the sole proprietorship or single-member LLC they set up on day one even as revenue explodes.

That’s a mistake.

Why It Matters:

• A sole proprietor pays 3% self-employment tax on 100% of profit
  
  
• An LLC taxed as an S-Corp pays that tax only on the salary portion of income
  
  
• The rest? Taken as distributions, not subject to self-employment tax
  
  

We’ve helped clients save $5K–$25K+ annually just by switching to the right structure.

Need help deciding if an S-Corp election makes sense? We’ll run the numbers and file the paperwork. We also help set up W-2 payroll, file 1099 NEC forms, and track contractor W9 forms with total compliance.

Work with a small business CPA in Austin who knows when it’s time to shift gears and how to make it painless.

6. If You Work Across State Lines, You Might Owe More Than You Think

Welcome to the Wild World of Multi-State Tax

Selling to clients in other states? Hosting live events or digital workshops? Shipping merch or digital goods? You may have created sales tax nexus or triggered multi-state income tax filing requirements without realizing it.

What to Watch For:

• Economic nexus thresholds (usually tied to revenue or transaction volume)
  
  
• Franchise or business activity taxes in certain states (like CA or NY)
  
  
• Sales tax collection requirements if you sell physical or digital goods
  
  

Don’t assume what works in Texas works elsewhere. Every state has different rules.

Let a tax professional near you who specializes in multi-state filings help you stay compliant and avoid penalties that can stack up fast.

7. Foreign Accounts? You May Be Required to File an FBAR

Have more than $10,000 combined across foreign bank accounts, crypto platforms, or international PayPal/Wise accounts?

Then you’re likely required to file the FBAR (Foreign Bank Account Report) using FinCEN Form 114 even if you don’t owe any tax on that money.

The Problem:

• Many small business owners don’t know about FBAR rules
  
  
• The IRS takes non-compliance seriously
  
  
• Penalties for unfiled FBARs can hit $10,000+ per violation even if you didn’t know you had to file
  
  

Work with a chartered public accountant or enrolled agent who can handle both your tax preparation services and your FBAR filing requirements.

Let’s Simplify, Strategize, and Save You Money

Your service business deserves a tax strategy that keeps up with your ambition. And your finances deserve more than a once-a-year “good luck” filing.

At Insogna CPA, we help service industry owners across the U.S.:

• Reduce tax liabilities through strategic business structuring
  
  
• Maximize deductions legally and efficiently
  
  
• Stay compliant with IRS, payroll, multi-state, and FBAR rules
  
  
• File accurate, optimized returns year after year
  
  
• Plan for the future, not just report on the past
  
  

Looking for a trusted CPA near me? Need a responsive, detail-driven Austin accounting service that speaks your language?

You’ve found it.

Book Your Strategy Session Today

Stop flying blind. Stop overpaying. Start optimizing your taxes with a partner who gets it and gets you.

Schedule a consultation with Insogna CPA today and let’s build a smarter, stronger, and simpler tax strategy for your service-based business...

Because when your money works smarter, you get to do more of what you love.