Business CPA

The Problem: Tax Bills Keep Catching You Off Guard

You’re growing your business, closing deals, and keeping operations running smoothly. But when tax season rolls around, you’re blindsided by a bill that’s bigger than expected. You scramble to figure out what went wrong—why the numbers don’t match what you thought—and suddenly, you’re dipping into cash flow to cover a shortfall you didn’t see coming.

Sound familiar?

• You don’t know exactly what you owe until tax time, and it’s always more than you expected.
• You realize too late that you missed deductions that could have saved you thousands.
• You wonder if you’re paying more than you should be, but your tax strategy (if you even have one) feels like guesswork.

This isn’t just frustrating. It’s unnecessary. Smart tax planning eliminates surprises, keeps more cash in your business, and puts you in control.

Why This Happens: Taxes Aren’t a Priority Until They Become a Problem

Most business owners focus on revenue, operations, and growth as they should. But that often means taxes are an afterthought until the bill is due. And by then, it’s too late to do anything about it.

Here’s what’s likely throwing you off course:

• You’re not tracking income and expenses in real time, so your tax liability is a moving target.
• You’re not making accurate quarterly tax payments, which leads to penalties and a lump sum due in April.
• You’re missing out on tax-saving strategies that could be legally reducing what you owe.

If you’re only thinking about taxes when they’re due, you’re reacting instead of planning and that’s costing you money.

The Solution: A Proactive Tax Plan That Puts You in Control

You don’t have to settle for last-minute tax panic. With the right strategy, you can control your tax bill, avoid surprises, and keep more money in your business.

Here’s how:

1. Track Income and Expenses in Real Time

If your books aren’t up to date until tax season, you’re running your business blind. When you stay on top of your financials, you can:
 ✔ Always know your tax liability.
 ✔ Spot tax-saving opportunities before it’s too late.
 ✔ Make informed decisions about spending, investments, and growth.

How to Make It Happen:

• Use QuickBooks Online, Xero, or another cloud-based system to automate tracking.
• Sync business bank accounts and credit cards for real-time visibility.
• Work with an Austin tax accountant who helps you review financials and adjust your strategy throughout the year.

If you know your numbers, you know your tax situation before the IRS tells you.

2. Pay Quarterly Taxes the Right Way (and Stop Guessing What You Owe)

The IRS expects quarterly tax payments, and underpaying can lead to penalties. But most business owners don’t set aside enough because they’re estimating blindly.

How to Avoid Penalties and Surprises:

 ✔ Work with a CPA in Austin, Texas, to calculate accurate estimated payments.
 ✔ Set aside 25-30% of your income in a separate tax account.
 ✔ Adjust payments each quarter based on real numbers, not estimates.

If you plan for tax payments throughout the year, you’ll never get caught off guard by a big bill.

3. Use Smart Tax Strategies to Reduce What You Owe

Taxes aren’t just about paying on time. They’re about paying less by structuring your business and finances efficiently.

A small business CPA in Austin can help you:
 ✔ Maximize deductions—home office expenses, mileage, marketing, and professional services.
 ✔ Leverage tax-efficient business structures—an S Corp, for example, can reduce self-employment taxes.
 ✔ Time major purchases strategically—certain equipment and investments qualify for immediate write-offs.

The tax code is designed to reward businesses that plan ahead but if your CPA isn’t helping you find these opportunities, you’re overpaying.

4. Work with a CPA Who Helps You Plan, Not Just File

A CPA shouldn’t just show up when it’s time to file your return. They should be an active part of your financial strategy, helping you make smarter decisions year-round.

At Insogna CPA, we:
 ✔ Monitor your financials in real time, so you always know where you stand.
 ✔ Identify tax-saving opportunities before deadlines pass so you’re never leaving money on the table.
 ✔ Help you stay compliant with quarterly tax payments so penalties and surprises are a thing of the past.

The result? You stay ahead of your taxes, keep more of your money, and never have to guess what you owe.

Tired of Tax Surprises? Let’s Take Control Together.

You’ve worked too hard to let tax mistakes and last-minute surprises drain your profits. A proactive tax plan means fewer headaches, lower taxes, and more control over your financial future.

At Insogna CPA, we help business owners in Austin, Texas, and beyond stay ahead of their taxes with real-time insights, quarterly planning, and tax strategies that actually save money.

Let’s take tax stress off your plate. Schedule a strategy call today.

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Self-Employed? Here’s How to Take Control of Your Taxes

Being your own boss is great until tax season rolls around and you’re staring at a massive bill, wondering how you got here.

If you’re self-employed, a freelancer, or a 1099 contractor, your taxes don’t work like they did when you had a W-2 job. No one is withholding taxes for you, which means it’s all on you to pay what you owe—on time and in full.

The good news? With the right strategy, you can avoid IRS penalties, lower your tax bill, and keep more of what you earn.

At Insogna CPA, a leading Austin, Texas CPA firm, we help self-employed professionals understand their tax obligations, maximize deductions, and avoid surprises. Let’s break it down.

W-2 vs. 1099 Income: What’s the Difference?

When you were a W-2 employee:

• Your employer withheld income tax, Social Security, and Medicare from every paycheck.
• You got a W-2 at the end of the year and maybe even a refund.

When you’re self-employed (1099 income):

• No taxes are withheld. You have to pay them yourself.
• You owe both income tax and self-employment tax.
• You need to make quarterly estimated tax payments or risk IRS penalties.

Key takeaway: You’re still responsible for paying taxes, but now, it’s up to you to calculate, file, and pay on time.

How Self-Employment Taxes Work (And Why They Feel So High)

As a self-employed professional, you don’t just pay income tax. You also owe self-employment tax, which covers Social Security and Medicare.

Self-employment tax is 15.3% of your net income:

• 4% goes toward Social Security
• 9% goes toward Medicare

Why is it so high? When you had a W-2 job, your employer covered half of these taxes. Now, as your own boss, you’re paying both the employer and employee portions.

Example: If you make $100,000 in profit, your self-employment tax alone is $15,300 before you even pay income tax.

How Insogna CPA Helps:

• We calculate how much you actually owe, so there are no surprises at tax time.
• We structure your income to lower your self-employment tax legally.

You can’t avoid taxes, but you can reduce what you owe.

How to Avoid IRS Penalties: Paying Estimated Taxes

Unlike W-2 employees who have taxes withheld automatically, self-employed professionals must pay taxes quarterly.

IRS Estimated Tax Payment Deadlines:

• April 15 (Q1 Payment)
• June 15 (Q2 Payment)
• September 15 (Q3 Payment)
• January 15 (Q4 Payment)

Miss a payment? You could face penalties and interest even if you pay in full later.

How to Calculate Estimated Taxes:

• A good rule of thumb: Set aside 25-30% of your income for taxes.
• Use IRS Form 1040-ES or work with a CPA in Austin, Texas to calculate how much to pay.

How Insogna CPA Helps:

• We estimate your quarterly taxes based on real numbers, not just guesses.
• We set up an automated tax payment plan, so you never miss a deadline.

Don’t wait until tax season. Plan ahead.

How to Lower Your Tax Bill: Deductible Expenses

The best way to reduce your taxable income and pay less in taxes is by claiming every deduction you’re entitled to.

Common Self-Employment Tax Deductions:

• Home Office Deduction – If you work from home, a portion of your rent, utilities, and internet may be deductible.
• Business Travel & Meals – Flights, hotels, and business-related meals are deductible.
• Marketing & Advertising – Website costs, social media ads, and branding expenses.
• Software & Subscriptions – QuickBooks, Zoom, CRM software, and project management tools.
• Health Insurance Premiums – If you’re self-employed, your health insurance may be deductible.

Pro Tip: Keep detailed records and receipts to back up your deductions. The IRS loves documentation.

How Insogna CPA Helps:

• We ensure you’re claiming every deduction possible.
• We help set up proper expense tracking so nothing slips through the cracks.

Tracking your expenses means paying less in taxes.

Want to Pay Less in Taxes? Here’s What to Do Next.

1. Estimate your quarterly taxes – Set aside 25-30% of your income and pay on time.
2. Track all your expenses – Use QuickBooks or other accounting software.
3. Consider an S-Corp election – If you’re making over $75,000, an S-Corp could cut your self-employment tax.
4. Work with a CPA – A tax pro can find deductions you didn’t even know existed.

At Insogna CPA, we specialize in helping self-employed professionals keep more of their money.

Want help getting ahead of your tax obligations? Insogna CPA is here for you. Schedule a consultation today.

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Taxes are one of the few guarantees in business but how much you pay is not set in stone. The right tax strategy can mean the difference between keeping more of your hard-earned money or overpaying year after year.

Yet, too many business owners treat taxes as a once-a-year headache, scrambling in April, wondering why their bill is so high, and realizing too late that they could have done something about it.

If that sounds familiar, it’s time to stop reacting to taxes and start planning for them. A well-executed tax strategy isn’t just about compliance. It’s about maximizing profits, improving cash flow, and making smarter financial decisions all year long.

Here’s how a seasoned entrepreneur like you can take control of tax planning and pay less without cutting corners.

1. Stop Guessing and Know What You Owe Before Tax Season Hits

If you don’t know where you stand financially until your CPA files your return, you’re setting yourself up for surprises.

Tax planning starts with visibility. The more accurately you track your income and expenses, the easier it is to anticipate your tax liability and adjust throughout the year.

How to stay ahead:

• Use cloud-based accounting software like QuickBooks or Xero to track numbers in real time.
• Sync business bank accounts and credit cards to automate financial reporting.
• Work with an Austin tax accountant who provides ongoing financial insights, not just year-end tax prep.

When you know what’s coming, there’s no scrambling, no surprises—just smart planning.

2. Pay Your Taxes in Installments (and Avoid a Huge Bill in April)

The IRS expects business owners to pay taxes quarterly, not just at year-end. If you’re waiting until April to settle up, you’re either underpaying and risking penalties or overpaying and tying up cash unnecessarily.

How to make estimated tax payments work for you:

• Set aside 25-30% of your income in a dedicated tax account.
• Work with a CPA in Austin, Texas to calculate accurate quarterly payments.
• Adjust payments based on real numbers, not estimates, so you never overpay or underpay.

A solid tax plan means no unexpected bills and no penalties—just a steady, predictable approach to managing tax obligations.

3. Deduct Every Eligible Business Expense (Because It’s Your Money)

One of the easiest ways to reduce your tax bill is to claim every deduction you’re legally entitled to. The problem? Too many business owners don’t track expenses properly or don’t realize what qualifies.

Deductions every business owner should be using:

• Home Office Deduction – If you work from home, a portion of your rent, utilities, and internet may be deductible.
• Business Mileage – If you drive for work, you can deduct the IRS mileage rate (67 cents per mile in 2024).
• Professional Services – The money you pay your Austin CPA firm, attorneys, and consultants is tax-deductible.
• Marketing & Advertising – Social media ads, website costs, and branding efforts are all fully deductible.
• Software & Subscriptions – If your business runs on QuickBooks, CRM software, or industry-specific apps, those are deductions too.

How to make sure you don’t miss deductions:

• Use business credit cards for all deductible expenses to track spending.
• Keep digital records of receipts so everything is documented.
• Have a small business CPA in Austin review your books regularly to find deductions you might have missed.

If you’re not tracking expenses, you’re overpaying—plain and simple.

4. Invest in Retirement (and Lower Your Tax Bill at the Same Time)

One of the smartest moves a business owner can make? Contributing to a retirement account that lowers taxable income while building long-term wealth.

Retirement plans with tax advantages:

• Solo 401(k) – Allows tax-deferred savings for business owners with no employees.
• SEP IRA – A great option for small business owners, allowing large contributions based on income.
• SIMPLE IRA – Ideal for small businesses that want to offer employee retirement benefits.

A tax advisor in Austin can help you choose the best retirement plan to lower taxes now and secure financial stability for the future.

5. Use Tax Deferral Strategies to Keep More Cash in Your Business

Sometimes, when you earn money is just as important as how much you earn. Smart entrepreneurs time their income and expenses strategically to reduce taxable income in high-earning years and defer taxes when possible.

How to defer taxes legally:

• Delay invoicing at year-end to push taxable income into the next year.
• Prepay expenses like rent, marketing, or equipment to increase deductions in high-income years.
• Use Section 179 to write off the full cost of business equipment purchases immediately, rather than depreciating over time.

A smart tax plan helps you keep more cash in your business—where it can work for you.

6. Work with a CPA Who Does More Than Just File Paperwork

If your CPA only calls you in April, you’re not getting the guidance you need.

A great accountant should be a strategic partner, not just a tax preparer. At Insogna CPA, we take a proactive approach to tax planning:
 ✔ Quarterly Tax Strategy Sessions – Stay ahead of estimated tax payments and avoid surprises.
 ✔ Expense & Deduction Reviews – Ensure you’re taking full advantage of every tax break.
 ✔ Entity Structuring Advice – We help you choose the best business structure to minimize tax liabilities.

If you’re not meeting with your CPA throughout the year, you’re missing tax-saving opportunities.

Smart Entrepreneurs Plan for Taxes Year-Round. Do You?

If tax planning isn’t built into your business strategy, you’re giving the IRS more than you need to.

At Insogna CPA, we help business owners in Austin, Texas, and beyond develop customized tax plans that reduce liabilities, improve cash flow, and put more money back into their business.

Ready to stop overpaying? Let’s build a tax strategy that works for you. Schedule a consultation today.

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Summary of What This Blog Covers:

• How to recognize the signs you’ve outgrown your CPA – The blog outlines six key indicators that your current CPA may no longer be meeting the needs of your growing business, including lack of communication, missed deductions, and no strategic input.
  
  
• Why businesswomen need a proactive, growth-oriented financial partner – It explains the risks of staying with a tax-prep-only accountant and emphasizes the value of choosing a CPA who offers year-round planning, industry expertise, and decision-making support.
  
  
• What modern CPA firms should deliver for scaling businesses – The blog defines what you should expect from a contemporary CPA in Austin, Texas, including flat-fee pricing, real-time bookkeeping, tax optimization, cash flow management, and support with IRS compliance requirements like FBAR and 1099s.
  
  
• Why Insogna CPA is the right fit for ambitious women in business – It highlights Insogna CPA’s strategic, client-first approach with a dedicated advisory team, industry-specific guidance, transparent billing, and full-service accounting support built to scale with growing companies.

Let’s call it like it is: running a business as a woman isn’t just about hustle, it’s about intentional growth, clear decisions, and choosing partners who actually support your vision. That includes your CPA.

You’re not the same business owner you were when you started. You’re leading a team, making bigger moves, and managing more complexity. So why is your CPA still treating your business like it’s 2018?

If your accountant still operates on an “April-only” schedule, doesn’t understand your industry, and leaves you questioning your tax strategy, it might be time to upgrade to a real financial partner.

You’ve worked too hard to carry the weight of your business’s finances alone. You deserve a CPA in Austin, Texas who brings expertise, proactive strategy, and deep insight, not just tax prep.

Here are six signs you’ve outgrown your CPA and how to choose one that helps you grow, not hold you back.

1. Your CPA Only Shows Up at Tax Time

Why It Happens:

This is the number-one red flag we hear about. Your CPA pops up in February, asks for documents, files your return, sends the bill, and disappears again. There’s no mid-year check-in, no conversation about quarterly taxes, and no support when you’re making big business decisions.

Why It’s a Problem:

• You miss tax-saving opportunities that require action before year-end.
  
  
• You’re left guessing what your tax liability is during the year.
  
  
• You make hiring, investing, or pricing decisions without understanding their financial impact.
  
  

You didn’t build a business to be caught off guard in April. You built it to thrive year-round and your CPA should help you do that.

What You Actually Need:

A year-round relationship. That means a tax advisor near you who holds quarterly planning meetings, gives ongoing guidance, and helps you plan not just file.

At Insogna CPA, we prioritize communication and strategic planning throughout the year so you’re never left wondering where you stand.

2. You Get Surprise Invoices and Unclear Bills

Why It Happens:

Too many accounting firms still operate on the hourly billing model. Every time you ask a question, request a meeting, or even send an email, it gets logged and billed.

And the result? You avoid reaching out even when you need help.

Why It’s a Problem:

• You’re hesitant to ask important financial questions.
  
  
• Your relationship feels transactional, not collaborative.
  
  
• You’re never really sure what you’re paying for.
  
  

What You Actually Need:

A CPA firm in Austin, Texas that offers transparent, flat-fee pricing. One that encourages communication, supports your questions, and bills in a way that makes sense.

At Insogna CPA, we don’t believe in nickel-and-diming. We believe in building long-term partnerships based on clarity and trust. That means one monthly fee with unlimited support.

3. You’re Missing Deductions or Facing IRS Notices

Why It Happens:

When your CPA is only focused on compliance, they’re not thinking strategically. That means they may overlook deductions, fail to plan ahead, or even file something incorrectly.

We’ve had clients come to us with IRS notices that were entirely preventable. Missed deadlines. Late filings. Misclassified expenses. The kind of mistakes that cost money, create stress, and shake your confidence.

Why It’s a Problem:

• You’re paying more in taxes than necessary.
  
  
• You could be penalized for errors or omissions.
  
  
• You feel unsure about whether your CPA really knows what they’re doing.
  
  

What You Actually Need:

A proactive tax accountant near you who helps you:

• Maximize industry-specific deductions
  
  
• Avoid IRS flags and penalties
  
  
• Stay ahead of every filing deadline
  
  

At Insogna CPA, we take a forensic approach to your deductions. We help you structure your finances to reduce tax exposure, not increase it.

4. Your CPA Doesn’t Understand Your Industry

Why It Happens:

Not all CPAs specialize in business accounting. Many focus primarily on personal tax returns or have a generalist practice with limited experience in high-growth sectors like eCommerce, real estate, or service-based consulting.

Why It’s a Problem:

• They miss opportunities that apply to your business model.
  
  
• They can’t offer tailored advice based on how your industry works.
  
  
• They’re unfamiliar with the platforms and tools you use like Shopify, Stripe, or Airbnb.
  
  

What You Actually Need:

An Austin small business accountant who:

• Understands the tax complexities of your industry
  
  
• Has experience working with similar business models
  
  
• Knows how to optimize strategy and compliance based on your goals
  
  

At Insogna CPA, we work with entrepreneurs in industries we understand so we can give the kind of advice that actually moves the needle.

5. You’re Still Managing Your Own Bookkeeping or Reviewing Their Work

Why It Happens:

When your CPA doesn’t provide integrated accounting support, you’re left with two options: do it yourself, or pay a separate bookkeeper who may not talk to your CPA.

Or worse, you’re doing both and still not getting accurate financials.

Why It’s a Problem:

• You’re wasting time you should be spending on growth.
  
  
• You’re second-guessing whether your numbers are right.
  
  
• You’re the one connecting the dots between payroll, bookkeeping, and taxes.
  
  

What You Actually Need:

A CPA firm that offers full Austin accounting service, including:

• Bookkeeping
  
  
• Payroll
  
  
• Cash flow reporting
  
  
• Monthly close and reconciliation
  
  

At Insogna CPA, we offer seamless, end-to-end accounting services so you can focus on growing your business, not troubleshooting your financials.

6. You’re Not Getting Any Strategic Advice or Growth Planning

Why It Happens:

Traditional CPAs were trained to look backward—to file taxes based on what already happened. But successful businesswomen don’t just want reports. They want guidance. They want vision.

Why It’s a Problem:

• You’re making decisions without financial data.
  
  
• You’re unsure how to plan for the next phase of growth.
  
  
• You’re leaving money on the table because you don’t have a strategy.
  
  

What You Actually Need:

A CPA certified public accountant who acts like a strategic partner, not just a form-filler.

At Insogna CPA, we:

• Help you model growth and plan investments
  
  
• Analyze profit margins and pricing models
  
  
• Align tax planning with your long-term goals
  
  

You shouldn’t have to beg your accountant for insight. You should be getting it consistently.

Bonus: You Need Help with FBAR, 1099s, or Contractor Compliance

If your business includes international clients or team members, or if you pay multiple independent contractors each year, you’re responsible for:

• Collecting and storing W9 forms
  
  
• Filing 1099 NEC for qualifying payments
  
  
• Managing income reported via 1099-K
  
  
• Complying with FBAR filing requirements for offshore accounts
  
  

Miss these, and you could be looking at IRS fines and audits.

Insogna CPA handles all of this for you accurately and on time.

Why Businesswomen Across Industries Choose Insogna CPA

Whether you’re a coach, consultant, investor, or eCommerce founder, we’re built for businesses that are scaling, not coasting.

Here’s what you get with us:

• Flat-fee pricing with zero surprises
  
  
• Quarterly planning sessions and year-round support
  
  
• Strategic tax forecasting and cash flow management
  
  
• Clean, audit-ready books and accurate reporting
  
  
• A dedicated team of CPAs, enrolled agents, and financial advisors
  
  

We’re not just filing returns, we’re building financial systems that support your next big move.

Ready for a CPA Who Helps You Grow?

If you’ve read this far and thought, “That’s exactly what I need,” trust your instincts.

You’ve outgrown your current CPA and that’s not a bad thing. It means your business is evolving.

At Insogna CPA, we help businesswomen make better decisions, reduce taxes, plan confidently, and scale faster.

Schedule a free consultation today, and let’s start building a financial partnership that empowers your vision and respects your time.

Because you didn’t come this far to settle for tax prep.

You’re here to build and we’re the CPA in Austin, Texas who’s ready to help you build it stronger, smarter, and more strategically than ever.

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Summary of What This Blog Covers:

• Understand the real financial impact of choosing between an LLC and an S-Corp — This blog explains how your business structure affects your taxes, take-home pay, and long-term financial flexibility and how switching to an S-Corp could help you legally reduce your self-employment tax burden.
  
  
• Learn how to identify the right time to make the switch from LLC to S-Corp — Whether your profits are climbing past $80,000 or you’re planning to scale, this post breaks down when it makes sense to stay put and when it’s time to restructure with real examples from women business owners.
  
  
• Explore what it takes to run an S-Corp—and why it’s worth the added structure — From setting up payroll to filing Form 1120-S, you’ll learn the essential compliance steps and how working with a certified public accountant near you can simplify the transition and keep you compliant.
  
  
• Discover how strategic tax planning goes beyond structure — This blog emphasizes the importance of year-round planning with a proactive CPA who can help you manage expenses, plan quarterly payments, handle 1099s and W9s, and align your business with long-term wealth-building strategies.

You’ve done the hard part. You launched your business with grit and vision, figured out how to attract clients, deliver results, and make a real impact. You’ve learned the lessons, pushed past the doubts, and proven to yourself and others that yes, this works.

Now you’re bringing in consistent revenue, sometimes more than you imagined when you first started. But with that growth comes a new set of questions especially around taxes.

One of the most common ones we hear is:
 “Should I stick with my LLC or switch to an S-Corp?”

It’s a good question. A strategic one. And the answer could mean saving thousands of dollars every year, improving how you pay yourself, and protecting what you’ve worked so hard to build.

At Insogna CPA, a woman-forward CPA firm in Austin, Texas, we’ve helped hundreds of business owners navigate this exact decision. We’ll break it all down in plain language so you can choose what’s best for you with confidence, clarity, and a clear understanding of the benefits and trade-offs.

Why Business Entity Structure Matters More Than You Think

Your business structure determines more than just how you register with the state. It affects:

• How you’re taxed
  
  
• How much you pay in self-employment tax
  
  
• How you pay yourself (and how often)
  
  
• Your compliance responsibilities
  
  
• Your personal liability in legal or financial issues
  
  
• Your future eligibility for funding or sale
  
  

Choosing the right structure doesn’t just save money. It sets you up for long-term success and flexibility. The good news? If you’re structured as an LLC now, you don’t need to start from scratch to make a change. You can elect S-Corp taxation while keeping your legal structure intact.

Let’s walk through both options.

What Is an LLC and Why So Many Women Start Here

An LLC (Limited Liability Company) is one of the most popular legal structures for small businesses and solopreneurs. It’s simple, flexible, and offers personal liability protection—meaning your home, savings, and personal assets are protected if your business faces legal or financial trouble.

From a tax standpoint, a single-member LLC is considered a pass-through entity. That means:

• The business doesn’t pay corporate tax.
  
  
• All profit is reported on your personal income tax return.
  
  
• You pay self-employment tax (15.3%) on 100% of your net profit.
  
  

Why an LLC Works Well:

• Easy to form and maintain
  
  
• Offers asset protection without corporate complexity
  
  
• Fits businesses still ramping up or under $80,000 in annual profit
  
  
• Doesn’t require payroll or additional tax filings beyond Schedule C
  
  

But Here’s the Trade-Off:

• You pay self-employment tax on every dollar of profit.
  
  
• As your income increases, so does your tax bill.
  
  
• There’s limited flexibility in how you compensate yourself.
  
  
• You might miss out on advanced tax planning opportunities available through S-Corp structuring.
  
  

If you’re starting to feel like you’re giving away too much of your hard-earned income to the IRS, it may be time to look at a smarter option.

What Is an S-Corp and Why Growing Businesses Love It

An S-Corp (Subchapter S Corporation) is a tax election, not a new business structure. In other words, you can elect to be taxed as an S-Corp even if your business is still legally an LLC.

What changes?
 Your profit is now split into two parts:

1. A reasonable salary, on which you pay payroll taxes
   
   
2. Distributions, which are not subject to self-employment tax
   
   

This structure lets you reduce the amount of income subject to the 15.3% self-employment tax, leading to significant savings.

Why Women Entrepreneurs Choose S-Corp Status:

• You only pay payroll taxes on your salary, not your full profit
  
  
• Distributions are not subject to self-employment tax
  
  
• It can save you $8,000–$15,000+ per year if you’re earning $80,000+ in profit
  
  
• You still retain LLC liability protection
  
  
• It’s a scalable structure that grows with you
  
  

But this isn’t just about the numbers. It’s about building a system that supports your lifestyle and protects your time, your finances, and your future.

Comparing the Two: A Side-by-Side Look

Real-Life Examples: How Much Can You Really Save?

Emma, the Consultant

Emma owns a boutique consulting firm in Austin. She earns $120,000 in annual net profit as a single-member LLC.

As an LLC:

• Pays 15.3% self-employment tax on full $120K = $18,360
  
  
• Pays additional income tax on that total
  
  

As an S-Corp:

• Pays herself $60,000 salary (subject to payroll tax)
  
  
• Takes $60,000 in distributions (not subject to self-employment tax)
  
  
• Total payroll taxes: ~$9,180
  
  
• Tax savings: approx. $9,000 per year
  
  

Sophia, the E-Commerce Business Owner

Sophia runs an online boutique generating $250,000 in profit annually.

As an LLC:

• Pays over $38,000 in self-employment taxes alone
  
  

As an S-Corp:

• Pays herself a $100,000 salary
  
  
• Takes $150,000 in distributions
  
  
• Total tax savings: often $15,000+ per year
  
  

These are not edge cases. These are everyday women just like you who made a smart shift that changed the way they think about taxes.

What You’ll Need to Run an S-Corp Successfully

S-Corp status does come with a few extra requirements. But they’re manageable and they’re worth it.

Here’s what changes:

• You need to run payroll (we can help set this up)
  
  
• You’ll file a separate business tax return (Form 1120-S)
  
  
• You’ll need to keep clear records of salary vs. distributions
  
  
• You’ll have quarterly and annual payroll tax filings
  
  
• You’ll want professional support from a certified public accountant near you who knows your business well
  
  

Think of it like this: you’re moving from doing your own oil changes to working with a trusted mechanic. Yes, it’s an investment but it protects your engine and saves you more over time.

When to Stick with an LLC

There’s no shame in staying where you are if it still works.

You may want to hold off on the S-Corp if:

• Your business is earning less than $80,000 in net profit
  
  
• Your income is inconsistent or highly seasonal
  
  
• You’re not ready to run payroll or manage additional filings
  
  

That said, working with a tax consultant near you or a tax advisor in Austin can help you make the most of your LLC with:

• Proper expense tracking
  
  
• Clean bookkeeping
  
  
• Estimated quarterly tax planning
  
  
• Retirement plan contributions to reduce taxable income
  
  

Beyond Structure: Building a Proactive Tax Strategy

Electing the right entity is only one part of a great tax strategy. At Insogna CPA, we help our clients:

• Set up and manage QuickBooks Self-Employed
  
  
• Handle contractor payments, 1099 NEC filings, and W9 form collection
  
  
• Maximize deductions for legitimate business expenses
  
  
• Plan for multi-state income and FBAR filing
  
  
• Make quarterly tax payments accurately and on time
  
  
• Reduce tax liability through retirement contributions, charitable giving, and more
  
  

We offer full-service support from a team of certified CPAs, enrolled agents, and taxation accountants so you’re never left guessing.

Let’s Find the Right Fit for You

If your business is growing, your tax structure should grow with it.

Whether you’re still in your LLC’s sweet spot or ready to transition to an S-Corp, we’ll help you evaluate your options, run real projections, and create a system that keeps more money in your business and more peace in your life.

Because at this level, taxes aren’t just a cost. They’re a strategy.

Ready to Make the Smart Switch?

Schedule a tax strategy session with Insogna CPA, a trusted Austin, Texas CPA firm dedicated to serving women entrepreneurs with clarity, confidence, and expert care.

We’ll help you:

• Review your current structure
  
  
• Run the numbers on S-Corp savings
  
  
• Set up payroll, bookkeeping, and compliance systems
  
  
• Build a proactive plan that supports your business goals
  
  

You’ve worked hard for your success. Let’s make sure you’re keeping more of what you’ve earned.

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Summary of What This Blog Covers:

• Master the tax side of your business before it costs you — This blog outlines five common (but preventable) tax mistakes women entrepreneurs make like skipping quarterly payments or waiting until April for tax advice and how they can quietly drain your profit if left unchecked.
  
  
• Learn the practical tax strategies that protect your income year-round — From maximizing deductions and managing clean books to avoiding self-employment tax overload, this blog offers actionable steps and solutions for businesswomen who want to grow smarter, not just bigger.
  
  
• Discover why your business structure could be working against you — If you’re earning over $80,000 in net profit and still taxed as an LLC, you’re likely overpaying. We break down how switching to an S-Corp with the right CPA guidance could save you thousands each year.
  
  
• Turn tax planning from an annual scramble into a strategic advantage — With guidance from a proactive CPA firm in Austin, Texas, you’ll learn how to make smarter financial decisions all year long, not just at filing time. Because tax strategy is about owning your future, not just settling your past.

Building Something Big? Don’t Let Avoidable Tax Mistakes Slow You Down

Let’s be honest. Most businesswomen didn’t start their ventures because they love bookkeeping or get jazzed about quarterly estimated payments. You built your business to solve a problem, serve your clients, and live life on your own terms.

But here’s the truth: how you handle taxes can either fuel your growth or quietly cost you thousands each year.

At Insogna CPA, we work with powerful, purposeful women entrepreneurs every day. Women who are growing six- and seven-figure businesses while juggling families, teams, and a whole lot of ambition. And the one thing we see over and over? Even the most talented, visionary founders make tax mistakes that could have been avoided with the right support.

This guide is here to change that.

Below are the five most common tax missteps we see and the steps you can take to avoid them. Whether you’re running a solo consulting practice or managing a growing team, this is your blueprint for saving more, planning smarter, and leading with confidence.

1. Not Making Quarterly Tax Payments

Let’s start with the big one. If you’re running a profitable business and you’re not making quarterly estimated tax payments, you may be stacking up penalties and interest without even knowing it.

Why This Happens

Many business owners assume taxes are something to deal with in April. But the IRS sees entrepreneurs differently than W-2 employees. If you’re self-employed or operating a pass-through entity (like a sole proprietorship or LLC), and you expect to owe more than $1,000 in taxes for the year, the IRS expects you to pay as you go four times a year.

Missing those deadlines doesn’t just lead to stress, it leads to real financial consequences.

The Cost of Skipping Quarterly Payments

Say you made $120,000 in net income last year. That could put you on the hook for $25,000–$30,000 in taxes, depending on your state and deductions. If you don’t make those payments quarterly, the IRS could tack on hundreds or even thousands in late payment penalties and interest—money that could have gone toward growth or savings.

How to Fix It

• Add these quarterly dates to your calendar: April 15, June 15, September 15, January 15
  
  
• Work with a tax preparer near you or a CPA in Austin, Texas to project your tax liability based on real numbers
  
  
• Open a dedicated business savings account just for taxes, and transfer a portion of every invoice or payment into it
  
  

A little proactive planning today can help you avoid a painful surprise next spring.

2. Missing Out on Deductions You’re Legally Entitled to

This one hurts because it’s so avoidable. Every year, business owners overpay the IRS simply because they’re unsure what qualifies as a deduction or they don’t track things clearly enough to claim them.

The Reality

If you’re not working with a certified public accountant near you, chances are you’re not claiming everything you should be.

Deductions Women Entrepreneurs Often Miss

• Home office expenses (rent, utilities, internet)
  
  
• Business mileage and travel (even local trips to the post office or coffee shop meetings)
  
  
• Software and subscriptions (think Zoom, Canva, CRM tools, even Dropbox)
  
  
• Branding and marketing (social media ads, designers, paid memberships)
  
  
• Professional services (coaches, legal counsel, and yes, your CPA firm in Austin, Texas)
  
  

Even meals and business development trips may be deductible if they’re properly documented.

The IRS Standard

You’re allowed to deduct any expense that is ordinary and necessary to run your business. But the key is documentation. If your receipts are scattered or you’re estimating, you may miss deductions or open yourself up to audit risk.

How to Fix It

• Use cloud-based accounting software like QuickBooks Self-Employed
  
  
• Save receipts digitally (apps like Dext and Expensify make it simple)
  
  
• Categorize expenses monthly so nothing slips through the cracks
  
  
• Partner with a small business CPA in Austin who reviews your books regularly and flags new opportunities

3. Disorganized Bookkeeping = Poor Financial Decisions

If your books are messy, you’re not just risking audit flags, you’re also flying blind when it comes to the health of your business.

What We Often See

• Personal and business finances still tangled in one account
  
  
• Invoices tracked in multiple spreadsheets (with inconsistent totals)
  
  
• Profit and loss reports that don’t match tax returns
  
  
• Last-minute panic in March with piles of receipts and guesswork
  
  

Why It Matters

Bookkeeping isn’t just about taxes, it’s about decision-making. When you’re clear on your numbers, you can confidently:

• Hire a new contractor
  
  
• Raise your rates
  
  
• Apply for a loan or funding
  
  
• Plan a product launch based on actual margins
  
  

When you’re not? You’re guessing and usually playing small because of it.

How to Fix It

• Set up dedicated business accounts (checking, credit, and savings)
  
  
• Work with an Austin tax accountant who offers monthly or quarterly reconciliation
  
  
• Use a real-time dashboard to track income and expenses by category
  
  

Keeping your financials clean and current is the foundation of a financially sound and scalable business.

4. Choosing the Wrong Business Structure

Your legal entity affects how much tax you pay and how you’re allowed to take money from the business. And yet, many women choose an entity once and never revisit the decision even after their revenue doubles or triples.

The Common Misconception

“I’m an LLC, so I’m all set.”

The truth? While an LLC provides liability protection, it may also increase your tax burden, especially once your profit crosses into six figures.

The S-Corp Opportunity

Electing S-Corp tax treatment allows you to split your income into:

• Salary: Subject to payroll tax (Social Security + Medicare)
  
  
• Distributions: Not subject to payroll or self-employment tax
  
  

This can save you thousands in taxes every year.

Real-World Example

If your business nets $150,000 in profit:

• As an LLC: You pay $22,950 in self-employment tax
  
  
• As an S-Corp: You pay yourself a $75,000 salary (subject to payroll tax) and take $75,000 as distributions, saving over $10,000
  
  

What’s Required to Make the Switch

• File Form 2553 with the IRS to elect S-Corp status
  
  
• Set up compliant payroll (your Austin accounting firm can help)
  
  
• File a separate tax return (Form 1120-S)
  
  
• Keep clear records of salary vs. distributions
  
  

If your net profit is over $80,000, it’s time to consider switching.

5. Treating Tax Planning as an Annual Event

If your CPA only talks to you in March, you’re missing out on the biggest advantage of working with a tax professional: strategy.

What You’re Missing Out On

• Timely retirement contributions
  
  
• Year-end spending strategies
  
  
• Entity structure shifts
  
  
• Deferring or accelerating income
  
  
• R&D tax credits or depreciation benefits
  
  

All of these options require advance planning not a last-minute spreadsheet in April.

What to Do Instead

• Schedule a mid-year check-in with your certified public accountant near you
  
  
• Review your YTD profit and adjust estimated payments accordingly
  
  
• Look ahead: Are you planning to hire? Invest in equipment? Change services?
  
  
• Use your tax data to support your business vision, not just IRS compliance
  
  

When you treat tax as a tool not a task, you gain power, clarity, and confidence.

Ready to Stop Guessing and Start Planning?

If you’ve seen yourself in even one of these five mistakes, it’s time to turn the page. Because tax isn’t just about numbers. It’s about ownership.

Ownership of your business. Your wealth. Your future.

At Insogna CPA, we offer full-service support tailored to women entrepreneurs:

• Strategic tax planning that works with your goals
  
  
• Proactive check-ins to prevent mistakes before they happen
  
  
• Clean books and stress-free filings
  
  
• Entity guidance for every growth stage
  
  
• Deep partnership from a team that actually cares
  
  

You deserve more than a tax preparer. You deserve a financial advocate.

Let’s Fix This Together

Book your consultation with Insogna CPA today and finally get the strategy, support, and insight you need to scale your business with confidence.

We’re not just your CPA in Austin, Texas. We’re your behind-the-scenes partner in building something remarkable.

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