You Hate Taxes? Good!
Let’s Do Something About It
Aug 25, 2025 | 10 min read
Sean Williams
If you’re a business owner, chances are you’ve muttered a few choice words about the IRS while writing checks in April. You’re not alone. Every spring, hardworking entrepreneurs send a chunk of their profits to Uncle Sam and wonder, “Is this really the best I can do?”
The truth? If you’re just reacting once a year when your CPA files the return, you’re not tax planning—you’re tax filing. And that’s costing you money.
To borrow from Hank Hill himself: hating taxes without a strategy is like trying to sell charcoal at Strickland Propane. Doesn’t make a lick of sense.
So let’s talk about five ways you can stop donating extra money to the IRS—and start putting those dollars back to work for your family and your future.
1. Choose the Right Business Entity (and Update It as You Grow)
A sole proprietorship or single-member LLC might’ve made sense when you were just getting your business off the ground. But if you’ve grown beyond the “hustling in your garage” stage, you could be paying thousands in unnecessary self-employment tax.
That’s where an S Corporation comes in. Properly structured, it can reduce payroll taxes and give you more control over how you take income.
Real-World Example:
Meet Mike, owner of a grading and paving company in North Carolina. For years, he operated as an LLC. Business was booming, but every April, he was floored by his tax bill—north of $80,000. After switching to an S Corp and paying himself a reasonable salary plus distributions, he cut his self-employment tax burden by over $15,000 a year. That’s not chump change—that’s another skid steer, a family vacation, or money reinvested into growth
2. Pay Yourself Smarter
One of the most common mistakes I see is business owners either underpaying or overpaying themselves.
- Too low of a salary? IRS red flag.
- Too high of a salary? You’re overpaying payroll taxes.
There’s a “Goldilocks zone” that keeps you compliant while minimizing unnecessary taxes.
Think of it this way: salary pays your bills, distributions build your wealth. Getting that balance right is one of the easiest wins in tax planning.
3. Get Aggressive with Deductions (The Right Way)
If Buck Strickland can write off his Cadillac, surely you can deduct your truck, cell phone, laptop, or home office.
But here’s the key: don’t play guessing games. Document everything. Keep receipts. Work with a pro who knows which deductions are bulletproof and which ones will raise eyebrows at the IRS.
Done right, deductions aren’t “sketchy loopholes”—they’re smart business strategy.
Meet Sarah, who owns a small HVAC business in Georgia. For years, she played it safe with her taxes—deducting fuel and a portion of her truck, but not much else. Her CPA kept things very vanilla to avoid mistakes.
Then she decided to start treating her business like… well, a business. By tightening her record-keeping and using strategies already built into the tax code, Sarah legally knocked thousands off her taxable income.
Here’s what changed:
- Home Office Deduction: Sarah runs scheduling, invoicing, and payroll from a home office. By measuring and documenting the square footage, she claimed a legitimate deduction for part of her mortgage interest, utilities, and internet.
- Phones and Gear: Instead of ignoring everyday business expenses, she now deducts her business cell phone, Wi-Fi, work uniforms, and safety equipment.
- Business Meals: When meeting with vendors or subcontractors, Sarah tracks and documents those meals, turning them into deductible business expenses.
But here’s where it gets really interesting:
- Paying Her Kids: Sarah put two of her teenage kids on the payroll to handle filing, cleaning out service vans, and posting on the company’s social media. By paying them a reasonable wage, she shifted income from her higher tax bracket into theirs—where it was taxed at a much lower rate (or in some cases, not at all). Plus, her kids gained valuable work experience.
- The Augusta Rule: Sarah also started holding a monthly “board of advisors” meeting at her home. Under IRS rules (nicknamed the “Augusta Rule”), a homeowner can rent out their personal residence for up to 14 days a year, tax-free. By documenting the fair rental value and minutes from each meeting, Sarah was able to pay herself rent from the business—deductible for the company, tax-free for her personally.
By combining all of these strategies, Sarah increased her deductions by over $35,000 in a single year. That translated to roughly $12,000 in tax savings—money she redirected into upgrading her vans and boosting her retirement contributions.
The kicker? She wasn’t doing anything shady or exotic. These were everyday expenses and well-known rules she simply hadn’t been taking advantage of.
4. Use Retirement Plans Like a Ninja
A SEP IRA, Solo 401(k), or even a Cash Balance Plan can shelter significant dollars from current taxation. Think of it as legally hiding money from the IRS while also building your retirement nest egg.
Important Note: Tax nerd disclaimer here—contributing to a retirement plan doesn’t erase taxes, it defers them. You’ll still pay at some point. But deferring into a future lower tax bracket (or while compounding those dollars tax-deferred) can be a powerful move.
5. Make Tax Planning a Year-Round Sport
If your CPA only calls you in February and you call that “tax planning,” let me break it to you: that’s tax filing. By then, your options are limited.
Real planning means reviewing your strategy throughout the year—adjusting income, deductions, retirement contributions, and compensation proactively. Not scrambling once the return is already due.
Think of it like propane sales: You don’t wait until January in Arlen, Texas, to decide how much propane you’ll need for the winter. You stockpile and plan ahead. Taxes work the same way.
The Bottom Line
You hate taxes? Good.
But hate alone doesn’t save you a dime. Strategy does.
And here’s the kicker—most of these strategies aren’t complicated. They just require someone to help you think proactively instead of reactively.
So, the question isn’t “Do you hate taxes?”—the question is: What are you going to do about it?
Ready to Play Offense?
If you’re tired of feeling like your business is just a pass-through account for the IRS, it’s time to do something about it.
👋 Book a free call with me here: https://calendly.com/cadencewp/30min
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor to determine the best strategy for your individual needs.
FAQ:
- Q: Why reacting only once a year isn’t effective tax planning
A: Because you’re merely filing taxes—not optimizing—they miss opportunities to reduce your tax burden and grow your wealth. - Q: When should a business owner consider switching to an S Corporation?
A: If you’re outgrowing your LLC or sole proprietorship stage, an S Corp may significantly reduce self-employment tax and improve control over income distribution. - Q: How can paying yourself a proper balance between salary and distributions help?
A: Striking the right “Goldilocks” salary minimizes payroll tax risk (IRS red flags if too low) while allowing distributions—tax-efficient wealth building.
