Business Tax Insights

How Recent Tax Reform Affects Small Businesses: What Still Matters After 2017 and 2025

Published: November 2025

Updated: November 2025

The last decade has been a whirlwind for U.S. tax law. The 2017 Tax Cuts and Jobs Act (TCJA) reshaped the landscape, and the more recent 2025 tax bill (“One Big Beautiful Bill”) layered on another round of changes.

If you own a business, you don’t need every technical detail—you need to know what still matters today and how to plan around it.

Below is a practical, business-owner-friendly guide to the provisions that still drive most tax outcomes for small and mid-sized businesses.

1. Business Entity Choice and Tax Rates

Your entity type is still one of the most important tax decisions you make.

• C corporations are taxed at a flat federal corporate rate, while owners are taxed again on dividends.
  
  

• Pass-through entities (sole proprietorships, partnerships, S corporations and most LLCs) don’t pay income tax at the entity level. Instead, profits “pass through” to your personal return.

Recent reforms kept the corporate rate relatively low while also giving relief to pass-throughs (through things like the qualified business income deduction). That means:

• If you’re a pass-through, you should regularly revisit whether your structure still fits your income level, growth plans and how you pay yourself.
  
  

• If you’re a C-corp—or considering becoming one—you want to look at the trade-off between the flat corporate rate and the possibility of “double taxation” (corporate tax + tax on dividends).

This is not a one-time decision. The “right” answer can change as your profits, payroll and long-term exit plans change.

2. The Qualified Business Income (QBI) Deduction

For many small-business owners, the QBI deduction is still one of the most valuable provisions on the books.

In plain English, QBI can give eligible owners of pass-through businesses a deduction based on a portion of their qualified business income, subject to:

• Your total taxable income

• Whether you’re in a “specified service” field (like many professional practices)

• How much you pay in W-2 wages and what you own in qualified property

If you’re a:

• Consultant, freelancer or professional with an LLC

• Owner of an S-corp paying yourself a salary

• Partner in a partnership with K-1 income

…you may still be leaving money on the table if you’re not actively planning around this deduction.

Key planning questions:

• Is my owner compensation vs. profit split structured in a tax-efficient way?

• Am I tracking the information (wages, basis in property, etc.) that drives the calculation?

• Do I understand how other income (spousal income, investments, etc.) affects my eligibility?

3. Expensing, Bonus Depreciation and Section 179

Recent tax laws have gone out of their way to encourage business investment with very generous expensing rules. Depending on the year and the specific asset, you may be able to:

• Deduct 100% (or close to it) of qualifying equipment and technology in the year you place it in service.

• Use Section 179 expensing to immediately expense a large amount of qualifying purchases, including many improvements to non-residential real property.

• Combine regular depreciation, Section 179 and bonus depreciation in a strategic way to smooth or accelerate your deductions.

For you, this means:

• Large equipment purchases, technology upgrades, vehicles and leasehold improvements should always be reviewed from a timing and structure perspective.

• A “simple” asset purchase can have wildly different tax outcomes depending on when you place the asset in service and which expensing rules you elect to use.

If you’re thinking about a big purchase in the next 12–18 months, it’s worth having a short planning conversation before you sign a contract.

4. Individual Brackets Still Matter to Business Owners

Even if your business is the main focus, your personal return is still where all the pieces come together:

• Pass-through income flows to your Form 1040.

• Capital gains, interest and dividends stack on top of your business income.

• Certain deductions and credits phase out as income grows.

Changes to individual brackets, the standard deduction, child-related credits and the SALT cap may not feel like “business” topics—but they can significantly change your effective tax rate on business profit.

Good planning looks at:

• Your household tax picture, not just the entity

• Multi-year projections (especially around big events like selling a business, exercising equity or major capital gains)

5. Planning Moves to Consider

Given where we are now, here are a few action items that make sense for many small-business owners:

• Review your entity choice: LLC taxed as sole prop vs. S-corp vs. C-corp isn’t set-and-forget.

• Model different owner-pay structures: salary + distributions vs. guaranteed payments vs. draws.

• Map out capital investments: time big purchases to maximize expensing while staying comfortable with cash flow.

• Revisit your bookkeeping and tracking: good records are the foundation of every deduction discussed here.

6. Get a Customized View for Your Business

No article can tell you exactly which structure, expensing strategy or planning move is best for your situation. The rules are complex, and they interact with each other in ways that don’t always show up in a simple online calculator.

At Davis Crawford CPA, we help small and mid-sized business owners:

• Understand how current law applies to their entity, industry and goals

• Build a multi-year tax strategy instead of reacting each spring

• Implement better systems so tax season stops being a fire drill

Next steps:

• Book a Tax Consultation to talk through your structure and planning options.

• Or, if you just want a sense of pricing first, complete our Business Tax Quote questionnaire and we’ll follow up with a tailored estimate.

Business Taxes 101: How to File Your Small-Business Tax Return Without the Chaos

Published: October 2025

Updated: October 2025

Running a business is hard enough. Add in tax season, and many owners feel like they’re flying blind.

The good news: you don’t have to become a tax expert. You just need a basic roadmap and the right support. This guide walks through the key pieces of filing your business taxes—so you can stay compliant, avoid penalties and stop living in “11th-hour scramble” mode.

1. Know Your Deadlines

You can’t plan if you don’t know when things are due.

Common federal filing deadlines (for calendar-year businesses) include:

• S corporations & partnerships: typically mid-March

• C corporations & sole proprietors (Schedule C): typically mid-April

• Quarterly estimated tax payments: generally due in April, June, September and January for many owners

• Payroll tax returns (Forms 941/944), W-2s and 1099s: scattered throughout January and each quarter

Why deadlines matter:

• Rushing increases the chance of errors.

• Penalties and interest add up quickly.

• Lenders and investors often ask for timely, clean returns.

Build an annual tax calendar and share it with your team. If taxes always feel like a surprise, the problem is the calendar, not the IRS.

2. Understand Which Tax Forms Apply to You

The forms you file depend on your business structure:

• Sole proprietorship (including single-member LLCs taxed as disregarded entities):

• Form 1040 + Schedule C

• Possibly Schedule SE for self-employment tax
  
  

• Partnerships and multi-member LLCs:

• Form 1065

• Schedule K-1 issued to each partner
  
  

• S corporations:

• Form 1120-S

• Schedule K-1 issued to each shareholder
  
  

• C corporations:

• Form 1120

If you have employees or contractors:

• Employees: Forms W-2, W-3, Form 941/944, unemployment returns, etc.

• Contractors paid $600+: Form 1099 (generally 1099-NEC), supported by a Form W-9 on file.

You don’t need to memorize every form number—that’s our job—but you do need to be sure the right ones are being filed under your name and EIN.

3. Keep Your Paperwork Organized Year-Round

Tax filing is easy when the books are clean and records are ready. It’s painful when everything is scattered.

At a minimum, your records should include:

• Bookkeeping files (QuickBooks, Xero, etc.) kept current throughout the year

• Financial statements: Profit & loss, balance sheet, cash flow

• Payroll reports if you have employees

• Fixed asset details: purchases and disposals of vehicles, equipment, property

• Receipts and invoices supporting business expenses

• Mileage logs for business use of vehicles

• Bank and credit-card statements

A simple rule of thumb: if you’d want to deduct it, keep proof of it. Digital copies are fine as long as they’re legible and properly stored.

4. Understand Employment and Contractor Tax Requirements

If you pay people, you have tax responsibilities:

Employees

• Withhold and remit federal, state and (where applicable) local income taxes.

• Withhold and match Social Security and Medicare taxes.

• File quarterly payroll tax returns.

• Issue W-2s by the deadline.

Independent contractors

• Collect a Form W-9 before you pay them.

• Track total payments during the year.

• Issue required 1099s if they meet the thresholds.

Misclassifying employees as independent contractors is a common and expensive mistake. When in doubt, get professional guidance before you hire.

5. Track Expenses and Deductions Properly

The IRS lets you deduct “ordinary and necessary” business expenses. Common examples:

• Rent, utilities, internet and phone

• Software subscriptions

• Office supplies and equipment

• Advertising and marketing

• Travel, meals (subject to special rules), conferences

• Professional fees (legal, accounting, consulting)

• Payroll and benefits

But there’s a catch: no documentation = no deduction.

Make it a habit to:

• Use business bank and credit-card accounts for business spending.

• Save receipts for larger or unusual items.

• Tag expenses properly in your accounting system (not everything is “miscellaneous”).

6. Avoid the Biggest Business Tax Mistakes

Some of the most painful issues we see come from:

• Missing or late quarterly estimated tax payments

• Filing annual or payroll returns late

• Not separating personal and business expenses

• Failing to issue W-2s and 1099s properly

• Ignoring notices until they snowball into bigger problems

These are all fixable, but prevention is cheaper.

7. You Don’t Have to Do It Alone

You started your business to serve clients, build something meaningful and get rewarded for the risk you’re taking—not to become an amateur tax preparer.

At Davis Crawford CPA, we:

• Keep your books and payroll in order year-round

• Prepare and file the correct returns on the correct dates

• Help you understand your tax position before filing season

• Look for legal ways to reduce your bill—not just record history

Ready to get out of “tax survival mode”?

• Use our Business Tax Quote form to get a pricing estimate.

• Or Book a Tax Consultation and we’ll walk you through the process step-by-step.

7 Small-Business Tax Mistakes That Cost You Money (and How to Avoid Them)

Published: September 2025

Updated: September 2025

Taxes don’t usually break a business—but avoidable tax mistakes absolutely can.

Most small-business owners aren’t trying to do anything shady. They’re just busy, pressed for time and dealing with complex rules. That’s a perfect recipe for penalties, surprise tax bills and unnecessary stress.

Here are seven of the most common tax mistakes we see—and smart ways to avoid them.

1. Skipping or Underpaying Quarterly Taxes

Once your business is profitable, you’re generally expected to pay estimated taxes during the year, not just in April.

Skipping or underpaying quarterly estimates can lead to:

• Underpayment penalties

• Interest charges

• A nasty surprise when your annual return is filed

How to avoid it:

• Work with your CPA to estimate your quarterly liability based on real numbers, not guesswork.

• Set aside a tax reserve in a separate account each month so the cash is there when you need it.

2. Forgetting to Send 1099s

If you paid independent contractors or certain vendors $600 or more during the year, you may need to send them a Form 1099 and file copies with the IRS.

Missing or late 1099s can trigger:

• Fines per missing form

• Extra scrutiny of your deductions

• Frustration for your contractors

How to avoid it:

• Collect Form W-9 from each contractor at the start of the relationship.

• Keep payments tracked in your accounting system by vendor.

• Put the 1099 filing deadline on your tax calendar and assign responsibility for it.

3. Not Tracking Expenses Carefully

You can only deduct what you can prove.

Fast-growing businesses often:

• Throw receipts in a box (or nowhere at all)

• Use personal cards for business expenses

• Wait until tax season to reconstruct a year’s worth of spending

That’s how deductions get lost and audits get messy.

How to avoid it:

• Use dedicated business bank and credit-card accounts.

• Sync your accounts to an accounting system and categorize transactions monthly.

• Save digital copies of receipts for significant or unusual expenses.

4. Using the Wrong Entity Structure

Your entity type affects:

• How you’re taxed

• How much self-employment tax you pay

• How easy it is to bring in partners or investors

• Your eventual exit strategy

An entity that worked when you started may not be ideal when you hit a new revenue tier.

How to avoid it:

• Revisit your entity choice as profit grows—especially around major milestones.

• Talk through S-corp vs. LLC vs. C-corp implications with a CPA who works with businesses like yours.

• Don’t change structures without understanding downstream effects (state taxes, payroll, owner draws, etc.).

5. Missing Legitimate Deductions

Commonly missed areas include:

• Insurance (liability, professional, some health-related costs)

• Home office and certain auto expenses

• Professional development and conferences

• Software and technology tools

• Certain start-up and organizational costs

Leaving these out means you’re voluntarily overpaying your taxes.

How to avoid it:

• Keep a running list of recurring expenses and subscriptions.

• Share that list with your CPA each year to confirm what’s deductible.

• Ask specifically about new types of spending (e.g., a major software investment or a new workspace).

6. Mixing Personal and Business Finances

This is a classic early-stage mistake.

Mixing funds:

• Makes bookkeeping and tax prep more expensive

• Increases the risk of missing deductions

• Can undermine the limited liability protection of certain entities if things ever get messy

How to avoid it:

• Open a separate business bank account and business credit card as soon as possible.

• Pay yourself through owner draws, distributions or payroll, not random transfers.

• Stop putting business costs on personal cards unless absolutely necessary—and document clearly when you do.

7. Trying to Do Everything Yourself

DIY can work at the very beginning. But as you add employees, contractors, multiple revenue streams or inventory, the risk of expensive mistakes grows quickly.

Working with a professional service:

• Helps you spot planning opportunities you might miss on your own

• Reduces your audit risk by improving accuracy and documentation

• Frees up your time to actually run and grow the business

Let Davis Crawford CPA Help You Avoid Costly Mistakes

At Davis Crawford CPA, we specialize in helping small and mid-sized businesses:

• Clean up messy books and systems

• Get current on filings and payments

• Put a tax strategy in place that supports growth

Ready to fix a few of these issues before they turn into bigger problems?

• Start with a Business Tax Consultation to review where you are today.

• Or complete our Business Tax Quote form for pricing and next steps.

Tax Services for Small Businesses: What You Really Need (and What You Don't)

Published: August 2025

Updated: August 2025

"Tax services” can mean almost anything—from a one-time return to a fully outsourced finance department.

If you’re a small-business owner, it’s hard to know what level of help you actually need—and what’s simply overkill.

Here’s a clear breakdown of core tax services for small businesses, what they include, and how to decide what’s right for you.

1. Core Tax Compliance Services

These are the “must-haves.” If they’re not being handled correctly, everything else is secondary.

Income tax return preparation

• Business returns (Form 1120, 1120-S, 1065, Schedule C)

• Owner-level returns that include pass-through income (K-1s, etc.)

• Multi-state filings where you have “nexus”

Payroll-related tax services

• Payroll tax filings

• W-2s and W-3s

• Guidance on withholdings and employer tax responsibilities

Information reporting

• 1099s for contractors and certain vendors

• Help collecting W-9s and keeping support on file

If your current setup only handles your annual return and ignores payroll and other filings, you may be more exposed than you realize.

2. Proactive Tax Planning

Compliance is backward-looking: it reports what happened.

Tax planning is forward-looking: it asks, “What can we do now to improve next year’s tax picture?”

Examples of planning work:

• Choosing or changing entity type

• Structuring owner compensation (salary vs. distributions)

• Optimizing use of deductions, credits and expensing rules

• Mapping out multi-year strategies around major events (business sale, adding partners, big investments)

3. Sales Tax, Nexus and Multi-State Issues

If you sell products or services across states, you may have sales tax or income tax obligations in more than one jurisdiction.

Good tax services help you:

• Understand where you have nexus (physical, economic, employees, inventory, etc.)

• Register where required

• File the right returns with the right jurisdictions

• Avoid accidental exposure by ignoring state rules

Ignoring this area can be far more expensive than the cost of getting it right.

4. Bookkeeping and Accounting Support

Strictly speaking, bookkeeping isn’t “tax,” but it’s the foundation of everything tax-related.

If your books are a mess, even the best tax preparer can only do so much.

Tax-savvy accounting support can:

• Keep your books current and accurate

• Reconcile bank and credit-card accounts

• Track receivables, payables and owner distributions

• Flag issues early so tax surprises are minimized

This is where a subscription-style relationship really shines: you get ongoing clean-up and oversight, not just a once-a-year rush job.

5. When a Boutique CPA Firm Is the Right Fit

Big national chains are built for volume. They’re fine for very simple situations, but they typically don’t:

• Learn your business deeply

• Integrate bookkeeping, tax and advisory under one roof

• Help you think strategically about the next 3–5 years

A boutique firm like Davis Crawford CPA is ideal if:

• Your business is growing and taxes are no longer “simple”

• You want one partner overseeing books, payroll, tax and planning

• You prefer a higher-touch, more strategic relationship—not a rotating cast of preparers

6. What Working With Davis Crawford CPA Looks Like

For small and mid-sized businesses, our tax services often include:

• Annual business and owner-level tax returns

• Quarterly planning to manage cash and estimated payments

• Sales-tax and multi-state guidance where needed

• Integration with bookkeeping and payroll for a true all-in subscription feel

• Support via secure portals and structured workflows so you’re not chasing paperwork

Want to see if we’re the right fit?

• Complete our Business Tax Quote form for a customized estimate.

• Or Book a Tax Consultation and we’ll talk through your situation and options.

Why Small Businesses Need a Tax Service (Even If You’re Just Starting Out)

Published: July 2025

Updated: July 2025

If you’re like many small-business owners, you’ve wondered:

“Do I really need a tax service, or can I just figure this out myself?”

The honest answer: it depends on your goals, complexity and risk tolerance. But most business owners underestimate just how much is at stake—and how much a good tax partner can save them.

Here’s why working with a tax service is often one of the best early investments you can make.

1. Tax Rules Change Constantly

Tax law doesn’t stay still. Major federal reforms in 2017 and again in 2025 reshaped the rules for:

• Business deductions and expensing

• Pass-through income

• Individual brackets and credits

• State and local tax interactions

Trying to track all of that while running a business is a full-time job in itself.

A good tax service:

• Stays current on law changes for you

• Filters what actually matters to your business

• Adjusts your strategy as the rules evolve

2. Taxes Touch Every Stage of the Business Cycle

Taxes aren’t a once-a-year event. They show up:

• Before tax season – choosing an entity, setting up payroll, tracking expenses correctly

• During tax season – preparing and filing returns, responding to notices

• After tax season – handling extensions, estimated payments, changes in income, sales-tax issues

When you have a tax partner, you’re not starting from scratch every spring. There’s a continuous thread from one year to the next.

3. Better Decisions, Not Just Better Forms

A tax service is valuable not only because they fill out forms correctly, but because they help you make better business decisions:

• How should you pay yourself?

• Is now the right time to elect S-corp status?

• Should you buy or lease that new equipment?

• How will adding a partner or investor affect your taxes?

These decisions are easier—and often more profitable—when you can talk through the numbers with someone who’s seen hundreds of similar situations.

4. Time and Stress Savings

Your time is finite. Every hour you spend trying to decode tax rules is an hour you’re not:

• Serving clients

• Selling and marketing

• Leading your team

• Building systems

A tax service takes a huge chunk of complexity off your plate so you can focus on the parts of the business that truly require you.

5. Avoiding Penalties and Red Flags

Many small-business tax problems boil down to:

• Missed deadlines

• Incorrect forms

• Misclassified workers

• Sloppy records

A tax partner helps you avoid these landmines by building good habits into your systems:

• A documented calendar of due dates

• Automated reminders and workflows

• Consistent bookkeeping and record-keeping

• Proactive communication when something changes

6. How Davis Crawford CPA Supports Small Businesses

At Davis Crawford CPA, we approach tax services as part of a broader financial system, not just a once-a-year task.

Our small-business clients get:

• Timely, accurate tax returns

• Ongoing planning and check-ins (not just a meeting in March)

• Connection between bookkeeping, payroll and tax so nothing falls through the cracks

• A boutique, high-touch relationship with clear processes and expectations

Curious what that would look like for your business?

• Start with our Business Tax Quote form to get a sense of pricing.

• Or Book a Tax Consultation to see if we’re a fit.
  

New Business Tax Checklist: 8 Issues Every Startup Needs to Handle Early

Published: June 2025

Updated: June 2025

Starting a new business is exciting—and a little overwhelming. Taxes probably aren’t the fun part of your launch plan, but ignoring them can get expensive fast.

The good news: if you handle a few key issues early, you’ll avoid most of the common headaches new businesses face.

Use this 8-point tax checklist as a guide.

1. Choose the Right Business Structure

Your choice of entity type—sole proprietorship, partnership, LLC, S-corp or C-corp—affects:

• How you’re taxed

• How profits flow to you

• Your exposure to self-employment tax

• Your ability to bring in partners or investors

• Your legal liability

There’s no one “best” structure. The right choice depends on your:

• Income level and growth expectations

• Industry

• Number of owners

• Long-term goals (lifestyle business vs. exit)

This is one of the first decisions you should make with a CPA or advisor, not after the fact.

2. Register for the Right Taxes

After you choose your structure, you’ll likely need to:

• Apply for an Employer Identification Number (EIN)

• Register for state and local taxes where required

• Set up payroll tax accounts if you’ll have employees

• Understand whether you need to collect and remit sales tax

Skipping a registration doesn’t make the obligation go away—it just makes it harder and more expensive when it eventually surfaces.

3. Plan for Estimated Taxes

If you’re self-employed or operate a pass-through entity, you may need to make quarterly estimated tax payments.

Early planning helps you:

• Avoid penalties and interest

• Smooth out cash flow

• Prevent “April surprises”

A simple approach:

• Estimate your annual profit with your CPA

• Set aside a percentage of each month’s profit into a separate tax account

• Use that account to fund quarterly payments

4. Set Up Clean Record-Keeping from Day One

It’s much easier to start clean than to catch up a year later.

From the beginning, put in place:

• A separate business bank account

• A basic accounting system (QuickBooks, Xero, etc.)

• A consistent way to store digital receipts and contracts

• Regular time (weekly or monthly) to update your books

Good records:

• Make filing returns faster and cheaper

• Support your deductions if you’re ever audited

• Give you better insight into your business performance

5. Understand What You Can Deduct

Even in the early days, you may be able to deduct:

• Business use of your home (if you qualify)

• Startup and organizational costs (subject to certain limits)

• Equipment, technology and software

• Travel, meals and marketing

• Professional fees and insurance

The rules can be technical, but the principle is simple: if it’s an ordinary and necessary business expense, it’s worth asking if it’s deductible.

6. Get Payroll and Worker Classification Right

Many startups start with a mix of:

• Founders

• Full-time or part-time employees

• Independent contractors or freelancers

The line between “employee” and “contractor” isn’t always obvious, but misclassifying workers can lead to:

• Back payroll taxes

• Penalties

• Interest

Before you start hiring:

• Decide who will be an employee vs. contractor

• Set up a proper payroll system for employees

• Collect W-9s from contractors and plan for year-end 1099s

7. Build Tax Planning Into Your Growth Strategy

Even if you’re pre-revenue, now is the time to think about:

• How you’ll fund the business (owner contributions, loans, investors)

• How profits will be distributed once you’re making money

• When it might make sense to switch entity types or add an S-corp election

• What happens tax-wise if you sell the business down the road

Tax planning isn’t about gaming the system. It’s about aligning your entity, compensation and investment choices with your long-term goals.

8. Don’t Wait for Your “First Busy Season” to Get Help

A lot of founders wait until:

• Their first big tax notice arrives, or

• Their first year’s books are a mess, or

• They’re behind on payroll and filings

…before they bring in professional help.

You don’t have to do that.

At Davis Crawford CPA, we:

• Help new businesses set up clean systems from day one

• Handle registrations, filings and planning so you can focus on growth

• Offer subscription-style support so you know exactly what you’re getting and what it costs

 Launching or relaunching a business?

• Complete our Business Tax Quote form for a startup-friendly estimate.
  
  

• Or Book a Tax Consultation so we can walk through your situation and build a simple plan.