Smart Moves to Lower Your 2025 Business Tax Bill

Patrick Campbell | Jun 27 2025 17:00

As we move toward the end of 2024, small business owners in Ottawa, IL and the surrounding towns—like Marseilles, Utica, and Grand Ridge—are already thinking about how to keep more of what they earn in 2025. Tax planning isn’t just for April; it’s something you can tackle now to stay ahead, stay compliant, and reduce the stress of year-end surprises. Here are a few smart, practical strategies to consider if you’re looking to reduce next year’s tax bill and keep your books in good shape.

 

1. Track Expenses Accurately—All Year Long

Whether you’re a contractor, shop owner, or run a service-based business, the key to claiming valid deductions is good recordkeeping. Don’t wait until tax season to organize receipts and invoices. A consistent system—especially when paired with a clean QuickBooks setup—can reveal savings you might otherwise miss.

 

2. Review Your Business Structure

The way your business is structured can have a big impact on your tax obligations. If you started as a sole proprietor but have grown in revenue or added employees, switching to an S Corporation might reduce your self-employment taxes. These changes should be reviewed before year-end to apply to the next tax year.

 

3. Plan Equipment or Supply Purchases Strategically

Section 179 of the tax code lets you deduct the full cost of qualifying equipment or software in the year it’s purchased and placed into service. If you’re considering new tools, tech, or upgrades, doing so before year-end could reduce your taxable income—while still getting value from the investment.

 

4. Evaluate Retirement Contributions

Don’t forget about retirement! If you’re self-employed or run a small business, there are plans (like SEP IRAs or Solo 401(k)s) that let you make tax-deductible contributions—helping your future self and lowering your tax bill at the same time.

 

5. Make Estimated Payments on Time

If you owe over a certain amount each year, the IRS expects quarterly estimated payments. Paying late can lead to penalties—even if you file on time. We can help calculate and schedule these payments so you’re not caught off guard.

 

Quick Recap: Smart Tax Moves
  • Stay on top of expense tracking
  • Reevaluate your business structure
  • Time equipment purchases wisely
  • Max out eligible retirement contributions
  • Avoid underpayment penalties

 

Let’s Talk Before Year-End

If you own a business in or near Ottawa, IL, and want a local team who actually knows what it’s like to run a business here—we’d love to help. Our year-round tax planning services make it easy to avoid last-minute decisions and costly mistakes.