Reducing small business taxes in Texas requires more than just good bookkeeping — it involves smart tax planning, structure selection, and full use of legal deductions. Whether you’re a freelancer, LLC owner, or S-Corp, these strategies can help you pay less in 2025.

1. Choose the Right Business Entity

Your business structure directly affects how much tax you owe. For example, S-Corps can help reduce self-employment taxes by splitting income between salary and distributions.

2. Deduct All Qualified Business Expenses

• Office rent or home office portion
• Utilities, internet, software (QuickBooks, Zoom, etc.)
• Business-related travel and meals
• Marketing, ads, and professional services (like accounting)

3. Use Tax-Deferred Retirement Accounts

Open a SEP IRA or Solo 401(k) and deduct contributions. You reduce your current taxable income and save for the future.

4. Depreciate Business Equipment

Equipment, laptops, phones, and vehicles can be depreciated or deducted under Section 179. Many business owners forget this major write-off.

5. Hire Your Spouse or Family

Hiring a spouse or child (legitimately!) can reduce household taxes and create retirement plan contributions. Document hours and duties properly.

6. Stay Compliant with Estimated Taxes

Pay quarterly estimated taxes on time to avoid penalties. Use Form 1040-ES and keep a tax calendar to stay organized.

7. Work with a Texas CPA

A tax expert who understands Texas business laws can find deductions you might miss and help you stay audit-proof. Abbas Accounting offers personalized tax planning services.

💡 Pro Tip: Tax planning is not a once-a-year task. Review your tax strategy every quarter.

Additional Resources

🔗 Monthly Bookkeeping Services
🔗 IRS: Small Business Tax Guide

If you’re looking to reduce taxes and grow your business with confidence, book a free consultation today.