Business Tax Planning

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Estate Planning for Business Owners – What to Know Before Year-End

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Estate planning isn’t only about passing on personal wealth. It’s a critical part of protecting your business legacy. As a business owner, your estate plan should answer one key question: What happens to the company if something happens to you?  

Here’s what to review before year-end:  

Create or Update Your Will  
Ensure your will addresses both personal and business assets. If you don’t have one, your estate, including your business, may be tied up in probate for months or even years.  

Set Up a Succession Plan  
Whether you want your children to take over or your partners to buy you out, a clear succession plan helps prevent disputes and ensures a smooth transition.  

Review Your Operating Agreement  
Does your current operating agreement cover ownership transfers in the event of death or incapacity? If not, it’s time for an update.  

Establish or Review Buy-Sell Agreements  
A buy-sell agreement outlines how business shares are sold or transferred, who has the right to buy them, and how they're valued. This protects both your family and your co-owners.  

Explore Estate Tax Strategies  
Business owners often exceed estate tax thresholds. Gifting shares, creating trusts, or using valuation discounts are just a few tools to explore with your CPA and estate attorney.  

An estate plan isn't static, it should evolve as your business grows. Take time before year-end to align your financial goals with your legacy. Doing so ensures your business continues in the hands you trust. 

Mid-Year Tax Check-Up for Business Owners: What You Can Still Do Before Year-End

As the halfway point of the year passes, July is the perfect time for business owners to assess their financial health and make strategic adjustments. A mid-year tax check-up can help you avoid surprises come tax season and identify opportunities for savings.

Start by reviewing your income and expenses to ensure your bookkeeping is up-to-date. Accurate records allow your CPA to project your tax liability and suggest strategies like adjusting estimated payments or maximizing deductions.

Consider accelerating purchases or investments that may qualify for deductions. Also, review retirement contributions, potential tax credits, and any changes to payroll that may impact tax filings. For many small businesses, this is also a good time to re-evaluate entity structure or check eligibility for the Qualified Business Income (QBI) deduction.

A mid-year check-in with your CPA can keep your business on track, improve cash flow planning, and reduce year-end stress.

  • Take advantage of Section 179 and bonus depreciation.

  • Conduct a cost segregation study to accelerate depreciation.

  • Track passive vs. active income carefully for tax treatment.

  • Harvest real estate losses to offset gains.

Real estate pros should also consider timing transactions to reduce tax impact and confirm if they qualify as Real Estate Professionals (REP) under the IRS guidelines.

Your CPA can help evaluate your portfolio and optimize your strategy before December 31.