What does a financial advisor for small business owners do?

A financial advisor for small business owners can help connect business decisions with the owner’s personal financial plan. Depending on the engagement, that may include cash flow planning, tax planning coordination, retirement planning, investing outside the business, risk management, and preparing financially for a future business sale or transition.

How is a business owner financial planner different from a traditional financial advisor?

A business owner financial planner looks beyond an investment portfolio and considers how the business affects the owner’s overall financial life. Business income, owner compensation, taxes, reinvestment decisions, retirement benefits, business value, and personal investments may all need to work together rather than being planned separately.

When should a business owner consider hiring a financial advisor?

A business owner may consider hiring an advisor when financial decisions become more complex or begin overlapping. Common examples include increasing profits, unpredictable cash flow, significant tax liabilities, hiring employees, choosing a retirement plan, building wealth outside the company, buying out a partner, or preparing for an eventual exit.

How can business owners build wealth outside of their business?

Business owners can potentially build wealth outside their companies through cash reserves, retirement accounts, taxable investment accounts, real estate, and other investments. The appropriate strategy depends on the owner’s goals, cash flow needs, risk tolerance, and the potential return from continuing to reinvest money back into the business.

What should I look for when choosing a financial advisor for my business?

Look for an advisor who understands both business and personal financial planning and can clearly explain how they are compensated. Consider asking whether they are a fiduciary, how often they work with business owners, whether they coordinate with CPAs and attorneys, and whether their services include areas such as tax planning, business cash flow, retirement planning, investing, and exit planning.

Year-End Tax Moves for Business Owners: What to Do Before December 31, 2026

Kendall Maccagnan

11 minutes ago

5 min read

By Kendall Maccagnan, CPA, CFP® and Financial Advisor in Tampa, Florida

The most valuable year-end tax moves for business owners in 2026 include maximizing retirement contributions, timing equipment purchases, reviewing your S corp salary before your final payroll, timing income and expenses, and checking your estimated taxes. Most of these must be completed by December 31, so the time to plan is now, not in April.

By the time you sit down with your tax preparer in the spring, most of your options are gone. Your tax return mostly reports what already happened. Many of the decisions that can lower your tax bill need to happen before the year ends.

Key Takeaways

Most tax-saving moves must be completed by December 31, not when you file your return.
2026 retirement contribution limits are higher than last year, and S corp owners generally need to make salary deferrals through payroll by year-end.
100% bonus depreciation is permanent under the One Big Beautiful Bill Act, but equipment must be placed in service by December 31 to count this year.
Florida does not impose an individual state income tax, so many Florida owners of pass-through businesses can focus much of their year-end income tax planning on federal taxes. Other Florida business taxes may still apply.

1. Maximize Your Retirement Contributions

Retirement contributions are often the single biggest tax lever business owners have. Here are the key limits for 2026:

2026 retirement limit	Amount
401(k) employee deferral	$24,500
Catch-up contribution, age 50 and older	$8,000
Catch-up contribution, ages 60 to 63	$11,250
Total employee and employer contributions	$72,000
IRA contribution	$7,500

Timing matters. If you're an S corp owner, your 401(k) salary deferrals generally must come out of payroll by December 31. Employer contributions, like profit-sharing or SEP IRA contributions, can often be made up until your tax filing deadline, including extensions. If you don't have a plan yet, compare your options in our guide to SEP IRAs, SIMPLE IRAs, and Solo 401(k)s.

2. Time Your Equipment and Vehicle Purchases

Under the One Big Beautiful Bill Act, 100% bonus depreciation was permanently restored for qualifying property acquired after January 19, 2025. For 2026, the Section 179 deduction limit is $2.56 million. That means many businesses can deduct the full cost of qualifying equipment in the year it's placed in service.

The key word is placed in service. Buying equipment on December 30 that isn't delivered and ready to use until January generally won't count for 2026.

One caution: don't buy equipment just for the deduction. Spending $50,000 to save roughly $12,000 to $18,000 in taxes still leaves you $32,000 or more out of pocket. Buy what the business needs, then time it well. Florida business owners should also consider whether new equipment needs to be reported on a tangible personal property tax return, generally due April 1.

3. Review Your S Corp Salary Before Your Final Payroll

If you're an S corp owner, year-end is the time to confirm your salary still reflects the work you do. Once your last payroll of the year runs, fixing it gets more complicated.

Two other S corp items belong on your year-end list. Health insurance premiums paid for owners with more than 2% of the company generally need to be included in your W-2 wages. And if your business reimburses you for a home office, mileage, or other expenses under an accountable plan, make those reimbursements before December 31.

4. Time Your Income and Expenses

If your business uses cash-basis accounting, when you receive income and pay expenses affects which year they count in. Depending on whether you expect next year's income to be higher or lower, it may make sense to:

Send certain invoices in January instead of late December
Pay bills and buy supplies before year-end
Prepay certain expenses that cover the coming year

This works best as part of a tax projection, not a guess.

5. Plan Your Charitable Giving

Charitable deduction rules changed in 2026, including a new deduction for people who don't itemize and a new floor for those who do. Some owners may benefit from “bunching” several years of giving into one year, or using a donor-advised fund. See our breakdown of 2026 tax changes for individuals for details.

6. Harvest Investment Losses

On the personal side, selling investments at a loss in a taxable account can offset capital gains, plus up to $3,000 of ordinary income. Be careful not to buy the same or a substantially identical investment within 30 days, or the loss may be disallowed under the wash sale rule.

7. Check Your Estimated Taxes

Project your full-year tax bill now, while you can still adjust. Your fourth-quarter estimated payment is due January 15, 2027. To avoid an underpayment penalty, your withholding and estimated payments generally need to cover at least 90% of your current-year tax or 100% of your prior-year tax, whichever is less. The prior-year threshold increases to 110% if your prior-year adjusted gross income exceeded $150,000 ($75,000 if married filing separately). Learn more about how quarterly estimated taxes work.

8. Get Ready for January Filings

Starting with payments made in 2026, you generally only need to issue a Form 1099-NEC to contractors you paid more than $2,000, up from $600. Collect W-9s from contractors now so you're not chasing them in January. Because January 31, 2027 falls on a Sunday, W-2s and 1099s are due February 1, 2027.

A Note for Florida Business Owners

Because Florida doesn't impose an individual income tax, many state level individual income tax strategies used elsewhere don't apply to Florida residents. Florida businesses can still be subject to other state and local taxes. For Florida owners, year-end planning is about federal income tax, payroll taxes, and cash flow.

Don't Wait Until December

The best year-end moves take a few weeks to set up. Retirement plans need to be opened, payroll needs to be adjusted, and equipment needs to arrive. That's why our Ongoing Advisory clients have a dedicated year-end planning meeting every November.

If you're a business owner in Tampa Bay or elsewhere in Florida, learn more about our tax planning for business owners or book a consultation before the year closes.

Frequently Asked Questions

What is the deadline for year-end tax planning?

Most year-end tax moves, like 401(k) salary deferrals, equipment placed in service, and paying deductible expenses, must be completed by December 31. Some, like employer retirement contributions and IRA contributions, can be made up until your tax filing deadline.

Can I still make retirement contributions after December 31?

Some. Employer contributions, like SEP IRA or profit-sharing contributions, can often be made up to your

Should I buy equipment before year-end to lower my taxes?

Only if your business needs it. Bonus depreciation and Section 179 can let you deduct the full cost this year, but the equipment must be placed in service by December 31, and the deduction only saves a portion of what you spend.

Do I need to send 1099s for 2026?

For payments made in 2026, you generally need to issue Form 1099-NEC to contractors you paid more than $2,000 during the year. The forms are due February 1, 2027.

This content is provided for educational and informational purposes only and should not be construed as investment, tax, or legal advice. It is not intended as a solicitation or offer to provide advisory services in any jurisdiction where Off the Bay Wealth, LLC is not properly registered or otherwise permitted to operate. Information presented is based on sources believed to be reliable; however, accuracy and completeness are not guaranteed. This material is not intended to be a comprehensive analysis of all topics discussed. IRS provisions are subject to ongoing guidance and regulatory updates. Any financial decisions should be made in consideration of your individual circumstances, including your goals, risk tolerance, and time horizon. Investing involves risk, including the potential loss of principal.