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THE SCOOP: If you have an LLC taxed as an S-Corp or you have an LLC with multiple members (partnership default tax election) your tax returns were due last week!!
These are called “informational” returns, because they simply inform the IRS about the activity of the business as a whole. The entity then issues a K-1 to each of the partners for their share of the business activity. An individual partner will generally report the K-1 on their personal tax return - which for tax year 2025 aren’t due until April 15, 2026!
Also consider state implications. Some states match the IRS deadlines but not all. Some have separate filings, taxes, or rules for partnerships and S-Corps.
Easy Tax Savings to Setup in Q1 - Retirement Accounts!
I often work with clients who quickly want to jump to buying a new truck to help them save on taxes. This can be a good option if its an expense you actually needed to make or were already planning on making it and decided to speed up the purchase date. Otherwise, you’re spending $100 to save $30 on taxes (numbers for illustrative purposes only). Yes, you saved some money on taxes, but you’re also spending money - which means you don’t get to keep it either.
Now, you might be thinking… “it’s an investment.” But here’s the thing, the investments I put my money into generally go up in value - they are appreciating assets. Cars and trucks? These generally go down in value - they are depreciating assets.
Again, it’s not that buying a car for your business is a bad idea. It’s when you make these types of expenses for the sole purpose of saving on taxes that may not be the best option.
So what’s a better option? What about getting a write off for investing into assets that can go up in value? That’s where retirement accounts come in. You’ve probably heard of a 401k, an employer provided retirement savings plan. Generally, an employee can contribute a certain % of their income, and often times the employer offers a “match” where they also contribute to the employees account.
As a business owner, you have access to similar plans that you can offer to yourself and employees. Contributions to traditional accounts are often tax deductible, meaning then can also lower what you’re taxed on - like a tax write-off! This varies by account and individual. Here’s a few of the more well known options you may have heard about:
Individual or Solo 401k: Intended for sole proprietors and other small businesses who have no employees other than a spouse. It’s a retirement plan that can be setup by the individual or their business. The individual can make contributions as the employee, and the business can contribute as the employer.
For 2026, the employee elective deferral limit is $24,500
The total contribution limit (employee + employer) for 2026 is $72,000 (plus
catch-up if eligible)
If you’re age 50+, you can also make a catch-up contribution of $8,000 (so
your total could be $78,000)
Simple 401k: A retirement plan where employees can make contributions as the employee, via salary deferrals, and the business can contribute as the employer as a match. Available to small business owners with less than 100 employees, and no other retirement plans.
For 2026, the employee elective contribution limit is $17,000
The catch-up contribution limit for those age 50+ is $4,000
The “super” catch-up contribution limit for those 60 to 63 is $5,250
Under the Secure Act 2.0, employees of companies with 25 or less employees may contribute above the standard limits. For these employees:
For 2026, the employee elective contribution limit is $18,100
The catch-up contribution limit is $3,850 for 50 to 59 or 64+
The “super” catch-up contribution limit for those 60 to 63 is $5,250
SEP IRA: Often used by self-employed individuals or small business owners with few employees. Generally, all contributions to the account are made by the employer. If you’re self employed, you are your own employer.
For 2026, you can contribute up to 25% of your total compensation or maximum of $72,000
If you’re self employed, contributions can be limited to 20% of your net income.
These aren’t all of the accounts available to business owners, nor is it all the information you should consider, but this should be a good start in seeing that there are other options for tax savings aside from making unnecessary expenses! I’m a fan of this option because it can help with tax planning and lowering taxes today, while also helping to save for one’s retirement and estate planning.
If you want to work with a professional on setting up any of these accounts for you or your business, consider working with ADP and enjoy 30% off.
Other Deadlines for Business Owners
Individual Tax Returns, Schedule C, 1099 filers: April 15, 2026
Q1 Federal Estimated Tax Payments: April 15, 2026
Keep in mind, there’s a difference between being eligible to open an account & setting it up and actually investing the money. These are simply accounts that will hold your investments. They can hold good investments or bad investments, whatever you actually invest the money into.
If you put money in and don’t actually invest it, it just sits in an account as cash - maybe earning a small amount in interest. So it can keep up with inflation, but it doesn’t truly “grow.”
I know this part can get a little overwhelming, so each quarter I host a free Stocks 101 class with a licensed financial advisor. We cover the basics of investing in the stock market in plain English, plus a live Q&A! Our next class is a week from today - Monday 3/30 at 7pm ET. It’s completely free but capacity is limited, if you want to reserve a spot you can sign up here!
I hope you found this information helpful! See you next week!
-Neyra
Please remember that while I am a CPA, I am not your CPA. Please consult a licensed professional on any financial, tax, or business decision you contemplate.