If your business has grown beyond the “just getting by” stage, congratulations! That’s a big milestone. But growth also brings new challenges, especially when it comes to taxes. What worked when you were a one-person shop may not work as you add employees, expand locations, or buy new equipment.
The good news is that with a little advanced tax planning in Texas, you can turn those same growing pains into real tax savings. At Adam Traywick, CPA, we help Texas business owners use advanced tax strategies to keep more of what they earn and reinvest confidently in their next stage of growth.
Let’s walk through a few strategies that can make a real difference once your business starts to scale.
When your business was small, a simple setup worked fine. But as your income increases, your structure determines how much tax you actually pay.
Many growing businesses in Texas start out as sole proprietors or LLCs. At a certain point, switching to an S corporation can reduce self-employment taxes and create opportunities for better retirement and health benefits. By paying yourself a reasonable salary and taking remaining profits as distributions, you can often lower your total tax bill.
To help you decide, read our blog post: S Corp vs llc in texas: Which Structure Is Better for Taxes?
While Texas doesn’t tax personal income, most entities are subject to the state’s franchise (margin) tax. The way your business is organized affects how that’s calculated and how much you owe.
If it’s been a few years since you set up your company, it’s worth revisiting whether your structure still serves your goals.
If you’re running a trade or service-based business, your tools and vehicles are major investments and big tax opportunities.
Under Section 179 and bonus depreciation rules, you can usually deduct the full cost of qualifying equipment in the year you buy it. That means a new service van, HVAC system, or laptop purchased before December 31 could reduce your taxable income this year.
Timing matters. If your profits are higher this year than next, it may make sense to accelerate purchases. But if you expect income to grow next year, holding off could be more strategic.
Talk to your CPA before making large purchases so you can line up the biggest benefit possible.
Taxes aren’t a once-a-year project. The most successful business owners track their numbers continuously so they can plan ahead instead of reacting at tax time.
Set aside time each quarter to review your income, expenses, and upcoming jobs. This allows you to forecast taxable income and make adjustments, whether that means contributing more to retirement, accelerating deductions, or deferring revenue to the next year.
Think of it like routine maintenance for your business finances. Staying proactive keeps things running smoothly and prevents unpleasant tax surprises later.
Texas business owners in different industries qualify for different deductions, but many don’t claim them fully.
Tradespeople can deduct vehicle mileage, tools, uniforms, and job supplies. Real estate agents can write off marketing costs, license renewals, and client meals. Insurance professionals can often claim continuing education, networking events, and office expenses.
These deductions add up fast b ut only if they’re well documented. Keep records of every purchase, note the business purpose, and track mileage consistently.
If your business is growing steadily, it’s time to think long term. Whether you want to expand into new markets or sell the company down the line, early tax planning can save a significant amount.
Structuring your business properly, keeping accurate books, and documenting your assets help you reduce capital gains taxes and make your business more attractive to buyers. Planning now, even years ahead, can mean a smoother exit later.
A trusted CPA can help you forecast the tax impact of future goals and design a strategy that protects your hard-earned profits.
Scaling your business should feel exciting, not overwhelming. With smart tax planning, every new stage of growth becomes an opportunity to save more and stress less.
At Adam Traywick, CPA, we partner with Texas business owners to build tax strategies that fit where they are today and where they want to go next.
If you’re ready to get more out of your growing business, reach out to our Fort Worth team.
Let’s make sure your taxes work for you, not against you.
Until next time!
