Tax Strategies for Businesses Under Six-Figures vs. Over Six Figures
- Karen Gargiso
- Mar 3
- 3 min read
If you’re a business owner who is scaling their business and has a big vision, it’s time to learn how to approach your taxes at these different levels. The strategies that serve a business making under six figures annually won’t be the same as those for a multiple six-figure company. Understanding these differences ensures you’re maximizing tax savings at every stage.
As your business grows, so do your tax responsibilities. The strategies that serve a business making under six figures annually won’t be the same as those for a multiple six-figure enterprise.
If you’re a business owner who is scaling their business and has a big vision, it’s time to learn how to approach your taxes at these different levels. It might not be your job to do your taxes, but it is your responsibility to make sure you’re prepared by the time that season comes around. Plus, it feels good to be in the know on your next level of financial success!
Understanding these differences ensures you’re maximizing tax savings at every stage.
Tax Strategies for Businesses
Businesses Under Six Figures:
Sole Proprietorship or LLC: Most small businesses start as sole proprietors or LLCs for simplicity and lower costs.
Basic Deductions Matter: Home office, internet, and startup expenses can significantly reduce taxable income.
Quarterly Tax Payments: If you’re making consistent income, quarterly estimated tax payments help avoid penalties.
Businesses Over Six Figures:
S-Corp or Other Entity Structure: Transitioning to an S-Corp can reduce self-employment taxes and create better tax efficiencies.
Advanced Tax Strategies: Hiring family members, investing in retirement accounts, and leveraging business expenses strategically can reduce taxable income.
Proactive Planning: As revenue grows, working with a tax strategist ensures you’re optimizing deductions and planning for long-term wealth.
No matter where your business stands, having the right tax strategy in place can save you thousands and help your business scale with financial confidence.
You probably didn’t start your business to become a tax genius or bookkeeper, so I’m sure you’re planning on hiring someone who knows how to do these things and do these things well. Knowing these things on your own can also help you identify the kind of bookkeeper and tax professional that will grow with you and your business. Be sure to ask them what advice they have for where your business finances are at now, and for where you’d like to scale your business to.
If you’re a creative, spiritual, or sensually spicy entrepreneur, consider joining The Sacred Money Inc. family. We believe that your relationship with money goes beyond simply managing books and doing taxes.
We want you to not just feel confident your taxes are done well, but also that you have a healthy, empowered and peaceful relationship with money.
Sacred Money Inc. offers free consultations to get the fire underneath you. Schedule yours today. 💸✨
Hey there! I’m Karen.
I'm the Founder & CEO of Sacred Money Inc., where I empower spiritually-minded entrepreneurs to heal their financial wounds and manage their money with confidence and grace.
We offer a unique blend of practical financial expertise, including bookkeeping and tax services, with trauma-informed coaching.
My work is here to guide you toward financial resilience and abundance. I'm passionate about transforming the way we think about money and integrating it with our values, pleasures, and spiritual practices.
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