The tax landscape for small business owners changes constantly. Every year, you’ll have to navigate new deductions, reports, and other rules that can obfuscate what returns you’re entitled to—and we’re here to help.
Let’s see what’s new and what’s familiar about tax planning for your small business in 2025.
What you need to know
- In 2025, the tax filing deadline for S-corporations, multimember LLCs, and partnerships falls later than usual, on March 17. The deadline for individual filers remains April 15.
- A large number of business tax and regulation changes went into effect after the signing of the One Big Beautiful Bill Act on July 4, 2025.
- Every year, be sure to plan ahead, and research any tax deductions or credits your business may qualify for. Speak to a tax professional if you have any concerns.
Business tax deadlines
Let’s begin by reviewing your tax deadlines. Missing these dates can cause your business to incur fines and other penalties. Here’s when to prepare for:
- January 31, 2025: If you have employees or contractors working for you, this is the deadline to send out W-2s and 1099s, and file your W-3.
- March 17, 2025: If your business is an S-corp, an LLC taxed as an S-corp, an LLC with multiple members, or a business partnership, this is the deadline to file your taxes. When March 15 falls on a weekend, the filing deadline is moved to the next business day.
- April 15, 2025: If your business is a C-corp, an LLC taxed as a C-corp, a single-member LLC, this is the deadline to file your business taxes.
- April 15 is also the deadline to file your personal tax return, regardless of your business structure.
- If you’re a sole proprietorship, you’ll report your business income and expenses on Form 1040 of your personal tax return. You don’t need to file a separate business tax return.
Quarterly estimated tax deadlines for 2025
If you prefer to pay your estimated business taxes each quarter, here’s when each quarter’s estimated tax payment is is due:
- January 15, 2025: Q4 2024
- April 15, 2025: Q1 2025
- June 16, 2025: Q2 2025
- September 15, 2025: Q3 2025
- January 15, 2026: Q4 2025
How the One Big Beautiful Bill Act affects small business owners
Congress passed the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, which introduced sweeping changes to the national tax code. We recommend you speak to your accountant or bookkeeper about how this legislation will affect your business, but here some of the bill’s major changes to taxes and expenses for small business owners:
- Makes the 20% tax deduction on qualified business income permanent. The deduction was first signed into law in 2017 and set to expire at the end of 2025.
- Increases the amount you can deduct from new business asset purchases. The Section 179 asset expensing cap has been increased to $2.5 million, while first-year bonus depreciation has been increased from 40% to 100%. These are tax deductions for certain business assets you purchased and then put to use after January 19, 2025.
- Makes domestic R&D costs fully deductible for the year they were incurred, overturning an amortization rule that was signed into law in 2022. If your business grosses less than $31 million annually, you can apply this change retroactively to tax years 2022–25.
- Increases your state and local taxes (SALT) deduction cap from $10,000 to $40,000. This cap is set to increase by 1% each year through 2029, reverting to $10,000 in 2030.
- Increases the estate and gift tax exemption amount to $15 million, and makes it permanent. This means a married couple can give or leave up to $30 million to their children without incurring these taxes.
- Expands and makes permanent the paid family and medical leave (PFML) tax credit, allowing you to claim 12.5–25% of wages paid to employees on leave, up to 12 weeks.
- Decreases Medicaid funding and changes ACA Marketplace accessibility. Many small business owners rely on Medicaid and the ACA Marketplace for affordable healthcare, as do their families and employees. The OBBBA removes certain eligible groups from Medicaid coverage, while those still covered have new eligibility requirements and will have their eligibility reviewed more often.
Helpful tax strategies for businesses
Plan ahead for tax filing
The easiest way to stay prepared and organized for filing your tax returns is to use your business checking account’s sub-accounts feature. Sub-accounts let you separate your deposits into different accounts that sit under your main account, each with unique account numbers. This is especially effective when putting money aside for taxes, large expenses, emergency funds, etc.
Maximize your deductions
Check the IRS guidelines for deducting retirement contributions, travel expenses, working from home, and mileage. The limits for each of these typically increase yearly to adjust for inflation. Be sure to get the most out of those limits, and don’t lose out by not being up to date.
Use tax credits
Tax credits are often overlooked as small business owners look for tax deductions. Federal and state revenue departments offer tax credits as incentives for different business practices. That could include green energy credits, diversity hiring, or pro bono work.
Contribute to a retirement plan
The IRS maximum contribution limit for a 401(k) plan in 2025 is $23,500. You can contribute another $7,000 to an IRA. These contributions are tax-deferred, so you can lower your tax liability for the year by maxing them out.
Seek professional counsel
If you have a legal question, talk to a lawyer. Accounting questions should go to your accountant. Don’t be afraid to consult with experts for legal and tax-related questions.
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