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5 Year-End Planning Ideas for Small Business Owners

Small businesses (those with under 500 employees) account for 99.9% of all firms, and just under 50% of total private sector employment in the United States.

49% of small businesses have just one to four employees which underscores a challenge for many small business owners: having to wear multiple hats and adapt to an ever-changing landscape.

Every year brings unique planning opportunities for business owners.  However, the passing of the new tax law creates a new set of considerations as we head to the end of 2025 and into 2026.

While not an exhaustive list, we’ve compiled a check list for business owners to review with us and other trusted professionals like CPAs and attorneys. 

  • Complete a business valuation. This is important for your financial planning and overall succession/exit planning. We’re seeing more M&A activity among small businesses, especially with private equity. If you don’t know what your business is worth, or haven’t updated in a few years, we can help you with our valuation software.
  • Review your entity structure. New tax rules like permanent QBI (qualified business deduction) and tax-favored gains on selling stock in small business create an opportunity to work with your CPA and/or attorney to confirm that your entity structure is right for you.
  • Review your property and casualty coverage. One sign you need to update your coverage is if you do not have cybersecurity coverage. No matter how small your business is, a cyber event could be costly and potentially derail your business. A policy will help connect you with expert professionals and reduce financial impact should an event occur.
  • Charitable giving considerations. The new tax law impacts corporate giving by requiring 1% or more of taxable income to deduct. Additionally, if you’re charitably inclined, there are several ways to structure the potential sale of your business to reduce or eliminate capital gains and potentially provide retirement income.
  • Review your growth plans. There are many employee benefit considerations from Secure Act 2.0 that could make starting or updating your retirement plan options more attractive for both you, the owner, and your employees. Additionally, under OBBBA, the 100% bonus depreciation provision is made permanent, so if you were looking to update machinery, equipment, software etc., begin considering these investments.