Tax Planning for Business Owners in Bucks County
No business owner wants to get to tax season and find out they could have paid less if certain decisions had been made earlier. That’s why 2026 tax planning for small business owners in Bucks County should begin before the year is over, when there is still time to consider your options.
This is especially important in 2026, with changes to Pennsylvania tax rules and several common business decisions that can affect what you ultimately owe. Here are five areas worth reviewing with your CPA before year-end.
1. Review Your Business Entity and Owner Compensation
The way your business is structured affects how much you pay in taxes, which is why your entity choice is worth reviewing as your business changes. This may be especially relevant for C Corporations in 2026, as Pennsylvania’s Corporate Net Income Tax rate decreases to 7.49%.
Entity selection and owner compensation are both areas DeSantis & Company PC evaluates as part of business tax planning. The goal is to periodically review whether your structure and compensation strategy still make sense throughout the year.
2. Plan Equipment and Vehicle Purchases Before Year-End
If your business is planning to purchase equipment, trucks, or automobiles, timing and tax treatment should be part of the decision. When the asset is placed in service, how it is depreciated, and whether you buy or lease it can affect when and how much you’re able to deduct.
DeSantis helps business owners compare these options and understand the tax impact before making a major purchase. This allows the tax consequences to become part of the buying decision rather than something discovered when the return is prepared.
3. Review Retirement and Deferred Compensation Options
Retirement planning can also be part of your business tax strategy. Depending on your circumstances, a 401(k), SIMPLE plan, or other deferred compensation strategy may provide opportunities to save for retirement while offering potential tax benefits.
DeSantis helps business owners evaluate retirement and deferred compensation options based on their business and financial situation, including important plan deadlines and requirements.
4. Don’t Wait Until December to Review Your Numbers
As the year progresses, your financial information starts to give you a clearer picture of what your tax situation may look like. Reviewing it with your CPA before year-end can uncover issues and planning opportunities while there’s still time to act.
A year-end tax review may include:
- Current QuickBooks records
- Profit & Loss statements
- Projected year-end income
- Estimated Federal and Pennsylvania taxes
- Planned equipment purchases and major expenses
Together, these numbers help your CPA estimate your year-end tax liability and identify small business tax planning opportunities, such as adjusting estimated tax payments or the timing of major expenses.
For some Pennsylvania corporations, 2026 tax planning should also include a review of Net Operating Loss deductions, since changes to Pennsylvania’s rules may affect how much of certain prior losses can be deducted.
5. Account for Differences Between Federal and Pennsylvania Tax Rules
Federal and Pennsylvania tax rules don’t always treat business deductions the same way. This is particularly important in 2026 because Pennsylvania does not follow certain recent Federal tax changes, which can create differences between your Federal and state taxable income.
For business owners, that means a deduction available on your Federal return may be limited or calculated differently in Pennsylvania. Your CPA may need to maintain separate calculations to determine how these differences affect your business.
Start Your 2026 Tax Planning Now
DeSantis & Company PC has helped business owners with tax planning and accounting for more than 30 years. We are seasoned tax planners, not just tax filers, with an approach centered on helping clients make money and keep more of it through proper tax planning.
Our clients also receive free unlimited consultations, giving them the opportunity to discuss tax and business questions throughout the year as they come up. Located in Jamison, PA, we serve business owners throughout Bucks County, Montgomery County, and Philadelphia.
Contact us at DeSantis & Company PC to schedule a free consultation and review your 2026 business tax strategy before year-end.