How do I legally pay less in taxes?

By Ask a Shop OwnerUpdated Finance

Short answer

Hire a CPA who specializes in small trades. The right S-corp election, retirement plan, and vehicle deductions usually pay their fee five times over.

The big levers

S-corp election if profit supports it. SEP or solo 401(k) for big tax-deferred contributions. Section 179 on equipment. Proper home office and vehicle deductions. Section 199A for qualified business income.

Don't DIY past a point

TurboTax is fine at $50K profit. At $200K profit you're leaving five figures on the table without a real CPA. The fee is the smallest line item in the whole equation.

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