When you run a one‑person company, every dollar you earn becomes your tax bill. The good news is that the tax code is full of opportunities to reduce that burden, provided you plan ahead and stay on top of deadlines. Below is a practical guide to proven methods that can help you save more of your hard‑earned money.

1. Select the Appropriate Business Structure
   

Your legal form determines how you’re taxed. Sole proprietorships are simple but expose personal assets to liability. If you’re comfortable with extra paperwork, consider forming an LLC or an S‑Corporation.

• LLC: Gives liability protection and flexible profit‑sharing. Income passes through to your personal return, avoiding double taxation.
  
  
• S‑Corporation: Permits you to pay yourself a reasonable salary (subject to payroll taxes) and take the remaining profits as dividends, possibly saving on self‑employment tax.
  
  
  1. Maximize Deductions Early
     

The sooner you detect deductible expenses, the more you can cut taxable income. Common deductions for solo entrepreneurs include:

• Home office deductions (a share of rent, utilities, insurance, and internet).
  
• Vehicle mileage or actual vehicle costs if you use a car for business.
  
• Professional services: legal, accounting, consulting fees.
  
• Health insurance premiums paid directly by the business.
  
• Retirement contributions (IRA, Solo 401(k), SEP‑IRA).
  
  

Maintain meticulous records—digital receipts, mileage logs, and a dedicated expense spreadsheet—so you can prove every deduction if the IRS asks.

1. Take Advantage of the Qualified Business Income Deduction
   

Section 199A allows many small businesses to claim up to a 20% deduction on qualified business income. The deduction phases out for 節税対策 無料相談 higher‑income taxpayers, yet it can still reduce a sizable chunk of your liability if your earnings are within the threshold.

1. Hold Income, Accelerate Expenses
   

Tax timing is a seldom‑used strategy. If you predict a lower tax bracket next year—perhaps because of a dip in business activity—consider deferring invoicing until January. Conversely, purchase necessary equipment or pay for software subscriptions in December to claim the full deduction in the current year.

1. Exploit Depreciation and Section 179
   

Big purchases such as computers, office furniture, or a new machine can be written off over several years through depreciation. Section 179 enables you to write off the full cost of qualifying equipment in the year it’s placed in service, up to a limit that fluctuates annually. This can create a huge instant tax benefit.

1. Address Payroll Taxes
   

If you operate as an S‑Corp, you must pay yourself a "reasonable salary." The IRS scrutinizes this closely; a salary that's too low can trigger penalties. After you establish a defensible salary, the remaining profits are taxed only once, at the corporate level, and then at your personal rate on dividends, which are exempt from self‑employment tax.

1. Keep Retirement Contributions High
   

Solo retirement plans, including a SEP‑IRA or Solo 401(k), let you contribute up to 25% of your net earnings—often exceeding the limits on a traditional IRA. Contributions are tax‑deferred, and you can also claim a tax deduction for the contributions.

1. Employ Health Savings Accounts (HSAs)
   

If you have a high‑deductible health plan, an HSA delivers triple tax advantages: contributions are tax‑deductible, growth is tax‑free, and withdrawals for qualified medical expenses are tax‑free. The contribution limits are generous and provide a potent means to lower taxable income.

1. Remain Updated on State and Local Rules
   

Many states offer small‑business tax credits, research and development incentives, or low‑income tax rates for sole proprietors. Check your state’s department of revenue website or consult a local tax professional to ensure you’re not missing a credit.

1. Schedule Estimated Taxes
   

Single‑owner companies often pay taxes quarterly via estimated tax payments. Not paying enough can trigger penalties. Employ the IRS’s "Safe Harbor" rule: pay at least 90% of the current year’s tax or 100% of the previous year’s tax (110% if your income exceeded $150,000).

1. Evaluate a Tax‑Efficient Business Expense Strategy
   

Certain expenses prove more tax‑efficient when treated as capital expenditures rather than current ones. For example, buying a computer can be capitalized and depreciated, whereas purchasing office supplies is a current expense. Knowing these nuances can affect when and how you record costs.

1. Watch Emerging Tax Laws
   

Tax statutes evolve. For example, recent proposals to modify the deduction for business interest or to adjust the thresholds for the Qualified Business Income deduction could impact your strategy. Stay updated through reputable news sites, IRS updates, or by keeping a relationship with a tax advisor.

1. Work With a Qualified Tax Professional
   

While DIY software can take care of basic filings, a seasoned CPA or tax attorney can uncover deductions you might miss, advise on legal structures, and help you navigate complex areas such as payroll and retirement plans. Professional advice costs are often offset by the tax savings they secure.

1. Document Your Reasoning
   

In case of an audit, having a clear, logical rationale for your deductions, business structure, and income deferrals simplifies the process. Keep a "tax strategy" file that explains your decisions, backed by receipts, contracts, and correspondence.

1. Review Annually
   

Tax planning isn’t a one‑time job. Each year, evaluate your income, expenses, and business goals. Modify your structure, contributions, and deduction strategy accordingly to keep your tax liability as low as possible.

By combining these approaches—structuring your company wisely, maximizing deductions, timing income and expenses, and staying current with tax law—you can dramatically cut the tax burden on a one‑person company. The key is disciplined record‑keeping, proactive planning and periodic consultation with a tax professional. The money you save can be reinvested in your business, used for personal enjoyment, or saved for future goals.