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Services · Tax Planning

Small Business Tax Planning

At CBO, we go beyond filing deadlines. We work with you throughout the year to identify deductions, structure your business efficiently, and make proactive decisions that lower your tax burden. The result: fewer surprises, stronger cash flow, and more money available to reinvest in your business.

Proactive tax planning for small businesses in Minneapolis, the Twin Cities, and nationwide.

From monthly bookkeeping to year-end readiness, we keep your financials accurate, organized, and ready for what’s next.

Tax planning vs tax preparation: what's the difference?

Most business owners think "tax service" means someone files your return in April. That's tax preparation. It's important, but it's not enough.

Tax preparation — Recording what already happened. By the time you see your tax bill, it's too late to do anything about it.

← Looking backward

  • You bring your documents in April
  • They prepare and file your return
  • You see your tax bill for the first time
  • You pay (or panic)
  • Done until next year

Tax planning · what we offer — Working throughout the year to legally reduce your tax bill before you file.

Looking forward →

  • We meet in Q1 to review your projected income
  • We identify deductions and strategies for this year
  • We calculate estimated taxes so you know what to set aside
  • We check in during Q2 and Q3 to adjust if needed
  • In April, you already know what you owe

Bottom line: Tax preparation tells you what you owe. Tax planning helps you owe less.

If any of these sound familiar, you're in the right place

Our tax planning service is for business owners who want to understand their tax situation, reduce surprises, and keep more of what they earn.

  • Your tax bill keeps growing, and you don't know why — You're making more money, but it feels like the IRS takes a bigger cut every year. And no one explained why.
  • You got hit with a surprise tax bill — April 15th came and you owed money you didn't budget for. Maybe you're now on a payment plan with penalties and interest.
  • Multiple entities, and taxes are getting complicated — Maybe a rental property or two. Each entity has different rules, and you're not sure you're taking every deduction you should.
  • Good money, but you don't see it in your account — Your P&L shows profit, but your bank balance doesn't match. You may be overpaying on taxes and not know it.
  • You want to reinvest, not hand it all to the IRS — You'd rather hire, buy equipment, or grow. Without a plan, you're leaving money on the table.

Keep more money inside your business

Some firms tell you to pull money out of your business and put it into insurance products, annuities, or other financial products that earn them a commission. We don't do that.

The money you save on taxes should go toward building your business, not toward financial products that benefit someone else.

  • Understand your business first — Revenue streams, biggest expenses, and goals for the next 1-3 years. Planning must align with your strategy.
  • Identify legal deductions and credits — QBI, depreciation strategies, retirement contributions, health insurance, and more.
  • Plan for estimated taxes — We calculate what you'll owe and help you set money aside each month.
  • Structure your entity for tax efficiency — LLC, S-Corp, or C-Corp? We help you choose (or change) the structure that minimizes your bill.
  • Review and adjust through the year — If your income changes, you make a big purchase, or your goals shift, we adjust.

What's included in our tax planning services

Everything you need to stay compliant and reduce surprises.

  • Year-round tax strategy and compliance — Ongoing guidance throughout the year so you make tax-smart decisions as you run your business.
  • Entity structure and reorganization — LLC, S-Corp, C-Corp, or partnership. If it makes sense to change, we guide you through it.
  • Depreciation, QBI and other deductions — Section 179, QBI (up to 20% of qualified business income), home office, vehicle, retirement contributions, and more.
  • Multi-state and multi-entity planning — We help you file correctly and take advantage of every available deduction across states and entities.
  • Estimated tax calculation and guidance — We calculate what you'll owe and tell you when to make payments. No more April surprises.
  • Year-end tax readiness — By December your books are clean, and your tax preparer has everything they need (or we prepare it ourselves).
  • Ongoing correspondence and support — Not sure if an expense is deductible? Reach out anytime.

Not included: Tax litigation or IRS representation (available separately) · Amended returns for prior years (quoted separately) · Complex international tax situations (quoted separately)

A closer look at each service

Year-round tax strategy and compliance

Includes

  • Quarterly estimated tax calculations
  • Tax impact analysis for major business decisions
  • Ongoing consultation via email/phone
  • Annual tax return preparation (business and personal)
  • Tax notice and correspondence support

Entity structure and reorganization

We'll help you

  • Choose the right entity type (LLC, S-Corp, C-Corp, partnership)
  • Understand tax implications of each structure
  • File entity formation and election documents
  • Reorganize existing entities for tax efficiency
  • Handle multi-entity consolidation and reporting

Depreciation, QBI and other deductions

Common deductions we optimize

  • Section 179 depreciation
  • Bonus depreciation (100% first-year)
  • QBI deduction (up to 20%)
  • Home office
  • Vehicle expenses
  • Solo 401k, SEP IRA
  • Health insurance (self-employed)
  • Business travel and meals
  • Professional services and subscriptions

Multi-state and multi-entity tax planning

If you operate in multiple states

  • Multi-state income tax filing
  • Sales tax nexus analysis
  • Apportionment and allocation
  • State-specific credits and incentives
  • Multi-entity consolidation and elimination
FAQ

Frequently asked questions.

Something else on your mind? Call +1 952-230-5900.

Tax planning is included in our full-service outsourced accounting packages. If you only want tax planning (without bookkeeping), pricing depends on the complexity of your situation. Use our pricing calculator to get an estimate, or schedule a call to discuss your needs.

Tax preparation is filing your return based on what already happened. Tax planning is working throughout the year to legally reduce your tax bill before you file. Preparation looks backward. Planning looks forward.

Yes. Most tax preparers only file your return—they don't advise you throughout the year. Tax planning helps you make smart decisions during the year so you owe less when you file. You can keep your tax preparer and still work with us for planning.

Yes. We regularly help businesses switch their tax planning mid-year. We'll review your current situation, identify opportunities you may have missed, and create a plan for the rest of the year.

We can still do tax planning, but it's harder to plan accurately without clean books. We recommend getting your bookkeeping current first (we can help with that), then moving into tax planning.

Yes. If you operate in multiple states or have multi-entity structures, we can help you navigate the complexity. Multi-state situations are more complex and may require additional fees.

It depends on your industry, entity structure, and specific situation. Common deductions include: home office, vehicle expenses, equipment depreciation (Section 179), QBI deduction, retirement plan contributions, health insurance, and more. We'll identify all deductions you're legally entitled to.

The earlier, the better. Ideally, you should start tax planning in Q1 of the tax year. But even if you're in Q3 or Q4, there are still strategies we can implement. The worst time to start is April 14th (the day before your return is due).

No. We can't guarantee specific savings because every business is different. What we can guarantee is that we'll identify all legal deductions and strategies available to you. You'll know what you owe before April, and you'll have a plan to pay it.

Industries

Industries we serve.

We don't believe in one-size-fits-all accounting. Different industries have different challenges and metrics that matter.

Ready to stop overpaying on taxes?

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