A practical tax checklist for business owners who want fewer surprises and better cash flow
Running a growing business in Murrells Inlet means you’re juggling payroll, clients, vendors, and the day-to-day decisions that keep revenue moving. Taxes can feel like a once-a-year headache, but the most valuable tax savings usually come from year-round decisions: how you pay yourself, what you track in bookkeeping, when you buy equipment, and how you handle contractors and vehicles. This guide highlights the most relevant 2026 small business tax topics that owners and operators should keep on their radar—without burying you in jargon.
Helpful next steps with JTC CPAs:
1) Vehicle deductions changed again: 2026 standard mileage rate
If you drive for business—client meetings, site visits, bank runs, supply pickups—your tracking method matters. For 2026, the IRS set the business standard mileage rate at 72.5 cents per mile (effective for miles driven starting January 1, 2026). This rate can be a clean option when you maintain solid mileage logs and want to avoid tracking every fuel/repair/insurance receipt.
What to do now
Set a simple weekly habit: confirm your mileage log is complete and labeled (who/where/why). Clean, contemporaneous logs are what support the deduction—not estimates months later.
2) Payroll & owner compensation: compliance first, strategy second
Payroll is a top audit and penalty risk area for small businesses because it blends tax deadlines, employee classification, and multi-agency reporting. If you’re an S corporation owner, your “reasonable salary” approach affects payroll tax, retirement contributions, and your overall tax profile. If you’re an LLC taxed as a sole proprietorship, estimated tax planning tends to be the bigger pain point.
| Tax topic | Why it matters | Best first move |
|---|---|---|
| Payroll accuracy | Late deposits/filings can trigger notices, penalties, and time-consuming cleanup. | Centralize payroll, tax forms, and deadlines in one system (or outsource). |
| Owner pay planning | The way you pay yourself can shift taxes significantly depending on entity type. | Review entity + compensation structure before Q2, not after year-end. |
| Retirement plan choices | Plans can reduce taxable income while supporting retention and owner savings. | Model cash flow impact; align contributions with profitability cycles. |
If payroll is taking over your weekends, see Payroll Processing Services from JTC CPAs.
3) Contractor payments & 1099s: don’t confuse “1099-K” with “1099-NEC”
Businesses often mix up payment app reporting with contractor reporting. When you pay independent contractors for services, Form 1099-NEC generally applies at $600+ for the year (if the rules fit your situation). That is separate from the 1099-K world (third-party payment platforms), which has had shifting thresholds and transition guidance in recent years.
Common failure point
Waiting until January to collect W-9s. If you don’t have a W-9, you’re stuck chasing vendors while deadlines close in. Make W-9 collection part of your vendor onboarding.
If you’re behind on filings or received notices, JTC CPAs can help with tax resolution and cleanup planning.
4) Bookkeeping is a tax strategy (because it controls what you can prove)
Most “missed deductions” aren’t missed because the business didn’t spend the money—they’re missed because the records are messy. Strong monthly bookkeeping supports:
Cleaner tax returns
Fewer reclassifications at year-end, fewer follow-up questions, fewer delays.
Quarterly tax planning
You can project income and adjust estimates before underpayment penalties become a thing.
Borrowing + growth readiness
Lenders and investors care about consistent financial reporting and believable margins.
For ongoing support (including QuickBooks Online training), explore JTC CPAs bookkeeping services.
Did you know? Quick 2026 facts worth sharing with your team
2026 business mileage rate
72.5 cents per mile for business miles driven starting January 1, 2026.
1099-NEC baseline threshold
$600+ in qualifying nonemployee compensation can trigger reporting requirements.
South Carolina withholding tables
SCDOR updates withholding tables annually and expects employers to use the current-year tables and SC W-4.
Step-by-step: a 2026 tax routine that fits a busy owner’s calendar
Step 1: Lock down your monthly close (90 minutes can save you 9 hours)
By the 10th of each month, reconcile bank/credit cards, review uncategorized transactions, and confirm payroll totals match what hit the bank. If your books are consistently behind, tax planning becomes guesswork.
Step 2: Hold a quarterly “tax forecast” meeting
Don’t wait for the tax return to tell you what happened. Use YTD results to project profit, evaluate estimated taxes, and decide whether equipment purchases, retirement plan contributions, or compensation changes make sense.
Step 3: Treat vendor onboarding like compliance onboarding
Collect W-9s upfront, define payment methods, and document whether the vendor is a contractor, an agency, or a corporation. This reduces January panic and helps keep your 1099 workflow clean.
Step 4: Document “why” for deductions that get questioned
Meals, auto, travel, and mixed-use expenses are common audit targets. Keep quick notes: the business purpose, attendees, and outcome. Clear documentation is what turns a cost into a defensible deduction.
If you want a CPA who can run these routines with you (not just at filing time), start with year-round tax planning.
Murrells Inlet + South Carolina angle: withholding and payroll expectations
Hiring in South Carolina adds state withholding responsibilities. In plain terms: if you have employees earning wages in South Carolina, you’re typically expected to withhold and remit SC income tax, file withholding returns, and use the current-year SC withholding tables and SC W-4. South Carolina also outlines rules for special scenarios like certain nonresident contractor withholding and other non-wage payments.
Local owner tip
If you operate across state lines (remote staff, coastal projects, travel-heavy service work), verify where wages are “earned” and confirm your state withholding setup before the first payroll runs. Fixing this after months of paychecks is where headaches start.
Want a proactive tax partner (not a once-a-year filing scramble)?
JTC CPAs helps small and mid-sized businesses build reliable bookkeeping, run compliant payroll, and plan taxes throughout the year—so decisions are made with clarity, not guesswork.
FAQ: Small business tax topics for 2026
What’s the 2026 IRS mileage rate for business driving?
For miles driven starting January 1, 2026, the IRS business standard mileage rate is 72.5 cents per mile.
Do I need to send 1099s to every contractor I pay?
Not always—rules depend on the payee type, payment method, and what you paid for. But as a common baseline, Form 1099-NEC is used when you pay $600+ for qualifying services to a nonemployee in the course of business. Get W-9s early so you’re not scrambling later.
What’s the biggest “hidden” tax issue for busy owners?
Weak bookkeeping. If transactions aren’t categorized correctly and reconciled monthly, tax planning becomes reactive—and you may lose deductions simply because you can’t document them confidently.
How can I reduce the stress of quarterly taxes?
Make quarterly forecasting a standing appointment. When your books are up to date, your CPA can estimate tax exposure, adjust payments, and plan around seasonality—especially helpful for service businesses with uneven cash flow.
I’m not in Idaho—can JTC CPAs still help my South Carolina business?
Many accounting services can be delivered remotely (bookkeeping, tax planning, tax prep, advisory). The best approach is a quick consult to confirm fit, timeline, and what multi-state or South Carolina-specific requirements apply to your situation.
Glossary (plain-English)
Standard mileage rate
An IRS-provided per-mile amount you can use to calculate vehicle deductions for business miles, instead of tracking actual vehicle expenses.
1099-NEC
A tax form used to report certain payments to nonemployees (often contractors). Common threshold: $600+ for qualifying payments.
W-9
A form you request from vendors/contractors to collect their tax name and taxpayer identification number, used for correct 1099 reporting.
Monthly close
A repeatable process to reconcile accounts and finalize financials each month so reports and tax planning are reliable.
