A practical, owner-friendly guide to staying compliant and proactive—without living in QuickBooks
Small business owners don’t need to memorize every change in current tax law—but you do need a system to catch the updates that affect cash flow, payroll, deductions, and year-end decisions. If you’re running a growing business in Murrells Inlet, South Carolina, your tax strategy also needs to work alongside real-world realities like seasonal revenue swings, contractor-heavy teams, and multi-state clients.
Below is a clear breakdown of recent federal updates affecting the 2025 tax year (returns typically filed in early 2026) and 2026 tax year (returns typically filed in early 2027), along with actions you can take now. When you’re ready for a proactive plan—not just a last-minute filing—JTC CPAs can help you build a process that stays ready all year.
What “current tax law” really means for business owners
When business owners say “current tax law,” they’re usually asking one of three things:
1) What changed for my next return? (For most people right now, that’s the 2025 tax year.)
2) What changed for next year’s planning? (That’s 2026 tax year planning.)
3) What rules affect decisions I’m making this quarter? (Payroll settings, mileage logs, retirement contributions, estimated payments, entity strategy, etc.)
The key is separating tax filing from tax planning. Filing is reporting history. Planning is shaping outcomes—legally—before the year closes.
Recent federal updates that may affect small businesses (2025–2026)
Here are a few widely relevant federal changes and inflation adjustments that can influence owner tax bills, payroll planning, and deduction strategy.
1) Standard deduction updates (useful even for business owners)
Even if you operate through an LLC, S corporation, or partnership, your business income generally flows to a personal return—so changes to personal thresholds still matter.
- 2025 tax year standard deduction: $31,500 (MFJ), $15,750 (Single/MFS), $23,625 (HOH). (irs.gov)
- 2026 tax year standard deduction: $32,200 (MFJ), $16,100 (Single/MFS), $24,150 (HOH). (irs.gov)
Why this matters: it impacts your taxable income baseline and can affect decisions like bonus timing, retirement contributions, charitable giving cadence, and whether certain write-offs move the needle.
2) Retirement plan contribution limits (owner and employee planning)
Retirement contributions are one of the cleanest “plan-it-before-year-end” tools for small business owners—especially those with strong years and uneven months.
- 2026 401(k) employee deferral limit: $24,500 (up from $23,500 for 2025). (irs.gov)
- 2026 IRA contribution limit: $7,500 (up from $7,000 for 2025). (irs.gov)
Practical takeaway: if your business offers a 401(k) or you’re deciding between options (like a solo 401(k) vs. SIMPLE vs. SEP), contribution limits and deadlines should be part of the conversation early—before Q4 is already gone.
3) Standard mileage rate (when you reimburse or deduct business driving)
If you or your team drive for client meetings, job sites, vendor runs, or bank deposits, mileage can be a real deduction—but only if tracking is consistent.
- 2026 business mileage rate: 72.5 cents per mile (effective January 1, 2026). (irs.gov)
Practical takeaway: set a recurring process—weekly or monthly—so mileage logs don’t become an April scramble.
Quick comparison table: 2025 vs. 2026 numbers business owners commonly ask about
| Tax item | 2025 tax year | 2026 tax year | Why it matters |
|---|---|---|---|
| Standard deduction (MFJ) | $31,500 (irs.gov) | $32,200 (irs.gov) | Owner taxable income baseline |
| Standard deduction (Single) | $15,750 (irs.gov) | $16,100 (irs.gov) | Impacts estimated tax & planning |
| 401(k) employee deferral | $23,500 (irs.gov) | $24,500 (irs.gov) | Owner/employee benefit design |
| IRA contribution limit | $7,000 (irs.gov) | $7,500 (irs.gov) | Personal tax strategy flexibility |
| Business mileage rate | (Rate varies by year) | 72.5¢/mile (irs.gov) | Reimbursements & deductions |
Step-by-step: A “no-drama” system for staying compliant as tax law changes
Step 1: Lock down clean monthly books (not “catch-up books”)
Tax strategy depends on good inputs. If your bookkeeping is two quarters behind, tax planning turns into guesswork. Aim for monthly close within 10–15 days, including reconciliations and a simple management P&L.
Helpful next step: Explore bookkeeping support and QuickBooks guidance if you’re spending weekends fixing categorization.
Step 2: Build a quarterly tax planning rhythm (not just quarterly payments)
Quarterly planning looks at what changed, what’s trending, and what you can still do before year-end. That can include estimated tax recalibration, payroll adjustments (especially for S corp owners), retirement contributions, and timing decisions.
Learn more about proactive strategy on the Tax Planning page.
Step 3: Make payroll a compliance asset, not a stress point
Payroll errors can create ripple effects—late deposits, incorrect withholdings, messy W-2/1099 seasons, and avoidable notices. A solid payroll process also supports clean financial reporting and forecasting.
If payroll is pulling you away from clients, see Payroll Processing.
Step 4: Decide once: “Do we track it?” then automate the habit
Mileage, receipts, home office, software subscriptions, reimbursable expenses—most deduction “misses” are process problems, not knowledge problems. Pick the tracking standard and keep it consistent all year.
Step 5: Use financial reporting to plan, not just to file
When your financial statements are organized, you can make decisions faster—hiring, pricing, cash reserves, and expansion—without guessing. If you need internal-use financials that are clear and lender-friendly, consider financial compilations.
Local angle: What Murrells Inlet business owners should keep in mind
Murrells Inlet businesses often manage a mix of realities that can complicate tax compliance:
Seasonality and cash flow swings: When revenue peaks in certain months, your estimated tax plan should flex with reality (instead of forcing you into cash crunches).
Contractors vs. employees: If you use 1099 contractors for creative, admin, or project work, documentation and classification need to be clean all year—not just in January.
Remote clients and multi-state activity: Selling services outside South Carolina can create nexus questions depending on your footprint. Getting advice early is cheaper than fixing it later.
If you’d like a team that can support you across bookkeeping, payroll, and proactive tax planning—even if you aren’t located near a physical office—start with a consult and clarify what a clean, sustainable process could look like for your business.
Want a proactive tax plan that stays current—without last-minute surprises?
JTC CPAs helps small and mid-sized businesses build year-round financial systems—bookkeeping, payroll, reporting, and tax planning—so current tax law updates become part of your process, not a fire drill.
Prefer in-person or want to confirm service availability? See locations and contact options.
FAQ: Current tax law and small business planning
What tax year am I filing right now?
Most businesses file the 2025 tax year return in early 2026 (often by March 15 for many business returns, and April 15 for many individual returns—extensions may apply). Your exact deadlines depend on entity type and elections.
Do standard deduction changes matter if I own an LLC or S corporation?
Often, yes. Many small business structures are pass-through entities, so your net business income flows onto your personal return. That means personal thresholds (including the standard deduction) can affect your overall tax outcome. (irs.gov)
What’s one of the easiest “set it and forget it” tax habits?
A monthly close process: reconcile accounts, review the P&L, and categorize transactions consistently. When the books are clean, tax planning becomes faster and more accurate.
Should I reimburse mileage or deduct actual vehicle expenses?
It depends on your vehicle use patterns, documentation, and how the vehicle is owned/used in the business. The 2026 standard mileage rate is 72.5 cents/mile, which can be a clean method when logs are consistent. (irs.gov)
If I already filed, can tax resolution help?
Yes—if you’re dealing with back taxes, notices, unfiled returns, or payment plan negotiations, a structured resolution approach can reduce stress and prevent escalating issues. If that’s your situation, see tax resolution services.
Glossary (plain-English tax terms)
Pass-through entity
A business where profits typically “pass through” to the owner’s personal tax return (common for LLCs taxed as partnerships, S corps, and many sole proprietorships).
Standard deduction
A flat deduction amount that reduces taxable income on an individual return, instead of itemizing deductions. (irs.gov)
Estimated taxes
Periodic payments made during the year to cover income tax (and sometimes self-employment tax) when withholding isn’t enough—common for business owners and freelancers.
Standard mileage rate
An IRS-set per-mile rate that can be used to calculate deductible vehicle expenses for business driving (if you meet requirements and keep proper records). (irs.gov)
