07/22/2025
It's not what you make, it's what you get to keep.
The One Big Beautiful Bill made tax savings permanent. But how much you save depends entirely on your profit level.
Since July 4th, I've had 100+ conversations with business owners.
Same questions every time: 'What changed?' 'Do I need to restructure?' 'Am I missing something huge?'
Every answer: It depends.
The pattern became clear: Your profit level determines everything.
Here's our exact playbook for each bracket (You’re going to want to bookmark this):
Under $100k → Foundation first
$100-300k → Full optimization
$300-500k → Stack everything
Over $500k → Navigate phase-outs
Under $100k - Build the Foundation:
- Separate accounts (non-negotiable)
- Track everything (deductions matter!)
- Reconcile books monthly
- Track property and sales taxes
- Save charity receipts
Save: $3-8k/year Skip: S-Corps (for now)
$100-300k - The Sweet Spot:
This is where the magic happens.
- S-Corp election ($10-25k saved)
- Reasonable salary
- Retirement where it makes sense
- Itemize with up to $40k SALT
- Track all deductions
Total: $20-40k saved annually
Real example - $200k profit client:
Before OBBB:
• LLC with standard deduction
• Total tax: $65k
After implementation:
• S-Corp with $75k salary
• Itemizing deductions
• Smart retirement planning
• Total tax: $42k
Same business. $23k less tax. Every year.
$300-500k - Strategic Zone:
- Full QBI Deduction
- Equipment timing (100% write-off)
- Consider deferring taxes in the 32% bracket
- Full $40k SALT benefit
Save: $40-60k/year
A $300-500k profit strategy: You're in the 32% bracket. Defer to 24%.
- Max 401k: $69k
- Prepay expenses (rent, insurance, supplies)
- Buy all equipment
When you hit the 24% bracket. STOP. Why? Future tax rates unknown. Take the 24% win.
Sweet spot: Defer from 32% → 24%
Over $500k - Navigate the Maze (phase-outs hit)
- SALT drops to $10k (lose10k benefit)
- Tips/overtime gone
- QBI phases out (services)
Still works:
- Equipment strategies
- Advanced structures
- QSBS if building to sell
You need a pro at this level.
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July action plan by profit level:
- Under $100k: Open a biz account and get organized
- $100-300k: File S-Corp election, optimize salary
- $300-500k: Plan deferrals to 24%
- Over $500k: Build a plan with a pro
The OBBB made procrastination expensive - time to get to work!
July implementation timeline:
Week 1: Review your 2024 profit
Week 2: Clean up and project 2025
Week 3: Choose entity structure
Week 4: List investment needs
August: Execute changes
September: New Q3 estimates
October-December: Relax while others panic
We’re hosting a webinar tomorrow on the OBBB's impact on small businesses. Sign up even if you can't make it and we'll share the recording:
Answering Your FAQs: What Does the Big Beautiful Bill Mean for Small Business Owners · Zoom · Luma Are you confused about how the recently passed One Big Beautiful Bill will impact your small business? Join our Mitchell Baldridge CPA, CFP®, and founder of…