What Small Business Owners Need to Know Heading Into Q4

As we turn the corner into the last part of the year, we always like to remind our small business clients that Q4 isn’t just about wrapping things up, it’s a launchpad for the year ahead. The decisions made now can have a lasting effect on personal wealth, your team, and the financial strength of your business.

This year specifically brings added opportunity and complexity with the implementation of the recently signed One Big Beautiful Bill Act (OBBB). Whether you’re running a professional practice, leading a family-owned enterprise, or managing a growth-stage business, here’s what we’re discussing with business owners as they prepare to close out the 2025 year.

New Tax Rules Offer Strategic Year-End Advantages

One of the biggest updates in the recently passed legislation is the expansion of the Section 179 deduction. Businesses can now expense up to $2 million (up from $1.5 million) in qualifying equipment, technology, or vehicles purchased and placed in service in 2025. That’s a significant increase from last year’s threshold.

Combined with the extension of 80% bonus depreciation, this makes Q4 an especially strategic time to invest in business infrastructure. If you’ve been weighing equipment upgrades or software investments, it may be the right time to act.

Retirement Plans: Now More Affordable and Rewarding

We’re encouraging clients to take a fresh look at their retirement plan strategies this year. New tax credits are helping businesses offset the costs of starting or enhancing retirement plans. For those launching a new plan, setup and administration costs can be fully covered for the first three years (up to $10,000 per year).

For businesses that already have a plan in place, a $2,500-per-employee credit is now available for making matching contributions. Combined with potential tax deductions and improved employee retention, the math often speaks for itself.

Entity Structure May Deserve a Second Look

The OBBB also adjusted the phaseout thresholds for the Qualified Business Income (QBI) deduction. Depending on your structure, whether an S-Corp, partnership, or C-Corp, these changes may create new planning opportunities.

For C corporations with less than $10 million in revenue, the tax rate remains at 21%. But businesses nearing or exceeding that threshold may be subject to higher brackets. In some cases, these changes have prompted discussions about restructuring or succession planning.

We always recommend reviewing your business structure in the context of your overall wealth plan, especially if an ownership transition is on the horizon.

Charitable Giving Opportunities Expanded

The cap on corporate charitable deduction has increased from 25% to 30% of taxable income. For owners of pass-through businesses, personal giving limits have also increased. This makes Q4 an ideal time to make thoughtful, tax-efficient donations, both personally and through the business.

Whether you’re giving appreciated assets or funding causes important to your community, now is the time to plan before the holiday rush sets in.

Enhanced Benefits for Employees

Another provision worth noting: the OBBB expanded tax-free educational assistance. Businesses can now contribute up to $7,500 per employee, tax-free, toward qualifying tuition, student loan repayment, or vocational training programs.

This change presents a great opportunity to attract and retain talent while also reducing taxable income for the business.

If you would like to start a retirement plan for your company or review your existing plan, contact us today to get started.

Let’s make the most of what 2025 still has to offer.