5 Common Tax Mistakes Small Business Owners Make—and How to Avoid Them

Running a business means wearing a lot of hats—but your tax strategy shouldn’t be an afterthought. Here are five of the most common tax mistakes small business owners make (yep, I see these here in Grand Junction, CO too), and how you can avoid them with the right support.

1. Filing Late or Missing Estimated Payments

If you're self-employed or own a pass-through entity, skipping quarterly payments can lead to penalties and interest. Set calendar reminders and consider professional support to keep up with deadlines.

2. Mixing Personal and Business Expenses

One of the fastest ways to cause IRS red flags is to blur the lines between personal and business spending. Open a dedicated business bank account and use bookkeeping software—or let us manage it for you.

3. Choosing the Wrong Business Structure

The way your business is set up can make a big difference in what you owe. An S-Corp might reduce your tax burden significantly—but only if it’s set up and maintained properly.

4. Missing Deductions

From home office expenses to retirement contributions, many business owners leave money on the table. Strategic planning ensures you’re not missing deductions that apply to your unique situation.

5. Only Talking to Your Tax Preparer at Tax Time

If your accountant only calls you in April, you’re likely missing opportunities year-round. Canyon View Tax provides proactive, year-round support with packages tailored to your needs.

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