What Puyallup Small Businesses Should Do Before Tax Season

Most small business owners in Puyallup think about taxes in March. The ones who feel prepared — and the ones who tend to pay less — start thinking about them in the fall.

If you're a business owner in Puyallup, South Hill, Sumner, Bonney Lake, or anywhere in the South Puget Sound, here's a practical checklist of what to do before tax season arrives. None of it is complicated, but all of it matters.

1. Get Your Records Current Before December 31

The single biggest source of stress at tax time is disorganized records. If your books are behind, now is the time to catch up — not in February when your accountant is already stretched thin.

What "current records" means in practice:

• ✦All income and expenses categorized through the end of Q3
• ✦Bank and credit card accounts reconciled
• ✦Invoices and receipts filed and accessible
• ✦Payroll records reconciled if you have employees

If your bookkeeping is behind or you're still tracking things in spreadsheets, a bookkeeping cleanup before year-end gives you a clean foundation to file from — and a much clearer picture of where your business actually stands.

2. Review Your Business Structure

If you're operating as a sole proprietor or single-member LLC and your net profit is growing, it may be worth asking: would an S-Corp election save you money?

S-Corps allow business owners to pay themselves a reasonable salary and take the remaining profit as a distribution — which isn't subject to self-employment tax. Depending on your income level, this can mean meaningful savings.

This isn't a change to make without professional input. But Q4 is the right time to have the conversation, because some elections have year-end deadlines. A quick tax planning consultation can tell you whether it's worth exploring.

3. Max Out Retirement Contributions

Washington has no state income tax, but your federal tax bill is still real. One of the most effective ways to reduce it is through retirement contributions — and several options allow contributions after year-end.

Common options for small business owners:

• ✦SEP-IRA — contribute up to 25% of net self-employment income; contributions can be made up until the tax filing deadline (including extensions)
• ✦Solo 401(k) — higher contribution limits, but the plan must be established by December 31
• ✦SIMPLE IRA — if you have employees, this is often the right fit

The right choice depends on your structure, income, and whether you have employees. This is worth a conversation before the year closes.

4. Make Planned Purchases Before December 31

If you've been putting off a business purchase — equipment, software, a vehicle, office furniture — the timing matters for your taxes. Under Section 179 and bonus depreciation rules, you may be able to deduct the full cost of qualifying assets purchased and placed in service before December 31, rather than depreciating them over several years.

This only makes sense if the purchase is genuinely needed for the business. But if you were planning to buy something anyway, buying it in Q4 instead of Q1 next year can make a real difference in your tax picture.

5. Send (or Prepare to Send) 1099s

If you paid any contractor, freelancer, or unincorporated service provider $600 or more during the year, you're likely required to issue a 1099-NEC by January 31. That means you need:

• ✦Their legal name and address
• ✦Their Taxpayer Identification Number (TIN) — collect this via a W-9 form before year-end

Scrambling to collect W-9s in January is avoidable. A quick review of your vendor payments now prevents a stressful late-January sprint.

6. Talk to a Tax Professional Before Year-End — Not After

Most people contact their accountant in February or March, after the year is over and all the decisions are already made. At that point, the job is reporting — not planning.

Talking to a tax professional before December 31 is where the real value is. That's when you can still act on what you learn.

A year-end planning conversation with Green Consulting typically covers:

• ✦Estimated tax liability based on your current year-to-date numbers
• ✦Deduction timing opportunities before the year closes
• ✦Whether your entity structure is still the right fit
• ✦Any IRS concerns or outstanding issues to address
• ✦What to expect and prepare for in the coming year

We offer free consultations for business owners in Puyallup and throughout the South Puget Sound. There's no pressure and no commitment — just a practical conversation about your situation.

Industry-Specific Notes

A few industries come with tax complexity that's worth flagging early:

A Final Note

Tax season doesn't have to be a scramble. For most Puyallup small business owners, a few hours of preparation in the fall translates into less stress, fewer surprises, and often a lower tax bill.

If you want to talk through your situation before the year ends, Green Consulting is here. We work with businesses in Puyallup, South Hill, Sumner, Bonney Lake, Tacoma, and across Pierce County — and we'd be glad to help you head into tax season feeling prepared.