The Long Game Tax Strategies for $1M to $10M SMB Owners (with Chad Huebsch, EA, CTP)
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Jul 18, 2025 In this insightful discussion, tax advisor Chad Huebsch from Blueprint Tax shares expert strategies tailored for business owners earning between $1 million and $10 million. He breaks down the pros and cons of different business entities, emphasizing the advantages of S-corporations over sole proprietorships. Chad also explores the intricacies of the Pass-Through Entity Tax and Qualified Business Income deductions. Additionally, he provides valuable insights on retirement planning and the benefits of hiring family members to optimize tax situations.
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Pick Your Entity On Purpose
- Choose your business entity deliberately because it changes taxes, audit risk, and flexibility.
- Move from a sole prop to an LLC/S-corp/partnership/C-corp when your facts and scale require formal structure.
S‑Corp Cuts Self‑Employment Tax
- S-corporations save self-employment tax by splitting salary and distributions.
- The IRS requires a "reasonable" salary but has no bright-line test, so documentation matters.
Use PTET To Sidestep SALT Cap
- Elect PTET (pass-through entity tax) if your state allows it to bypass the $10k SALT cap.
- Make timely entity-level payments and follow state-specific rules to capture federal deduction benefit.