Tax planning might sound like a standalone process—something you need to grit your teeth and get through once every year or so.
But here’s the thing: When you’re self-employed, tax planning isn’t a one-time activity. It’s a steady, recurring aspect of running your solo business.
Put simply, the more you can stay on top of all of the aspects of our taxes—like your income, quarterly estimated payments, tax deductions, and more—throughout the year, the better off you (and your bank account) will be.
Whether you’re just getting started with your self-employment journey or you’ve been at this a while and know you need a better approach, this is your guide to build a plan that helps you be more proactive (and less panicked) about your taxes.
If you’ve been managing your accounting and tax payments with jumbled spreadsheets and random folders stuffed with receipts, it’s time for a better system.
You want a centralized place where you can keep track of your invoices, payments, expenses, taxes, and more. When it’s time to do something with your finances—whether it’s making a business decision or making your estimated tax payments—you can quickly and easily find the information you need.
A tax and accounting system like Lettuce can streamline (and even automate) many of your financial processes as a solo business owner.
But, regardless of which system you land on, find something that you can stick with. Committing to keeping everything in one spot makes all of your financial processes (including tax planning) way easier.
When you’re in business for yourself, you know that deadlines matter—and that applies to taxes too. There are several important self-employment tax deadlines throughout the year that you need to be aware of, including due dates for your:
Wondering what dates you need to know? Our self-employed tax calendar has everything you’ll want to mark down and stay ahead of.
In accounting terms, “tax planning” isn’t just creating a plan for your taxes. It’s the process of figuring out how you can pay as little tax as possible (while still fulfilling your obligations, of course). Nobody wants to pay more taxes than they need to—so tax planning helps you maximize your savings.
There are a couple of strategic ways you can make sure you don’t end up overpaying, including:
When you’re self-employed, you can deduct your legitimate business expenses from your overall earnings. This lowers your taxable income which translates to paying less taxes.
At tax time, you’ll report your business income and expenses on a Schedule C (if you’re a sole proprietor or an LLC) or on Form 1120-S if you run your business as an S Corp.
The last thing you want to have to do is wade through endless receipts and transactions to add up your expenses. Logging and categorizing your expenses throughout the year means you can easily just grab the totals you need when tax time rolls around. Even better, it ensures you don’t miss out on deducting any of your business expenses.
Don’t want to go the DIY route? Lettuce can automatically track and categorize all of your business transactions for you.
If you’re unfamiliar, an S Corp is short for “small business corporation.” It’s a tax classification that allows you to be both the owner of your company and its sole employee.
As an S Corp, you’ll pay yourself a salary as an employee but collect profits as the owner. Your business profits aren’t subject to self-employment tax, which can save you thousands. For example, S Corp Lettuce users who make $100,000 or more per year save over $10,000 annually in taxes.
Making the switch to an S Corp doesn’t have to be overwhelming. Sign up for Lettuce and the platform will take care of your S Corp election for you. You get the benefit of added tax savings—without any additional stress or effort.
Even if you’re dedicated to tax planning, tax codes can be eye-glazingly complicated. Fortunately, you don’t need to figure it all out on your own.
Hiring an accountant who’s familiar with small business taxes can save you time and headaches while also giving you the peace of mind that your taxes are handled correctly and on time.
An accountant isn’t your only option, though. A platform like Lettuce can automate most of your tax and financial processes for you. Plus, whether you’re wondering about the pros and cons of becoming an S Corp or want more information about the 2025 tax brackets, LettuceHead AI has expert answers to all of your burning tax-related questions.
Put simply, just because you’re a business of one doesn’t mean you need to do everything alone. Finding the right help goes a long way in making tax planning feel a lot more doable.
As a solo business owner, you know the importance of planning. You might’ve already created a business plan or a marketing plan. But it’s also smart to have a tax plan.
A strategic and organized approach to your taxes saves you plenty of stress and last-minute hassles while also helping you save as much money as possible.
At the end of the day, taxes probably aren’t your favorite part of self-employment—but they are an important part. Tax planning ensures you give them the level of thoughtfulness they deserve.
Lettuce can help. Take a closer look to see how Lettuce can save you stress and money.