Avoid These Costly Tax Mistakes—Insights from the Pivot to Profit Podcast

Are you leaving money on the table? Many business owners unknowingly overpay in taxes simply because they miss deductions or fail to have a proactive tax strategy. In the latest episode of Pivot to Profit, I sat down with tax guru Alexis Sidney to discuss the biggest tax mistakes business owners make—and how to fix them.

🚨 Common Tax Deduction Mistakes

1️⃣ Mileage & Vehicle Expenses – If you’re not tracking your business miles, you’re missing easy deductions. Use an app or log to ensure every mile counts.
2️⃣ Home Office Deduction – Many business owners fear the audit “red flag,” but when done correctly, this deduction is a powerful tax saver.
3️⃣ Paying Your Kids – You can pay your children up to $15,000 tax-free, shifting income and saving on taxes.
4️⃣ Startup Costs – Did you know you can deduct up to $5,000 in your first year? Many business owners miss this entirely.

📉 Smoothie Shop Case Study: A Costly Mistake

A small smoothie shop owner made two major mistakes:
✅ Operating as a Sole Proprietor → High liability, higher taxes
✅ Paying Employees Under the Table → No tax deductions, high audit risk

By restructuring the business and setting up proper payroll, the owner saved money and reduced legal risk.

📊 Why Entity Structure & Bookkeeping Matter

  • LLC vs. S-Corp? The right entity structure reduces liability and saves on taxes.

  • Separate Personal & Business Finances → Don’t risk “piercing the corporate veil.”

  • Real-Time Bookkeeping → If you’re only looking at your bank statements, you’re flying blind.

🚀 Pro Tip: If your time is worth more than $30/hr, outsourcing bookkeeping pays for itself!

✅ Next Steps to Keep More Profit

🔹 Choose the right entity for tax efficiency & protection
🔹 Set up real-time bookkeeping (QuickBooks Online is a great option)
🔹 Meet with a tax strategist regularly—not just at tax time
🔹 Track & claim all eligible deductions (mileage, home office, payroll, etc.)

💡 The best way to lower your tax bill? Plan ahead!

Listen to the full episode today!

Pivot to Profit Podcast, Tax StrategyPam JordanPivot to Profit PodcastComment