The clock is ticking for entrepreneurs to take full advantage of the new tax law changes. With the One Big Beautiful Bill Act introducing significant updates, there’s never been a better time to revisit your tax strategy.

Here are three actions I’m recommending every entrepreneur take in the fourth quarter.

Related: I Work With High-Earning Entrepreneurs — This Year-End Practice Prevents Money Issues

1. Review your entity structure

Choosing the wrong entity structure is the single biggest mistake that I see investors and entrepreneurs make. Luckily, these mistakes aren’t irreversible. In fact, I’ve seen entrepreneurs save $100,000 or more just by making a strategic change. With the recent changes in the tax law, it’s more important than ever to review this foundational part of your business.

The government taxes your business in one of three categories:

• As a corporation (either a C corporation or an S corporation)
• As a partnership (general or limited)
• As a sole proprietorship

The right choice depends on how you operate your business, how you pay yourself and whether you’re reinvesting profits or taking money out regularly.

A C corporation is a great option for entrepreneurs who keep their business’s money in the business. The corporate tax rate is just 21%, significantly lower than most personal income tax rates, and is set to permanently remain so.

If, like many small business owners, you need to draw income from your business, a C corporation likely isn’t your best choice. First, the corporation will pay taxes at the 21% rate. Then, you’ll essentially pay a double tax by paying your income tax rate on any distributions you receive.

For entrepreneurs who take money out of their business regularly, pass-through entities, including sole proprietorships, partnerships and S corporations, are often the better choice. These entities “pass through” their income to the owner’s personal tax return, avoiding the double taxation of a C corporation.

The new tax law contained a big win for pass-through entities by making the 20% qualified business income deduction permanent. However, there are some important limitations to the QBI deduction. It is tied to the wages paid by the business and phases out for high-income earners, so you’ll need to work closely with your CPA or tax advisor to ensure your business is structured and operated in a way that maximizes your benefit.

Before the end of the year, review the structure of all your taxable entities with your CPA. There is time to make adjustments if needed, and even to add new entities if that makes sense for your goals.

2. Use bonus depreciation strategically to maximize tax savings

Bonus depreciation is a powerful tool governments use to encourage businesses to invest in certain assets. It allows entrepreneurs to deduct a larger portion of the purchase price of qualifying assets in the year they are acquired, rather than spreading the deduction out over the asset’s useful life.

Before President Trump signed the One Big Beautiful Bill Act on July 4, bonus depreciation was set to be just 40% in 2025 and sunset in 2027. In some of the best news for entrepreneurs in the legislation, 100% bonus depreciation is back for qualifying property acquired and placed in service after Jan. 19.

If you’ve invested in real estate, bonus depreciation becomes even more valuable when paired with cost segregation.

With a proper cost segregation analysis, you will be able to take 100% bonus depreciation on the portions of your property that have a shorter useful life. This can give you a massive tax deduction in the year you purchase a property, creating significant tax savings you can use on other investments.

I work with a lot of real estate investors through my tax education company WealthAbility®, and I’m continually surprised by the number of people who avoid cost segregation because they think it will create problems with the IRS. That’s simply not the case. When done correctly, cost segregation allows you to properly depreciate your real estate investments.

Just be sure to work closely with both your tax advisor and an expert in cost segregation. You want to make sure the analysis is done correctly and be sure to reduce your taxable income as much as possible without creating an excessive net operating loss that you won’t be able to use to offset future income. Getting started on this before the end of the year gives you more time to plan your future purchases and deductions strategically across 2025, 2026 and beyond.

Related: These Are the Smartest Tax Strategies in 2025, According to a CPA

3. Look closely at your state and local income taxes

Ever since the passage of the 2017 Tax Cuts and Jobs Act, entrepreneurs living in high-tax states have felt the pain of a $10,000 cap on deductions of state and local taxes.

Thanks to the new tax legislation, entrepreneurs can take a SALT deduction of up to $40,000 in 2025, depending on their modified adjusted gross income. The deduction will increase to $40,400 in 2026 and 1% each year until 2030, when it drops back to $10,000. It is a welcome shift, but it still requires careful analysis to ensure you pay the lowest tax necessary.

Back when the federal government lowered the SALT deduction, almost all of the states with an income tax created “workarounds” that allowed pass-through entities to pay state taxes at the entity level, so the state tax could be deducted as a business expense, just as corporations can.

Because these workarounds are still in place, you’ll want to rerun your numbers to ensure that you are making the optimal choices this year. Depending on your personal tax situation, the workaround may still give you a better benefit than the SALT deduction.

Your Q4 action items

Make sure to complete a full review of your tax strategy and make necessary adjustments in time to enjoy all the benefits of recent tax law changes. Schedule a meeting with your CPA or tax advisor to review these three points as well as your overall tax strategy. Ask them to run all the numbers so you can make an informed decision. And, of course, include your short- and long-term business and personal goals in your analysis.

By prioritizing this work in the fourth quarter, you’ll set yourself up for greater financial success both for this tax year and the years to come.