The golden Tower Bridge and downtown Sacramento, California skyline at dusk over the Sacramento River

Business Tax Planning In Sacramento

Tax Planning For Business Owners Who Think Ahead

Most business owners only meet their tax bill once it has already arrived. By then, the opportunity to shape it is gone. Business tax planning is the proactive, year-round work of structuring your company, your income, and your major transactions so that you legally keep more of what your business earns.

We don't file your return. We collaborate with your CPA and attorney, tying tax strategy to the bigger picture of growing the value of your business, for owners in Sacramento, Modesto, Fresno, and the San Francisco Bay Area.

Begin a Tax Reduction Conversation Prefer to talk now? Call 916.436.8270

Business Owner Focused First and second-generation owners

Credentialed Advisors Zeller Kern Business Advisors

Collaborative We work with your CPA and attorney

Northern & Central California Headquartered in Gold River, CA

Zeller Kern Business Advisors is a Registered Investment Adviser. This page is for general information only and is not tax or legal advice. Requesting a consultation does not create an advisory relationship.

By the numbers

The Cost of NOT Planning Your Business Taxes

Most business owners react at filing time instead of planning ahead, and it quietly costs them. Here is what the data says about taxes, value, and the exit most owners aren't ready for.

90^%

of business owners overpay their taxes

The vast majority leave money on the table by missing legitimate deductions and write-offs they already qualify for, simply because no one planned for them in advance.*

34^%

have made errors filing business taxes, either overpaying or underpaying what they owed.

70^%+

of a business owner's wealth is tied up in the business, making tax-smart growth and exit planning critical.

73^%

of privately held U.S. companies plan to transition ownership within a decade. That is a $14 trillion shift.

49^%

of owners intend to exit their company within five years, where after-tax proceeds hinge on planning done now.

Proactive planning changes the outcome

We help Sacramento-area business owners reduce taxes, grow value, and design a well-prepared, tax-efficient exit while working alongside your CPA and attorney.

Begin a Tax Reduction Conversation

Serving Sacramento · Modesto · Fresno · San Francisco

*Sources: My CPA Coach; QuickBooks Entrepreneurship Report; Exit Planning Institute; Associated Bank. Figures are industry estimates for general education only.

Why it matters

Tax Preparation Looks Back. Tax Planning Looks Forward.

Both matter, but only one of them can still change the outcome. Here is the difference, and why proactive planning is where real savings live for a business owner.

Tax Preparation

Reporting the Past

Tax preparation usually:

Happens once a year, after the books are closed
Records decisions you have already made
Focuses on compliance and accurate filing
Leaves limited room to reduce your liability
Is reactive by nature

Strategic Tax Planning

Shaping the Future

Strategic tax planning is different. It is built to:

Support continuous, year-round strategy
Influence entity structure, income timing, and deductions before year-end
Coordinate business, personal, and exit decisions
Target long-term reduction of total tax burden
Create a more proactive planning process with measurable savings

Key Components of Strategic Tax Planning

Effective business tax planning involves a review of the decisions that affect how your business earns, spends, invests, and reports income.

By understanding the key components of business tax planning, business owners can identify opportunities to manage tax liability, improve financial clarity, and make more strategic decisions before year-end deadlines arrive. A strategic tax plan should account for the areas below.

01

Optimizing Your Business Entity Structure

The way your business is structured, whether as an LLC, S corporation, C corporation, partnership, or sole proprietorship, can have a significant impact on how income is taxed, how owners are paid, and what planning opportunities may be available. As your business grows or changes, it is important to review whether your current structure still supports your financial and operational goals.

02

Implementing Strategic Income and Expense Timing

Strategic income and expense timing can play a meaningful role in managing tax outcomes. Business owners may have opportunities to accelerate expenses, defer income, plan owner compensation, or make key purchases before year-end. These decisions should be made carefully and with a clear understanding of how they affect both current-year taxes and future financial plans.

03

Maximizing Deductions and Capital Expenditures

Maximizing deductions and capital expenditures is another key part of proactive tax planning. From ordinary business expenses to equipment purchases, depreciation strategies, retirement plan contributions, and other eligible deductions, thoughtful planning can help business owners take advantage of available opportunities while staying aligned with IRS requirements.

04

Utilizing Tax Credits

Business owners should also consider whether they qualify for dollar-for-dollar tax credits. Unlike deductions, which reduce taxable income, tax credits may directly reduce the amount of tax owed. Depending on the business, available credits may relate to hiring, research and development, energy efficiency, employee benefits, or other qualifying activities.

Retirement Plan Strategies

For many business owners, qualified retirement plans are among the most effective ways to reduce current taxable income while building long-term wealth for themselves and their team. Three options worth reviewing include:

05

Cash Balance Plans

A cash balance plan is a type of defined benefit plan that can allow business owners, particularly higher earners closer to retirement, to make substantial tax-deductible contributions well beyond typical 401(k) limits. Because contributions are generally deductible to the business, these plans can be a powerful way to reduce current taxable income while accelerating retirement savings.

06

401(k) Plans

A 401(k) plan lets owners and employees defer a portion of compensation on a pre-tax or Roth basis, reducing current taxable income while building retirement savings. Employer matching and other contributions are generally tax-deductible to the business, and a 401(k) can be combined with profit sharing or a cash balance plan for greater impact.

07

Profit-Sharing Plans

A profit-sharing plan gives business owners the flexibility to make discretionary, tax-deductible contributions to employees' retirement accounts, often adjusting the amount year to year based on profitability. Layered onto a 401(k), profit sharing can increase total contributions and reward employees in strong years while preserving flexibility in leaner ones.

Bring the pieces together

The right tax plan should bring these pieces together instead of treating them as separate tasks. With accurate books, organized documentation, and a methodical planning process, business owners can make better-informed decisions throughout the year and head into tax season with fewer surprises.

Retirement plan consulting and services offered through Zeller Kern Wealth Advisors, www.zellerkern.com, an affiliation of Equitable Advisors. Equitable Advisors is unrelated to Zeller Kern Business Advisors.

Where we work

Business Tax Planning Across Northern & Central California

Headquartered in Gold River, CA and serving the greater Sacramento area, Zeller Kern Business Advisors works with first and second-generation business owners throughout the region. Wherever your business is based, we bring the same proactive, planning-first approach to reducing taxes and growing value.

From the state capital to the Central Valley and the Bay Area, we help owners turn complex tax exposure into a clear, manageable strategy.

Sacramento, CA

Home Market

Our home market: proactive tax and exit planning for capital-region business owners.

Modesto

Tax strategy for Central Valley family and closely held businesses.

Fresno

Planning support for established and growing Fresno-area companies.

San Francisco

Sophisticated tax and transition planning for Bay Area owners.

Planning starts with a conversation

Wherever your business is based across Northern and Central California, let's talk about a proactive plan to reduce taxes and grow value.

Schedule a Consultation

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Why Work With Zeller Kern Business Advisors

Founded by Steve Zeller and Trevor Kern, Zeller Kern Business Advisors helps first and second-generation business owners reduce taxes, grow value, and prepare for a tax-efficient exit.

Here is what sets our approach to business tax planning apart, and why owners across Sacramento and Northern California bring us into the room alongside the advisors they already trust.

Decades of Experience, Focused on Business Owners

Our founders have spent their careers helping owners grow and protect what they have built, bringing a real-world understanding of the full business lifecycle, not just the balance sheet.
A Proactive, Planning-First Philosophy

Tax preparation reports the past; tax planning shapes the future. We bring year-round strategy to entity structure, income timing, deductions, and exit decisions.
Proven Planning Frameworks

The Owner Lifecycle System™ and our Business Exit Planning Process give the work a repeatable structure instead of a series of one-off decisions.
A Team That Works Alongside Your Trusted Advisors

We do not replace your CPA or attorney. We collaborate with them, adding forward-looking tax and exit strategy to the compliance work they already provide.

Steven E. Zeller, CFP®, CExP®, NQCP®, AIF®

Co-Founder, President & Business Advisor

A Certified Business Exit Planner and CERTIFIED FINANCIAL PLANNER™ professional with over 30 years in the profession, advising owners on growing and protecting wealth, comprehensive exit plans, and company retirement and deferred compensation plan design.

Trevor K. Kern, AIF®, AAMS®

Co-Founder, Vice President & Chief Financial Officer

An Accredited Investment Fiduciary® and practicing wealth advisor focused on proactive planning and investment management, working extensively with owners on personal wealth and on establishing and managing company retirement plans.

Start The Conversation

Ready to keep more of what your business earns? Tell us a little about your business, your goals, and what you are working toward. We will reach out to schedule a time to discuss a proactive tax plan built around your needs.

Prefer to talk now? Call 916.436.8270

Frequently Asked Questions

Direct answers to what business owners in Sacramento, Modesto, Fresno, and the San Francisco Bay Area ask most about proactive business tax planning.

What Is The Difference Between Tax Preparation And Tax Planning?

Tax preparation reports the past; tax planning shapes the future. Preparation happens once a year after the books are closed and records decisions you have already made, which leaves limited room to change your liability. Planning is continuous and year-round, influencing entity structure, income timing, deductions, and capital purchases before year-end deadlines pass. Only planning can still change the outcome.

Do You Replace My CPA Or Attorney?

No. We do not prepare or file your return. We collaborate with your CPA and attorney, adding forward-looking tax and exit strategy to the compliance work they already provide, so decisions get made with the full picture in view.

When Should A Business Owner Start Tax Planning?

The earlier the better, because the strategies with the largest effect need time to work. Entity structure changes, retirement plan design, and exit preparation all reward a longer runway. That said, meaningful opportunities remain at any stage, including the year before a sale or ownership transition.

What Does Business Tax Planning Cover?

Business tax planning covers the decisions that determine how your company earns, spends, invests, and reports income. That typically includes entity structure, income and expense timing, deductions and capital expenditures, available tax credits, and qualified retirement plans such as cash balance plans, 401(k)s, and profit-sharing plans.

How Do Retirement Plans Reduce Business Taxes?

Qualified retirement plan contributions are generally deductible to the business, which can reduce current taxable income while building long-term savings for you and your team. A cash balance plan may allow contributions well beyond typical 401(k) limits, and it can be layered with a 401(k) or profit-sharing plan. The right combination depends on your compensation, workforce, and timeline.

Why Does Tax Planning Matter Before An Exit?

Because what you keep from a sale is an after-tax number, and most of that number is set by decisions made well before closing. Deal structure, entity type, and how proceeds are received each carry different tax consequences. Planning ahead gives you room to choose among them rather than accept whatever the transaction produces.

Do You Only Work With Business Owners In Sacramento?

No. We are headquartered in Gold River and serve the greater Sacramento area, and we work with first and second-generation business owners throughout Northern and Central California, including Modesto, Fresno, and the San Francisco Bay Area.

How Do I Get Started?

Start with a conversation about your business, your goals, and your current tax position. From there we can outline what a proactive, year-round plan would look like and how it would coordinate with your CPA and attorney.

Schedule a business tax planning consultation

This material is for general information only and is not intended as tax or legal advice. Please consult qualified tax or legal professionals regarding your individual situation.