Continuing the Conversation: 8 Tax Planning Opportunities for Business Owners in 2026
There’s something about the stretch between year-end meetings and the early part of a new year that brings a sense of clarity.
Conversations get more honest. Wish lists turn into to-do lists. And the things that have quietly lingered in the background all year suddenly feel urgent.
Over the past several weeks, I’ve had dozens of conversations with business owners who are asking versions of the same question: “What are the things I should actually be dealing with right now… before another year slips by?”
This isn’t about chasing every new tax headline or overhauling everything at once. It’s about focusing on the areas that consistently create friction, risk, or missed opportunities when they’re ignored.
Regardless of industry or size, similar challenges tend to arise. Here are 8 key areas that surfaced in recent conversations as we continue on the 2026 tax planning and compliance trajectory.
1. Business goals: are you actually setting them?
Business owners often struggle the most when it comes to goal setting. One of the most effective steps I recommend is intentionally setting aside a full day early in the year to focus on goals. That time should be blocked on the calendar, ideally with the owners (and possibly including the management team), and treated as non-negotiable. When your time is protected, these conversations actually happen rather than getting pushed aside by day-to-day demands.
These meetings are a great opportunity to step back and ask:
- What needs to happen this year?
- What needs to be put in motion now for the next five years?
Recent short-term topic examples:
- Establish a personal or family trust to properly hold business interests and real estate
- Improve profit margins by a targeted amount (even 3–5% can materially change cash flow)
Longer-term conversations:
- Succession planning: whether that means selling, transitioning leadership, or simply not being the bottleneck anymore.
- Build continuity so the business can operate without you being involved in every decision.
If these ideas keep resurfacing in your head, that’s usually a sign they shouldn’t be postponed again.
2. Retirement plans: small changes, big consequences
As discussed in our recent article, President’s Perspective: State Law Changes & 2026 Outlook, retirement planning remains one of the most overlooked—yet fixable—areas for business owners. A major change is coming into focus, involving 401(k) catch-up contributions for high-income earners over the age of 50. For many, these contributions will now need to be made as Roth contributions, which means:
- Paying tax on the money before it goes into the plan
- Ensuring your plan actually allows Roth contributions (many don’t)
If your plan doesn’t allow Roth contributions, it may need to be amended, and those changes take time.
This is also a good moment to revisit the basics:
- Are you saving more than you were last year?
- Is your mix of Roth vs. traditional contributions still appropriate?
- Have you reviewed whether your plan design still fits your income and growth?
Key Changes to the Retirement Plan Limits:
- 401(k), 403(b), employer plans: $24,500
- IRAs (Traditional + Roth): $7,500
- HSAs: $4,400 (individual) | $8,750 (family)
Catch-up Contributions:
- Age 50+: Standard catch-up contributions increased to $8000.
- Ages 60–63: As of 2025, a new Super Catch-Up rule increases the standard catch-up contribution to $11,250 in additional employer-plan contributions, but only during this narrow age window.
3. California’s CalSavers: a quiet mandate with real implications
Starting January 1, 2026, California’s CalSavers mandate will apply to businesses with as few as one employee that do not already offer a retirement plan. Previously, the threshold was five employees. This change catches many small and mid-sized employers by surprise.
While CalSavers technically checks the compliance box, it isn’t always the best option. For many businesses, setting up their own 401(k) plan offers:
- Greater flexibility
- Better long-term outcomes for owners and employees
- More control than a government-run program
Waiting until the mandate forces the issue often means fewer choices. Planning keeps you in control. Our GC Wealth Advisors are available for consultation regarding your 401k plan.
4. Charitable giving: the rules are shifting
For high-income taxpayers, the tax benefits of charitable giving are becoming more limited. That doesn’t mean charitable strategies disappear, but they do require more intention.
One tool that remains powerful is the Qualified Charitable Distribution (QCD). For individuals aged 70½ or older, QCDs allow up to $100,000 per year (expected to increase with inflation) to be transferred directly from an IRA to a qualified charity, which is excluded from adjusted gross income.
For the right situation, this can be one of the most tax-efficient ways to give. As with many strategies, timing and structure matter more than ever.
5. Opportunity Zones: planning for large gain events
Opportunity Zones are often discussed as an alternative to 1031 exchanges, and the program is undergoing meaningful changes. A reset of the rules is scheduled to take effect January 1, 2027, with additional guidance rolling out along the way.
If you’re considering selling a business, real estate, or another highly appreciated asset, the timing of that transaction may matter more than you realize. In some cases, waiting or structuring differently could materially change the tax outcome.
6. Business websites, privacy, and “small” compliance gaps
One of the more surprising trends we’ve seen recently involves lawsuits over something that seems minor: website privacy and cookie disclosures.
Several businesses across different industries and local to the Valley have faced legal action simply for failing to properly disclose their data collection practices. Often, these cases involve quick settlements rather than lengthy court battles. But they’re costly, distracting, and largely preventable.
7. AI, privacy, and workplace regulations: not just a future issue
Artificial intelligence is no longer a theoretical concern for businesses, particularly in areas such as hiring, employee management, and data utilization.
New and expanding state regulations are addressing:
- How AI can (and cannot) be used in employment decisions
- Transparency and notice requirements
- Expanded consumer privacy rights and stricter data breach response timelines
California, in particular, is moving toward some of the most comprehensive AI and privacy frameworks in the country. If these topics aren’t on your radar yet, they likely should be.
8. Labor compliance and PAGA lawsuits: still very real
Wage and hour/PAGA (Private Attorneys General Act) lawsuits remain a significant risk for California employers.
The penalties can be substantial, and in some cases, seven-figure settlements are still occurring.
Recent reforms allow employers to take reasonable corrective steps to reduce penalties; however, these options are far more effective when a claim has not yet arisen.
Strong HR compliance isn’t just about policies on paper. It’s about building a defensible record over time. Find out about some of the most common HR compliance mistakes we see and learn how to mitigate your risk in our article, Are You Exposed? The HR Compliance Gaps That Put Businesses at Risk, by Jim Welsh, CPA, SHRM-SCP.
The Common Thread: Do it Now
Most of the issues above share something in common: they’re rarely complicated. They’re just postponed.
The beginning of the year is one of the few natural reset points we get. Taking action now can change how the rest of the year unfolds. The team at Grimbleby Coleman is here to help. Contact us or call (209) 527-4220 to schedule a consultation.
As the new year begins, business owners are asking more focused, honest questions about what truly needs attention.
Key Takeaways
- Many business owners enter the year without clearly defined business or personal goals.
- Small retirement plan changes and regulatory updates can have outsized financial consequences if ignored.
- California’s expanded CalSavers mandate will affect more employers starting in 2026.
- Charitable giving, exit planning, and Opportunity Zone strategies require more intentional timing.
- “Minor” compliance gaps—privacy disclosures, AI use, labor practices—are becoming legal and financial risks.