If you feel like you are paying more taxes than necessary, you are probably right—not because you are doing anything “malicious,” but because you are not using all the legal tools the system offers.
The key is not to “evade,” but to plan.
In this article, you will see legal and practical strategies to pay less tax in your business without putting your peace of mind—or your company—at risk.
1. The Mindset Shift: From “Reacting” to “Planning”
Most entrepreneurs operate like this:
- The deadline arrives.
- They gather documents at the last minute.
- The accountant “does what they can” with what’s available.
At that point, there is no room to maneuver—only to file and pay.
The right approach is the opposite:
- Analyze your situation before the fiscal year closes.
- Make informed decisions about how you invoice, which structure you use, and which expenses you record.
That is tax planning, and it is the core of any strategy to legally pay less tax—both personally and corporately.
2. Choose the Right Structure: Individual, LLC, or Corporation
Your legal structure directly affects how much tax you pay.
a) Invoicing as an individual
This is the simplest path at the beginning, but it:
- Mixes personal and business finances
- Limits certain deductions
- Can expose you to higher taxes as you grow
b) Operating through an LLC
The LLC (widely used by Latin entrepreneurs in the U.S.) is usually taxed as a pass-through entity:
- Profits flow to your personal tax return
- It allows you to separate assets and better organize expenses
With a well-designed structure, you can optimize personal and corporate taxes at the same time, leveraging the LLC’s income flow.
c) Corporation (C-Corp) and other variants
- A C-Corp pays corporate income tax, and then you pay personal tax on dividends.
- Poorly structured, it can increase your tax burden.
- Properly designed, it can be a powerful tool to reinvest profits and attract investors.
Conclusion:
Choosing between an individual, LLC, or Corporation is not cosmetic—it is one of the first and most important levers to legally pay less tax.
3. Take Advantage of Deductions Many Entrepreneurs Overlook
Deductions are necessary expenses incurred to generate income that you can legally subtract before calculating taxes.
Commonly overlooked deductions include:
- Education and training: courses, certifications, professional development related to your activity
- Digital tools: CRMs, accounting software, design tools, automation, SaaS subscriptions
- Marketing and sales: ads, branding, content production, platform commissions
- Business travel: transportation, lodging, and per diem related to meetings, trade shows, and clients
- Professional services: lawyers, financial advisors, specialized consultants
Each country and jurisdiction has specific rules, but the principle is the same:
if the expense is reasonable, necessary, and well documented, it can become tax savings.
4. Use Tax Credits and Special Incentives
Beyond deductions, there are tax credits—amounts that are deducted directly from the tax owed.
Common examples in personal and corporate taxation include:
- Research and development (R&D) credits
- Incentives for job creation or hiring certain profiles
- Benefits for investments in clean energy or specific industries
- Personal credits related to family, education, or healthcare (depending on current regulations)
Many entrepreneurs don’t even know these credits exist and end up overpaying year after year.
5. Properly Separate Personal and Business Finances
Mixing accounts is one of the biggest enemies of effective tax savings.
Common mistakes:
- Paying personal expenses with the company card (and vice versa)
- Not having a dedicated business bank account
- Failing to issue invoices or receipts on time
When you separate them:
- You improve traceability for tax authorities
- You make deductions easier to justify
- You reduce the risk of adjustments and penalties in an audit
6. Watch the Deadlines: Penalties and Interest Eat Your Money
Another “hidden tax” comes from filing late or incorrectly:
- Penalties for late filing
- Interest for underpayment
- Additional charges for repeated errors
Sometimes the real problem isn’t how much you owed, but how much accumulates in penalties due to poor planning.
Good personal and corporate tax management includes:
- A clear calendar of deadlines
- Reminders and early filings
- Preventive adjustments mid-year, not at the last minute
7. Plan with Multiple Countries in Mind (If You Operate Between LATAM and the U.S.)
If you invoice in more than one country, things get more complex—but opportunities also arise:
- Double taxation treaties
- Recognition of taxes paid abroad as tax credits
- Hybrid company–individual structures that reduce the overall tax burden
Doing this without guidance is risky. With a well-designed plan, you can avoid paying twice on the same income while fully complying with the law.
8. Don’t Wait Until Year-End: Review Your Strategy Mid-Year
Many tax adjustments only work if they are made before the period closes:
- Structural changes (such as an LLC tax election)
- Investment or depreciation decisions
- Estimated payments and smart provisioning
That’s why it’s recommended to:
- Conduct at least one tax review mid-year
- Adjust your strategy based on real income, not just projections
9. How Ubox Helps You Pay Less Tax Without Breaking the Law
At Ubox, we take a comprehensive personal and corporate tax approach so you can:
- Have a tax structure aligned with your business model
- Take advantage of deductions and credits you may currently be missing
- Avoid penalties due to technical errors or lack of regulatory knowledge
- Coordinate your obligations when operating between the U.S. and Latin America
- Turn tax season stress into an organized and predictable process
All 100% online, with a team that speaks your language and understands the reality of Latin entrepreneurs selling into the U.S. market.
Request a Free Tax Diagnostic for Your Business
Every company is different. What works for an e-commerce business in Florida is not the same as for a remote agency in Mexico or a SaaS with global clients.
That’s why the first step is to look at your specific case:
- We briefly analyze how you are currently filing
- We identify possible overpayments, risks, and improvement opportunities
- We propose a clear action plan to optimize your personal and corporate taxes
Request a free tax diagnostic for your business and discover how to pay less tax in a 100% legal way—gaining peace of mind and protecting your company’s growth.
