Tax-Efficient Strategies for High-Revenue Businesses in 2025
InsightsBy Troy Noor, CFP®, CFA®
The current dynamic economic environment presents a distinct set of tax challenges for high-revenue businesses. With heightened scrutiny and evolving tax laws, tax-efficient strategies for high-revenue businesses is now a pivotal component of long-term prosperity.
Let’s take a look at three different tax-efficient techniques specifically designed for high-revenue businesses in 2025. Each strategy allows businesses to reduce their tax liability, increase their profitability, and promote long-term expansion.
1. Retirement Plans
The first tax-efficient strategy for high-revenue businesses I want to share is utilizing retirement plans.
Making contributions to plans such as defined benefit plans, solo 401(k)s, and SEP IRAs allows business owners to significantly lower their taxable income. These programs allow large contributions, often far exceeding the limits of traditional retirement plans.
In addition to lowering tax liability, these plans also allow for tax-deferred retirement savings growth, which could result in significant long-term wealth accumulation.
Further, retirement plans provide valuable tax deductions. Many retirement plan contributions are tax-deductible as business expenses, which directly reduces a business’s taxable income. This can result in significant tax savings, which would improve cash flow and potentially boost profitability.
Business owners can optimize their retirement savings, minimize their tax liability, and improve the overall financial health of their company by strategically utilizing retirement plans.
2. Research and Development
High-revenue businesses that engage in qualifying innovation activities can utilize Research and Development (R&D) tax credits. These tax credits may offer substantial tax perks and are offered at both federal and state levels.
By utilizing these credits, businesses can offset their tax liabilities, essentially lowering their tax bill and freeing up important resources for investing in future growth projects.
Activities that qualify for an R&D tax credit include scientific or technological research, the creation of new products or processes, and the improvement of existing products. Businesses may be able to claim sizable credits.
The R&D tax credit can provide both a significant financial boost and also promote further innovation for business owners who meet the eligibility requirements and carefully document their R&D expenses.
3. Capital Gains Planning
The final tax-efficient strategies for high-revenue businesses I want to discuss are various techniques used to reduce capital gains taxes.
Simply put, capital gains are the profits from the sale of assets like stocks, bonds, and real estate. Capital gains planning, therefore, focuses on reducing the tax liability of capital gains.
One effective strategy for reducing—or even eliminating—capital gains taxes is tax-loss harvesting, where investors sell losing investments to offset capital gains from other investments. If you have made a sizable profit on one stock, for example, selling another asset at a loss can balance that gain and lower your total tax obligation.
In addition to tax-loss harvesting, strategies like like-kind exchanges can put off capital gains taxes for specific real estate investments. Like-kind exchanges allow investors to exchange one piece of real estate for another of comparable or greater worth without triggering a taxable event.
Another tax-efficient strategy for high-revenue businesses is donating appreciated stocks to charities. This approach lets you avoid paying capital gains taxes on the appreciated value of your donated asset while also offering a charitable deduction.
The Bottom Line
For high-revenue businesses to pursue long-term prosperity, navigating the complicated tax landscape is essential. By utilizing the tax-efficient strategies discussed here, businesses can reduce their tax liability, increase cash flow, and fuel future growth.
When combined with professional advice, proactive tax preparation can provide substantial financial gains and provide a competitive edge in the ever-evolving business world.
Partner With a Professional
While implementing tax-efficient strategies for a high-revenue business is a very smart move, attempting to do it on your own is not recommended.
Our team at Boulevard Wealth Management provides comprehensive wealth management services, including tax planning. When working together, our goal is to provide the technical acumen you need to make top-quality recommendations based on your current situation.
Whether you’re a young professional or a seasoned business owner, we know how unique your circumstances are, which is why we take the time to get to know you and the goals you have in mind.
To schedule a discovery meeting, call (763) 244-1191 or email troy@blvdwealth.com.
About Troy
Troy Noor, CFP®, CFA® is the Executive Director and Director of Portfolio Management at Boulevard Wealth Management, a financial services firm in Twin Cities, Minnesota, dedicated to addressing client goals through a team-based, fiduciary approach. With over 28 years of experience in the financial industry, Troy specializes in helping executives with equity compensation and business owners maximize their wealth and minimize taxes. His work centers on creating customized investment strategies, optimizing portfolio risk, and designing financial plans that empower clients to pursue financial independence. Guided by his passion for stewardship, Troy strives to help clients align their financial resources with their long-term goals while fostering positive impacts on families and communities for generations. His approach combines technical proficiency—leveraging tools like tax harvesting and mean-variance optimization—with a faith-driven commitment to acting in his clients’ best interests.
Troy earned his Bachelor of Applied Science in International Business and holds the distinguished CERTIFIED FINANCIAL PLANNER® and Chartered Financial Analyst® designations. Beyond his professional roles, he has served as a Board Member for the Eden Prairie Chamber of Commerce, currently serves on the board of Ambassadors for Business, and leads a men’s Bible study group, reflecting his dedication to community and faith. Outside the office, Troy enjoys traveling, fishing, and gardening. He lives by the principle of stewardship, aspiring to hear, “Well done, my good and faithful servant” at the end of his journey. To learn more about Troy, connect with him on LinkedIn.