Quick hits

Stat or Quote of the Month:

Tax Tip of the Month

Finance Tip of the Month

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​Wealth Building Tip of the Month

Essential Reads

Do Healthcare Practice Owners Qualify for the 20% QBI Deduction?

Hear "specified service" and assume the 20% deduction is off the table? Not so fast. See how one well sized retirement contribution can work twice, cutting your taxable income and bringing back thousands in lost deduction, as long as you act before December 31. Read more >

How Does the Safe Harbor Rule for Estimated Taxes Protect a Practice Owner From IRS Penalties?

Your last 2026 estimated payment is due January 15. Learn the one rule that keeps you out of penalty territory, and why it won't protect you from a surprise bill in April. Read more >

Your Breakaway Growth Navigator

Make Your Business Fund Your Life

Last month, we talked about five moves that lower this year's tax bill, as long as you make them before December 31.

This month, we start a new chapter. And it opens with a question most owners never ask.

Where does your profit go after you make it?

For a lot of owners, it sits in the business checking account. It gets transferred to a personal account as a distribution and spent on the next shiny thing. Or it goes to the IRS because nobody had a plan for it.

Here's the truth. Profit isn't wealth. Profit is the raw material. Wealth is what you build with it, outside the business, where one bad year can't wipe it out.

The Tax First Wealth Ladder

Climb it in order. Each rung makes the next one stronger.

1. Pay yourself on purpose. Pick a set amount to move from the business to you every month, based on your profit target. Money that leaves on a schedule gets invested. Money that waits around gets spent.
2. Fill your tax advantaged buckets first. For 2026, you can put up to $24,500 into a 401(k) as an employee, and up to $72,000 total once your company's contributions are added (IRS limits). Owners closer to retirement may be able to save far more with a cash balance plan. In a 32% bracket, a $60,000 contribution keeps about $19,200 off this year's tax bill. That's a head start before you've invested a single dollar.
3. Invest the rest with taxes in mind. Where you hold an investment matters almost as much as what you hold. Some investments send you a tax bill every year. Others grow until you sell. Putting each one in the right kind of account can keep thousands a year in your pocket.
4. Build wealth outside the walls. According to the Exit Planning Institute, about 90% of a business owner’s wealth is trapped inside their largest asset: their company. If most of your net worth is your practice or business, you don't have a portfolio. You have one big bet. Your business should feed your wealth, not be all of it.

Notice the order. Taxes first, then investments. Most advice starts with what to buy. We start with how much you get to keep. Every owner's ladder looks a little different, so build yours with your advisor.

Next month, we'll zoom in on the first rung: Pay Yourself Right. How to set your salary and distributions so the business funds your life without starving the business.

Be grateful for the profit. Then put it to work.

Client Story of the Month

We helped a client walk away from a tax bill that was never his. During a messy divorce, his expulled a large amount from a 401(k) and left it off their joint return, and , he was the one the IRS and North Carolina looked to collect from. His request for innocent spouse relief (a rule that can protect you from your spouse's tax mistakes) was denied, so our team took it through IRS Appeals, more than once, and won. North Carolina just followed the IRS ruling: he got money back, and the state can no longer garnish his wages.

Partner Spotlight

The tax and accounting world is a lot like the healthcare world, with generalists and specialists depending on your needs. At Red Bike Advisors, we focus on proactive tax, accounting, and advisory as well as specialized tax resolution and forensic accounting services. If you need other specialized services, we have trusted partners for everything from estate planning to cost segregation, R&D studies, business valuations, and wealth advisory. Let us know what you’re looking to do and we can provide a trusted referral.

New Around Here

Meet Jennifer Williams, our new Administrative Assistant. Jennifer is often the first voice you'll hear when you call Red Bike, making sure every owner feels welcome and gets to the right person fast. With a PhD and a career in special education, she's a pro at turning big, overwhelming tasks into simple next steps. Welcome, Jennifer!

Who do you know that needs our services?

We're accepting new clients for...

1. ​Multi-year strategic tax savings​
2. ​Proactive accounting, tax & advisory​
3. ​Tax resolution​
4. ​Forensic accounting and fraud investigations​

Who do you know that needs our services? Let us know--we're happy to help!

A Question for You

If you added up everything you own outside your business, how many years of your life could it fund?

Until next month,

Your Red Bike Advisors Team

​About Red Bike Advisors​

We're on a mission to help small business owners simplify, streamline, and save. From compliance and finance & tax strategy to lifetime wealth-building & financial retirement, we bring in clarity, growth, and peace of mind.