I have a small LLC that files as a C corporation.
The company has had a good year and will have around $100k in the bank in December after paying all expenses and salaries for this year.
However, a big, profitable project has finished without anything similar in the pipeline, so next year will be lean; I also expect to have a lot of new software product development expenses (R&D). Instead of paying that surplus to myself as a bonus and thus paying personal taxes on it, I would like to "save" the money in the company for next year's expenses, where it will be used up. But if I leave it in the bank at year-end, it will be subject to the massive corporate income tax rate of 30-40%.
The accountant says I have to pay that money to myself, pay the personal taxes, and then put the remaining money right back into the company next year.
Is there no way for a small business to save money for known future expenses?