Entrepreneurs have a lot of tax changes to consider during 2021 that could materially affect their financial lives, according to Sean Gould, senior wealth strategist at the national firm Waddell & Associates Wealth Strategists.

“There are a lot of moving parts to tax strategy right now,” Gould said in an interview Thursday, which means “there is a lot of money at stake.” Advisors can help their clients who are small business owners reap rewards by knowing the changing tax laws, he added.

One of the main issues advisors at Waddell & Associates are talking to their clients about now is their ability to utilize both the Paycheck Protection Program under the federal pandemic stimulus law, as well as the Employee Retention Tax Credit. During 2020, small business owners could not take advantage of both. Both programs are designed to help people maintain their jobs during the pandemic shutdowns.

“In addition, last year the loans under the employer programs were capped at 50% of the qualified wages of the employees. This year that is raised to 70%,” he said.

Gould noted this as an example of the many provisions advisors should be aware of to give their clients who are business owners the best guidance. Gould specializes in advising small business owners, which is a tradition within the firm. The firm and Gould also work with endowments, foundations, retirement planning, estate planning and investment management.

Many of the other issues important to the owners of small businesses revolve around potential future tax increases.

“Business owners may want to increase revenues as much as possible for this year and defer expenses until next year to take advantage of the fact that business taxes may eventually be increased under President Biden,” Gould said. “People also should consider harvesting gains from stocks this year rather than next when capital gains taxes may double.”

Likewise, larger gifts can now be made without being subject to gift taxes than are likely to be allowed next year. “For gifting purposes, it would be beneficial for wealthy people to gift this this year,” Gould said.

Business owners who are considering setting up retirement plans for their employees should consider doing it now while some of the startup costs can be deducted from taxes, he added.

“Congress is being good to small businesses right now, and business owners should be prepared to take advantage of all the programs they can,” Gould said. Despite the pandemic, in some ways this can be a good time to be in business, he added.

“Business owners should make sure they have the right team in place to guide them,” Gould advised. “At Waddell & Associates, we think of ourselves as business coaches.”