How to Pay Less Taxes in the U.S. Legally: Tips for Brazilian Entrepreneurs

Paying taxes in the United States is part of every entrepreneur’s reality. But what many Brazilians don’t know is that it’s possible to pay less taxes in the U.S. completely legally, simply by organizing, planning, and understanding local regulations.

In this article, we’ll show what every Brazilian entrepreneur needs to know to avoid financial waste, take advantage of allowed deductions, and structure their business to grow with security and savings.

Many Brazilian entrepreneurs pay more tax than they should—not for lack of desire to save, but due to lack of proper information and tax planning. This is common among immigrants who start informally or follow advice from friends without professional guidance.

The good news is that there are safe and legal ways to pay less taxes in the U.S. With the right structure and proper choice of business entity, you can reduce burdens, avoid fines, and optimize your cash flow.

1. Difference Between Federal, State, and Local Taxes

In the U.S., the tax burden is divided into three main levels:

Federal Taxes (IRS): applied nationwide. Includes business income tax, personal income tax for the owner, and payroll taxes.
State Taxes: vary by state. Some states, like Texas and Florida, don’t charge state income tax, which may benefit some business models.
Local Taxes (county or city): may include business licenses, fixed annual fees, or service taxes.

Practical example: The same business may pay different tax rates depending on the state where it’s registered. That’s why choosing the right state is a strategic decision to pay less taxes in the U.S.

2. Business Types and Tax Impact

The legal structure of your business directly affects how much tax you pay. Here’s a comparison:

Sole Proprietor:
- Taxed as an individual
- No legal separation between personal and business assets
- Responsible for 100% of taxes on profit
LLC (Limited Liability Company):
- Protects personal assets
- Can be taxed as Sole Proprietor or S Corp
- Flexible for planning deductions and expenses
S Corp (S Corporation):
- Allows separation of salary and distributed profits
- Reduces tax burden on payroll
- Requires more organization and compliance

Tip: Many Brazilians are able to pay less taxes in the U.S. by converting an LLC into an S Corp after business revenue grows. This decision should be guided by a professional.

3. Tax Deductions Often Ignored by Brazilians

Much of the tax savings come from the smart use of allowed tax deductions. However, many Brazilians fail to take advantage of these due to lack of knowledge or fear of making a mistake.

Here are some deductible expenses:

Home office: proportional part of rent, electricity, internet, and cleaning
Vehicle: fuel, insurance, and maintenance (when used for business)
Cell phone and internet: when used professionally
Meals with clients or business travel
Equipment and work tools

How to prove it: Keep receipts, bank records, and descriptions of expenses. Use apps like QuickBooks to make tracking easier.

With proper documentation and classification, you can pay less taxes in the U.S. safely.

4. Annual Accounting Planning

Many Brazilians visit an accountant only during tax season. That’s a mistake that can be costly. The ideal approach is to do annual accounting planning, with periodic reviews and forecasts.

Filing is not planning!

Planning includes:

Estimating revenue and expenses
Anticipating quarterly taxes
Assessing the best business structure
Maximizing deductions and avoiding penalties

An experienced accountant and a business consultant like LS Business can help you prepare and organize all these steps clearly.

5. LS Business’s Role in the Process

LS Business Management focuses on helping Brazilian entrepreneurs structure their businesses legally and efficiently, with special attention to tax matters.

Our support includes:

Evaluation of the best business model
Document organization for deductions
Connection with trusted accountants
Consulting on S Corp and LLC options
Training on financial and tax control

Our experience with immigrants allows us to provide guidance that is clear, accessible, and focused on helping clients pay less taxes in the U.S. with confidence.

6. Conclusion

Paying taxes is a duty for every entrepreneur, but paying more than necessary is a choice—and one that can (and should) be avoided.

With planning, rule knowledge, and professional support, you can structure your business to pay less taxes in the U.S., grow with stability, and protect your financial future.

Schedule a free analysis with LS Business Management and find out if you’re paying what’s fair.