Benefits You Can Get Through Your Business in 2026 (U.S.)
Benefits are a top reason holding many aspiring entrepreneurs back from starting a business and going self-employed.
But there are plenty of benefits when you own a business- including health insurance and retirement - they’re just phrased a little differently. Below are top benefits you often receive at a job that you can also get through your business.
Please note: Everything we’re about to cover I have learned from experience. I am not an attorney or a certified public accountant. The information I’m about to share is meant to guide you and I highly recommend reaching out to an attorney, certified public accountant, or business advisor to help advise you on your specific journey.
Retirement
If you’re familiar with a company 401(k), a SEP IRA (simplified employee pension plan) is the self-employed version.
It works like a traditional IRA in that your contributions are tax-deductible now and the distributions are taxed later.
If you have employees, you must contribute the same percentage to a SEP IRA for them as you do yours (once they meet certain requirements). This gets a bit complicated, so be sure to reach out to a business advisor, financial planner, or CPA (certified public accountant) for help.
If you’re a solopreneur, ask your CPA about a Solo 401(k). This may be a better option for you and your business.
What you can contribute to your SEP IRA
You can contribute 25% of your business’ net income, up to $72,000 in 2026!
To compare, the max contribution to a 401(k) is $24,500 in 2026, while the max contribution for a Traditional or Roth IRA in 2026 is $7,500 if you’re under 50 or $8,000 if you’re 50 or older.
So that’s a lot and definitely something worth looking into!
You can also have a Roth IRA and a SEP IRA depending on your income. In terms of tax benefits, it works in reverse in that your contributions are made post tax, but are not taxed on withdrawal so long as you draw during retirement.
*Note that your SEP IRA or Solo 401(k) contributions are considered a tax credit at the end of the year, so be sure to calculate your self-employed estimated quarterly taxes without your contributions.
What happens if you over-contribute to an IRA or HSA. →
Health Insurance
Health insurance is likely the top benefit keeping you from quitting your job and diving into self-employment, right?
So many people are afraid of how expensive their health insurance would be if they did not get it through their employers. But they never actually look into it.
All it takes is checking out healthcare.gov or talking to an insurance broker, which I recommend. (My health insurance broker also sells me business insurance, home insurance, and auto insurance, which is super convenient.)
My Health Insurance Premiums
For the sake of providing perspective, below are my numbers for this year, when I’m insured as an individual, and 2021, when my husband and I were on a plan together. Remember, your insurance premium will depend on the type of plan you choose and the state you live in.
2026 Premium: $295/mo. single plan + HSA Eligible
My business pays - and writes off - this entire premium.
2021 Premium: $477/mo. family plan + HSA Eligible
My husband and I were on the same health insurance plan in 2021, me being the primary. We opted for a high deductible plan, and it was actually a better plan than when we had insurance through Shelby’s former employer. And we didn’t pay that much more!
Not only that, my business was able to pay 100% of my portion of the health insurance premium. Because I was the primary, my portion was $300.
Health Savings Accounts (HSA) Eligible Plans
My plan also offers HSA contributions.
An HSA is a health savings account that can be used for co-pays, medications, vision care (including glasses and contacts), dental care and other health related expenses. I’ve used my HSA to pay for chiropractic appointments, my Oura ring fitness tracker, and even menstrual products.
See qualifying HSA expenses. →
And unlike an FSA, a flexible savings account, HSA funds do not expire. You never lose this money.
The real benefit of an HSA is that it’s triple tax advantaged, the only savings account that is. This means that your contributions count as a credit on your taxes at the end of the year and you’re not taxed on your funds when you use them, as long as you use them for qualifying expenses.
You can also invest your HSA, and your earnings aren’t taxed either.
Because of this, I make it a priority to max out my HSA every year. My business makes these contributions for me.
And unlike FSA (flexible savings accounts), you don’t have to use your money up at the end of each year. You can save it for as long as you’d like.
The max HSA contribution for 2026 is $4,400 for yourself only, or $8,750 for family coverage. Your spouse counts as family.
Watch the Reel!
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Tax Deductions
Write-offs allow business-related expenses to reduce your tax liability.
Costs like office supplies, equipment, and software count - basically, anything you need to run your business can be considered a deduction.
You can also likely write off tuition and professional development, if it’s relevant to your business.
And don’t overlook the mileage deduction or home office deduction. Both of these add up. The IRS standard mileage deduction in 2026 is 72.5 cents per mile for business!
Be sure to verify deductions with your CPA before including them in your quarterly tax calculation.
Work-Life Balance
Finally, as a business owner, you have more control over your work-life balance.
You can determine your schedule, work from home, depending on your business type, and you can unlimited sick and vacation time.
However, some businesses are more hands-on than others so sick days can still be a challenge. I share tips to alleviate that stress in this blog post.
If benefits are holding you back from diving into self-employment, be sure to reach out to a business advisor, insurance broker, and/or a CPA so you know exactly what the numbers are and where you’ll stand. It’s likely not as bad as you’re thinking. The benefits could even be better if you went self-employed!
If you enjoyed this post, you can buy me a coffee or connect with me here. Thank you! =)
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Just getting started in business and looking for a roadmap? Check out my Begin Your Business online course. We’ll cover everything from pricing to forming an LLC, assembling your team to getting your first clients, and everything in between.
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Hey there! I’m Meg:
Recovering Girlboss who downshifted to simplicity
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