Founders: ignore this, lose money

Good morning. This week, we’re breaking down the new tax law that could put serious cash back in your business. The latest jobs report shows a surprising shift in the economy. Plus, you’ll discover why more founders are ditching full-time hires in favor of top-tier freelancers and how to take advantage.

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BUSINESS PULSE

Economy: In June, U.S. employers added 147,000 jobs, which was well above the expected 110,000. At the same time unemployment fell from 4.2% to 4.1%, even as labor force participation dipped slightly.
What it means to you: A strong labor market signals that consumer demand remains steady but reduces chances of Fed rate cuts soon.
Source: The Wall Street Journal

Human Resources: As full-time headcount growth slows, companies are ramping up contract and freelance hiring. According to new data from Upwork and Contra, demand for independent workers surged 17% in Q2, especially in product, marketing, and operations roles.
What it means to you: If you’re hiring, think hybrid. Freelancers can help you move faster without increasing fixed overhead.
Source: Forbes

Startups: Boldstart Ventures closed its seventh fund, dedicating $250 million toward early-stage investments in AI, cybersecurity, infrastructure, and crypto—some deals closing on day one.
What it means to you: If you’re tackling AI, now is prime time to refine your pitch and showcase early traction. Speed matters—funding moves fast.
Source: The Wall Street Journal

FOUNDER FOCUS

The tax window founders can’t miss

New law unlocks powerful deductions, investment incentives, and a short-term edge for business owners who act fast.

Washington just gave business owners a gift.

Signed into law on July 4th, the One Big Beautiful Bill (OBBB) is packed with major tax breaks and cash-flow advantages for small businesses. It quietly rewrites parts of the tax code in a way that puts real dollars back in your pocket, but only for a limited time.

This isn’t about politics. It’s about knowing when the rules change and adjusting your strategy before your competitors do.

If you’re making money, spending on growth, or building anything at all, the rules just shifted in your favor:

Section 179 expensing just doubled
You can now write off up to $2.5 million in equipment, software, and infrastructure in the year you buy it. No slow depreciation. Buy it, deduct it, done.

Bonus depreciation is back at 100%
For a time, you can fully deduct big-ticket purchases like vehicles, furniture, and machinery. Renovating a space? Launching a new product line? There’s no reason to wait.

Pass-through tax break is now permanent
The 20% qualified business income (QBI) deduction under Section 199A is now permanent for LLCs, S Corps, partnerships, and sole proprietors. It was previously set to expire in 2025. If your business is structured as a pass-through, this locks in a major long-term tax advantage.

R&D spending is now fully deductible again
No more amortizing innovation. If you’re building, testing, or creating something new, you can now write off every dollar of that work right away.

What smart business owners are doing this quarter

You don’t need a full restructure, but you do need a plan. Here are five things to focus on:

1. Revisit your tax strategy
If your CPA isn’t up to speed on these changes, you’re leaving cash on the table. Section 179 alone could change your 2025 tax bill significantly.

2. Accelerate investments you were already planning
If you’re going to spend money on tech, equipment, space, or growth, doing it now could create a major tax advantage.

3. Check your business structure
Pass-throughs win under this bill. If you’re still set up as a C Corp without plans to raise venture capital, it might be time to re-evaluate.

4. Budget for rising costs elsewhere
While the bill delivers tax relief, it also signals shifts that could increase energy and healthcare costs in the coming years. Build margin into your models.

5. Pay attention to the expiration date
Some provisions expire after 2028. Plan your capital expenditures before the window closes.

This is a founder's moment

These tax changes aren’t forever. But they are real and they reward action.

Entrepreneurs who understand how to leverage tax code shifts like this don’t just save money — they create space to grow faster. They invest when others hesitate. And they use legislation like this as fuel, not noise.

The government just made reinvesting in your business cheaper.

The only question now: will you use it?

Rivet Report, Rivet Media and Rivet Co. LLC do not provide tax advice and readers should consult their qualified tax advisor for guidance on these matters. Any information presented is for general informational purposes only and should not be considered professional tax advice.

GROWTH PLAY OF THE WEEK

Lock in bonus depreciation now.

If you’re planning any major purchases—new equipment, office renovations, software, vehicles—accelerate them into this calendar year.

Thanks to the new law, 100% bonus depreciation is back. That means you can deduct the entire cost of qualified assets the year you buy and place them in service, not slowly over time. It’s one of the fastest ways to improve cash flow and lower your effective tax rate, especially if you’re profitable.

Rivet Report, Rivet Media and Rivet Co. LLC do not provide tax advice and readers should consult their qualified tax advisor for guidance on these matters. Any information presented is for general informational purposes only and should not be considered professional tax advice.