Tax Strategy — Philadelphia

Tax Strategy for Philadelphia Business Owners

Philadelphia stacks a wage tax, gross receipts tax, and net income tax on top of state and federal. Business owners face one of the heaviest local tax environments in America.

Philadelphia Industries We Work With

What Philadelphia Business Owners Face

State Tax Overview

PA flat 3.07% income tax. Moderate state burden but Philadelphia adds significant local taxes.

Moderate SALT Burden
Local Business Taxes

Philadelphia wage tax (~3.75% residents, ~3.44% non-residents) and Business Income & Receipts Tax (BIRT): 1.415 mills on gross receipts + 5.99% on net income. One of the heaviest local tax cities in the US.

Philadelphia Client Example

A Philadelphia healthcare practice with $2.1M in revenue was paying full BIRT on gross receipts with no optimization. After restructuring the business entity, optimizing BIRT exclusions, and implementing a defined benefit plan, annual savings reached $74,000.

How We Reduce Taxes for Philadelphia Businesses

BIRT Optimization

Minimize Philadelphia Business Income & Receipts Tax through exclusions, deductions, and entity structure optimization.

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Entity Restructuring

Optimize your business structure across LLCs, S-Corps, and holding companies to minimize tax exposure and maximize protection.

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Cost Segregation

Reclassify building components to 5, 7, or 15-year property for accelerated depreciation and massive first-year deductions.

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Retirement Planning

Go beyond a basic 401(k). Cash balance plans, defined benefit plans, and hybrid structures multiply your tax-advantaged savings.

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PTET Election

Bypass the $10,000 SALT deduction cap with a Pass-Through Entity Tax election, recovering state taxes as a business deduction.

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Remote Service. Local Depth.

We serve Philadelphia business owners remotely with the same depth as a local firm. Our Tax Intelligence Framework starts with a comprehensive review of your financials, entity structure, and current tax position. We then build a custom strategy and implement it.

We work alongside your existing CPA, not replacing them. Learn more about our tax strategy service or read about how we work alongside your CPA.

  1. 1 Tax Intelligence Review - We analyze your current structure, financials, and tax returns to identify exactly what you are leaving on the table.
  2. 2 Custom Strategy Blueprint - We build a prioritized plan with projected savings for every strategy, specific to your business and PA tax environment.
  3. 3 Implementation - We execute every strategy, coordinating with your CPA and legal team. No loose ends.
  4. 4 Ongoing Optimization - Tax law changes. Your business evolves. We adapt your strategy year over year to keep savings compounding.
Tax Intelligence Review

Philadelphia Business Owner?

Book a free review and we'll identify exactly how much you're overpaying and the strategies to fix it.

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Get Your Tax Review

Tell us about your business and we'll identify every savings opportunity available to you.

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