Law firms, consultancies, agencies, and advisory practices — high-margin businesses with high-income tax challenges.
These are the opportunities we find in nearly every professional services engagement — money left on the table by traditional CPAs.
Paying self-employment tax on all net income because the business isn't structured as an S-Corp
Setting owner salary too high or too low — triggering IRS scrutiny or excess payroll taxes
Not leveraging defined benefit plans for high-income partners over 40
Missing the Augusta Rule for home office deductions on meeting space
Failing to separate intellectual property or brand assets into a separate entity
These are the strategies we evaluate and deploy for every professional services client — tailored to your specific numbers.
S-Corp election with optimized reasonable salary — save $20K–$50K in self-employment tax annually
Defined benefit plans for high-income owners — shelter $200K–$300K+ per year
Accountable plan for unreimbursed business expenses — home office, travel, professional development
Augusta Rule (Section 280A) — rent your home to your business for meetings, tax-free to you, deductible to the business
IP holding company — separate intellectual property or brand into a separate entity for licensing income
How we turned a $217K tax bill into over $1M in cumulative savings.
Generally when your net profit consistently exceeds $60,000–$80,000 per year. The S-Corp allows you to pay yourself a reasonable salary (subject to payroll taxes) and take remaining profit as distributions (not subject to self-employment tax). The savings typically range from $10,000 to $50,000+ annually.
The IRS requires S-Corp owner-employees to take a reasonable salary based on industry comparables, experience, and duties performed. Setting it too low invites audit risk; too high wastes payroll tax savings. We use compensation data and industry benchmarks to find the optimal level for your situation.
Section 280A allows you to rent your home to your business for up to 14 days per year without reporting the rental income on your personal return. The business gets a legitimate deduction for the fair-market rental rate. For professional service firms that hold team meetings, retreats, or client events, this can be worth $15,000–$30,000 annually.
Yes. Solo defined benefit plans are available to self-employed individuals and single-owner S-Corps. If you're over 40 and earning $300K+, a defined benefit plan can let you shelter $200,000–$300,000+ per year — far more than a 401(k) alone.
If you have distinct service lines with different risk profiles or partner structures, separate entities can provide liability isolation, cleaner financials, and strategic tax planning. A common structure is a management company (holding company) with separate OpCos for each practice area.
Book a free review and we'll identify the professional services-specific opportunities hiding in your numbers.
Tell us about your business and we'll identify every savings opportunity available to you.