Reasonable salary analysis
S-corp owner compensation is the single biggest planning lever for most small business owners. Paying too much gives up payroll-tax savings; paying too little invites audit and reclassification. We model the defensible range using comparable-salary data and document the position.
Entity elections and timing
The decision to elect S-corp tax treatment usually pays off once net income clears roughly $45,000. Timing the election matters: Form 2553 is due 75 days into the tax year you want it effective, with late-election relief available in most cases.
Retirement plan structuring
The right retirement plan depends on owner income, number of employees, and contribution preferences. Solo 401(k), SEP-IRA, SIMPLE IRA, and defined benefit plans all have trade-offs we walk through.
Section 179 and bonus depreciation
Equipment purchases in the right year at the right amount can substantially reduce current-year tax. We model the bonus depreciation phase-down and Section 179 limits for your specific income level.
Common questions
- How often should we meet?
- Quarterly for most active business clients, with extra touches before major transactions.
- Can planning help if my business is losing money?
- Yes, sometimes more than when it's profitable. Loss utilization, NOL carryforwards, and timing of recognized losses all matter.
- Do you bill hourly or flat-fee?
- Flat-fee for most planning engagements, scoped annually based on business complexity.