Tax Planning & Advisory
Pain Points & Value Proposition
Standard tax prep focuses on the past. Proactive tax advisory focuses on your future. Digital businesses face unique revenue models, sub-contractor risks, and IP valuation nuances that off-the-shelf tax software misses.
Are you overpaying on self-employment taxes? Without S-Corp salary optimization, you may be overcontributing 15.3% FICA on your distributions.
Struggling with Section 174 R&D rules? Software development expenses must be amortized over 5 years. We structure your tech stack costs to maintain cash flow.
Preparing for an asset sale or product exit? Improper entity structure can cost you up to 20%+ in unnecessary capital gains taxes.
Core Service Offerings
1. Entity Selection & Formation Guidance
Set up the optimal foundation to shield personal assets and cut tax liability.
LLC vs. S-Corp vs. C-Corp Analysis: We calculate your exact breakeven point to transition from an LLC to an S-Corp, optimizing W-2 salary versus owner distributions.
QSBS (Section 1202) Planning: For dev shops building proprietary IP or SaaS, we structure C-Corps to qualify for up to 100% tax-free capital gains upon exit.
2. Income Shifting & Deferral Strategies
Align payment schedules and revenue recognition with smart tax deferral.
Cash-Basis Deferrals: Legally defer late Q4 project milestones into the next tax year.
Strategic Expense Acceleration: Utilize Section 179 to write off up to $1.22M in server hardware, dev equipment, and software infrastructure in Year 1.
Family Income Shifting: Shift legitimate agency tasks (testing, media management) to lower individual tax brackets.
3. Capital Gains & IP Tax Planning
Protect code, retainers, and digital assets during growth or acquisition.
R&D Expense Optimization: Safely amortize domestic software dev expenses while identifying eligible R&D credits.
Asset vs. Stock Sale Structuring: Strategic allocation of contract retainers and IP to ensure maximum capital gains treatment over ordinary income rates.
4. Retirement & Wealth Preservation
Turn high-margin digital profits into long-term, tax-sheltered wealth.
Solo 401(k) & SEP-IRA Setup: Deduct up to 25% of net self-employment earnings to lower current-year AGI.
Defined Benefit Pension Plans: Stack high-capacity pension plans for owners netting $300k+, sheltering $100k–$250k+ annually.
5. Tax Planning for Marital & Personal Transitions
Navigate major personal milestones without destabilizing your digital agency.
Joint vs. Separate Filing Reviews: Optimize standard and itemized deductions against high variable agency income.
IP Transfer & Section 1041 Compliance: Structure tax-free equity and digital asset transfers during marital property settlements.
How It Works
| Step | Focus | Deliverable |
| 1. Comprehensive Audit | Review past 2 years of tax returns, entity filings, and revenue models. | Tax Diagnostic Report: Uncover immediate overpayments and missed deductions. |
| 2. Custom Blueprint | Design entity structure, salary splits, and retirement shelter plans. | 365-Day Tax Roadmap: Clear steps to lower your effective tax rate. |
| 3. Implementation & Coaching | Work alongside your bookkeeper and legal counsel for seamless execution. | Year-Round Advisory: Mid-year and Q4 planning sessions so there are zero April surprises. |