You find out the tax bill in March
After the year is locked. The planning window closed in December. Good tax work happens in real time — not after the fact.
Through Reese CPA
Tax strategy built for business owners.
Most business owners get a CPA who files what already happened. We build the plan before the year closes — entity structure, compensation mix, quarterly estimates, and year-end moves that reduce what you owe without surprises in March.
The problem
Most CPA relationships are reactive. Yours doesn’t have to be.
A tax preparer files what happened. A tax strategist shapes what happens. For business owners, the gap between the two is often six figures a year.
Your entity structure is outdated
The LLC you set up at $300K revenue looks different at $3M. Compensation mix, distributions, and self-employment tax all shift with scale.
S-corp salary is a guess
"Reasonable compensation" is one of the most audited areas for owner-operators. Getting it right saves real money and keeps you off the IRS radar.
Credits and deductions go unclaimed
R&D credits, cost segregation, retirement plan deductions — these require planning ahead. A CPA who only files returns won't surface them.
What we cover
Proactive planning across the full owner tax picture.
Entity structure
C-corp vs S-corp vs LLC: which structure fits your income level, owner count, and growth plan — and when to restructure.
- S-corp election timing
- Multi-entity planning
- Restructuring without triggering gain
S-corp compensation planning
Setting reasonable W-2 salary vs distributions: the math that minimizes self-employment tax while staying compliant.
- IRS reasonable comp benchmarks
- Payroll optimization
- Distribution planning
Year-end tax planning
December moves that actually reduce the bill: accelerating deductions, deferring income, retirement contributions, and equipment purchases.
- Deduction timing
- Retirement plan elections
- Section 179 / bonus depreciation
Quarterly estimates
Cash flow planning around estimated tax payments — so you're not caught short in April or overpaying all year.
- Safe harbor calculations
- Cash flow coordination
- Penalty avoidance
R&D tax credits
The research credit applies to more industries than most owners realize. We identify qualifying activities and document the claim.
- Activity identification
- Documentation support
- Payroll tax offset (startups)
Cost segregation
Accelerating depreciation on commercial real estate and improvements — a real estate-adjacent benefit many operating businesses qualify for.
- Study coordination
- Bonus depreciation timing
- Year-one deduction maximization
S-corp planning
The S-corp payroll question has a real answer.
Many S-corp owners underpay themselves (triggering IRS scrutiny) or overpay themselves (losing the FICA savings the election was supposed to create). The right salary is a function of industry, revenue, owner involvement, and comparable data — not a guess.
We run the analysis, document the rationale, and set up payroll to match. Then we plan distributions around your quarterly cash flow so the split between W-2 and distributions is intentional, not arbitrary.
- Self-employment tax rate
- 15.3% on W-2 wages (split between employer/employee)
- S-corp savings
- Distributions avoid the 15.3% — but only above reasonable comp
Illustrative example
Same S-corp. Two different salary decisions. Different tax bills.
High salary (no planning)
$180,000 W-2
FICA on full salary
Planned split
$90,000 W-2
+ $90K distribution — FICA only on wage
Illustrative only. Actual reasonable compensation depends on role, industry, and IRS comparable data. This is not tax advice.
Year-end planning
The moves that matter happen before December 31.
Year-end tax planning is not a checklist — it requires knowing your actual numbers and where you sit relative to thresholds, phase-outs, and limitations. We review with you in October or November, not after the year closes.
- 01
Accelerate deductions
Pay deductible expenses before December 31 when beneficial — repairs, supplies, prepaid services.
- 02
Retirement contributions
Solo 401(k), SEP-IRA, or defined benefit plan elections before the deadline reduce taxable income dollar-for-dollar.
- 03
Defer income
For cash-basis businesses, holding receivables into the next year defers the tax — useful when income will be lower next year.
- 04
Bonus depreciation
Section 179 and bonus depreciation let you deduct equipment and improvement costs immediately rather than over years.
- 05
QBI planning
The 20% qualified business income deduction has W-2 wage and basis limitations that reward deliberate planning at year-end.
- 06
Loss harvesting
Coordinating business losses with capital gains in the investment portfolio — requires the CPA and advisor to share information.
State tax planning
State taxes compound on top of federal — and they’re avoidable with lead time.
Business owners operating across state lines face nexus issues, apportionment rules, and sometimes double taxation that don’t resolve themselves. State planning is especially critical as income grows — and essential before a business sale.
Residency changes, entity-level state elections (like PTET), and multi-state apportionment all require coordination between your CPA, your entity structure, and your personal situation.
- State nexus and apportionment review
- Pass-through entity tax (PTET) elections
- Residency planning for high-income years
- Multi-state return coordination
Common multi-state situations
Owner lives in one state, business operates in another
Both states may assert taxing rights. Proper apportionment — not double-paying — requires careful filing.
Remote employees create nexus in new states
Hiring a remote employee in a new state can trigger filing requirements you didn't anticipate.
Considering a residency move before a liquidity event
State residency at the time of sale matters. A planned relocation to a no-income-tax state requires lead time and documentation.
Get started
Ready to build a tax plan that moves before the year does?
We start with a 30-minute intro call to understand your business, entity structure, and where the biggest planning opportunities are. No obligation.
Tax services provided through Reese CPA. This page is educational and does not constitute tax advice.