Pay the tax you owe. Not the tax you never planned around.
Most of the tax you can save is decided long before the return is filed. We look at entity type, how you pay yourself, when income lands, and what plans you have available, then we put a number on each option.
The savings happen before December 31
By the time a return is being prepared, the tax is largely already decided. Entity type, owner compensation, timing of income and expenses, retirement plan elections and depreciation choices all had to happen during the year. That is why a firm that only shows up in March cannot save you much, no matter how skilled the preparer is.
A strategic tax review looks at the structure behind the number. We read your most recent business return, your current pay structure, and your projected results, then put a dollar figure next to each change we would make. There is no charge for that review.
Where the money usually is
For most profitable West Michigan owners, the same handful of items account for the bulk of recoverable tax.
- Entity election. An LLC taxed as a sole proprietorship pays self-employment tax on every dollar of profit. An S election can change that, but only above a profit threshold where the payroll cost is justified.
- Reasonable compensation. Set too high and you overpay payroll tax. Set too low and you invite reclassification. The defensible number is documented, not guessed.
- Retirement plan design. SEP, SIMPLE and Solo 401(k) plans have very different contribution ceilings, and for S-corp owners the ceiling is a function of W-2 wages, which ties back to the salary decision.
- Accountable plans. Home office, mileage and equipment reimbursements run through a written accountable plan are deductible to the company and untaxed to you. Without the plan document, they are neither.
- Depreciation and cost segregation. Section 179 and bonus depreciation timing, and for property owners, a cost segregation study that reclassifies building components into shorter recovery periods.
Trusts and legacy planning
Russ works extensively in irrevocable legacy trust management, which comes up for owners with real estate, a business interest they intend to pass on, or a charitable objective. That work is deliberate and slow, and it is not right for everyone. When it is right, it is one of the few strategies that operates across generations rather than a single tax year.
We will tell you plainly when a strategy is not worth its complexity for your situation. A plan you cannot maintain is worse than no plan.
Implementation, not a memo
Recommendations are worthless if nobody files the election. Because we run payroll and books in-house, the strategy and the mechanics happen in the same place. If we recommend an S election, we file the 2553, restructure the payroll to match, and update the chart of accounts. If we recommend a Solo 401(k), the deferral shows up in the next payroll cycle.
Each year we compare the plan against actual results and adjust. Structure is not a one-time purchase.
Getting started
- 01
Strategic review
Free. We read your last return and your current pay structure.
- 02
Written recommendations
Each option with the dollar impact next to it, not a vague suggestion.
- 03
We implement
Elections filed, payroll restructured, books updated to match.
- 04
Annual revisit
We check the plan against actual results each year and adjust.
Tax Reduction Strategies questions
- Is this just an upsell?
- The initial strategic review is free. If we do not find savings worth more than the work, we will tell you.
- Will an S-corp election save me money?
- Sometimes. It depends on profit, payroll cost and reasonable compensation. We run the numbers before recommending it.
Tax Reduction Strategies across West Michigan
Book a free consultation
Bring your last return and a payroll register. We tell you what we would change and what it costs. No charge, no obligation.