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IndustryAccounting and tax for consultants, agencies and firms.
Consultants, agencies, designers, engineers and other owner-run service firms. The S-Corp decision, reasonable salary, retirement plans and clean monthly numbers.
Where this industry gets it wrong
- Paying self-employment tax on all profit when an S-Corp would save thousands
- Owner salary set too low, inviting an IRS reclassification
- No retirement plan despite high income and low overhead
- Client deposits and retainers booked as income too early
Questions we hear from professional services
When does an S-Corp make sense for a consultant?
Usually once net profit passes roughly $50–60,000. Above that the payroll-tax saving outweighs the cost of payroll and a separate return.
What retirement plan fits a one-person firm?
A solo 401(k) allows the largest contributions for most owner-only businesses. We set it up with payroll so the contributions are deductible and on time.
Talk to us this week.
A free 15-minute call. Next step and a fixed fee, in writing. No hourly billing, no obligation.