Industries
Agencies and consultants
Service businesses have simple books and a complicated owner: most of the tax planning is about you, not the company.
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- 447 Broadway, New York
- team of Certified Accountants, CPAs and Enrolled Agents
- Flat fees quoted upfront
- Replies within 8 hours
Get a fixed quote
Tell us the basics. We reply within 8 hours, no obligation.
Where agencies lose money
- Retainers billed in advance recognised as revenue on receipt, so the busy month before a slow one looks like growth.
- Contractors paid without W-9s, then a January scramble for 1099-NECs.
- Owner draws mixed with expenses, so the profit figure that drives estimated taxes is wrong.
- The S-corp election made too early (admin costs exceed the saving) or too late (a year of unnecessary self-employment tax).
- Multi-state clients and remote staff creating income tax and payroll obligations nobody registered for.
What we set up
A short chart of accounts with revenue by service line, subcontractor cost against it so gross margin is visible per client, work-in-progress or deferred revenue where retainers are material, and owner compensation booked correctly. Quarterly estimate planning on the Growth plan. Payroll once the S-corp election makes sense, with a documented reasonable salary.
Tax for agencies
Schedule C, 1065 or 1120-S with the qualified business income deduction applied properly (service businesses phase out at higher incomes, which changes the S-corp maths). 1099-NEC filings by February 2. State returns where clients and staff create nexus. For non-US agency owners with a US LLC: Form 5472 every year and an ECI review.
Questions people ask
When should an agency elect S-corp status?
Usually once profit exceeds a reasonable salary by $50,000 or more. The calculator on our tools page shows the maths; we confirm it against your state.
Do you handle contractors abroad?
Yes. Non-US contractors provide a W-8BEN instead of a W-9 and receive no 1099; we keep the documentation so payments are not questioned.
My clients are in several states. Do I owe tax there?
Services are sourced by different rules in different states; remote staff are the more common trigger. We review it once and put it on the calendar.
Ready for a fixed quote?
Two sentences from you. A written price within 8 hours. No obligation, no long-term contract.
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