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Owner-Focused Accounting for<br><em>Professional Service Firms</em>
Professional Services

Owner-Focused Accounting for
Professional Service Firms

Consultants, marketing agencies, architects, engineers, and solo-to-mid-size professional firms — your biggest tax and financial planning opportunity usually starts with how you pay yourself.

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Our Expertise

The Biggest Lever Is Usually
How You’re Structured

Most professional service firm owners are significantly overpaying in taxes because of how their entity is structured, how they compensate themselves, and what they’re not doing with their retirement planning. These are solvable problems.

We serve consultants, agencies, architects, engineers, staffing firms, and other professional service businesses. The issues we solve most often: S-Corp election timing, reasonable compensation analysis, retirement plan design, and exit planning.

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Common Challenges We Solve
  • S-Corp election analysis and payroll structuring
  • Reasonable compensation documentation and defense
  • Solo 401(k) and defined benefit plan contribution strategies
  • Qualified Business Income (Section 199A) optimization
  • Revenue recognition for multi-month engagements
  • Partner buy-in and equity compensation structuring
  • Succession and business exit planning
How We Help

What Davis Group Delivers
for This Industry

S-Corp StrategyOptimize the split between salary and distribution to reduce self-employment tax without IRS exposure
Retirement PlanningDesign retirement plans that maximize contributions and create significant pre-tax deductions
Owner Tax PlanningFull personal and business tax planning that treats your business income and personal finances as one system
Entity StructuringLLC vs. S-Corp vs. PLLC analysis with multi-year tax projections for each option
Exit PlanningFinancial and tax structure planning for eventual sale, succession, or wind-down of the practice
Your Partner Match
CT
Cindy L. Turner
Tax Partner — Professional Services

Cindy specializes in tax planning for professional service business owners, with particular expertise in S-Corp structuring, owner compensation, and entity-level tax minimization strategies.

Service
Tax Planning & Compliance
Service
Monthly & Quarterly Accounting
Service
Outsourced CFO & Controller
Common Questions

What Professional Services Clients Ask Us

  • How does an S-Corp election save taxes?

    As an LLC or sole proprietor, all net income is subject to self-employment tax (15.3% on the first ~$160K). As an S-Corp, you pay yourself a reasonable salary (subject to payroll taxes) and take remaining profit as a distribution (not subject to SE tax). For businesses making $100K+ in profit, this can save $10,000–$30,000 or more annually — but the election requires careful structuring.

  • What is reasonable compensation for an S-Corp owner?

    The IRS requires S-Corp owner-employees to pay themselves a salary that’s reasonable for the services they provide. There’s no fixed formula, but it should be defensible based on what you’d pay someone else to do your role. We document this carefully and build it into your overall compensation strategy.

  • When should I start thinking about selling my practice?

    Start thinking about it 3–5 years before you want to exit. Exit value is affected by entity structure, buyer financing, revenue concentration, key-person dependencies, and whether the business can run without you. We help clients optimize for exit value well before the transaction happens.

Ready to Work With a CPA Who
Actually Knows Your Industry?

Schedule a free conversation. We’ll match you with the right partner and tell you exactly how we can help.