tax strategy for contractors and construction business owners
Contractors who work with us know their tax number before they owe it.
They've implemented strategies their previous CPA never brought up. They're keeping more of what their business earns and putting it to work in retirement accounts, in equipment, and in the next phase of business growth.
That's what it looks like when tax strategy is working the way it should.
“They caught things that had been missed for years and explained everything in a way that actually made sense.”
TAX ADVISORY SERVICES
We work with construction and contracting business owners year-round as their tax strategy partner. Not just at filing time.
That means we're thinking about your tax position when you're buying equipment, taking on a new crew, adjusting your salary, or having a stronger year than expected. The strategies that actually move the needle — S-Corp elections, Augusta Rule, hiring your kids, owner compensation structuring, retirement account timing — have to be implemented during the year. By the time your return is being prepared, most of those windows are already closed.
While every engagement and business need is different, our core engagement for Tax Advisory Services includes:
Federal and state tax return preparation and filing (business and personal)
S-Corp election setup and salary optimization
Quarterly check-ins to review your position and flag anything time-sensitive
Year-end pro forma return — you know your number before you owe it
Estimated tax calculations so there are no April surprises
Implementation of tax-saving strategies specific to your business and income level
IRS Account Watch — we monitor your account and flag issues before a notice reaches your mailbox
IRS notice response, within scope
$15,000 of Tax Resolution Insurance per covered return
Phone and text access to senior-level staff
Who we work with
We work best with contractors and construction business owners doing $500K or more in annual revenue who already have their bookkeeping handled (or know they need it) and want more than a return filed every spring.
That means remodelers, general contractors, trade business owners — people who run crews, think in projects, and want their business growth to translate into personal wealth, not just a larger tax bill. People who are ready for a strategy conversation, not just a compliance relationship.
If you're asking whether the S-Corp election makes sense for your business, whether you're paying yourself the right amount, or whether your current setup is working as hard as it should be — that's exactly where we start.
What its actually worth
A contracting business owner we worked with through a full engagement year walked away with a clear picture of exactly what proactive strategy had produced.
After implementing the Augusta Rule, a family employment strategy, and recovering IRS penalties and interest he was entitled to reclaim, his total tax savings for the year came to $31,279.
His investment in the engagement: $8,500.
Net return: $22,779 — a 2.68x return on what he paid.
That's not a projection. That's what happened.
Our typical client saves around $30,000 in year one. The math is straightforward. If the numbers don't work for your situation, we'll tell you before you sign anything.
The strategies we implement
Every engagement is built around the strategies most relevant to your business and income level. Here are a few that move the needle most for contractors:
S-Corp Election and Salary Optimization
The S-Corp election changes how your business income is taxed. Instead of paying self-employment tax on everything you earn, you pay yourself a reasonable salary and take the rest as a distribution. On $200,000 in net income with a $75,000 salary, that's roughly $19,000 in annual savings. One strategy, one conversation.
Learn more about S-Corp elections for contractors →
Hiring Your Kids
Children employed in a parent's business can earn up to the standard deduction (roughly $14,600) completely tax-free. The business deducts the wages. You're shifting income from a high-tax bracket to a zero-tax bracket, with proper documentation and real work involved.
Learn more about hiring your kids in a construction business →
Owner Compensation Structuring
What you pay yourself has a direct effect on what you owe. Too high and you're paying unnecessary payroll taxes. Too low and you're exposed to IRS scrutiny. We review your compensation structure as part of every engagement and adjust it as your income changes.
The Augusta Rule
You can rent your home to your business for up to 14 days per year for legitimate business purposes, such as strategy sessions, team meetings, and planning days. The business deducts the rental expense. You pay zero income tax on that rental income. For example, in Western Washington, daily rates often exceed $500, making this a $7,000+ deduction that costs nothing on the personal side.
Learn more about the Augusta Rule for contractors →
Equipment and Depreciation Planning
The question isn't whether you can depreciate your equipment. It's when. Taking Section 179 in a high-income year makes sense when future years will be leaner. If your income is growing, spreading that deduction over time may save you more in total. We run both scenarios before recommending anything.
Learn more about equipment depreciation strategy for contractors →
Estimated Tax and Cash Flow Planning
S-Corp owners on payroll can satisfy their entire tax liability through W-2 withholding — no quarterly estimated payments, no underpayment penalties, even if you didn't pay throughout the year. We build this into every engagement so your cash stays working in your business longer.
Start here
The contractors who build the most wealth aren't necessarily the ones doing the most revenue. They're the ones who treat tax strategy as part of running their business — not something that happens to them every April.
If you want to know what a real strategy conversation looks like, start with a free call. We'll look at your situation, identify the strategies that apply, and show you what they're worth. If the math doesn't work in your favor, we'll say so.
