Case studies

S-Corp Conversion Saves Client Over $12,000

Name Confidential
Key Personnel


in tax savings


profit saved

Disclaimer: Our client has requested to remain anonymous but were willing to share their story. Like they say in the movies, “Ladies and gentlemen: the story you are about to hear is true. Only the names have been changed to protect the individuals. The company name, logo and pictures are fictitious. If you wish to hear more about this story, please schedule a free consultation and we'd be happy to share all the details about the strategy. We will not divulge the clients name.


Our client is a renowned therapist with a thriving practice and had been operating as a sole proprietor for over a decade. With a growing clientele and an expanding team, their financial landscape had evolved. But, their business structure had remained the same.



Our clients annual income had reached a level where they were facing a substantial self-employment tax burden. They approached our CPA firm seeking ways to optimize their tax situation without compromising the practice's integrity or their commitment to patients.



After a thorough analysis of the financials and understanding their future goals, we recommended converting the sole proprietorship into an S-Corporation. This structure would allow them to draw a reasonable salary and take the remainder of their income as a distribution, which is not subject to self-employment taxes. (Note: Shareholder basis has a twist)



We assisted the client in the S-Corp election process, ensuring all paperwork was completed and filed. We collaborated with the owner to determine a reasonable salary based on industry standards and their specific role in the practice. Finally, we set up a system for the owner to take regular distributions from the profits, ensuring compliance with all tax regulations.



By the end of the year, the S-Corp conversion resulted in a tax savings of more than $12,000. This substantial saving not only validated the decision to seek expert advice but also provided additional funds to reinvest into the practice.



For private practice therapists, understanding the nuances of tax structures can lead to significant savings. Our specialized knowledge inworking with therapists allowed us to provide a tailored solution, turning a financial challenge into a triumphant win.

Key Takeaway:

Business structure matters in tax law. Not selecting the right one could be costing you thousands.

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“We leverage leading practices and disruptive technology to do more than just balance the books. We're actually building the business. And that's our edge.”
Robert L Whittley CPA
CEO & Founder

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