Client Background
A restaurant franchise owner operating three locations needed tax advising to optimize deductions, manage payroll tax obligations, and ensure compliance with franchise-related financial requirements. The client hired Development Theory to help with tax advising for a franchise restaurant.
The Challenge
High Payroll Tax Burden: The franchise employed dozens of hourly workers, leading to high payroll taxes.
Missed Deductions for Equipment & Renovations: The owner wasn’t utilizing cost segregation or depreciation deductions.
Cash Flow Strain from Quarterly Tax Payments: Large tax bills were causing short-term financial stress.
Franchise Fees & Royalties Tax Treatment Confusion: The owner wasn’t sure which expenses were deductible.
Our Approach
Payroll Tax Credit Optimization: Identified available tax credits, such as the Work Opportunity Tax Credit (WOTC) for hiring employees from specific groups.
Cost Segregation Study Implementation: Accelerated depreciation deductions on leasehold improvements and equipment.
Quarterly Tax Planning & Cash Flow Strategy: Created a structured tax payment plan to prevent cash flow issues.
Franchise Expense Tax Compliance Review: Ensured royalties, advertising fees, and franchise expenses were properly deducted.
Multi-Location Tax Optimization: Ensured all locations maximized tax-saving opportunities without overpaying.
The Solution
Claimed WOTC credits, reducing payroll tax liability.
Used cost segregation to deduct over $80,000 in asset depreciation.
Developed a tax-friendly payment schedule, preventing cash shortages.
Improved deduction accuracy for franchise-related expenses.
Results & Impact
Saved $55,000 in taxes in the first year.
Reduced payroll tax burden by 15%, thanks to hiring tax credits.
Improved cash flow stability, preventing tax bill-related stress.
Ensured long-term compliance, avoiding IRS audit risks.
Client Feedback
"I was overpaying in taxes for years. This tax strategy saved me thousands and made managing my business easier!"
Development Theory Can Help Business Owners Like You
Are you paying more in taxes than you need to? Smart tax strategies can save you thousands each year while keeping you compliant. At Development Theory, our Tax Advising services help small business owners identify deductions, structure their businesses for tax efficiency, and create proactive tax plans that reduce liability and increase cash flow. Whether you're planning for growth, preparing for an exit, or just looking to keep more of what you earn, we can help you navigate complex tax laws with confidence.
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