Client Background
A private medical practice with two physicians and a team of 15 staff members needed tax advising to optimize deductions, manage payroll tax obligations, and prepare for a potential practice expansion. The client hired Development Theory to help with tax advising for a private medical practice.
The Challenge
High Business Tax Burden: The practice was paying more in taxes than necessary due to poor structuring.
Unoptimized Employee Benefits Deductions: Employer contributions for healthcare, 401(k), and continuing education were not maximized for tax efficiency.
Unstructured Tax Planning: The practice had no formal tax strategy, leading to last-minute scrambling.
Expansion Plans with No Financial Roadmap: The doctors wanted to open a second location, but tax implications weren’t clear.
Our Approach
Entity Restructuring & Tax Strategy: Transitioned the practice to an S Corp with a structured payroll system, reducing tax burden.
Maximizing Employee Benefits for Tax Savings: Ensured retirement plan contributions and healthcare expenses were fully deductible.
Depreciation Planning for Medical Equipment: Implemented Section 179 deductions for large equipment purchases.
Quarterly Tax Projections & Planning: Created a structured tax plan to prevent overpayment.
Expansion Tax Impact Analysis: Modeled tax implications of opening a second location to ensure financial viability.
The Solution
Implemented payroll adjustments, reducing self-employment tax.
Maximized tax-deductible employee benefits, increasing savings.
Deferred taxable income for growth, reducing overall tax liability.
Prepared for practice expansion, ensuring minimal tax burden.
Results & Impact
Annual tax savings of $45,000, improving cash flow.
Lowered payroll tax expenses, keeping more profits in the business.
Expansion plan financially structured, avoiding unexpected tax liabilities.
Reduced tax season stress, thanks to year-round planning.
Client Feedback
"Our tax savings have allowed us to reinvest in growing our practice. We feel prepared for the future!"
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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