Client Background
A small marina that offered boat and pontoon rentals, gas sales, and a retail shop struggled with high tax liabilities and unclear financial strategy. The owner wanted to reduce taxes while planning for future business expansion. The client hired Development Theory to help with tax advising for a marina.
The Challenge
Missed Deductions: The business was overpaying on taxes due to unclaimed expenses.
Unstructured Business Entity: Operating as a sole proprietorship instead of an LLC or S Corp led to higher self-employment taxes.
Seasonal Revenue Fluctuations: High summer earnings created cash flow challenges in the off-season.
Unoptimized Depreciation: The marina owned high-value assets (boats, docks) that were not properly depreciated for tax savings.
Our Approach
Tax Structure Analysis: Evaluated LLC and S Corp options for better tax efficiency.
Expense Audit & Strategy: Identified deductible expenses that were previously unclaimed.
Depreciation Adjustments: Applied proper depreciation methods for high-value equipment.
Seasonal Tax Planning: Implemented tax deferral strategies to optimize off-season cash flow.
Quarterly Tax Projections: Created a tax strategy to predict and minimize future liabilities.
The Solution
Converted the business to an S Corp, reducing self-employment tax.
Saved the owner over $18,000 in taxes through restructuring and deductions.
Developed a tax-efficient growth strategy, allowing the marina to reinvest in new rental equipment.
Created a long-term financial plan, balancing peak-season revenue with off-season expenses.
Results & Impact
Decreased taxes owed by 25% over the previous year, improving business cash flows.
Allowed reinvestment in three new boats, expanding the rental fleet.
Smoothed cash flow across the year, reducing financial stress in the winter months.
Improved business resale value, making future succession planning easier.
Client Feedback
"I had no idea I was overpaying so much in taxes! The new strategy has saved me thousands and made my business much more stable."
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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