Client Background
A self-employed personal trainer offering one-on-one coaching, online fitness programs, and group classes needed help with tax preparation after expanding their business and struggling with 1099 filings, deductions, and tax planning. The client hired Development Theory to do tax preparation for a personal trainer.
The Challenge
Inconsistent Income Tracking: The trainer received payments through Venmo, PayPal, and cash, making income reporting difficult.
Missed Deductible Expenses: Training equipment, gym rentals, and continuing education were not properly tracked for deductions.
High Self-Employment Taxes: The trainer was paying more in self-employment tax than necessary.
No Quarterly Tax Planning: Large tax bills at the end of the year were causing financial strain.
Our Approach
Income & Expense Categorization Fix: Created a bookkeeping system to track income across different payment platforms.
Maximizing Business Deductions: Identified gym rental fees, marketing costs, travel expenses, and business equipment as deductible.
Self-Employment Tax Reduction Plan: Recommended LLC filing with an S Corp election to lower self-employment tax.
Quarterly Estimated Tax Setup: Structured a quarterly tax payment plan to eliminate year-end surprises.
1099 Client & Contractor Compliance: Ensured all 1099 payments were correctly issued and filed.
The Solution
Streamlined income tracking, ensuring accurate tax filing.
Saved $11,000 in taxes through self-employment tax reduction and deductions.
Implemented quarterly tax payments, improving cash flow management.
Filed correct 1099s, preventing IRS compliance issues.
Results & Impact
Tax burden reduced by 30%, increasing take-home income.
Avoided IRS penalties, ensuring compliance.
Cash flow improved, making tax season stress-free.
Better financial organization, supporting business growth.
Client Feedback
"I used to panic every tax season. Now, I’m confident my finances are in order, and I’m keeping more of what I earn!"
Development Theory Can Help Business Owners Like You
Looking to enhance your business strategies and maximize your financial outcomes like this business owner? Our Tax Preparation service provides you with insights that can elevate your business performance. Don't miss out on the opportunity to leverage expert knowledge for your financial success.
Comments