S Corporation Advisory
An advisory CPA for S-Corp owners.
S corporations are our niche. Reasonable compensation, the salary and distribution mix, retirement plan design, and entity structure are decisions that have to be made during the year, together, and in the context of the whole household. Most owners only hear about them after the return is filed.
Where our clients are
We work with S-Corp owners nationwide.
Our office is on California's Central Coast, and a good share of our clients live nowhere near it. Advisory meetings happen by video, documents move through secure portals, and we prepare federal and multi-state returns. Tax practice before the IRS is federal, so where you live does not limit the engagement.
Owners in Colorado, Texas, Arizona, Washington, and elsewhere work with us the same way local clients do. If you happen to be in San Luis Obispo County, you also get the option of sitting across the desk.
What we work on
The decisions that actually move an S-Corp owner's tax picture.
Reasonable compensation
The single most examined number on an S corporation return. We set it with role analysis, comparable wage data, and documentation, then revisit it as profit and your involvement change, instead of copying last year's figure forward.
Salary and distribution mix
Payroll tax, QBI deduction, retirement plan capacity, and loan qualification all move when the split moves. We model the tradeoffs together rather than optimizing one of them in isolation.
Retirement plan design
Solo 401(k), safe-harbor, profit sharing, and cash-balance plans behave very differently inside an S corporation. Plan choice and compensation level have to be decided in the same conversation.
Entity structure and elections
S election timing, late-election relief, holding structures, related-party rent, and whether an S corporation still fits as the business grows or takes on partners.
Multi-state and state-level elections
Nexus, apportionment, and pass-through entity tax elections vary widely by state. Owners with clients, employees, or property in more than one state need this looked at deliberately.
Basis, loans, and distributions
Stock and debt basis, accountable plans, shareholder loans, and distributions in excess of basis. Quiet problems that surface years later if nobody is tracking them.
Owner real estate
Buying the building, related-party leases, cost segregation, and grouping elections, coordinated with the operating company instead of handled as a separate return.
Exit and succession
Asset versus stock sale, F reorganizations, installment treatment, and the multi-year runway that makes a sale materially better. This work starts years before a letter of intent.
What we see most often
Six things we find on almost every second opinion.
None of these come from a careless preparer. They come from a filing-only relationship, where nobody is asked to look at the structure until the year is already over.
- A salary set once at formation and never revisited as profit grew
- An S election made without modeling whether it was actually the better answer
- Distributions taken without tracking basis, creating a taxable event nobody expected
- A retirement plan chosen before compensation was set, capping the contribution
- Personal expenses run through the company with no accountable plan behind them
- Multi-state activity with no nexus or pass-through entity election review
How it works
A year-round rhythm, not a filing season.
01
Consultation
A complimentary full hour. We review your last filed return in advance and come with a personalized fee estimate, so you leave knowing whether we are the right firm.
02
Baseline and structure review
Compensation, entity design, retirement plan, state footprint, and basis all reviewed against how the business actually earns today.
03
Planning through the year
Projections and strategy sessions while decisions can still change the outcome, plus access between meetings when something comes up.
04
Filing as the byproduct
Returns prepared by the same people who built the plan behind them. No handoff, no surprises in April.
Questions
What owners ask before the first call.
Do you work with S-Corp owners outside California?
Yes, and a growing number of our clients are out of state. Meetings happen by video, documents move through secure portals, and we prepare federal and multi-state returns. Tax practice before the IRS is federal in scope, so your state of residence does not limit the engagement.
How do you determine reasonable compensation?
By the value of the services you actually perform: role analysis, comparable wage data, hours, and the profitability of the business. We document the reasoning so the number holds up if it is ever questioned, and we revisit it as the business changes rather than carrying it forward untouched.
Is an S corporation always the right entity?
No. It fits many owner-operated businesses and is the wrong answer for others, particularly where there is heavy real estate, a foreign owner, differing economics among partners, or a plan to raise outside capital. We model the alternatives before recommending an election, or a revocation.
When should planning for the year start?
Before the year ends. Compensation, retirement plan contributions, entity changes, equipment purchases, and most state elections have to be in place by December 31. Once a return is being prepared, the year is largely fixed.
We already have a CPA. Is a second opinion worth it?
Often, yes. The consultation is complimentary and a full hour, we review your last filed return in advance, and we will tell you plainly if your current structure is already sound. Plenty of these conversations end with us confirming that.
Next step
Bring your last return. We will tell you what we see.
A complimentary, unhurried hour with Daniel. We review your return in advance and come prepared with a personalized fee estimate, wherever in the country you are.