SaaS revenue recognition and capitalized software, the research credit, multi-state sales tax, and entity, retirement, and tax planning for marketing agencies, web developers, consultants, coaches, architects, insurance agencies, and staffing firms.
64 guides, each written by a CPA licensed in the US and Canada.
Choosing the right entity for an architecture firm involves self-employment tax savings, the QBI deduction, and W-2 wage limitations above the income.
US TaxMost architecture firms are built on the founder's relationships and reputation. The most common succession path for architecture firms is an internal.
US TaxArchitecture firms have industry-specific deductions that many practitioners overlook: CAD and BIM software, professional liability insurance.
US TaxBookkeeping is an SSTB under IRC 199A, which phases out the QBI deduction above the income threshold. S-Corp election still saves self-employment tax.
US TaxIRC 174 forced SaaS companies to capitalize and amortize software development costs from 2022 through 2024. The 2025 tax law reversed most of it.
US TaxConsulting is a Specified Service Trade or Business (SSTB), which means the QBI deduction phases out at higher income levels.
US TaxIndependent consultants and consulting firms have deductible expenses that go beyond the obvious: travel, home office, software, professional development.
US TaxThe key tax question in a consulting firm sale is whether the goodwill belongs to the firm (entity goodwill) or to the individual owner (personal.
US TaxConsulting firms that hire subcontractors must classify them correctly as employees or independent contractors.
US TaxCoaching businesses are SSTBs (consulting category), which means the QBI deduction phases out above $191,950 single / $383,900 MFJ.
US TaxInsurance agents and agencies are SSTBs (financial services). The QBI deduction phases out above $201,750 single / $403,500 MFJ.
US TaxStaffing agencies benefit from the S-Corp election at lower profit levels than most businesses because their high W-2 wage bills support the QBI.
US TaxBookkeeping businesses with monthly retainer clients have predictable income, making estimated tax payments straightforward.
US TaxCoaches with income from one-on-one sessions, group programs, and course launches face variable quarterly income. The safe harbor rules require estimated.
US TaxThe total estimated tax rate for freelance developers is typically 25-40% of net profit, depending on income level.
US TaxInsurance agents with growing renewal commissions face increasing estimated tax obligations each year. The safe harbor rules under IRC 6654 protect.
US TaxFor agencies with 60%+ revenue from retainers, the prior-year safe harbor is the simplest estimated tax approach: four equal payments based on last.
US TaxFranchise staffing agencies (Express Employment, Spherion, Adecco franchisees) have specific tax treatment for the franchise fee, ongoing royalties.
US TaxIndependent consultants who work from home can deduct a portion of their housing costs as a business expense. The home office deduction under IRC 280A.
US TaxE&O insurance premiums are fully deductible as an ordinary and necessary business expense under IRC 162.
US TaxAll business insurance premiums are deductible as ordinary business expenses.
US TaxMarketing agencies face an SSTB classification question: is the agency providing consulting (SSTB) or creative/execution services (non-SSTB)?
US TaxSubcontractor payments are deductible expenses that reduce QBI.
US TaxMobile notaries are NOT an SSTB under IRC 199A (notarization is a ministerial act, not a professional service). Entity structure comparison for mobile.
US TaxMobile notaries are self-employed and must make quarterly estimated tax payments. Income is moderately seasonal (real estate closings peak spring-summer).
US TaxVehicle expenses are the dominant deduction for mobile notaries (30-50% of revenue). Mobile notary deductions: Vehicle expenses (the big one): - Standard.
US TaxStaffing agencies that place workers in multiple states must comply with each state's payroll tax, workers' comp, and unemployment insurance requirements.
US TaxArchitecture firms that design projects in multiple states face nexus questions, income apportionment, payroll tax obligations.
US TaxA consultant who works from home in one state and serves clients in others may owe income tax in multiple states. Multistate tax for consultants involves.
US TaxE&O insurance premiums are deductible as ordinary and necessary business expenses under IRC 162. Defense costs (legal fees.
US TaxArchitecture firms can use the cash method, the accrual method, the percentage-of-completion method (PCM) under IRC 460, or the completed-contract.
US TaxArchitecture and engineering firms routinely perform activities that qualify for the research and development tax credit under IRC 41.
US TaxSaaS companies routinely qualify for the IRC 41 R&D credit on new feature development and architecture work. The IRC 41 credit rewards qualified research.
US TaxTechnology consulting firms that develop custom software, design systems. The IRC 41 R&D credit applies to activities that meet the four-part test: (1).
US TaxArchitecture firm partners and sole practitioners can shelter significant income through retirement plans.
US TaxBookkeeping is an SSTB, so the QBI deduction phases out at higher incomes. Below the SSTB threshold: - Solo 401(k) contributions reduce taxable income.
US TaxSolo coaches can use a Solo 401(k) ($23,500 deferral + approximately 20% employer contribution for 2025, maximum $70,000 combined, plus catch-up).
US TaxFreelance web developers with no employees can contribute up to $72,000/year to a Solo 401(k). 2026 Solo 401(k) contribution limits: - Employee deferral.
US TaxIndependent consultants can shelter $24,500 to $250,000+ per year in retirement plans, depending on income and plan type.
US TaxInsurance agents with growing renewal commissions can shelter $24,500 to $72,000+ per year through self-employed retirement plans.
US TaxMarketing agency owners who use 1099 subcontractors instead of employees can maintain the Solo 401(k). An agency owner with no W-2 employees uses the Solo.
US TaxA staffing agency owner cannot use the Solo 401(k) (too many employees). The main options are SEP IRA (uniform percentage.
US TaxMost consulting firms with average annual gross receipts of $31 million or less (over the three prior years) can use the cash method under IRC 448.
US TaxA SaaS chart of accounts has to separate subscription revenue from services revenue, hosting costs from operating expenses.
US TaxSales commissions get capitalized for GAAP under ASC 340-40 but are usually deductible when paid for tax.
US TaxVenture-backed SaaS companies almost always need a C-corp for QSBS and investor requirements. C-corps are required for venture-backed SaaS because.
US TaxA SaaS company can owe state income tax in a state where it has no employees, no office, and no servers.
US TaxRevenue recognition for SaaS runs on delivery, not cash. A monthly subscription recognizes 1/12 of the annual value each month it's provided.
US TaxAbout 25 states currently tax SaaS in some form; the rest don't, and there's no federal standard governing the split. Economi.
US TaxPre-revenue SaaS costs split three ways for tax purposes: a small immediate deduction, 180-month amortization.
US TaxWhen an insurance agent sells their book of business, the tax treatment depends on the entity structure, the allocation of the sale price.
US TaxISOs and NSOs are taxed at different points and different rates.
US TaxBookkeeping businesses deduct accounting software subscriptions, continuing education, professional memberships, E&O insurance, and home office costs.
US TaxCoaches can deduct training, certifications, marketing, software, travel, and the home office.
US TaxInsurance agents and agency owners can deduct marketing, E&O insurance, licensing, technology, vehicle costs, and office expenses.
US TaxMarketing agencies deduct software subscriptions, client acquisition costs, subcontractor payments, advertising spend (the agency's own).
US TaxStaffing agencies have unique tax considerations because they employ the workers they place at client sites. The primary deductions for staffing agencies.
US TaxWeb developers and software engineers deduct computers, monitors, software subscriptions, home office costs, internet, and professional development.
US TaxA US-based coach reports all worldwide income on their Schedule C (or S-Corp return).
US TaxUnder the cash method (used by most coaches), revenue is taxable when received.
US TaxCoaches who sell online courses, digital downloads, and membership programs must understand the income reporting, sales tax obligations.
US TaxWeb development, software development, and IT consulting may or may not be SSTBs depending on the nature of the work. NOT an SSTB (full QBI available.
US TaxWeb development agencies that hire freelance developers must correctly classify them. Factors that support CONTRACTOR classification for freelance.
US TaxWorkers' compensation is typically the second-largest cost for staffing agencies after payroll. Workers' compensation insurance is required in almost.