If you’re running a digital agency doing $500K+ in revenue, there’s a good chance you’re overpaying tens of thousands of dollars in taxes—every single year.
Not because you’re doing anything wrong. But because you’re missing out on smart tax strategies for agency owners that could dramatically reduce what you owe.
We see it all the time at Agency CPAs: successful, fast-growing agency owners unknowingly overpay $30K, $50K—even $100K+—in taxes simply because their financials aren’t aligned with strategy.
Here are three common (and expensive) gaps we fix for our clients—using proven tax strategies for agency owners.
1. You’re Stuck in the Wrong Entity Type
Many agencies are still operating as single-member LLCs or default partnerships long after they’ve passed $300K+ in profit.
That’s fine when you’re starting—but as you grow, you may be paying 15.3% in self-employment taxes that could be reduced with an S Corporation structure.
Example: An agency owner making $250K in profit could save $8,000–$15,000 per year just by switching to an S Corp and paying themselves a reasonable salary.
This is one of the most common tax strategies for agency owners—and it’s often missed by generalist CPAs.
2. No Tax Plan = Missed Deductions
If your CPA only talks to you at tax time, you’re flying blind. You don’t need a tax filer, you need a tax planner.
Many agency owners miss out on proactive tax strategies like:
- Strategic retirement plans (Solo 401(k), SEP, or Cash Balance Plans)
- Income-splitting with a spouse on payroll
- Home office deductions and health reimbursement accounts (ICHRAs)
- Prepaying marketing expenses before year-end
These are tax strategies for agency owners that must be planned for—not just recorded after the fact.
We’ve helped clients retroactively capture $20K+ in missed deductions—and permanently reduce their taxable income going forward.
3. Your Books Don’t Tell the Full Story
Most agencies have bookkeeping that’s just “good enough” to file taxes—but not good enough to help you plan or make better decisions. That costs you money.
We regularly see:
- Owner draws coded incorrectly—triggering unnecessary tax
- Contractors lumped into payroll or missed 1099s
- Ad spend and software buried under “general expenses”—making it hard to optimize
- No clear breakdown of what’s deductible, what’s capitalized, and what’s just waste
Clean, strategic books are step one in building a proactive tax plan using the right strategies for your agency.
What This Means for You
Tax filing is reactive. But tax planning is proactive—and it’s how our clients keep more of what they earn.
If your agency is profitable but you’re still surprised by your tax bill—or not sure if your CPA is really helping you play offense—it’s time for a second opinion and a personalized plan.
Free Offer: Get Your Custom Agency Tax Plan
We’ll review your most recent tax return, your current entity structure, and your compensation setup to build a clear, personalized Agency Tax Plan—based on the most effective tax strategies for agency owners.
No strings. Just clarity and strategy made for agency founders.
