Construction Company Owner Cuts Tax Bill by $112,000
Running a construction company with $3.2 million in annual revenue means big tax bills. For years my old CPA had everything lumped into one LLC with no real structure. I was paying taxes on every dollar of profit with no strategy whatsoever.
AE Tax Advisors came in and immediately saw the problem. They separated my operations into a holding company and an operating entity, which gave me better liability protection and opened up tax strategies that were impossible under the old structure. They also identified over $400,000 in equipment purchases that qualified for Section 179 and bonus depreciation -- deductions my previous CPA had been spreading over multiple years instead of taking upfront.
The team also restructured my compensation to optimize the split between salary and distributions, reducing my self-employment tax burden significantly. All told, the first-year savings came to $112,000.
What sets AE Tax apart is their proactive approach. They did not wait for me to ask questions. They came to me with ideas, projections, and specific dollar amounts. My old CPA never did that once in eight years. The team also coordinated with my attorney to make sure the entity restructuring was done properly from a legal standpoint.
If you run a construction business and your CPA has never talked to you about entity structure or equipment depreciation strategy, you are almost certainly overpaying. AE Tax Advisors found savings I did not know existed.