Digital Marketing Agency Owner Saves $47,000 in First Year
I grew my digital marketing agency from a laptop on my kitchen table to an eight-person team. Through all that growth, I was still filing as a sole proprietor and paying self-employment tax on every dollar of profit. Looking back, the amount of money I wasted is painful to think about.
AE Tax Advisors converted my business to an S-Corp and immediately cut my SE tax burden. They properly documented my home office -- I still work from home three days a week -- using the actual expense method rather than the simplified method my old preparer used. The difference was significant because my home office is a dedicated space with its own entrance, which qualifies for a larger deduction.
The QBI optimization was the piece I found most impressive. My old CPA just ran the standard calculation, but AE Tax showed me how the deduction phases out above certain income thresholds for specified service trades. They carefully calibrated my W-2 salary to land in the sweet spot where I still capture a substantial QBI deduction without underreporting my salary.
Total savings: $47,000 in year one. For a growing agency, that is capital I can reinvest in hiring, tools, and client acquisition. The process was remarkably smooth -- they handled all the entity paperwork, set up my payroll, and provided a clean checklist for my bookkeeper.
Best business decision I made this year. If you run an agency and are still operating as a sole proprietor, stop reading this review and call AE Tax Advisors.