Restructured operating entities resulting in $120K minimal annual tax savings.

Client Background

A regional concrete pouring and foundational construction firm generating $4.5 million in annual top-line revenue. The owner had been operating as a single-member LLC (Schedule C) since inception.

The Problem

Because of rapid scaling over two years without updating their underlying corporate structure, the owner was being hammered by self-employment taxes. Furthermore, all of their heavy equipment ($800k+ in depreciable assets) was commingled into the operating company.

The Solution

Our advisory team implemented a comprehensive "Diagnostic Review & Strategic Roadmap" and executed the following:

• Entity Restructuring: Elected S-Corp status retroactively to separate W-2 payroll from shareholder distributions, capping the self-employment tax bleeding.
• Asset Protection: Created a secondary LLC acting solely as an equipment leasing company. This moved all heavy machinery out of the high-risk operational entity and created a tax-efficient leaseback arrangement.
• Section 179 Optimization: Conducted a deep dive on asset acquisitions, aggressively utilizing Section 179 and Bonus Depreciation for newly acquired trucks.