Question 1

What is an S-Corp election and how does it save money?

Accepted Answer

An S-Corp is a tax election (not a new entity type) that changes how your business income is taxed. Instead of paying 15.3% self-employment tax on all profits, you pay yourself a reasonable salary (subject to payroll tax) and take the rest as distributions (not subject to SE tax). For a Michigan trade company owner with $120K net income, this typically saves $6,000–$10,000 per year.

Question 2

When should I convert to an S-Corp?

Accepted Answer

Generally, S-Corp conversion makes financial sense when your net income consistently exceeds $60,000 per year. Below that threshold, the compliance costs (~$3,000/year for payroll processing, additional tax filing, etc.) may outweigh the tax savings. We offer a free S-Corp calculator that estimates your specific savings.

Question 3

What is a "reasonable salary" and how is it determined?

Accepted Answer

The IRS requires S-Corp owners to pay themselves a "reasonable salary" before taking distributions. This is based on your trade, experience, duties, hours worked, and comparable wages in your area. For Michigan trades, typical ranges are: Plumbers $55K–$80K, Electricians $55K–$80K, GCs $65K–$100K, Roofers $60K–$90K. We document a defensible salary using BLS data and industry benchmarks.

Question 4

Can I convert mid-year or do I have to wait?

Accepted Answer

Form 2553 (S-Corp Election) must be filed by March 15 for it to take effect in the current tax year. If you miss that deadline, you can still file for the following year. In some cases, late relief is available. We handle the entire election process for our Growth tier clients.

Question 5

What accounting software do you use?

Accepted Answer

We use Xero for all client bookkeeping. Xero is a cloud-based platform that gives you real-time access to your books from anywhere. We set up trade-specific charts of accounts so your financial reports actually make sense for your business — not generic categories that lump all your costs together.

Question 6

How often will my books be updated?

Accepted Answer

Monthly. We reconcile all bank and credit card accounts, categorize transactions using trade-specific categories, post accrual entries, and deliver your financial reports (P&L, balance sheet, cash flow) by the 15th of the following month.

Question 7

What is job costing and do I need it?

Accepted Answer

Job costing tracks revenue and expenses by individual project, so you know which jobs are profitable and which are losing money. If you're running multiple projects with subs, it's essential. Job costing is included in our Pro tier and is set up specifically for your trade type.

Question 8

What tax returns do you prepare?

Accepted Answer

We handle all federal and Michigan state returns: 1040 (individual), 1120-S (S-Corp), 1065 (partnerships), along with quarterly payroll tax filings (Form 941), 1099-NEC preparation, W-2s, and Michigan-specific filings. Tax preparation is an annual add-on to your monthly plan.

Question 9

Do you handle IRS notices or audits?

Accepted Answer

Yes. If you receive an IRS notice or state tax inquiry, we handle the response. Our Starter and Growth tiers include notice response. For more complex situations like full audits, we provide audit representation through our compliance team.

Question 10

What's the difference between tax prep and tax planning?

Accepted Answer

Tax prep is filing your returns after the year ends — it's backward-looking. Tax planning is proactive strategy throughout the year: estimated tax calculations, entity structure optimization, retirement contribution timing, equipment purchase timing (Section 179), and year-end moves. Planning is where the real savings happen.

Question 11

How much does it cost?

Accepted Answer

Pricing is all-inclusive and flat: Starter is $549/month, Growth is $1,095/month, and Pro is $2,195/month. Your annual federal and Michigan tax return is included in the monthly fee — no separate tax prep bill. The only additional cost is a one-time $1,995 S-corp setup fee if you're converting to S-corp on the Growth plan (covers Form 2553 filing, reasonable salary analysis, and payroll setup). All plans are month-to-month. Visit our Services page for the full breakdown.

Question 12

How long does onboarding take?

Accepted Answer

5 business days from signed engagement to fully active. Day 1: kickoff call and document collection. Days 2-3: Xero setup with your trade-specific chart of accounts. Day 4: team briefing and compliance calendar setup. Day 5: activation confirmation and first check-in scheduled.

Question 13

Do you offer month-to-month billing?

Accepted Answer

Yes. All plans are month-to-month with no long-term contracts. We earn your business every month. If you're not happy, you can leave with 30 days notice. We'll export your Xero data and provide a clean transition.

Question 14

What if I'm not sure which plan I need?

Accepted Answer

Schedule a free 15-minute consultation. We'll ask about your revenue, entity type, number of employees/subs, and pain points, then recommend the right plan. No pressure, no hard sell. Or try our S-Corp Calculator first to see if the Growth plan makes sense for you.

Frequently Asked Questions

S-Corp & Entity Structure

Bookkeeping & Accounting

Tax Services

Pricing & Getting Started

Still Have Questions?