Category Overview

Entity Restructuring Case Studies

Our team has completed 84 entity restructuring engagements for business owners across a wide range of industries. Each study below illustrates how a targeted shift in entity classification, ownership structure, or multi-entity design produced measurable federal and state tax savings. These outcomes reflect the real results our clients have achieved through careful analysis and strategic execution.

84
Studies Completed
$9.2M
Total Entity Savings
14%
Avg. Rate Reduction

Featured Entity Restructuring Studies

Browse 25 representative engagements from our portfolio of 84 completed entity restructuring projects.

Medical

Medical Practice S-Corp to C-Corp Conversion

A multi-physician orthopedic group converted from S-Corp to C-Corp status, allowing the practice to retain earnings at the 21% corporate rate and fund equipment acquisitions without triggering pass-through income. The restructuring also enabled a qualified fringe benefit plan that reduced overall compensation costs.

$287K
Annual Savings
$3.4M
Practice Revenue
C-Corp Conversion Fringe Benefits Retained Earnings Payroll Restructuring
Tech

Tech Startup Entity Election Optimization

A SaaS company with rapid revenue growth elected S-Corp status to reduce self-employment tax liability on the founders' income. Reasonable compensation analysis established defensible salary levels while distributing excess profits free of payroll taxes.

$142K
Annual Savings
$1.8M
Gross Revenue
S-Corp Election Reasonable Compensation Self-Employment Tax
Legal

Law Firm Multi-Entity Restructuring

A 12-attorney litigation firm separated its practice operations from its real estate holdings and administrative services. The three-entity structure reduced pass-through income concentration and enabled intercompany lease arrangements that shifted income to lower-taxed entities.

$198K
Annual Savings
$5.1M
Firm Revenue
Multi-Entity Structuring Holding Company Formation Intercompany Leasing Income Splitting
Restaurant

Restaurant Group Holding Company Formation

A family-owned restaurant group operating four locations consolidated ownership under a holding company. Each location became a separate LLC, isolating liability and enabling location-specific entity elections based on profitability and state tax considerations.

$112K
Annual Savings
$6.2M
Combined Revenue
Holding Company Formation Entity Elections Liability Isolation
Consulting

Management Consulting S-Corp Election

A solo management consultant generating over $800K annually elected S-Corp treatment to establish reasonable compensation and redirect excess profits as distributions. The strategy eliminated approximately $36K in annual self-employment taxes while maintaining full compliance with IRS guidelines.

$89K
Annual Savings
$840K
Net Income
S-Corp Election Reasonable Compensation Distribution Planning
Dental

Dental Group Practice C-Corp Conversion

A three-location dental practice converted to C-Corp status to take advantage of the flat 21% corporate rate and implement a comprehensive benefits package. The conversion allowed the practice to fund retirement plans, health reimbursement arrangements, and continuing education costs at the corporate level.

$224K
Annual Savings
$4.5M
Practice Revenue
C-Corp Conversion Fringe Benefits Retirement Planning HRA Implementation
Construction

General Contractor Multi-Entity Strategy

A general contracting firm separated its construction operations, equipment holdings, and property management into three distinct entities. Equipment leasing between entities generated deductible rental income and allowed accelerated depreciation to offset high-margin project revenues.

$176K
Annual Savings
$7.8M
Gross Revenue
Multi-Entity Structuring Equipment Leasing Accelerated Depreciation
Real Estate

Real Estate Portfolio Entity Segregation

An investor with 14 rental properties restructured from a single LLC into a series LLC with property-level subsidiaries. The redesign isolated liability per asset and enabled tailored entity elections to maximize depreciation benefits and qualified business income deductions.

$203K
Annual Savings
$2.9M
Portfolio Value
Series LLC Entity Segregation QBI Optimization Liability Isolation
Veterinary

Veterinary Clinic Payroll Restructuring

A growing veterinary hospital restructured its ownership and payroll framework after electing S-Corp status. The new structure set reasonable compensation for the two founding veterinarians, converted excess earnings to distributions, and introduced a management company for administrative services.

$97K
Annual Savings
$2.1M
Clinic Revenue
S-Corp Election Payroll Restructuring Management Company
Chiropractic

Chiropractic Practice Entity Conversion

A solo chiropractor operating as a sole proprietorship formed an S-Corp to reduce self-employment tax exposure. The conversion also enabled a solo 401(k) with employer contributions at the corporate level, increasing total tax-advantaged retirement savings by over $40K annually.

$54K
Annual Savings
$520K
Net Income
S-Corp Election Solo 401(k) Self-Employment Tax
Pharmacy

Independent Pharmacy C-Corp Strategy

An independent pharmacy with high annual revenues converted from S-Corp to C-Corp to access the flat 21% rate on retained earnings. The restructuring funded inventory expansion, a second location build-out, and a defined benefit pension plan for the owner pharmacist.

$165K
Annual Savings
$8.3M
Pharmacy Revenue
C-Corp Conversion Defined Benefit Plan Retained Earnings
Engineering

Engineering Firm Management Company Split

A civil engineering firm with 30 employees created a separate management company to handle administrative, HR, and back-office functions. Management fees paid by the operating entity to the management company shifted income into a lower-taxed entity and optimized the QBI deduction.

$131K
Annual Savings
$4.9M
Firm Revenue
Management Company Income Shifting QBI Optimization Payroll Restructuring
Architecture

Architecture Studio Partnership Conversion

A two-partner architecture studio converted from a general partnership to an S-Corp. The conversion eliminated self-employment tax on distributed profits and introduced a reasonable compensation framework backed by industry salary benchmarking data.

$78K
Annual Savings
$1.6M
Firm Revenue
S-Corp Election Reasonable Compensation Partnership Conversion
Marketing Agency

Digital Agency Holding Company Formation

A digital marketing agency with three service lines formed a holding company to consolidate ownership and allocate shared costs. Each service line operated as a separate entity with its own entity election, enabling the founders to optimize income allocation and state tax exposure across jurisdictions.

$104K
Annual Savings
$3.7M
Agency Revenue
Holding Company Formation Multi-Entity Structuring State Tax Optimization
Fitness

Gym Franchise Owner S-Corp Election

A multi-location gym franchise owner restructured from sole proprietorship status to an S-Corp for each location. The elections reduced self-employment tax across all locations and enabled coordinated retirement plan contributions through a centralized payroll structure.

$67K
Annual Savings
$2.3M
Combined Revenue
S-Corp Election Franchise Structuring Payroll Restructuring
Medical

Dermatology Practice Management Company

A dermatology practice with a medical spa division created a separate management entity to bill for non-clinical administrative services. This arrangement shifted a portion of practice income to a management company taxed at a lower effective rate, while maintaining clean compliance with state medical practice acts.

$156K
Annual Savings
$3.9M
Practice Revenue
Management Company Income Shifting Medical Practice Compliance
Tech

Software Company C-Corp Retained Earnings

A software development firm with high annual profits converted to C-Corp status to retain earnings at the 21% corporate rate. The retained capital funded R&D expansion and a strategic acquisition without distributing income to the founders at individual rates.

$243K
Annual Savings
$5.6M
Company Revenue
C-Corp Conversion Retained Earnings R&D Tax Credits Growth Structuring
Construction

Plumbing Company S-Corp Payroll Strategy

A plumbing contractor generating significant net income elected S-Corp status and implemented a reasonable compensation plan. The restructuring reduced FICA exposure on excess profits and enabled the owner to fund a SEP-IRA with employer contributions from the corporate entity.

$46K
Annual Savings
$680K
Net Income
S-Corp Election Reasonable Compensation SEP-IRA Funding
Legal

Solo Attorney Practice S-Corp Conversion

A solo attorney with a thriving personal injury practice converted from a single-member LLC to an S-Corp. The conversion reduced self-employment tax by establishing a defensible salary and distributing remaining profits as non-wage income.

$72K
Annual Savings
$1.2M
Practice Revenue
S-Corp Election Self-Employment Tax Distribution Planning
Real Estate

Property Management Company Restructuring

A property management firm overseeing 200 rental units separated its management operations from its owned real estate holdings. The dual-entity structure enabled the management company to elect S-Corp treatment while the holding entity remained a partnership for pass-through depreciation benefits.

$138K
Annual Savings
$3.2M
Management Revenue
Multi-Entity Structuring S-Corp Election Pass-Through Depreciation
Consulting

IT Consulting Firm Dual Entity Design

An IT consulting firm created a separate staffing entity to manage contract placements. The staffing entity operated as a C-Corp to retain earnings for recruiter bonuses and benefits, while the consulting entity remained an S-Corp to pass through project-based income efficiently.

$119K
Annual Savings
$4.1M
Combined Revenue
Multi-Entity Structuring C-Corp Conversion S-Corp Election Staffing Entity
Dental

Pediatric Dental Practice Entity Split

A pediatric dental practice separated its clinical operations from its real estate and equipment assets. The real estate entity leased the office space back to the practice at fair market rates, creating deductible rental payments and building equity in a separate, asset-protected entity.

$83K
Annual Savings
$1.9M
Practice Revenue
Entity Segregation Intercompany Leasing Asset Protection
Pharmacy

Compounding Pharmacy Multi-State Entity Plan

A compounding pharmacy serving patients across three states restructured into state-specific entities to minimize aggregate state tax obligations. Each entity elected the most favorable entity classification for its respective jurisdiction, reducing the total state tax burden by over 40%.

$91K
Annual Savings
$5.4M
Pharmacy Revenue
Multi-State Structuring Entity Elections State Tax Optimization
Veterinary

Veterinary Emergency Clinic C-Corp Conversion

A 24-hour veterinary emergency clinic converted to C-Corp status to retain earnings for facility expansion and equipment upgrades. The flat 21% rate on retained profits enabled the clinic to self-fund a $1.2M renovation without triggering pass-through income for the three partner veterinarians.

$189K
Annual Savings
$4.7M
Clinic Revenue
C-Corp Conversion Retained Earnings Capital Reinvestment Fringe Benefits
Fitness

Personal Training Studio Entity Optimization

A personal training studio with group fitness and nutrition coaching divisions restructured into two LLCs under a holding company. The fitness operations entity elected S-Corp status while the nutrition coaching entity remained a disregarded entity, optimizing self-employment tax treatment based on revenue mix.

$38K
Annual Savings
$490K
Combined Revenue
Holding Company Formation S-Corp Election Revenue Segmentation

Ready to Optimize Your Entity Structure?

The right entity structure can reduce your effective tax rate by 10% to 20% or more. Our team analyzes your current setup, models alternative structures, and implements the conversion that delivers the greatest long-term savings. Schedule a free consultation to get started.

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