Tax Strategy & Planning
Tax planning happens in January. Tax filing happens in April. Most CPAs only show up for one of those.
If your tax advisor's first call is in March, you've already missed the window for most strategies. Northstar plans your tax position year-round, coordinated with real-time accounting data.
35%
Average tax savings vs. prior advisors
12
Months of active tax planning per year
$80K
Average annual savings, multi-entity clients
Fully integrated in Financial Leadership engagements. Available as an add-on at Financial Operations level. Standalone tax engagements also available. See all engagement levels →
You're paying more in taxes than you should. And you won't find out until it's too late to fix it.
Your CPA files your returns, but filing is not the same as planning. Year-end arrives, the bill is bigger than expected, and you scramble to make estimated payments. The entity structure you set up years ago hasn't been revisited. Nobody has run a reasonable compensation analysis on your S-corp. Your tax strategy is built for a company half your size. And your CPA doesn't see your books. They get a data dump in February and move on, with no coordination between your financial decisions and their tax impact.
What proactive tax strategy actually looks like.
Your tax strategist works alongside your accounting team, seeing your financials in real time so tax planning happens continuously, integrated with every financial decision.
The integrated advantage: your tax team sees your books the moment they close each month. Quarterly projections use real data, not estimates, and entity decisions are informed by actual profitability. This is the difference between reactive filing and proactive strategy.
Year-round tax planning calendar
A structured timeline of estimated payments, retirement deadlines, entity elections, and year-end projections so nothing gets missed.
Entity structure optimization
We analyze your current LLC, S-corp, C-corp, or partnership structure against actual income and exit plans to find the most tax-efficient configuration.
Reasonable compensation analysis
Data-driven analysis that sets your S-corp salary high enough to satisfy the IRS and low enough to maximize distributions.
Retirement plan maximization
We model SEP-IRA, Solo 401(k), and defined benefit options to find the plan delivering the highest deduction while building real wealth.
Estimated tax payment planning
Quarterly estimates calculated from actual year-to-date financials, adjusted for projected income so you pay the right amount at the right time.
Year-end tax projection and strategy
Starting in Q3, detailed projections showing expected liability under multiple scenarios with strategies to implement before December 31.
Tax return preparation and filing
Business and individual returns prepared by the same team that planned your tax position all year, with no surprises or data scrambles.
Audit support and representation
Full IRS representation, documentation preparation, and correspondence management, with faster response times because we already maintain your books.
Three approaches to tax. Only one is proactive.
Reactive CPA
You send data in February, they file in April. Maybe they mention a deduction you missed, but the planning window has closed. They file history; they don't shape the future.
Proactive Tax Advisor
They meet quarterly, run projections, and suggest strategies. But they don't see your books, so they work from estimates you provide. Recommendations are good in theory but disconnected from actual data.
Northstar's Integrated Approach
Your tax strategist sees your books in real time because they're on the same team as your bookkeeper and controller. Projections use actual financials, entity decisions reflect real profitability, and tax planning is woven into every financial decision.
Is proactive tax strategy right for your business?
This is built for you if:
Paying $50K+ in annual taxes and suspect you're overpaying
S-corp without a recent reasonable compensation analysis
Multi-entity structure not reviewed in 2+ years
Industry-specific complexity (cannabis, construction, healthcare)
Planning a sale, merger, or transaction in 1-3 years
CPA only calls during filing season
This might not be the right fit if:
Books are behind. Start with Accounting Foundation, and tax planning layers on once your financials are clean
See Engagement LevelsNeed comprehensive financial leadership. Our CFO-Led tier includes tax strategy as part of the full engagement
See Engagement LevelsHow the engagement works.
Step 01
Tax position review
We review your last two to three years of returns, entity structure, and financials to build a 12-month planning roadmap.
Step 02
Strategy implementation
Quick wins implemented immediately (entity elections, retirement plans, compensation adjustments), then we build the year-round planning calendar.
Step 03
Quarterly planning cycles
Quarterly review of YTD financials, updated projections, adjusted estimates, and new planning opportunities so your year-end strategy is in motion by Q3.
Step 04
Year-end execution and filing
Year-end strategies executed before December 31, and returns prepared from data we've worked with all year.
What this looks like in practice.
The Situation
A multi-entity owner with three LLCs and an S-corp was paying $320K in annual taxes. Their prior CPA filed accurate returns but never questioned the entity structure, compensation, or retirement plan beyond a basic SEP-IRA.
What We Did
We consolidated two LLCs into the S-corp, established a management company, adjusted the owner's W-2 down $65K via reasonable compensation analysis, and replaced the SEP-IRA with a Solo 401(k) plus defined benefit plan.
The Result
First-year tax savings of $80K, dropping the effective rate from 34% to 26%. Retirement plan changes added $140K per year in tax-deferred wealth, bringing total first-year financial impact above $220K.
My old CPA filed accurate returns but never suggested restructuring my entities or adjusting my compensation. Northstar found $80K in annual savings within 60 days.
Multi-Entity Business Owner
Professional Services, $4.2M Revenue
Tax strategy works best when your tax team sees your books in real time.
This is the integrated advantage. Your tax strategist doesn't receive a data dump in February. They see your financials the moment books close each month. Quarterly projections use real data. Entity decisions reflect actual profitability. Because accounting, CFO, and tax are one team, nothing falls between the cracks.
Related Services
Outsourced Accounting & Controller
Your tax strategist sees your books the moment they close each month. Projections are built on actual data, not estimates.
Learn MoreFractional CFO
Growth decisions, capital strategy, and entity restructuring all flow through the same team that's planning your tax position.
Learn MoreTransaction Support
Selling your business? Your tax strategist models the after-tax impact of every deal structure on the table.
Learn MoreIndustry-Specific Expertise
Common questions about tax strategy.
Tax strategy is typically bundled with your accounting engagement. For standalone clients, fees range from $5,000 to $15,000 annually depending on entity complexity. We scope it during the initial review.
Most CPAs excel at compliance but don't do proactive planning integrated with real-time financials. We do both, and because we also handle accounting, your strategy is built on data your CPA never had.
January. The most valuable strategies have Q1 and Q2 deadlines: entity elections, retirement plan setup, compensation adjustments. If you wait until Q4, most of the planning window has closed.
Let's find out what you're overpaying.
We start by reviewing your last two to three years of returns and your entity structure. You get a clear picture of the opportunities and what it takes to implement them.
Schedule a Tax Strategy ConsultationOr call us directly: 888.999.0280