For many small business owners in Sunrise, FL, electing S-Corporation status is one of the smartest moves for reducing self-employment taxes and building long-term tax efficiency.

However, forming an S-Corp is only the first step. The real value comes from how you manage it strategically — and most business owners are missing key opportunities to optimize.

At Polaris Tax & Accounting, we specialize in proactive, personalized tax planning for S-Corp owners who want to pay less tax legally, stay compliant, and keep more of their profits.

If you’re ready to elevate your business with year-round strategy, explore our affordable tax planning in Sunrise, FL — designed for business owners who expect more from their Accountant relationship.

1. Strategic Compensation Planning

The IRS requires S-Corp owners who actively work in their business to pay themselves a “reasonable salary.”
But determining what’s reasonable isn’t guesswork — it’s data-driven.

We evaluate:

  • Industry averages

  • Role responsibilities

  • Hours worked

  • Company profitability

Balancing salary and distributions properly helps you reduce self-employment tax while staying compliant with IRS expectations.

2. Accountable Reimbursement Plans

An accountable plan allows your S-Corp to reimburse you for legitimate business expenses — such as mileage, home office costs, and business utilities — without counting them as taxable income.

This creates a double advantage:
✅ The business gets a deduction
✅ You receive tax-free reimbursement

When structured correctly, this is one of the simplest ways to reduce taxes while maintaining full compliance.

3. The Augusta Rule (IRC §280A(g))

If you occasionally host business meetings or events at your home, the Augusta Rule can allow your S-Corp to rent your residence from you for up to 14 days each year.

  • The business gets a deduction

  • You receive tax-free income

Polaris helps ensure proper documentation — such as meeting minutes, market-based rental valuation, and payment tracking — to make this strategy fully audit-ready.

4. Health Reimbursement Arrangements (HRA)

S-Corp owners often overlook one of the best ways to handle healthcare costs: a Health Reimbursement Arrangement.

Depending on your situation, you may qualify for an:

  • QSEHRA (Qualified Small Employer HRA)

  • ICHRA (Individual Coverage HRA)

  • Integrated HRA

With proper design, these arrangements let your company deduct medical expenses while allowing you to receive tax-free reimbursements.

5. Retirement Contribution Optimization

As both an owner and employee of your S-Corp, you have multiple options for tax-deferred retirement savings.
We design contribution plans that balance your cash flow and maximize deductions, such as:

  • Solo 401(k) — combine employee and employer contributions

  • SEP IRA — flexible and simple to administer

  • Defined Benefit Plans — for higher-income earners wanting major tax deferrals

Retirement planning isn’t only about the future — it’s an immediate, legal way to reduce taxable income today.

6. Family Payroll Planning

If your spouse or family members legitimately work in the business, you can add them to payroll.
This can unlock additional:

  • Retirement contributions

  • Health benefits

  • Tax-free reimbursements

We ensure all employment relationships meet IRS requirements and are properly documented for compliance.

7. Year-Round Tax Strategy Review

The most successful S-Corp owners don’t just plan once a year — they adjust continuously.
We provide quarterly planning sessions for clients across Sunrise and Plantation, FL that focus on:

  • Forecasting income and distributions

  • Reviewing deductions and entity performance

  • Updating strategies as tax laws change

This proactive model helps prevent costly surprises and allows you to make real-time financial decisions with confidence.

Putting These Strategies to Work

Each of these strategies has the potential to save thousands of dollars annually, but they must be applied correctly and supported by proper documentation.

At Polaris, we combine deep tax expertise with practical business insight — helping you structure, optimize, and execute a compliant tax plan that fits your goals.

Whether your S-Corp is new or established, we’re here to guide you through every step.

Start Planning with Polaris Tax & Accounting

If you’re ready to make your S-Corp work smarter — not harder — we’d love to help.

📍 Offices in Sunrise, FL, Plantation, FL, and Asheville, NC
📞 Call 704‑947‑3178
📅 Book Your Consultation

💡 Want a quick preview of your tax savings potential?
Use our free Tax Strategy Finder Tool and uncover opportunities — in under two minutes.

Discover more about our affordable, proactive tax planning services in Sunrise, FL and see how we help business owners across the U.S. stay compliant while keeping more of what they earn.