If you own a growing service-based agency, chances are you have solid revenue coming in and real momentum behind your work. But if you are still watching a large portion of that revenue disappear to taxes, this is the article you did not know you needed.

The truth is that most agency owners are overpaying the IRS every single year. Not because they are careless. Not because they are doing anything illegal. But because they never got the right strategy in place to protect their earnings.

On a recent episode of The Amanda Kaufman Show, CPA and tax strategist Catrina Craft joined the conversation to talk about how high-earning entrepreneurs can stop losing money to taxes and start using the system to build long-term wealth.

Whether you run a marketing agency, creative shop, systems consultancy, or sales agency, Catrina’s message is clear. The tax code may not be fair, but it is full of opportunities for those who understand how to use it.

The Tax Code Is Built to Reward Strategic Business Owners

Catrina opened the conversation with a perspective most entrepreneurs never hear from their accountants.

“The tax code is not fair. But it is your opportunity if you are a business owner or investor.”

And she is right. Too many agency owners think about taxes as an annual chore. They do not realize that with the right structure and planning, taxes can become one of the most powerful tools in their business.

Catrina knows this firsthand. After losing 80 percent of her income and rebuilding from the ground up, she developed a system called the Craft Money Map. Today, she uses it to help high-earning service providers legally cut their tax bills by up to 25 percent and increase profits by 20 percent or more.

Watch the video Why Coaches Keep Overpaying Taxes

Subscribe to my YouTube Channel HERE!

Why Most Agencies Are Overpaying

Catrina shared that nearly every agency owner who comes to her has been overpaying in taxes for years. And the reason is simple.

They do not have a tax strategy.

“Most entrepreneurs are overpaying because they do not realize what they are entitled to. They are not taking full advantage of deductions. They are not thinking ahead. And they are often set up in a way that is costing them more than they know.”

She has helped clients recover tens of thousands of dollars simply by amending past returns, correcting their entity setup, and building a custom plan around their goals.

If your goal is to improve your agency’s bottom line, do not just focus on making more sales. You need to take a hard look at how much of your revenue is going out the door in taxes.

Your Entity Structure Might Be Costing You Money

One of the most common and expensive mistakes Catrina sees is related to how agencies are formed.

“People come to me and say they have an LLC. But when I ask how they are taxed, they look confused. Most do not realize that an LLC is just a legal structure. From a tax perspective, it can be treated in several different ways.”

She explains that the way your entity is classified can affect everything from how you pay yourself to what you can deduct. Choosing the wrong setup can lead to overpaying on self-employment taxes, missing opportunities for family payroll deductions, and exposing yourself to unnecessary risk.

Her advice is simple. Do not set up your business in isolation. Work with a tax strategist who understands your industry and knows how to protect growing profits from growing tax bills.

It Is Not Too Late to Fix It

If you already launched your agency without a tax plan, you are not stuck. You are not behind. And you are not the only one.

“We can go back and amend up to three years of returns. We can restructure your entity. We can optimize how you are paid and where your money flows. But you need to work with someone who knows how to do this strategically.”

Catrina emphasizes that the IRS allows corrections and reclassifications when they are filed properly. That means it is not too late to recover thousands of dollars you may have already paid unnecessarily.

You did not miss your window. You just need to take action now and stop letting bad setups compound year after year.

Stop Relying on ChatGPT and Social Media for Tax Advice

Catrina did not hold back when asked why so many agency owners end up confused or misled.

“A pro is not ChatGPT. I tested it myself and it missed a $40,000 deduction. Most entrepreneurs do not even know what questions to ask, let alone how to evaluate the answer.”

Social media has made it easier than ever to access information, but that also means bad advice travels fast. When you are building a multiple six or seven-figure agency, you cannot afford to make financial decisions based on viral posts or generic templates.

Work with someone who has the credentials, the industry experience, and the receipts to back up what they recommend.

Small Changes That Protect Big Profits

Catrina’s strategies are not complicated. But they are intentional.

She helps clients:

• Hire their kids legally and write off wages as business expenses

• Reclassify LLCs into S Corporations to reduce self-employment taxes

• Document meetings and operations to maximize deductions

• Set up asset protection structures that keep the business and personal assets separate

These small steps, when executed properly, add up to real results. More retained earnings. More flexibility. And a business that is built to scale with confidence.

Think Like a CEO, Not Just a Service Provider

Most agency founders start their business by focusing on delivery. They want to serve clients well, build great systems, and generate revenue. That is smart. But Catrina argues that true growth requires financial leadership.

“At some point, you have to shift from operator to owner. That means thinking about tax planning, profit strategy, and long-term protection as part of your role as a CEO.”

You do not need to be an expert in tax law. But you do need to know enough to lead your business responsibly and partner with the right experts.

Ready to Keep More of What You Earn?

If this message hit a nerve, it is probably time to have a real conversation about your financial structure.

Whether your agency is making $250K or several million a year, you should not be working this hard just to give it away to taxes.

Let’s build a strategy that helps you keep more, grow faster, and protect what you are creating.

👉 Book a consultation with Catrina Craft today and find out what your current setup is really costing you.

Now is the time to stop overpaying and start building wealth.

Sign Up To Get My Tax Secrets Delivered To Your Inbox Each Week!