Federal, New York State, and New York City tax services for solos, PLLCs, PCs, and partnerships. Proactive quarterly planning — not a February scramble — so tax strategy becomes part of how your firm operates, not a once-a-year emergency.
Every law firm has the same core tax questions — how is income recognized, which expenses are deductible, what's the right entity structure, when are estimates due, and how do partners get paid without creating a tax mess. Those questions have very specific answers for a law firm that don't match a generic small-business playbook. We know the answers because we only work with attorneys.
We handle the full tax lifecycle: entity selection for new firms, quarterly estimated payments, partner K-1s or corporate returns, NYS and NYC filings, the Pass-Through Entity Tax election, case-cost tax treatment for contingency firms, and final returns for dissolving entities. Your tax preparation and your bookkeeping live in the same system and the same team, so your return is accurate the first time.
Form 1065 for partnerships and multi-member PLLCs. Form 1120 for C-corporations and Form 1120-S for S-corp elections. Form 1040 Schedule C for solo PLLCs taxed as disregarded entities. All federal, NYS, and NYC filings on schedule, with K-1s to partners or 1099s to contractors as applicable.
For NYC-based firms, this includes the Unincorporated Business Tax (UBT) or General Corporation Tax (GCT) as appropriate, plus Commercial Rent Tax where triggered.
Four times a year, we calculate the federal and state estimated tax due and send a reminder well before the due date with the exact amount, payment instructions, and the math behind it. Estimates are based on actual year-to-date earnings, not last year's guess, so you pay what you actually owe — no underpayment penalties and no massive refund from over-withholding.
For partnerships and multi-member PLLCs, we run the calculation for each partner individually based on their K-1 share, so each partner knows their own quarterly obligation.
Entity structure review when your practice grows or changes — solo to PLLC, PLLC to partnership, partnership to S-corp election. The NYS Pass-Through Entity Tax election, evaluated annually for the federal SALT-cap workaround. Retirement plan options (SEP, solo 401(k), defined-benefit plans) and their tax consequences. Timing of major expenses to match income. Installment sales and like-kind considerations for real estate within the firm.
This work happens year-round as part of monthly check-ins, not as a panicked call in December.
Firms with attorneys licensed in more than one jurisdiction face multi-state tax apportionment — dividing income between states based on where work is performed. We handle the apportionment, file in every required state, and claim credits for taxes paid to other states so you're not double-taxed.
Mergers, acquisitions, partner buyouts, and dissolutions have their own tax consequences — the "unfinished business" doctrine, treatment of capital accounts, and final returns for dissolving entities. We coordinate these with your transaction counsel.
Any competent CPA can prepare a law firm return. But there are law-firm-specific tax nuances that generalists miss: earned-fee recognition from trust accounts, deductibility of case-cost advances, treatment of partner draws versus guaranteed payments, NY's unincorporated business tax, NYC commercial rent tax, and entity-structure interaction with self-employment tax. Specialization is the difference between correct and optimized.
A solo PLLC is taxed as a disregarded entity by default — income flows to Schedule C. A PC is taxed as a C-corp by default (though an S-election can change that). Partnerships and multi-member PLLCs pass through on K-1s, subject to self-employment tax. The right choice depends on income, partners, growth plans, and retirement strategy.
If you expect to owe at least $1,000 in federal tax after withholding, you must pay estimates on April 15, June 15, September 15, and January 15 of the following year. For partnerships and PLLCs, each partner is individually responsible. We calculate the safe-harbor amount each quarter and remind you before the due date.
CLE, bar dues, malpractice insurance, professional subscriptions, NYS attorney registration, office rent, practice management software, research subscriptions, expert witnesses and case costs (in certain contexts), professional association dues, and IRC 179 equipment expensing. We also coordinate the NYS Pass-Through Entity Tax election annually.
It lets partnerships and S-corps pay New York State income tax at the entity level instead of passing it through to partners. The benefit: the entity-level payment is federally deductible, working around the federal $10,000 SALT cap. For most multi-partner New York firms, the PTET election saves real money. The election is annual and requires estimated payments.
Under the Boccardo doctrine and IRS practice, case-cost advances on contingency matters are generally loans to the client — not deductible expenses — until the case resolves. At resolution, the advance is either reimbursed (taxable recovery) or uncollectible (bad debt deduction). Hourly firms treat case costs as reimbursable expenses billed through. Getting this wrong can overstate or understate taxable income by years' worth of case costs.
Tax-ready books year-round mean the return is accurate the first time, with no late-year reconstruction.
Earned fees out of trust flow correctly into revenue recognition and tax treatment.
Quarterly 941s, annual W-2s and 1099s, and partner distribution tracking — all flow to the entity return.
Schedule a complimentary consultation to review your firm's tax posture. We'll look at entity structure, elections, estimated payments, and planning opportunities — and tell you what we'd change.
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