Cary, NC

CPA & Accounting Services in Cary, NC

Fixed-fee CPA and S-Corp tax services for Cary's consultancies and professional practices — the reasonable-compensation review most high-income owner-operators have never actually had done.

Why Cary Businesses Work With Protea

Cary's business base is different from its Triangle neighbors in a specific way: fewer trades and construction firms, more corporate-adjacent professional services — consultancies, technical advisory firms, and specialized practices built around one or two highly compensated owners rather than a crew of employees. That's a profitable-but-narrow business model, and it runs into one recurring tax question almost every time: once an S-Corp election is in place, is the owner's salary actually set at a defensible number, or is it a guess that's never been revisited since the entity was formed.

Reasonable compensation isn't a one-time decision. A consultancy billing a premium hourly rate while paying its owner a modest salary and taking the rest in distributions is exactly the profile the IRS built the reasonable-compensation rule to catch, and a lot of Cary's high-income owner-operators are running that exposure without realizing it — not because anyone was trying to cut corners, but because nobody ever went back and checked the number against what the role actually pays in the market.

The businesses that get this right treat the salary-versus-distribution split as something to revisit every year, not something decided once when the paperwork was filed. That's the difference between an S-Corp election that's actually saving money defensibly and one that's quietly building an audit exposure that outweighs whatever it saved.

The Number Nobody Revisits

Getting the salary number right, every year

Reasonable compensation is determined by what someone would actually have to be paid to do the work — not a percentage rule of thumb, and not whatever number minimizes payroll tax this year. For a Cary consultancy or professional practice, that usually means looking at comparable salary data for the specific role, the hours actually worked, and how much of the business's revenue is attributable to that person's direct work versus the business itself. Get the number too low relative to distributions, and it's the single most common trigger for IRS scrutiny of an S-Corp election.

The other half of the mechanics is basis — what's actually available to distribute without creating a taxable event, which changes every year based on income, distributions already taken, and capital contributed. A profitable Cary practice that's been taking distributions without tracking basis carefully is one open question away from finding out the number was wrong, usually at the worst possible time to find out.

Nearby Areas We Also Serve

Based in Raleigh, Protea works throughout the Triangle. A few of the closest markets:

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Book a free 20-minute consultation, or answer a few questions for a fixed-fee tax quote — whichever fits where you are right now.