Med Spas Tax Strategy

Tax Strategy for Med Spa Owners

Aesthetic practices and med spas have unique revenue structures, equipment costs, and entity challenges — with equally unique tax opportunities.

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$100K–$400K
Equipment Write-Off
$275K+
Retirement Shelter
$30K–$60K
SE Tax Savings
What's Being Missed

Common Med Spas Tax Mistakes

These are the opportunities we find in nearly every med spas engagement — money left on the table by traditional CPAs.

Operating the med spa and medical oversight under one entity — creating compliance and liability risk

Depreciating lasers, injectables equipment, and treatment room build-outs over long timelines instead of expensing them

Provider compensation structures that create unnecessary payroll tax exposure

Missing cost segregation on leasehold improvements for treatment rooms and waiting areas

No retirement plan beyond a basic 401(k) despite high owner income

Your Opportunities

What We Implement for Med Spas

These are the strategies we evaluate and deploy for every med spas client — tailored to your specific numbers.

01

Entity restructuring: separate management company from medical practice entity for compliance and tax optimization

02

Section 179 on laser systems, body contouring devices, skin treatment equipment, and build-outs

03

Defined benefit plans for high-income owners — shelter $200K–$300K+ per year

04

Cost segregation on owned or improved med spa facilities — specialized plumbing, electrical, and finishes

05

Strategic provider compensation modeling — optimize the split between salary and distributions

Strategies We Deploy

Entity StructuringSection 179Defined Benefit PlanCost SegregationCompensation OptimizationS-Corp Election
Common Questions

Med Spas Tax Strategy FAQ

Most med spas benefit from a dual-entity structure: a management company (often an S-Corp) that handles operations, marketing, and non-clinical staff, and a medical practice entity for clinical oversight. This provides liability separation, compliance with state medical practice laws, and tax optimization.

Yes. Section 179 allows you to deduct the full purchase price of qualifying equipment in the year of purchase. A $200,000 laser system generates a $200,000 deduction, saving $60,000–$80,000 in taxes immediately versus depreciating over 5-7 years.

Defined benefit plans are ideal for high-income med spa owners, allowing $200K–$300K+ in annual tax-deductible contributions. Combined with a 401(k), total shelter can exceed $350K per year — far more impactful than a standard retirement account.

If your med spa generates consistent net profit above $80K, an S-Corp election likely saves $20,000–$60,000+ per year in self-employment tax by allowing you to split income between salary and distributions.

We analyze your current situation, identify every opportunity, and show you exactly what you're leaving on the table. If we can save you money, we'll present a clear proposal with a fixed fee.

Tax Intelligence Review

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Tell us about your business and we'll identify every savings opportunity available to you.

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