Restaurants Tax Strategy

Tax Strategy for Restaurant Owners

Multi-location operators, quick-service brands, and independent restaurants leave $50K–$300K on the table every year.

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$40K–$80K
Avg. Savings / Location
$1,200+
FICA Tip Credit / Employee
20–40%
Cost Seg Reclassification
What's Being Missed

Common Restaurants Tax Mistakes

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

Paying full tax on leasehold improvements that qualify for accelerated depreciation

Missing FICA tip credits on tipped employees — often worth $1,000–$2,000 per employee per year

Operating all locations under one entity, creating unnecessary liability exposure

Not utilizing WOTC for high-turnover kitchen and service staff

Treating equipment purchases as long-term assets instead of using Section 179

Your Opportunities

What We Implement for Restaurants

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

01

Cost segregation studies on restaurant build-outs and renovations — reclassify 20-40% of costs to 5/7/15-year property

02

FICA tip credit (Section 45B) — dollar-for-dollar credit on tips above minimum wage

03

Work Opportunity Tax Credit (WOTC) — $2,400–$9,600 per qualifying new hire

04

Section 179 and bonus depreciation on kitchen equipment, POS systems, and furniture

05

Multi-entity structuring: separate OpCos per location under a management HoldCo

Strategies We Deploy

Cost SegregationFICA Tip CreditWOTCSection 179Entity StructuringRetirement Planning
Common Questions

Restaurants Tax Strategy FAQ

Yes. Restaurant build-outs, renovations, and leasehold improvements are prime candidates for cost segregation. Walk-in coolers, ventilation systems, specialized plumbing, and decorative finishes can all be reclassified from 39-year to 5, 7, or 15-year property — generating significant first-year deductions.

The Section 45B credit gives employers a dollar-for-dollar tax credit on the employer's share of FICA taxes paid on employee tips that exceed the federal minimum wage. For a restaurant with 30 tipped employees, this can be worth $30,000–$60,000 annually.

In most cases, yes. Separating locations into individual LLCs (OpCos) under a holding company protects each location from the liabilities of others, enables cleaner per-unit financial reporting, and allows strategic allocation of shared management expenses.

The Work Opportunity Tax Credit provides $2,400–$9,600 per qualifying new hire from targeted groups including veterans, SNAP recipients, ex-felons, and long-term unemployed. Restaurant hiring patterns align heavily with eligible categories, making WOTC a consistent annual credit.

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.

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