Who we work with
We work with owners of med spas, medical aesthetic practices, and luxury day spas bringing in $1 million or more in annual revenue. That includes practices offering injectables, laser and energy-based treatments, body contouring, skin care, and wellness services, whether you’re a single location or growing into several.
Growth in this industry moves fast. New devices, new providers, membership programs, and retail product lines can all add revenue, and they all add tax and bookkeeping complexity. We help you plan for each step before it happens.
The tax and financial challenges med spa owners face
A med spa is part medical practice, part retail store, and part hospitality business. Each part comes with its own tax rules.
High-cost devices
Lasers, body contouring systems, and other aesthetic equipment are major investments, often financed. Timing purchases and choosing the right depreciation method can make a real difference in the year you buy.
Product inventory and cost of goods
Neurotoxins, fillers, and skin care products need to be tracked as inventory and cost of goods sold. Accurate inventory keeps your profit numbers and your tax return right.
Sales tax on retail products
Retail skin care and other products you sell are generally subject to sales tax, while many services are treated differently. Getting that split right protects you from surprises.
Packages, memberships, and gift cards
Prepaid packages, monthly memberships, and gift cards bring cash in before services are delivered. How that revenue is recorded affects both your books and your tax timing.
Provider and staff pay
Commission and production pay, tips, and the line between employees and independent contractors all need careful handling. Misclassifying workers can lead to payroll tax problems.
Entity structure
Many med spas involve a medical director and, in some states, a separate management company. Your structure affects how income flows, how you pay yourself, and which deductions are available.
Strategies that often fit med spas and aesthetic centers
Every practice is different, and we only recommend what fits your numbers and your goals. These are strategies that often come up for med spa owners.
- Section 179 and 100% bonus depreciationLasers and other aesthetic devices can often be deducted in the year they’re placed in service, which pairs well with planning around a big purchase.
- The S corp electionA profitable med spa run as a sole proprietorship or regular LLC may be paying more self-employment tax than it needs to.
- S corp reasonable compensationOwners who also work as injectors or managers need a salary that matches their role and is well documented.
- The Oklahoma PTE electionOklahoma owners with S corps or partnerships may be able to turn state income tax into a federal business deduction.
- The accountable planTraining trips, conferences, a home office, and mileage can be reimbursed to you tax-free when the plan is set up correctly.
- The 20% QBI deductionHow your services are classified can affect whether this deduction phases out at higher incomes, so it’s worth planning around.
Advanced strategies for higher-income owners
As your med spa grows into higher income or more locations, these strategies often come into play.
- A cash balance plan on top of your 401(k)Profitable owners can deduct much more for retirement than a 401(k) alone allows, with staff contributions planned in.
- Own the building, rent it to yourselfHolding your location in its own LLC can protect it and give you a separate asset when you sell.
- Avoiding the 3.8% net investment income taxRent your med spa pays to your own building LLC can stay out of the 3.8% tax when the rules are met.
- Selling your med spaAsset vs. stock sale and the allocation of the price can change the tax on the same deal.
- C corp vs. S corpIf you keep profit in the business to open new locations, the 21% corporate rate is worth testing.
- Lifetime gifts and SLATsMove future growth out of your estate under the $15 million exemption.
Everything under one roof
One monthly Tax Plan covers your practice and your personal taxes. Plans start at $475 per month and are priced by complexity, and you’ll know your price before you commit.
- Year-round tax planningWe project your tax bill all year and plan device purchases, new providers, and new locations before you commit.
- Business and personal returnsYour practice return and your personal return, included in your plan.
- BookkeepingMonthly books, including product inventory, packages, and memberships, so your plan runs on real numbers.
- PayrollProviders, aestheticians, and front desk staff, including commissions and tips.
- Sales taxTracking and filing for retail product sales.
- 1099sPrepared and filed for contractors and vendors who need them.
- Quarterly estimated paymentsFederal and state amounts calculated for you, with personal and business taxes shown separately.
- IRS audit protection and representationIf a notice or audit comes, we represent you before the IRS and handle it with you.
- CFO-style reportingClear reports on profit by service line, cash flow, and how each location is performing.
- Direct access to your advisorCall before you decide, not after.
An illustrative example: writing off new devices
Picture a med spa taxed as an S corp that buys $350,000 of new lasers and body-contouring devices and puts them in service in 2026. The owner is in the 37% federal bracket.
For illustration purposes. Tax law may change, which may change these calculations slightly.
| Regular depreciation | 100% bonus depreciation | |
|---|---|---|
| Year-one deduction | $70,000 (20% in year one, assuming 5-year property) | $350,000 |
| Extra year-one deduction | $280,000 | |
| Extra federal income tax saved this year (37%) | about $103,600 |
Bonus depreciation moves about $280,000 of deductions into the first year, which lowers the owner’s federal income tax this year by about $103,600. This works even if the devices are financed, since the deduction is based on when they are placed in service. The Oklahoma effect depends on whether Oklahoma follows federal bonus depreciation for the year, which we confirm before counting on it.
This is mostly a timing benefit. A device you write off now has no deductions left for later years, and if you sell or trade it in, the gain up to the depreciation taken is taxed as ordinary income. If you expect higher income next year, spreading the deduction can be worth more.
Illustrative example. The med spa and figures above are hypothetical, used to explain how the strategy works. They are not a client and not a promise of results. The example assumes the devices are 5-year property acquired after January 19, 2025, the half-year convention for regular depreciation, and that the owner can use the full deduction in the 37% bracket. This page is educational and is not tax advice for your situation.
Questions med spa owners ask us
Do I need to charge sales tax?
On retail products, usually yes. Whether specific services are taxable depends on the service and the state. We review what you sell and make sure sales tax is collected and filed correctly.
How should I handle prepaid packages and memberships?
Prepaid packages, memberships, and gift cards are often money received for services you haven’t delivered yet. We set up your books to track them properly and plan the tax timing with you.
Can I write off a new laser this year?
Often, yes. Section 179 and bonus depreciation can let you deduct qualifying equipment in the year it’s placed in service, even when it’s financed. Whether a full write-off is the best move depends on your income this year and next, so we plan it with you.
Do you work with med spas outside Oklahoma?
Yes. We’re based in Norman and fully virtual, and we work with owners in Oklahoma and beyond.
Does a med spa get the full 20% QBI deduction?
It depends on how your revenue breaks down. Medical services, such as injectables and laser treatments by licensed providers, are likely in the health field, which phases out the deduction at higher incomes. Cosmetic services and retail products may be treated differently. We look at your revenue mix before counting on the deduction.
Can I deduct injectables and retail products when I buy them?
Usually not right away. Products you sell or use up in treatments are generally deducted as they are sold or used, not when you buy them. Businesses under the small business gross receipts limit may be able to use a simpler method. We set this up in your books so your deductions land in the right year.
Should my providers be employees or contractors?
It depends on how much control you have over how, when, and where they work, not on what the contract says. Treating employees as contractors can bring back payroll taxes and penalties. We help you set it up correctly and handle the payroll or 1099s either way.
Watch the story
A one-minute story about this strategy. Illustrative story; the people are fictional and are not clients. See all story videos.
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