Skip to main content

🗓️ [Webinar July 18th] 5 Tips to Successfully Implement Project Management Software. Sign up here.

ZenPilot Blog » Latest Articles

Table of Contents
Table of Contents

Running a Tax-Efficient Marketing Agency with Josh Bauerle

Gray MacKenzie
Gray MacKenzie is a true operations nerd who has spent the past decade helping hundreds of agencies build more productive, profitable, and healthy teams by solving the core issues plaguing their project management.

To chat with Gray and have ZenPilot lead your team through the last project management implementation you'll ever need, schedule a quick call here.

Josh Bauerle from The Prestige Journal joins us on this week’s Agency Journey episode to share his entrepreneurial story and tips for building a tax-efficient, tax-compliant agency.

This Episode is Sponsored by: Sweet Process

Do you have team members asking you the same questions over and over again and you wish there was one place they could go to find all the information they need to do their work?

Well, there is!

SweetProcess is a software that enables companies to have a central place for all their procedures, processes, and policies.

It makes it easy for management, managers, and their ground-level employees to collaborate together to create the key processes that power your business. It also makes it easy to continuously improve these documents together.

Visit sweetprocess.com/agencyjourney to activate your special extended 28-day free trial, no credit card is required.

Choosing the Correct Corporate Structure

At our agency, GuavaBox, we learned the hard way that generating sizable profits comes with a steep tax price if you don’t have the correct corporate structure.

In most locations, once your firm begins generating a decent amount of profit (starting around 30-50K), electing S Corp status for your business will be more efficient from a tax perspective.

Keep in mind that changing your corporate structure also may change your compliance requirements (payroll, annual meetings, etc).

Running a Profit-First Agency

At The Prestige Journal (TPJ), Josh and his team prefer to get their clients using the Profit-First method.

Back in episode 200 of Agency Journey, we interviewed the author of Profit First, Mike Michalowicz.

Investing Your Profits

Once you hit a point where your agency is throwing off a decent amount of cash, Josh recommends that most agency owners begin allocating that capital with a retirement account – often either a 401K or SEP.

Personally, Josh has also chosen to invest in real estate and has accumulated 41 units over the past 2.5 years. While real estate gets a lot of hype, keep in mind that this is a much less passive income stream than buying an index fund. It’s a good fit for Josh, but if you’re not willing to deal with the hassle or pay a property manager, a REIT or additional investment opportunity may be a better choice.

Resources Mentioned:

Explore Topics

About ZenPilot

Our proven framework helps agencies streamline their operations in ClickUp and build healthy teams, boost profits, and double productivity. Get our proven framework →
New call-to-action

Related Articles

Subscribe to First Class Operations

And get instant access to the ClickUp for Agencies Guide. Join 8,000+ agencies that stay ahead of the curve on agency news, resources, tools, and insights with our newsletter.
FREE ClickUp Productivity Bundle
ClickUp for Agencies Playbook

Get our 47-page ClickUp for agencies guide + client onboarding template - all for free!