What Tax Strategies Should Law Firms Use

By Steve Fretzin & Adam Williams

Most lawyers don’t think about taxes until it’s too late. The meeting gets scheduled, the numbers are finalized, and the accountant delivers the news. Here’s what you made. Here’s what you owe. Write the check.

That cycle repeats year after year, and for many attorneys, it becomes accepted as part of success. The more you make, the more you pay. End of story.

But that mindset is costing lawyers far more than they realize.

When I sat down with Adam Williams, a tax attorney and co-founder of Pennywise Tax Strategies, it became clear that the issue isn’t how much lawyers earn. It’s how little strategy they apply before the tax bill arrives.

Most Lawyers Are Playing Defense On Taxes

One of the biggest problems Adam sees is that lawyers are stuck in a reactive approach. They hand over their numbers, wait for the return to be filed, and deal with the outcome.

That’s not strategy. That’s compliance.

There’s a fundamental difference between a tax preparer and a tax strategist. A preparer looks backward and reports what already happened. A strategist looks forward and helps shape decisions before they’re locked in.

If you’re only talking to your accountant once a year, you’re almost certainly leaving money on the table.

The lawyers who build real wealth are not waiting until April. They are making decisions throughout the year that influence what April looks like.

The Real Opportunity Is In Planning Ahead

When you start with your long-term goals, everything changes. Instead of asking how much tax you owe, the question becomes how you structure your business, investments, and spending in a way that aligns with where you want to go.

That might mean investing in growth, expanding your team, or creating new revenue streams. It might also mean structuring those moves in a way that reduces your tax burden at the same time.

Adam shared several examples that highlight this shift in thinking. One simple but effective approach involves renting your home to your business for legitimate meetings or planning sessions. Done properly, that can move income in a way that reduces your tax exposure without changing your overall cash flow.

Other strategies can be more advanced, like leveraging real estate investments with accelerated depreciation or structuring entities to optimize income across different tax environments.

The specifics vary, but the principle is consistent. Planning ahead creates options. Waiting removes them.

Growth Without Strategy Creates Bigger Problems

A lot of lawyers focus on top-line growth. More clients. More matters. More revenue.

That’s important, but without a strategy behind it, growth can create bigger tax problems instead of better outcomes.

I see this all the time. A lawyer has their best year ever, only to be shocked by the tax bill that follows. They worked harder, earned more, and somehow feel like they kept less.

That’s not a revenue problem. That’s a planning problem.

When you align growth with strategy, you can reinvest in your business, build assets, and create long-term wealth instead of just writing larger checks.

The Right Team Changes Everything

No lawyer builds a successful practice alone. The same applies to financial strategy.

You need people in your corner who understand your business and can guide decisions before they happen. That doesn’t mean replacing your current accountant. It means adding the right expertise to fill the gaps.

A strong team includes people who understand your numbers, your goals, and how to connect the two.

When that happens, taxes stop being a surprise and start becoming part of the plan.

Adam Williams’ Biggest Mistake

Adam was candid about his own experience. His biggest mistake was waiting too long to build a team.

Like many entrepreneurs, he tried to do too much himself. It felt efficient at the time, but it ultimately slowed growth and limited what was possible.

Once he started delegating and surrounding himself with the right people, everything improved. The business scaled faster, clients were better served, and his role became more focused on what he does best.

It’s a lesson that applies directly to law firm owners. You can only grow so far if you insist on doing everything yourself.

Closing Thoughts

Taxes are not just an obligation. They are a strategic opportunity.

Lawyers who continue to operate in a reactive mode will keep experiencing the same frustrations year after year. Those who take a proactive approach will find ways to keep more of what they earn and use it to build something bigger.

The difference is not intelligence or effort. It’s planning.

If you want to grow your practice and create real financial freedom, it starts with making better decisions before the numbers are finalized.

About Adam Williams
Adam started this business out of frustration with accountants who congratulated him for having a large tax bill.

As a serial entrepreneur, Adam is inspired by entrepreneurship and small business, direct response marketing, non-traditional and unexpected solutions, mindset and personal development, helping create businesses that serve the owners, and high-performance driving.

Adam received his undergraduate degree in Business from Penn State Behrend and his MBA and J.D. from the University of Pittsburgh. A Cathedral Prep graduate and active member of the community, Adam has served on the Board of Directors for the Erie County Bar Association, Lakeshore Community Services, the Innovation Collaborative, and the Erie Art Museum. He was named to the 2013 Erie Reader 40 Under 40 and has also been listed as a Pennsylvania Super Lawyers Rising Star in multiple years.

Connect with Adam Williams:
Website: https://www.pennywise.tax/

Connect with Steve Fretzin:
LinkedIn: Steve Fretzin
Twitter: @stevefretzin
Instagram: @fretzinsteve
Facebook: Fretzin, Inc.
Website: Fretzin.com
Email: Steve@Fretzin.com
Book: Legal Business Development Isn’t Rocket Science and more
YouTube: Steve Fretzin
Call Steve directly at 847-602-6911

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