10/07/2026
A law firm and an architecture firm can earn the same profit and still get very different tax breaks. The QBI deduction lets pass-through owners deduct up to 20% of qualified business income, but law and consulting firms are specified service businesses (SSTBs), so high-earning owners lose it entirely.
Architecture and engineering are expressly excluded from that list, which means owners keep the deduction at higher incomes, subject to wage and property limits. Most marketing agencies qualify too, unless the work is really consulting.
If your firm is eligible, now's the time to model owner salaries and W-2 wages to find the sweet spot, since payroll can still be adjusted before December 31.
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