You left the W-2 world behind, but the tax software didn't grow with you. We handle the entity structure, quarterly taxes, and deductions that come with being self-employed — so you can focus on your clients.
There's a specific point in a consultant's career where the math stops working in DIY tax software: income gets bigger, clients multiply, expenses get more varied, and the self-employment tax bill starts to sting. You're not running a storefront and you're not a doctor or a lawyer — you're a 1099 professional doing real, valuable work, and your tax situation deserves more than a generic checklist app.
At Mercer Flanagan, we've worked with independent consultants and freelance professionals in Frederick and surrounding counties for over 50 years. We know the entity structures that work for service-based 1099 income. We know the deductions that actually apply to you. And we're here year-round — not just in April.
"Most of the consultants who come to us have the same story: they were fine with software when income was under six figures, but somewhere past that point, the self-employment tax bill got big enough that 'fine' wasn't good enough anymore. That's usually the right moment to bring in a CPA."
We work with:
These are the situations we hear about most often from new independent consultant and freelancer clients.
1099 income arrives with nothing withheld for income or self-employment tax. Without a quarterly estimated payment plan, this leads to a large, unexpected bill — plus penalties — the following April.
Most consultants start as a default sole proprietor simply because nobody told them otherwise. Once income passes roughly $80,000 in net profit, an S-Corp election often saves real money — but only if someone runs the actual numbers for your situation.
Many consultants keep a W-2 job while building a consulting practice on the side. These two income streams need to be coordinated on one return so your withholding and estimates account for the full picture.
Dedicated home office space, software subscriptions, professional development, and a portion of internet and phone bills are routinely underclaimed by consultants managing their own taxes.
Project-based or retainer-based income rarely arrives evenly. A big contract landing in Q3 can throw off an estimate calculated back in January. We adjust your estimates as the year actually unfolds.
Tax software is built for simple, predictable situations. Once you have multiple income streams, business deductions, retirement planning questions, or an entity decision to make, software stops being able to advise you — it just files what you tell it to.
How you're structured has a bigger impact on your tax bill than almost any other single decision. Here's how the common structures compare for independent consultants and freelancers.
| Structure | Self-Employment Tax | Admin Complexity | Best For |
|---|---|---|---|
| Sole Proprietor (Default) | 15.3% on all net income | Lowest | New or part-time consultants still building income |
| Single-Member LLC | 15.3% unless S-Corp election made | Low | Consultants wanting liability protection without added tax complexity |
| S-Corp Election | Only on reasonable salary | Moderate | Established consultants earning $80K+ net |
The right answer depends on your income level, how stable your client base is, and whether you plan to keep consulting long-term. We analyze this for every new client. Read our S-Corp vs. LLC guide →
We evaluate your current setup, run the numbers on what an S-Corp election would actually save you, and handle the paperwork to make the switch if it makes sense. For many consultants earning over $80,000 in net 1099 income, this is the highest-return tax move available.
S-Corp vs. LLC: Which Is Right for You? →We prepare your business return — Schedule C or Form 1120-S for S-Corps — along with your personal Form 1040, including all schedule attachments. Everything is handled under one roof with full context across both returns.
Small Business Tax Services → Individual Tax Preparation →We calculate your quarterly estimated payments based on your actual projected income and adjust throughout the year as contracts close or income changes. No surprise April bills. No unnecessary overpayments sitting with the IRS for months.
Tax Planning Services →Dedicated home office space, software subscriptions, professional development, and a business-use percentage of your phone and internet are all deductible when documented correctly. We make sure these are captured and substantiated properly.
Clean, current books so you actually know what you're netting after expenses — not just at tax time. We offer ongoing monthly bookkeeping and can clean up the books if they've fallen behind.
QuickBooks Support & Training →Many consultants own rental properties or investment accounts alongside their 1099 income. We handle the full picture — rental income, depreciation, passive activity rules, and coordination across all your income sources.
Tax Planning Services →If you need compiled financial statements for a loan application or business planning purposes, we handle that. Clean, professionally prepared statements that lenders accept.
Financial Statement Compilations →These are the deductions that independent consultants and freelancers most often underutilize or miss entirely. Every situation is different, and eligibility depends on your specific circumstances, but these are worth discussing with us.
Deductibility always depends on your specific facts and circumstances. The IRS has specific rules about what qualifies, how to document it, and how to calculate it. We make sure you're capturing what you're entitled to — and that it's documented properly so it holds up if questioned.
Big firms want big corporate clients. We built our practice around the consultants, freelancers, and independent professionals who are the backbone of Frederick County's economy. You won't be handed off to a junior associate. You won't wait three weeks for a call back. You get a CPA who knows your name and your situation.
Year Mercer Flanagan was founded in Frederick, MD
Years serving local professionals, businesses & nonprofits
Rated by clients across Frederick County
Access to your CPA — not just during tax season
Year-round access to your CPA. Questions get answered when you have them, not weeks later.
We understand the cash flow and tax timing challenges that come with self-employed, project-based income.
We're based in Frederick, MD. We know this community and we're not going anywhere.
We don't just file your returns. We contact you when something changes that affects your tax situation.
Book a free 20-minute consultation. We'll tell you honestly whether we can help — and what it would cost. No pressure, no obligation.
Book a Free Consultation