Own a gym with your significant other? Use these essential accounting tips.
Running a gym with your spouse can strengthen your relationship—or destroy it. The difference comes down to how you handle the money.
Valentine's Day reminds us to celebrate the partnerships that matter most. But if you and your spouse own a fitness business together, chances are your romantic dinners frequently devolve into arguments about cash flow, tax bills, and whether you can afford to hire another trainer.
Sound familiar?
We work with dozens of husband-wife teams in the fitness industry. CrossFit couples who met at a competition and now run a box together. Personal training power couples who train clients side-by-side. Gym owner pairs who bootstrapped their business from nothing and now can't agree on whether to expand to a second location.
Here's what we've learned after working with fitness couples for years: the couples who succeed financially aren't the ones who never disagree about money—they're the ones who have systems that prevent money from becoming a relationship-destroying force.
This Valentine's season, instead of another dinner and flowers, give your relationship the gift that actually matters: getting your business finances structured correctly. Because nothing says "I love you" quite like saving $12,000 in taxes and eliminating those 2 AM arguments about the business bank account.
Let's talk about what nobody mentions in those inspiring "couple entrepreneurs" Instagram posts.
You and your spouse built something incredible together. You took the risk of leaving stable jobs to pursue your passion. You work 60-hour weeks building a business that transforms lives. From the outside, you look successful.
But in private? The financial stress is eating your relationship alive.
The late-night fights happen on a predictable schedule:
Sunday evenings when you realize you need to make another quarterly tax payment but the business account doesn't have enough cash.
Mid-month when you're arguing about whether you can afford to pay yourselves this month or if you should wait until more members renew.
Every April when your accountant tells you that you owe $18,000 in taxes you weren't expecting and you each blame the other for not planning better.
After every large equipment purchase when one of you thinks it was necessary and the other thinks you should have waited.
The stress compounds because you can't escape it. Your spouse is your business partner, your romantic partner, and the person sitting across from you at dinner when you really just want to forget about the gym for one evening. But you can't, because there's always something to discuss, always a decision to make, always financial pressure weighing on both of you.
Here's the truth most fitness couples won't admit: The business finances aren't just creating stress—they're fundamentally changing how you relate to each other.
You used to be a team united in pursuit of a dream. Now you're two exhausted people who disagree about money more than you agree about anything else.
One of you is more aggressive about growth and spending. The other is more conservative and worried about cash flow. One of you thinks you should pay yourselves more. The other thinks every dollar should go back into the business. One of you wants to hire help. The other wants to keep expenses low and do everything yourselves.
These aren't small disagreements. They're fundamental differences in values, risk tolerance, and vision. And when they're happening in the context of a business where you're both working 60 hours a week and barely making ends meet, they feel impossible to resolve.
The couples who thrive financially in fitness businesses aren't doing it by accident. They've implemented specific structures and systems that remove money as a source of conflict.
More importantly, they've recognized that how you structure your business entity, compensation, and tax strategy has a massive impact on both your finances and your relationship.
Get the structure wrong, and you'll pay $15,000 more in taxes than necessary while fighting constantly about money.
Get it right, and you'll save thousands in taxes, pay yourselves fairly, and remove 90% of the financial arguments that threaten your relationship.
Let's talk about how to get it right.
If you and your spouse own a gym, training business, or CrossFit box together, the single most important tax question is: How is your business entity structured, and how are each of you paid?
This isn't a minor detail. This is the foundation on which everything else builds.
Most fitness couples start as a single-member LLC or partnership without thinking carefully about the tax implications. You just wanted to start training clients together, so you filed the simplest paperwork and moved on.
But here's what you didn't know: the way you structured your entity is probably costing you $8,000-$15,000 per year in unnecessary taxes, AND it's creating the financial stress that's damaging your relationship.
Let's break down the options and their implications:
This is what most couples end up with by default. You file paperwork creating an LLC with both of you as owners. The IRS treats this as a partnership for tax purposes.
How it works financially:
Example: Your gym makes $200,000 in profit. You each report $100,000 of income. Each of you pays $15,300 in self-employment tax (15.3% of $100,000). Combined, you're paying $30,600 in self-employment taxes alone—before federal and state income taxes.
The relationship impact:
The bottom line: Partnerships are simple to set up but expensive to maintain. For most fitness couples making over $80,000 in combined income, you're overpaying in taxes by $8,000-$12,000 annually.
Some couples structure the business as owned by one spouse, with the other spouse working as a W-2 employee.
How it works financially:
Example: Your gym makes $200,000. Spouse A is the owner. Spouse B receives a $60,000 salary as an employee. Spouse A's net profit after the salary expense is $140,000. Spouse A pays self-employment tax on $140,000 ($21,420), while Spouse B pays regular payroll taxes on the $60,000 salary ($4,590).
The relationship impact:
The bottom line: This structure can work in specific situations, but it often creates relationship tension by establishing an unequal power dynamic.
This is the structure we recommend for almost every fitness couple making over $80,000 in combined income.
How it works financially:
Example: Your gym makes $200,000 in profit. You each receive a $50,000 W-2 salary ($100,000 total). After payroll expenses, $100,000 remains as profit. You take this as shareholder distributions ($50,000 each).
The W-2 salaries are subject to payroll taxes (15.3% split between employer and employee portions). The $100,000 in distributions is NOT subject to self-employment tax.
Tax savings compared to partnership: Approximately $15,300 (15.3% of $100,000 in distributions that avoid self-employment tax).
The relationship impact:
The bottom line: This is the structure that saves you $10,000-$15,000 annually while removing most of the financial arguments from your relationship.
Let's dive deeper into why the S-Corp structure works so well for fitness couples.
When you're a partnership or sole proprietorship, every dollar of profit flows to your personal tax return and gets hit with self-employment tax (15.3% for Social Security and Medicare).
When you convert to an S-Corp, you split your income into two buckets:
Bucket 1: W-2 Salary (Subject to Payroll Taxes)You must pay yourself a "reasonable" salary for the work you do. The IRS requires this. For gym owners who work full-time in the business, "reasonable" typically means $40,000-$80,000 each, depending on your location and role.
This salary is subject to the full 15.3% payroll tax, just like any other employee. But here's the thing: you're only paying that tax on your salary, not on all your profit.
Bucket 2: Shareholder Distributions (NOT Subject to Self-Employment Tax)Any profit beyond your salaries comes to you as distributions. These distributions are still subject to regular income tax, but they completely avoid the 15.3% self-employment tax.
Real Example with Real Numbers:
Let's say your CrossFit box generates $250,000 in profit, and you and your spouse are 50/50 owners.
As a Partnership:
As an S-Corp:
That's almost $20,000 in tax savings. Every single year.
Over five years, that's almost $100,000 that stays in your family instead of going to the IRS.
Beyond the tax savings, the S-Corp structure provides clarity that prevents arguments:
Clear compensation: Both of you receive defined W-2 salaries. No more fights about "I work harder so I should get paid more." Your salaries are set, transparent, and fair.
Predictable distributions: Profit distributions happen on a schedule you both agree to. No more arguments about whether you can afford to pay yourselves this month.
Equal ownership: Both spouses are shareholders with clearly defined ownership percentages. Even if one spouse works more hours, you've both agreed on the equity split. This prevents resentment.
Professional structure: Having formal payroll and distributions makes the business feel more legitimate and professional. You're not just "winging it"—you have systems.
Learn more about how S-Corp strategies can save your fitness business thousands.
Here's a tax deduction worth $3,000-$8,000 per year that most fitness couples don't take advantage of: the S-Corp medical insurance deduction.
When you're an S-Corp owner-employee, health insurance premiums paid by your business can be deducted on your personal tax return.
Here's how it works:
Why this matters:
If you're paying $1,500/month for family health insurance ($18,000/year), structuring it this way gives you a deduction that saves you approximately $4,500-$7,200 in taxes (depending on your tax bracket).
Most fitness couples are paying for health insurance out of pocket with after-tax dollars, getting no tax benefit at all. By restructuring through your S-Corp, you get a massive deduction.
The catch: This only works if you structure it correctly. The business must pay the premiums or reimburse you properly, the premiums must be included in your W-2, and you must be a more-than-2% shareholder.
This is complex enough that most generic accountants mess it up. At Fitness Taxes, we set this up correctly for couples all the time, ensuring you get the full tax benefit without IRS problems.
Not every fitness couple works together in the same business. Sometimes one spouse runs the fitness business while the other has a different job or stays home with kids.
If this is your situation, there's a powerful tax strategy you should know about: hiring your spouse as an employee.
The scenario: You're a personal trainer with a sole proprietorship. Your spouse doesn't work in the fitness business but occasionally helps with administrative tasks—scheduling clients, managing social media, handling invoicing.
The strategy: Put your spouse on payroll as a part-time employee doing legitimate business work.
The benefits:
Real Example:
You're a bodybuilding coach making $120,000/year. Your spouse manages your client scheduling, social media posts, and email correspondence—legitimate business activities requiring 10-15 hours per week.
You pay your spouse $20,000/year. This is a legitimate business expense, reducing your taxable income from $120,000 to $100,000. At your tax bracket, this saves you approximately $5,000-$7,000 in taxes.
Plus, your spouse now has $20,000 of earned income. They can contribute $7,000 to a Roth IRA (2025 limit), building tax-free retirement wealth.
The rules to follow:
When structured correctly, this strategy is completely legal and can save thousands annually. Our team helps fitness professionals implement this properly.
If you convert to an S-Corp, the most common question is: "How much salary should we pay ourselves?"
This is where most fitness couples get tripped up. Pay yourself too little, and the IRS will challenge your S-Corp election. Pay yourself too much, and you're not maximizing your tax savings.
The IRS requires "reasonable compensation" but doesn't define exactly what that means. It's a facts-and-circumstances test based on:
General guidelines for fitness businesses:
These ranges vary significantly by location. A gym owner in San Francisco needs a higher salary than one in rural Montana.
The strategy for couples:
If you're both working full-time in the business, you should both receive salaries. The total salary (both spouses combined) should typically represent 40-60% of your total net income.
Example: Your gym nets $180,000. You each take a $45,000 salary ($90,000 total, which is 50% of net income). The remaining $90,000 is distributed as shareholder distributions.
This structure is defensible to the IRS and maximizes your tax savings.
What happens if you get this wrong:
If the IRS determines your salary is too low, they can reclassify your distributions as salary and assess back payroll taxes plus penalties and interest.
This is why working with a CPA who specializes in fitness businesses is critical. We've structured hundreds of S-Corps for gym owners and know exactly what's defensible and what will trigger problems.
Beyond day-to-day cash flow and taxes, fitness couples need to think about long-term wealth building. Most gym owners are so consumed with running the business that they completely neglect retirement planning.
The wake-up call: If your gym is your only asset, you're not diversified. If the business fails, you have nothing. If you want to retire, you need assets beyond the gym's value.
The retirement options for fitness couples with S-Corps:
Example: You and your spouse each have $60,000 in W-2 wages. You can each contribute up to $15,000 to SEP IRAs ($30,000 total), getting a $30,000 business deduction.
Example: You each contribute $23,000 as employee deferrals plus $15,000 as employer contributions = $38,000 each ($76,000 total). This is a massive tax deduction.
The key insight: With an S-Corp, you have way more retirement options than with a partnership or sole proprietorship. And the tax savings from the S-Corp itself often generate enough extra cash flow to fully fund your retirement accounts.
Learn more about wealth building strategies for fitness professionals.
If you're reading this thinking "We've been doing it wrong for years," don't panic. You can fix this.
Here's your action plan:
What entity type are you? Partnership? Sole proprietorship? Already an S-Corp? Pull out your formation documents and figure out where you stand.
Based on your current income, how much would you save with an S-Corp structure? Use the calculation from earlier in this article. If you're saving $10,000+, it's worth making the change.
For most fitness couples making over $80,000 combined, S-Corp status makes sense. You'll need to:
This is complex enough that you shouldn't DIY it. Work with a CPA who specializes in fitness businesses to get it right.
You can't benefit from S-Corp status if your books are a mess. You need:
Professional bookkeeping services ensure your records are accurate and audit-ready.
S-Corps require legitimate payroll processing. You need:
Professional payroll services handle all of this automatically.
Decide how and when you'll take distributions. We recommend:
Regular distributions prevent the "can we afford to pay ourselves this month?" arguments that destroy relationships.
This article hasn't been about roses and chocolates. It's been about business structures, tax forms, and reasonable compensation.
But here's the thing: getting your business finances right is one of the most loving things you can do for your spouse.
When you structure your business correctly:
The fitness couples who thrive aren't the ones who never disagree about money. They're the ones who set up systems that make money decisions clear, transparent, and non-threatening.
They're the couples who stopped trying to DIY their finances and hired professionals who actually understand fitness businesses.
Generic accountants don't understand gym operations. They don't know that powerlifting coaches have different compensation structures than group fitness instructors. They don't understand the seasonal cash flow fluctuations of a CrossFit box.
At Fitness Taxes, we work exclusively with fitness professionals. We've structured hundreds of fitness couple businesses. We know exactly how to maximize tax savings while maintaining healthy relationship dynamics.
If you're a fitness couple struggling with business finances:
The average fitness couple we work with saves $6,500 per year in taxes and eliminates the financial stress that was threatening their relationship.
What would that mean for your marriage?
This Valentine's Day, give yourselves the gift that actually matters: financial clarity, tax savings, and the peace that comes from knowing your business is structured correctly.
Schedule your consultation today.
Fitness Taxes is a specialized division of Asnani CPA, providing tax preparation, bookkeeping, payroll services, and proactive tax planning exclusively for fitness professionals. We've helped hundreds of fitness couples save thousands in taxes while building stronger businesses and relationships. Learn more about our services.
