The Hidden Cost of Filing Schedule C
If you're self-employed and still filing Schedule C as a sole proprietor or single-member LLC, you're likely paying thousands more in taxes than necessary.
The Self-Employment Tax Trap
As a Schedule C filer, you pay 15.3% self-employment tax on your entire net profit— that's 12.4% for Social Security (up to $168,600 in 2024) plus 2.9% for Medicare on every dollar you earn.
Example: $150,000 Net Profit
Schedule C (Sole Proprietor/LLC)
$21,195
Self-employment tax alone
S-Corp with $80K Salary
$12,240
Payroll taxes (employer + employee)
Annual Savings: $8,955+ (just on employment taxes)
That's nearly $9,000 per year that could be going into your retirement accounts, your children's education, or experiences with your family—instead of the IRS.
The S-Corp Advantage: Keep More of What You Earn
An S-Corp election allows you to split your income between a reasonable salary (subject to payroll taxes) and distributions (not subject to self-employment tax).
Pay yourself a reasonable salary for your work, then take the rest as shareholder distributions. Only the salary portion is subject to payroll taxes.
S-Corps unlock powerful retirement plan options including Solo 401(k)s with employer contributions, SEP-IRAs, and Defined Benefit plans that can shelter $100K+ annually.
Corporate structure provides liability protection, separating your personal assets from business risks while maintaining pass-through taxation.
Tax-Advantaged Wealth Building Vehicles
Stop rolling the dice with day trading, watching calls and puts, and stressing over market volatility. Build real wealth through proven, tax-advantaged strategies that let you spend time with family doing what you love.
The Ultimate Tax Shelter
For high-income professionals, DB plans allow you to contribute $100,000 to $300,000+ per yearon a tax-deductible basis—far exceeding 401(k) limits.
- Contributions are 100% tax-deductible business expenses
- Tax-deferred growth until retirement
- Guaranteed retirement benefit based on actuarial calculations
- Ideal for business owners 45+ catching up on retirement savings
Maximum Flexibility
As an S-Corp owner, you can contribute up to $69,000 in 2024 ($76,500 if 50+) through both employee deferrals and employer profit-sharing contributions.
- $23,000 employee deferral ($30,500 if 50+)
- Up to 25% of W-2 salary as employer contribution
- Roth option available for tax-free growth
- Loan provisions for accessing funds if needed
Tax-Free Retirement Income
Even high earners can access Roth benefits through the "Backdoor Roth" strategy, creating a pool of completely tax-free retirement income.
- Tax-free growth and withdrawals in retirement
- No required minimum distributions (RMDs)
- Tax-free inheritance for beneficiaries
- Mega Backdoor Roth through Solo 401(k) for even more
Invest in What You Know
Take control of your retirement by investing in real estate, private businesses, notes, and alternative assets—all within a tax-advantaged wrapper.
- Invest in rental properties, fix-and-flips, or land
- Private lending and mortgage notes
- Private equity and business investments
- Tax-deferred or tax-free growth on all gains
Tax-Free Equity Extraction: Put Your Money to Work
Here's a wealth-building secret most people miss: when you take equity out of your property through a cash-out refinance, there's no tax consequence because the property isn't being sold. You're borrowing against your own asset—not realizing a gain.
The Power of Tax-Free Cash Access
Unlike selling stocks or liquidating investments (which trigger capital gains taxes), pulling equity from your primary residence, second home, or investment property gives you tax-free access to your wealth. The IRS doesn't consider borrowed money as income.
Primary Residence
Access up to 80% LTV with the lowest rates. Interest may be tax-deductible if used for home improvements.
Second Home
Vacation properties often have significant equity. Extract it to fund investments or consolidate debt.
Investment Property
Pull equity from rentals to acquire more properties. Interest is fully deductible as a business expense.
Strategic Uses for Tax-Free Equity
Wealth Building
- Fund retirement accounts (401k, DB plans, IRAs)
- Acquire additional investment properties
- Invest in your business for growth
- Create passive income streams
Debt Optimization
- Consolidate high-interest credit cards
- Pay off auto loans and personal loans
- Convert non-deductible to deductible interest
- Improve monthly cash flow
Example: You have $200,000 in equity in your home and $50,000 in credit card debt at 22% APR. By doing a cash-out refinance at 7%, you pay off the cards, save over $7,500/year in interest, and potentially make that interest tax-deductible. The $200,000 you accessed? Zero tax consequence.
Stop Trading Time for Stress.
Start Building Wealth That Lasts.
Day trading, watching calls and puts, stressing over market swings—that's not wealth building. That's gambling with your family's future. Real wealth comes from strategic, tax-advantaged planning that works while you're coaching little league, taking family vacations, or simply enjoying dinner together.
Time Freedom
Set up your tax strategy once, review quarterly. No daily market watching required.
Family Focus
Your wealth grows automatically while you're present for the moments that matter.
Peace of Mind
Sleep well knowing your strategy is built on tax law, not market speculation.
Serving High-Cost Markets Where Debt Strategy Matters Most
In markets like California, New York, and major metros, higher housing costs often mean higher unsecured debt levels. We specialize in helping families in these areas create strategic debt plans that build wealth instead of destroying it.
The Challenge
- •Higher housing costs squeeze disposable income
- •Credit card debt accumulates to cover gaps
- •High-interest debt compounds faster than savings
- •Family responsibilities can't wait
Our Solution
- •Consolidate high-interest debt into low-rate mortgage
- •Convert non-deductible interest to deductible
- •Free up cash flow for retirement contributions
- •Create a clear 10-year wealth building plan
Your 10-Year Wealth Building Roadmap
A solid debt strategy doesn't just build wealth—it maintains level heads through market volatility. Whether equities surge, bonds dip, or the debt market shifts, your plan stays on course.
Years 1-2: Foundation
Consolidate high-interest debt, establish S-Corp structure, maximize retirement contributions, and create emergency reserves. This is the "clean slate" phase where we eliminate wealth-destroying debt and set up tax-advantaged accounts.
Years 3-5: Acceleration
With debt under control and tax strategy optimized, accelerate wealth building. Add Defined Benefit plans if income supports it, explore real estate investments through self-directed accounts, and begin building passive income streams.
Years 6-10: Wealth Multiplication
Compound growth takes over. Your tax-advantaged accounts have grown substantially, passive income covers expenses, and you have options. Whether that's early retirement, business expansion, or generational wealth transfer—you're in control.
The key: Ride the prevailing winds of the equities, debt, and bond markets with a plan that doesn't require you to predict the future—just prepare for it.