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Lesson · Tax · strategy

Your tax bill is a design choice.

Most people file taxes once a year and take the number. The tax-architect approach designs the number all year long — entity, income, deductions, timing — on purpose.

110%
OF LAST YEAR'S TAX IF AGI TOPS $150K

TWO DIFFERENT JOBS

FILER VS ARCHITECT

Records last yearDesigns next year
Works in AprilWorks by Dec 31
One returnEntity, comp, timing

Key points

WHAT A PLAN ACTUALLY TOUCHES

Entity election
Reasonable comp
Retirement plan design
Accountable plan
Depreciation timing
Estimated payments

WORKED EXAMPLE

$500K REVENUE, $200K PROFIT

SE base: $184,700Wage base: $90,000
Tax: about $27,200Tax: about $13,800
No payroll filingsPayroll + S-corp return

How it works

HOW THE FLOW STACKS

1
ENTITY FIRSTLLC, S-corp, or C-corp
2
SET REASONABLE COMPWage must match the work
3
STACK THE RETIREMENT PLANSolo four oh one k on the wage
4
CONTROL THE TIMINGIncome, expenses, estimates

LEGACY LAYER

WHEN YOU CAN'T FUND IT ALL

Needs cash you lackStart small, fund later
Taxed each generationUses GST exemption
Kids inherit outrightTrust holds for grandkids

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The Tax Architect Approach

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