Tax Mitigation
Keep more of what you earn.
The tax code rewards business owners who are set up the right way. We design your structure so you stop paying tax like an employee and start paying it like an owner.
Tax Mitigation
Keep more of what you earn.
The tax code rewards business owners who are set up the right way. We design your structure so you stop paying tax like an employee and start paying it like an owner.
The problem
You're paying tax twice on the same dollar.
If you're self-employed, you pay income tax and a 15.3% self-employment tax on nearly every dollar of profit. That second tax is the one most people never see coming, and it's the one the wealthy structure their way out of.
The tax code isn't written to punish you. It's written to reward owners who use it. The wealthy have always had advisors showing them how. Most Main Street owners never did, until now.
How we lower your tax bill
The tools the wealthy have used for decades.
S-Corp Strategy
Pay yourself a reasonable salary and take the rest as distributions, which skip the 15.3% self-employment tax. For many owners, that's worth thousands a year.
Solo 401(k)
The biggest deduction most owners never take. Contribute as both employee and employer, cut your taxable income now, or go Roth and grow tax-free.
Health Savings Account (HSA)
Deductible going in, tax-free growing, and tax-free coming out for medical costs. The wealthy use it as a second retirement account.
Accountable Plan
Your business reimburses you tax-free for your home office, mileage, and phone. It's deductible to the business and not income to you.
Hiring Your Kids
Pay your kids for real work in the business. You deduct the wages, they often owe little or no tax, and it can fund their own Roth IRA.
Multi-Entity Planning
For owners with several businesses, rentals, or higher income, a management company moves income to where it's taxed best.
Real Estate Tax Strategy
Depreciation, cost segregation, and the right entity can turn your rentals into one of the best tax shelters available.
Why it works as a system
Every piece makes the others stronger.
These strategies aren't a menu. They work together. Your S-Corp salary determines how much you can put into your Solo 401(k). Your entity structure decides which expenses you can reimburse. Your payroll makes hiring your kids possible. Set up one piece in isolation and you leave money on the table. Set them up together and each one amplifies the next.
That's the Operate layer of the CITO Control Framework. See the Full Framework
What it can look like
One business owner. Two ways to pay tax.
| As a sole proprietor | With an S-Corp | |
|---|---|---|
| Net business profit | $150,000 | $150,000 |
| Paid as salary | - | $70,000 |
| Self-employment or payroll tax | about $21,200 | about $10,700 |
| Estimated savings | - | about $10,000 a year |
Illustration only, before payroll and tax preparation costs. Your results depend on your income, industry, and what counts as a reasonable salary for your role.
We don't just plan it. We run it.
One flat monthly fee covers your strategy, setup, and upkeep, year after year.
FAQ
Questions, answered.
It depends on your profit, not your revenue. For many owners, it starts to pay off somewhere around $50,000 to $80,000 in net profit. Your scorecard and strategy session will tell you where you stand.
Yes. Every strategy here is written into the tax code. What gets people in trouble is doing them halfway: no payroll, an unreasonable salary, or reimbursements with no records. That's exactly what our ongoing service prevents.
A properly run S-Corp with clean books and a reasonable salary is not a red flag. Messy records are. We keep yours clean.
Yes. Agents are some of the best candidates for an S-Corp and a Solo 401(k), because commission income is usually hit with the full self-employment tax.
Yes. Your side business can have its own Solo 401(k), even if you already have a 401(k) at work. Your employee contributions share one annual limit across both plans, but the business can add its own employer contribution on top. A home office, mileage, and hiring your kids can apply too. An S-Corp usually makes sense only once your side profit reaches roughly $50,000 to $80,000, and we'll tell you honestly if you're not there yet.
Yes. Tax preparation is part of the ongoing service, so the person who designed your plan is the one reporting it.
Find out what you're overpaying.
Take the 5-minute Wealth Scorecard to see where you're overpaying, where you're exposed, and what to do about it.
Free results call included. No obligation.
Dealing with the IRS? Our sister company, CITO Tax Resolution, can help.