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Leveraging Your Opportunities

Consultants & Self-Employed Business Owners

Many of our clients are self-employed. Some have consulting businesses, while others are self-employed professional service providers. There are numerous ways we help these clients make the most out of their money. Here are just a few:

  • Lowering your tax liability. We help determine reasonable compensation from a business. By making an S-corp. election many business owners can pay themselves a reasonable salary and receive additional income as “pass through” income. This technique can save thousands of dollars in tax each year.
  • Maximizing retirement savings. We can devise a retirement savings plan that allows for maximizing contributions and take advantage of the mega backdoor Roth rules. If done properly your savings plan allows you (and perhaps your spouse) to save up to $76,500 in 2024 towards retirement.
  • Should your 401-k deferrals be made as Roth or Traditional or some combination of both? Our tax planning helps make the right election for you.
  • To profit-share or not profit-share, that is the question. We usually advise incorporating a profit-sharing feature into 401-k plans. However, how much (if any) should be allocated to profit-sharing each year is based on your unique situation and can vary year to year.

Leveraging these strategies enables us to make a significant difference in how much wealth you keep and accumulate.