Taxed Twice!?

A lot of entrepreneurs don't realize this - but when you are a sole prop or single member LLC, you get taxed 2X on your net income!

You get taxed once at your ordinary income tax rate, which depends on your filing status and AGI.

And then you get taxed at the 15.3% SE Tax rate on up to $142,800 of net income for 2021 and $147,000 for 2022.

Now, you do get credit for 1/2 of the SE tax, but let me give you an example of why tax strategy is so important. Your ordinary tax rate might be 15%, but your effective rate (the amount of tax you actually pay relative to your taxable income) could be double or more!

The IRS gives hard working entrepreneurs a black eye every year with this sucker punch because so many business owners are unaware of this, and likely over pay in taxes!

Financial strategy is more than budgets and cash flow, it's taxes too.

Have questions - let us know!