i saw a post about saving SE tax , i wanted to hea...
# taxes
f
i saw a post about saving SE tax , i wanted to hear eveyones thoughts
fwd :fwd :You are married and filing jointly. You’re grinding, building wealth, and trying to keep more of your cash instead of handing it to Uncle Sam. → But then comes the self-employment tax—that 15.3% bite that eats your profits alive. Here’s the hack: If you and your spouse want to show you’re both passive partners (no SE tax), you still need at least one active partner. Solution? → Bring in a C-Corp as a small partner. → Let the C-Corp hold the “active” slice, while you and your spouse hold the bigger, passive share. Done right, this means: → You and your spouse avoid self-employment tax on your partnership shares. → The C-Corp picks up the active piece (at a smaller %). → You keep more wealth snowballing for your future. But here’s the golden rule: → The percentages must match reality. → Don’t just plug numbers. → Make sure the story of who’s active and who’s passive lines up with how the business really runs. This is where your freedom fund actually grows. Because wealth builders don’t play games—they play smart. → One strategic C-Corp. → One justified split. → Thousands saved in SE tax. That’s how you keep your family’s freedom fund compounding, instead of leaking away. But here’s the twist no one talks about… Once you fix your own SE tax structure, the real wealth play begins when you bring others into the picture. Because if you think structuring a married couple is powerful… Wait until you see how messy — or how lucrative — a partnership can get. My next post breaks open the exact structure that keeps partnerships clean, controlled, and wildly tax-efficient… → without partners stepping on each other’s deductions → without triggering IRS attention → and without losing the wealth you’re trying to build Stay tuned. This is where the tax game gets real. Sign up for our newsletter & tax tips & never miss a tip plus more (in bio).
m
sounds like you are giving up social security, which is probably worth it
h
what's the source of this info?
f
My accountant responded, "Doesn't make sense."
h
it definitely sounds like a gray zone
e
Total scam, if you and/or your spouse are doing the work then the IRS does not consider it passive. No matter if a C corp is a partner. These kinds of promoters make a living off setting up complicated structures which could have you end up in prison. Don't be fooled if the promoter is a CPA. There are many corrupt CPAs out there. Sometimes complex structures which make sense 0.1% of the time are promoted for 99.9% of people who it really does not make sense for. So that's the grain of truth these guys often use for legitimacy. The wording of that post is deliberately vague to keep people from realizing how ridiculous it is. If it sounds too good to be true, pay a reputable accountant to look into it and explain why it won't work.
f
my accountant laughed it off and says it makes no sense stick with s corp
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