From 6 to 7 Figures: The Founder’s Entity Upgrade Playbook
Step‑by‑step models to slash self‑employment tax and build a tax‑free war chest
🚨 Stop Donating Your Dream Car to the IRS
Picture sliding the keys of a brand‑new Porsche 911 across the table to your tax collector every April.
Sounds absurd, right? Yet that’s exactly what happens when six‑ and seven‑figure founders cling to the starter entities they spun up on day one.
A typical reader of this newsletter—smart, profitable, and already hustling past $400k in annual net—is involuntarily “tipping” the IRS $50k–$90k a year through nothing more exotic than entity inertia.
That’s the cost of a Porsche. Every. Single. Year.
If you’re nodding or wincing, keep reading. In the next few screens, you’ll learn:
Why does your trusty LLC or sole prop flip from tax‑saver to tax‑bleeder when your profit crosses six figures?
How one afternoon of entity surgery can permanently reclaim a five‑figure slice of your money.
What changes in 2026 (hint: the friendliest rules vanish), and why waiting even one more quarter is a six‑figure mistake.
Ready to quit funding Uncle Sam’s luxury‑car collection and start building your own?
1. 2025 Entity Cost Breakdown—What the IRS Doesn’t Put in the Brochure
Why it matters: Every percentage point you shave once you hit seven figures is worth $10,000 per million yearly. Stack enough small wins and you’re funding your kids’ college or a down payment on that beach house—courtesy of smarter paperwork.