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My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

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the US tax code is rigged in favor of business owners
tax_strategybusiness_ownershipsystem_design

What It Means

The American tax system intentionally provides significantly more tax reduction opportunities for business owners compared to employees

Why It Matters

Understanding this bias helps individuals make better career and income structure decisions for wealth building

When It's True

For most business owners with legitimate business expenses and proper documentation

When It's Risky

When starting businesses solely for tax benefits without viable business model

How to Apply

1

Evaluate employment vs business ownership for tax implications

2

Structure income through business entities when possible

3

Justify business ownership decisions beyond just tax benefits

Example Scenario

W2 software engineer paying 35% effective rate considers consulting to access business deductions and potentially reduce to 20% rate