How Adam and Elizabeth Saved $20,000 Annually with Smarter Tax Strategies

When Adam, a Silicon Valley venture fund investor, and Elizabeth, an e-commerce entrepreneur, approached us in early 2024, they had a thriving setup but were missing opportunities to optimize their taxes. Here's how we helped this California-based couple streamline their finances and save approximately $20,000 per year:

1. Optimized Elizabeth's Salary By aligning Elizabeth’s W-2 income to industry standards ($80,000), she reduced Social Security and Medicare taxes without compromising compliance.
2. Created Adam’s Management Company Adam’s financial oversight of Elizabeth's business became a paid role via a new LLC taxed as an S-Corp. This strategy:
3. Streamlined Financials Separating personal and business expenses enhanced Elizabeth’s e-commerce business’s appeal for potential buyers and positioned it for a smooth merger or acquisition (M&A). Plus, the business qualified for Qualified Small Business Stock (QSBS) benefits, making future gains more tax-efficient.

The Takeaway: With cleaner financials and smarter tax strategies, Adam and Elizabeth saved thousands in taxes, boosted retirement savings, and positioned themselves for long-term success. Tax optimization isn't just about compliance—it's about unlocking your full financial potential.