Financial Planning for Entrepreneurs
Owner comp strategy, retirement plans (Solo 401k vs SEP-IRA), tax planning, and building the personal side of a growing business.
Separate business and personal β but plan them together
Your business and personal finances are distinct legal entities but a single economic unit. Cash flow, retirement plans, insurance, and tax strategy should be optimized as one system.
Owner retirement plans
Solo 401(k): high contribution limits and Roth option. SEP-IRA: simpler admin but no Roth. SIMPLE IRA: for small teams. Cash Balance plans: aggressive tax-deferral for high earners.
Frequently asked questions
Should I pay myself a salary or take draws?
LLCs typically use draws; S-corps use a reasonable salary plus distributions to reduce self-employment tax. Consult a CPA.
Bottom line
Understanding financial planning for entrepreneurs is one of the highest-leverage things you can do for your financial future. Bookmark this guide, share it with a friend, and use the calculators linked below to run the math on your own numbers. Money decisions are rarely urgent, but they compound β so a good decision today easily becomes an outsized win a decade from now.
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Reader comments (3)
This finally cleared up something my previous advisor kept hand-waving. Bookmarking.
Would love a follow-up piece on how this changes for self-employed households.
Really appreciate that you cited primary sources β most sites donβt.