How the Rich Save on Taxes (And You Can Too): 12 Must-Know Strategies

Most people believe the rich save on taxes by bending the rules. It’s time to burst that bubble and clear up the biggest myth:

The wealthy don’t avoid taxes using shady loopholes. They follow the tax code exactly as it’s written.

The US tax system (and many global tax systems) is designed to reward specific behaviors, like building businesses, investing capital, creating jobs, and taking financial risks. Wealthy individuals simply structure their money to align with those incentives.

In this doola guide, we’ll break down how the rich save on taxes legally, unpack the core tax strategies they rely on, and most importantly, show you how to apply the very same playbook even if you’re not rich yet. 

And because execution matters as much as understanding, we’ll also show how doola helps founders set up the right business structures, stay compliant, and turn smart tax planning into a repeatable advantage from day one.

The Tax Code Rewards Behaviors, Not Income

The tax system was never designed to punish success; it was designed to steer behavior. Governments use the tax code as a policy tool, rewarding activities that stimulate economic growth, innovation, job creation, and long-term investment. 

Wealthy individuals understand this deeply and structure their financial lives to align with these incentives rather than fight against them.

Now, here’s the foundational idea most people never learn in school:

The tax code doesn’t favor how much you make. It favors how you make it.

In other words, two people can earn the same amount of money and pay wildly different amounts in taxes, simply because their income flows through different channels. This distinction is what separates high earners from high retainers.

Before we get into specific strategies, it’s important to understand the three primary types of income the tax system treats very differently, and why wealthy individuals deliberately shift away from the most heavily taxed one.

Earned Income vs. Business Income vs. Investment Income

Not all income is created equal in the eyes of the IRS. The wealthy know this and design their income streams accordingly.

1. Earned income (salary, wages)

This is the most common and most heavily taxed form of income. It’s subject to federal and state income taxes plus payroll taxes like Social Security and Medicare.

On top of that, deductions are limited, and taxes are owed immediately, leaving little room for optimization.

2. Business income

Business income offers significantly more flexibility. Expenses that are ordinary and necessary for running a business can be deducted, reducing taxable income.

With the right structure, income can be timed, allocated, or reinvested strategically, often resulting in a lower effective tax rate overall. 

This is why entrepreneurs and business owners enjoy far more control over their tax outcomes.

3. Investment income

This is where the tax code becomes especially generous. Long-term capital gains and qualified dividends are typically taxed at lower rates than earned income, and unrealized gains aren’t taxed at all. 

In many cases, taxes can be deferred for years, or even avoided entirely through strategic planning, allowing wealth to compound more efficiently over time.

This is why you’ll often hear that the rich “pay less tax.”

It’s not because they’re doing something illegal; it’s because they don’t earn like employees. They earn like owners and investors.

Once you grasp how your income is taxed, the logic behind how the rich save on taxes will become clear and repeatable.

1. Using Business Entities to Lower Taxes

One of the very first moves wealthy individuals make, often long before they’re officially “rich”, is to separate themselves from their income by routing it through a business entity. This shift changes how income is classified, how expenses are treated, and how much control they have over when and how taxes are paid. 

In simple terms, they stop earning as individuals and start earning as owners.

Why Businesses Are So Tax-Efficient

The tax system strongly favors businesses because they create economic activity: jobs, services, innovation, and growth. As a result, business income is treated very differently from personal wage income.

Wealthy individuals understand this and intentionally earn through entities that unlock these advantages. 

When income flows through a business, it opens the door to:

1. More deductions

Businesses can deduct “ordinary and necessary” expenses incurred to generate income. This means costs that would otherwise be paid with after-tax dollars can now reduce taxable income.

📌 Example:

If a consultant earns $100,000 as an employee, nearly all of it is taxable. If that same $100,000 flows through a business, expenses like software, phone, internet, home office, education, and travel might reduce taxable income to $70,000 or less, before tax rates are even applied.

2. Income flexibility and timing control

Unlike salaried income, business income doesn’t always have to be taxed immediately. Owners can choose when to pay themselves, how much to reinvest, and how income is categorized.

Precisely why you’ll see any successful business owner reinvesting profits into growth during high-income years, deferring personal taxes while increasing long-term value.

3. Strategic tax planning options

Businesses unlock advanced strategies like depreciation, retirement plans (Solo 401(k)), income splitting, and entity-level deductions that individuals simply don’t have access to.

For example, purchasing equipment or vehicles through a business can allow for accelerated deductions using Section 179 or bonus depreciation, lowering your taxable income drastically in a single year.

4. Lower effective tax rates

While top personal income tax rates are high, business owners often pay a lower effective rate after deductions, credits, and planning strategies are applied.

Below is a simplified comparison:

Scenario	Gross Income	Deductions	Taxable Income
Employee	$100,000	Limited	~ $100,000
Business Owner	$100,000	$30,000	~ $70,000

This difference alone explains why business ownership sits at the center of how the rich save on taxes.

Common Business Entity Types

Once income flows through a business, the type of entity determines how taxes are applied. Wealthy individuals choose structures strategically based on income level, growth plans, and long-term goals.

LLC (Limited Liability Company)

An LLC is the most accessible and flexible starting point. It’s easy to set up, offers liability protection, and allows business owners to deduct legitimate expenses right away. This is why it’s popular with freelancers, creators, consultants, and side hustlers.

S Corporation

An S Corp allows owners to split income into two parts: a reasonable salary and profit distributions.

As profits increase, owners often transition from an LLC to an S Corp to optimize tax efficiency.

While the salary is subject to payroll taxes, distributions are not, often resulting in meaningful self-employment tax savings as income grows.

C Corporation

C Corps are typically used by larger companies and startups planning to reinvest profits or issue stock. While they involve double taxation, they offer unique benefits for scaling businesses, including favorable treatment of retained earnings and equity compensation.

📌 Bottom line:

If you earn money outside a traditional paycheck, even part-time, forming an LLC can be the single most impactful first step toward legally reducing taxes and building long-term financial leverage.

2. Writing Off Business Expenses (Legally)

One of the biggest misconceptions about how the rich save on taxes is that they somehow spend less. In reality, wealthy individuals often spend just as much, if not more, but they understand how to classify spending correctly under the tax code.

They don’t eliminate expenses. They reclassify them.

When an expense directly supports business activity and meets IRS guidelines, it stops being a personal cost paid with after-tax dollars and becomes a business deduction that reduces taxable income. This shift alone can materially change how much tax someone owes each year.

How Business Expenses Reduce Taxes

The tax code allows businesses to deduct expenses that are ordinary and necessary to operate.

Wealthy individuals structure their work and lifestyle intentionally so that many recurring costs legitimately fall into this category.

Let’s compare the tax scenarios of two people earning $80,000.

Scenario	Expenses
Employee	Pays for tools, phone, and workspace with post-tax income.
Business Owner	Deducts those same expenses, reducing taxable income to $60,000–$65,000 before taxes are calculated.

As you see, they’ve the same earnings, yet very different tax outcomes.

Common Business Write-Offs

Below are some of the most commonly used, and most misunderstood, deductions the wealthy use consistently and compliantly.

1. Home office deduction

If part of your home is used regularly and exclusively for business, a portion of rent, mortgage interest, utilities, insurance, and maintenance can be deducted. 

That’s why entrepreneurs intentionally designate a workspace to convert fixed housing costs into deductible business expenses.

2. Phone & internet

Any portion used for business communication, client work, marketing, or operations is deductible.

For example, if 60% of your phone and internet usage is business-related, that same percentage can typically be written off.

3. Travel for business purposes

Flights, hotels, transportation, and meals related to business travel are deductible when the primary purpose of the trip is business.

Business owners, for this exact reason, plan meetings, conferences, or site visits that turn necessary travel into deductible expenses, while staying fully compliant.

4. Software, tools, and subscriptions

This can include accounting software, design tools, CRM systems, project management platforms, and other industry-specific applications, where recurring monthly subscriptions steadily add up and quietly reduce taxable income year after year.

5. Marketing and education

Website costs, ads, branding, courses, workshops, and certifications related to improving or growing the business are deductible.

Such growth investments, therefore, aren’t just strategic; they’re tax-efficient.

6. Documentation is everything

The difference between “aggressive” and “compliant” tax strategies is documentation. Wealthy individuals don’t guess or estimate; they systematize.

They typically:

• Track expenses consistently (monthly, not annually)

• Keep business and personal accounts fully separate

• Store receipts and digital records with clear descriptions

• Use bookkeeping systems that categorize expenses correctly

When your records are clean, deductions stand up to scrutiny, and tax savings become predictable, not stressful.

⚡ Be a Do’er: Start tracking expenses monthly, even if your business is small. What feels like minor spending today can compound into thousands of dollars in legitimate tax savings over time when documented properly and applied consistently.

7. Leveraging Depreciation (Including Bonus Depreciation)

Depreciation is one of the most powerful, and most misunderstood, tax strategies used by wealthy individuals and businesses.

To the untrained eye, it can look like a loophole. In reality, it’s a core feature of the tax code designed to encourage investment in productive assets. 

The wealthy don’t ignore this rule; they build entire tax strategies around it.

👉🏼 What Is Depreciation, Really?

Depreciation allows you to deduct the cost of certain assets over a set period of time, based on the idea that assets wear out or lose value as they’re used.

And here’s the powerful twist:

The tax deduction has nothing to do with the asset’s actual market value.

An asset can:

• Hold its value

• Appreciate

• Or even generate income

…and still produce annual tax deductions on paper.

📌 Example:

Suppose a business purchases a $6,000 laptop used for work. Instead of deducting the full cost immediately (in some cases), the tax code allows that cost to be spread out, or accelerated, over several years, reducing taxable income along the way.

Key Depreciation Tools the Wealthy Use

Wealthy individuals don’t rely on just one depreciation method. They choose the approach that best fits their income level and tax goals.

1. Standard depreciation

This spreads the cost of an asset evenly over its useful life. It creates predictable, recurring deductions year after year, ideal for long-term planning.

2. Bonus depreciation

This allows a large percentage of an asset’s cost to be deducted upfront in the year it’s placed into service. Wealthy business owners often use this during high-income years to dramatically lower taxable income.

So, if a profitable business, say for example, in the manufacturing sector, invests heavily in equipment during a strong year, it can use bonus depreciation to offset current tax liability.

3. Section 179 deductions

Section 179 lets businesses deduct the full cost of qualifying assets immediately, up to IRS limits. It’s especially popular with small and mid-sized businesses because it delivers fast, tangible tax relief.

👉🏼 What Types of Assets Can Be Depreciated?

Depreciation applies to a wide range of assets used for business or income-producing purposes, including:

• Laptops, cameras, and phones used for work

• Vehicles used partially or fully for business

• Machinery and equipment for operations or production

• Office furniture and fixtures

• Real estate, where depreciation often creates deductions even as property values rise

This is why real estate investors, in particular, can report tax losses while still generating positive cash flow.

⚡ Be a Do’er: If you purchase equipment, technology, vehicles, or property for your business, depreciation can significantly reduce your taxable income, sometimes in the same year you buy the asset.

4. Investing for Wealth, Not Earning It

One of the clearest patterns in how the rich save on taxes is where their money comes from. Wealthy individuals don’t rely primarily on salaries or wages to build wealth.

This shift fundamentally changes how income is taxed, and how fast wealth can grow.

Instead, they structure their finances so that money flows from investments, not labor. 

Why Investment Income Is So Tax-Efficient

The tax code treats investment income far more favorably than earned income, especially when investments are held for the long term. This is intentional: governments want to encourage capital formation and long-term investment.

Here’s how the wealthy benefit from this:

1. Long-term capital gains are taxed at lower rates

When assets are held for more than a year, gains are typically taxed at preferential rates that are significantly lower than ordinary income tax rates. For high earners, this difference alone can mean thousands, or even millions, saved over time.

2. Dividends may receive preferential treatment

Qualified dividends are often taxed at capital gains rates rather than as ordinary income, making income-producing investments more tax-efficient than a paycheck.

3. Unrealized gains aren’t taxed at all

As long as an asset isn’t sold, any increase in value remains untaxed. This allows wealth to grow quietly in the background while taxes are deferred indefinitely.

4. The Compounding Advantage

Because investment income is taxed less aggressively, and often later rather than sooner, more money stays invested. Over time, this creates a powerful compounding effect that earned income simply can’t match.

⚡ Be a Do’er: Begin shifting some focus from earning more through labor to investing smarter, especially with a long-term mindset. Even modest, consistent investments can unlock the same tax-efficient growth mechanics the wealthy rely on, just on a different scale.

5. Real Estate Tax Advantages

Real estate has long been one of the most powerful tools in how the rich save on taxes, and it’s not just because property values tend to rise over time.

The tax code is especially generous to real estate owners, offering a unique combination of income, appreciation, leverage, and tax benefits that few other asset classes can match.

Why the Rich Love Real Estate

The appeal of real estate goes far beyond rental income. When structured correctly, property ownership allows investors to earn cash flow while simultaneously reducing, or even eliminating, taxable income on paper.

1. Depreciation offsets rental income

Even though real estate often appreciates in value, the IRS allows owners to depreciate the structure over time. This “paper expense” can significantly reduce taxable rental income, sometimes to zero.

2. Mortgage interest is deductible

Interest paid on loans used to acquire or improve rental property is typically deductible, further lowering taxable income.

3. 1031 exchanges defer taxes

A 1031 exchange allows investors to sell one property and reinvest the proceeds into another without immediately paying capital gains taxes. Wealthy investors often repeat this process for decades, deferring taxes while continuously upgrading their portfolios.

4. Borrowing against property is tax-free

Loans aren’t considered income. By borrowing against appreciated property, investors can access cash without selling assets or triggering taxes.

For example, instead of selling and paying capital gains tax, investors generally refinance and use the proceeds to fund new investments or personal expenses.

Beginner-Friendly Ways to Get Started

You don’t need a massive portfolio to benefit from real estate tax advantages. Many wealthy investors started small and scale intentionally. Here’s how you can achieve it too:

1. House hacking

Live in one unit of a property and rent out the others. This can reduce or eliminate housing costs while introducing you to rental income and depreciation benefits.

2. Short-term rentals

When structured correctly, short-term rentals can generate higher cash flow and offer unique tax treatment, especially for active owners.

3. REITs (Real Estate Investment Trusts)

If owning property isn’t feasible yet, REITs offer indirect exposure to real estate with some tax advantages, without the operational complexity.

Simply put, explore ways to gain real estate exposure that align with your financial capacity. Even indirect ownership can unlock tax benefits and introduce you to one of the most time-tested wealth- and tax-building strategies used by the rich.

🔖 Related Reading: Why a Series LLC Is the Best Option for Your Real Estate Business

6. Using Retirement & Tax-Advantaged Accounts

One of the most consistent habits among wealthy individuals is deceptively simple: 

They systematically maximize tax-advantaged accounts every single year. 

While these accounts are often framed as “retirement tools” for employees, the wealthy see them for what they really are: long-term tax shelters that allow money to grow faster by minimizing or eliminating taxes along the way.

Key Tax-Advantaged Accounts the Wealthy Prioritize

Wealthy individuals don’t pick just one account, they stack them strategically based on income, business ownership, and future tax expectations. Here’s what they prioritize:

1. Traditional IRA & Roth IRA

• Traditional IRAs may offer upfront tax deductions, lowering taxable income today.

• Roth IRAs flip the equation: contributions are made after tax, but growth and qualified withdrawals are completely tax-free.

Takeaway: Diversify future tax exposure by holding both taxable and tax-free retirement assets.

2. 401(k) & Solo 401(k)

Employer-sponsored 401(k)s and Solo 401(k)s for business owners allow for significantly higher contribution limits than IRAs. Solo 401(k)s, in particular, are a favorite among high-earning entrepreneurs because they allow both employee and employer contributions.

3. HSA (Health Savings Account)

Often called the most powerful tax-advantaged account available, an HSA offers a triple tax advantage:

• Contributions are tax-deductible

• Growth is tax-free

• Qualified medical withdrawals are tax-free

For wealthy individuals who can pay medical expenses out of pocket, HSAs become long-term investment vehicles rather than short-term spending accounts.

⚡ Be a Do’er: Start with just one tax-advantaged account that fits your situation and automate contributions. Consistency matters more than size early on, and even modest, regular investments can compound into significant, tax-efficient wealth over time.

7. Hiring Family Members

This strategy often surprises people, but it’s one of the most quietly effective ways the wealthy reduce taxes while building generational wealth. The key is simple: the work must be real, reasonable, and properly documented.

How Hiring Family Members Works

Wealthy business owners use family hiring to shift income in a way that’s both tax-efficient and financially empowering for the next generation.

1. Children perform legitimate business work

Kids can assist with age-appropriate tasks such as administrative support, content creation, filing, social media, basic design, or inventory management. The work must be necessary to the business and appropriate for their age.

2. Wages become deductible business expenses

Just like any other employee, wages paid to family members are deductible, reducing the business’s taxable income.

📌 Example:

Say a business owner pays a child $8,000 for legitimate work. That $8,000 is deducted at the parent’s higher tax rate while the child often owes little to no federal income tax.

3. Income shifts to a lower tax bracket

Children typically fall into much lower tax brackets. This shifts income from a high-tax environment to a low-tax one, without changing the family’s overall cash position.

4. Early Roth IRA funding for kids

Earned income allows children to contribute to a Roth IRA. Starting tax-free investment growth at a young age can create decades of compounding.

Turns out, hiring family members allows wealthy households to reduce current taxes, shift income into lower tax brackets, fund tax-advantaged accounts early, and build generational wealth instead of resetting each cycle.

When done compliantly with proper payroll and documentation, this strategy lowers taxes while supporting long-term family financial growth.

8. Using Debt Strategically (Not as a Burden)

One of the most misunderstood aspects of how the rich save on taxes is their relationship with debt. While most people are taught to avoid debt at all costs, wealthy individuals learn something more nuanced: debt itself isn’t the problem; misused debt is.

Good Debt vs. Bad Debt

Not all debt serves the same purpose. Wealthy individuals draw a clear line between debt that builds wealth and debt that erodes it.

1. Good debt

Good debt is used to acquire assets or opportunities that generate income or appreciate over time. Common examples include loans for real estate, businesses, or investments.

Interest on this type of debt is often deductible, and the underlying asset can produce cash flow or long-term growth.

2. Bad debt

Bad debt typically funds consumption, things that lose value and produce no income, such as luxury purchases or lifestyle spending. This kind of debt increases financial pressure without creating long-term upside.

Why Borrowing Can Be Tax-Efficient

One of the most powerful benefits of strategic debt is tax-free liquidity. When you borrow against an appreciating asset:

• The loan proceeds are not considered taxable income

• You retain ownership of the asset

• You avoid triggering capital gains taxes

📌 Example:

Instead of selling appreciated real estate or investments and paying taxes, wealthy individuals refinance or take a line of credit, accessing cash while keeping assets intact.

9. Charitable Contributions & Donor-Advised Funds

When structured thoughtfully, charitable contributions can align personal values with smart tax planning. This is another example of how the rich save on taxes by understanding timing, structure, and intent.

Common Charitable Tax Strategies the Wealthy Use

Wealthy individuals don’t just donate casually. They plan their giving around income cycles, asset values, long-term goals, and the contributions typically fall under these categories:

1. Itemized charitable deductions: Cash and qualifying non-cash donations to eligible charities can be itemized and deducted, reducing taxable income in the year the gift is made.

2. Donor-advised funds (DAFs): DAFs allow individuals to make a large, tax-deductible contribution in one year while distributing funds to charities over time. This provides immediate tax benefits without rushing long-term decisions.

3. “Bunching” donations: Instead of spreading donations evenly each year, wealthy donors often “bunch” multiple years’ worth of contributions into a single tax year to exceed the standard deduction and maximize tax benefits.

📌 Takeaway:

Always plan charitable donations with tax timing in mind. Even modest giving can become significantly more tax-efficient when contributions are structured intentionally rather than spontaneously.

10. Tax Loss Harvesting

Tax loss harvesting is a classic example of how the rich save on taxes by turning market volatility into a planning advantage. It involves selling investments that are currently worth less than what you paid for them in order to realize a capital loss. 

That loss can then be used to offset other taxable gains.

When applied correctly, this strategy helps investors stay invested while minimizing tax drag.

Why Tax Loss Harvesting Is So Effective

• Reduces capital gains taxes: Capital losses can directly offset capital gains, lowering or even eliminating taxes owed on profitable investments.

• Losses can offset ordinary income: If losses exceed gains, a portion can be used to offset regular income (subject to IRS limits), with the remainder carried forward to future years.

• Enables efficient portfolio rebalancing: Tax loss harvesting allows investors to exit underperforming positions, improve asset allocation, and reinvest strategically, often without increasing their tax bill.

⚡ Be a Do’er: Review your investment portfolio annually to identify potential tax loss harvesting opportunities. When used consistently, this strategy can significantly reduce lifetime taxes while keeping your long-term investment goals intact.

11. Using Trusts for Asset Protection & Estate Planning

One of the clearest distinctions between the wealthy and everyone else is how far ahead they plan. While most people focus on this year’s taxes, wealthy individuals think in terms of decades, and even generations. 

Trusts play a central role in this long-term approach, helping preserve wealth, reduce future taxes, and ensure assets are transferred efficiently.

At a basic level, trusts allow assets to be held and managed separately from an individual. This separation can provide:

• Asset protection

• Clear rules for inheritance

• Potential estate and gift tax advantages

• Reduced legal and administrative friction

Wealthy families use trusts to make sure wealth doesn’t erode through taxes, disputes, or poor planning as it moves from one generation to the next.

Common Types of Trusts

1. Revocable trusts: These trusts allow the creator to retain control over assets during their lifetime while avoiding probate after death. While they don’t typically reduce income taxes, they streamline asset transfer and provide clarity and privacy.

2. Irrevocable trusts: Once assets are placed into an irrevocable trust, they’re generally removed from the individual’s taxable estate. This can significantly reduce estate taxes and provide strong asset protection.

3. Family trusts: Family trusts are designed to benefit multiple generations. They allow wealthy families to set rules around distributions, education funding, and asset management while preserving tax efficiency over time.

📌 Note: Trusts aren’t just for billionaires. Many families and business owners benefit from basic trust planning. Just make sure to explore the right structure to prevent costly mistakes.

12. Working With Professionals Like doola

One thing the wealthy almost never do is manage taxes alone. Behind every financially sophisticated individual or family is a team of professionals whose job is to protect, optimize, and grow wealth within the rules of the tax code. 

The Team Behind Smart Tax Planning

Rather than reacting to taxes once a year, the wealthy work with professionals who help them plan proactively:

1. CPAs: Certified Public Accountants ensure filings are accurate, compliant, and optimized. They help identify deductions, apply the correct tax treatments, and prevent costly errors or penalties.

2. Bookkeepers: Bookkeepers track income and expenses accurately, making sure nothing is missed and every deduction is defensible.

3. Tax strategists: Tax strategists look beyond compliance. They help structure income, entities, investments, and timing decisions to reduce taxes over the long term, not just the present year.

Together, this team transforms tax management from a stressful obligation into a predictable, strategic advantage.

Why This Matters for Entrepreneurs

Many entrepreneurs assume professional tax help is only necessary once they’re wealthy, but in reality, getting guidance early is what prevents costly mistakes down the line. 

Working with tax professionals reduces risk and uncertainty, clarifies what’s compliant and deductible, and helps you plan proactively, so you’re building with confidence instead of scrambling at tax time.

Where doola Fits In

doola brings this professional-grade approach to founders and entrepreneurs, without the traditional complexity. From forming your business to staying compliant with ongoing bookkeeping and filings, doola helps turn tax planning into a system instead of a guessing game.

How You Can Get Started Today (Even Without Being Rich)

The biggest misconception about wealth-building tax strategies is that they require wealth to begin with.

In reality, most of the strategies the rich use today were put in place long before they ever became rich.

Here’s a simple, beginner-friendly checklist to put those principles into action:

✔️ Start an LLC to shift income from personal to business and unlock deductions

✔️ Track business expenses consistently so legitimate write-offs don’t slip through the cracks

✔️ Open a retirement or tax-advantaged account to shelter income and accelerate compounding

✔️ Begin investing consistently, even in small amounts, with a long-term mindset

✔️ Learn your deductions so you’re paying what’s required, not more than necessary

When you adopt the same frameworks early, small decisions compound into meaningful advantages over time, putting you on the same path the wealthy follow, just from an earlier starting point.

How doola Can Help You Save on Taxes

Building a tax-efficient business starts with getting the fundamentals right, and that’s exactly where doola comes in.

From forming your LLC and securing an EIN and US bank account to staying compliant with IRS and state filings, doola handles the operational heavy lifting with accurate bookkeeping, sales tax support, and ongoing compliance built in. 

With doola by your side, you’re not just filing paperwork; you’re intentionally structuring your business to legally reduce taxes, stay compliant as you grow, and keep more of what you earn.

Ready to stop overpaying on taxes and start structuring your business like the wealthy do?

Get started with doola today and build a compliant, tax-smart foundation that scales with you.

FAQs

Do I need to be wealthy to start using tax-saving strategies?

No. Many strategies work best before you’re wealthy.

What is the most effective tax strategy for beginners?

Starting a business and tracking deductions.

Is it legal to write off everyday expenses through an LLC?

Yes, if they’re ordinary, necessary, and properly documented.

Which business structure saves the most on taxes?

It depends on income level and goals. LLCs and S Corps are common starting points.

How do the rich avoid paying taxes on investment gains?

By deferring realization, using lower capital gains rates, and strategic planning.

Is real estate still worth it for tax savings in 2025?

Yes, especially with depreciation and leverage benefits.

Can non-US residents use these strategies if they start a US LLC?

Absolutely. Many international founders use US LLCs with proper compliance support.