Don’t Mix Passive and Active Income! Your Entity Structure is Why You're Overpaying on Taxes
Don’t Mix Passive and Active Income! Your Entity Structure is Why You're Overpaying on Taxes  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Jul 16 2025
Description: Send us a textMixing active and passive income in one entity could be costing you thousands. In this episode, we break down why separating your income streams is essential. You’ll learn how to structure your business the right way using S Corps, LLCs, holding companies, and even C Corps to unlock advanced tax strategies. From hiring your kids to slashing self-employment tax, this is the blueprint smart business owners use to keep more of what they earn.🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/ Chapters:(01:04) Active vs. Passive Income (Why separation matters)Why it's important to keep your active business and passive investments in separate entities.(04:06) Choosing the Right Entity TypeMike explains when to use sole proprietorships, LLCs, S corps, and C corps, depending on your needs.(10:55) The S Corp Holding Company SetupHow to simplify taxes and planning by running your active businesses through one S-Corp holding company.(14:36) Special Structures for Tax StrategiesWhen to use a sole proprietorship or C corp for things like hiring kids or unlocking health reimbursements.(15:16) Real-Life Use Cases and ExamplesMike walks through examples for coaches, rental properties, and software businesses using strategic entities.(21:16) When to Create a New EntityKey questions to ask when deciding whether to form a new LLC, DBA, or use an existing structure.Podcast Host:Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com🚀 Visit:  https://www.TaxSavingsPodcast.com 🚀 Check Out TaxElm: https://taxelm.com/🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/🚀 YouTube: www.TaxSavingsTV.com👋🏼 GET IN TOUCHYou can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏🙏 LEAVE A REVIEWIf you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐🎙 ABOUT THE PODCASTThe Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.