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Loophole

Management Company Structure

S-Corp mgmt fees reduce SE tax and stack QBI deductions.

Overview

Set up an S-Corp management company that charges your operating LLC(s) for management, IP licensing, or admin services. Shifts income to a lower-SE-tax entity, creates a second QBI deduction bucket, enables retirement plan stacking, and centralizes deductions. Requires arm's-length pricing (transfer pricing study) and real substance.

Best fit
Multi-entity operatorsHigh-earning S-Corp ownersReal estate + business combos
Estimated impact
$15,000–$50,000/year in SE tax + QBI stacking

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

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