If you’re a business owner, investor, or side hustler, your tax and legal structure MATTERS.And if you’re still filing everything under your own name or haven’t made the switch to an S corp, you could be leaving thousands of dollars and tons of peace of mind on the table.
That’s why we created the Trifecta.
It’s not a gimmick. It’s not complicated. It’s a simple, proven framework to:
- Lower your taxes
- Protect your assets
- Keep your estate organized and out of court
Let’s break it down step by step.
What Is the Trifecta?
The Trifecta is a 3-part structure that connects your personal life, investments, and business under one coordinated tax and legal strategy:
- Revocable Living Trust (the base/foundation)
- Holdings & Investments (right side – LLCs for real estate, etc.)
- Business or Side Hustle (left side – LLC taxed as S corp)
Think of it as a triangle with your 1040 tax return in the center, blending it all together.
1. The Trust: Your Foundation for Legacy and Privacy
A revocable living trust is not about tax savings. It’s about organization, privacy, and protection for your family.
✔️ Avoids probate (which costs Americans over $500 billion annually)
✔️ Gives your heirs a clear roadmap
✔️ Keeps your estate out of the courts
✔️ Lets you decide when (and how) your kids inherit
And no—you don’t need to be rich to have a trust. If you own a home or have kids, it’s time.
2. The Right Side: Protecting Investments with LLCs
Your investments—especially rental properties—go on the right side of the Trifecta.
✔️ Use an LLC in the state where the property is located
✔️ Keep your personal assets protected from tenant lawsuits
✔️ Let your trust own the LLC—not you
✔️ Always use manager-managed LLCs (never member-managed)
LLCs are for asset protection, not tax savings. If someone tells you otherwise, they’re selling you something.
3. The Left Side: Your Business Engine
This is where the magic happens.
If you’re making money in a business—whether it’s full-time, part-time, or just weekend hustle—this is where your LLC taxed as an S corp belongs.
Why? Because:
- An LLC on its own is taxed as a sole proprietorship
- That means 15.3% self-employment tax on your net income
- Once you hit $50,000/year profit, it’s time to convert to an S corporation
Example:
Make $100,000 net profit
→ Pay yourself $40K salary
→ Take $60K as a distribution
Result? You save $8K–$10K in self-employment tax. Every. Single. Year.
Even former President Joe Biden did it. In 2016, he used an S corp to save $230,000 in FICA taxes on his book deal. If it’s good enough for the president, it’s good enough for you.
Bonus Tip: Don’t Let Your Accountant Talk You Out of It
Too many CPAs are overly conservative or just don’t understand small business strategy.
If your accountant says, “You need to be making $150K–$200K before forming an S corp,” GET A SECOND OPINION.
We’ve helped thousands of clients set up affordable, legal S corp structures starting at $50K net income—with no audit risk and massive savings.
Bottom Line: The Trifecta Works
By using this structure, you will be prepared and empowered to:
- Save taxes
- Protect assets
- Avoid probate
- Stay organized
- Build real, generational wealth
Remember, It’s easier to save money than it is to make money. The Trifecta helps you do both.
FAQ
Do I really need a trust if I’m not rich?
Yes! A trust isn’t just for the wealthy. It helps avoid probate, keeps your estate organized, and protects your family from legal battles and delays.
At what income should I convert my LLC to an S corp?
As soon as you’re netting $50,000 or more per year. That’s where the self-employment tax savings kick in.
What’s the difference between an LLC and an S corp?
An LLC is a legal structure. An S corp is a tax status. You can convert your LLC to be taxed as an S corp—best of both worlds.
Do I need separate LLCs for each rental property?
That depends on how much equity each property holds. A good rule of thumb: if a property has over $200K in equity, consider its own LLC.
Can my trust own my LLCs and S corps?
Yes! In fact, it should. That’s how you keep everything connected and organized under the Trifecta.
Ready to Build Your Own Trifecta?
Don’t wing this. Don’t DIY it at 2 a.m. after a bowl of cereal.
Get it right the first time with a team that knows how to keep it legal, simple, and affordable.
Book a strategy session at KKOSLawyers.com
Let’s build your Trifecta—so you can save more, protect more, and sleep better at night.
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- Total compliance
- Smart tax savings
- Wealth that lasts
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