Self-Employment Is Self-Empowerment.

At Taxko, we firmly believe that self-employment is a form of self-empowerment. It’s one of the most direct ways an individual can take control of their income, time, and long-term future. Our mission for 2026 and beyond is to help individuals create real self-employment—work that produces income, builds independence, and opens the door to smart tax planning

Before we talk about LLCs, corporations, or entity structures, there’s a more important conversation to have. The true foundation of self-employment isn’t paperwork—it’s getting paid. Self-employment begins the moment someone is willing to pay you for a product or a service. That payment is proof of concept, and proof of concept changes everything.

One of the biggest misconceptions we see is the belief that forming an entity—especially an LLC—is automatically a tax-saving move. It isn’t. An LLC by itself does not reduce taxes. The tax savings come from expenses that reduce taxable income, not from the letters after your business name.

Here’s a simple example. Assume a sole proprietorship, an LLC, a partnership, an S-corporation, and a C-corporation each earn $1,000. Every one of those structures will owe tax on that income.

Now change one variable: the sole proprietorship has $1,001 in legitimate business expenses. The result? Zero taxable income and zero tax owed—even though it may not be the best structure from a liability or protection standpoint. Structure affects how you’re taxed and protected, but expenses are what reduce the tax bill.

This is why rushing to form an entity before you have income often wastes time, money, and energy. Protection structures are powerful tools—but protection of what if there’s no revenue yet? A business structure should support activity, income, and risk—not exist in isolation.

Yes, the IRS does allow tax deductions during the startup phase, but there are limits. If your activity does not show a profit in three out of five years, the IRS may reclassify it as a hobby, which can eliminate many deductions. While you can’t change that rule, filing Form 5213 allows you to postpone the IRS’s determination and gives your activity up to five years to meet the profit presumption.

Our philosophy is simple and intentional:

• Get proof-of-concept money.

• Track and document expenses.

• Then structure.

• Then optimize/ Scale up.

  
  

At Taxko, we help clients build income first, keep clean records, and only then design the right entity and tax strategy around what’s already working. That’s how self-employment becomes more than an idea—it becomes empowerment with purpose.

Have proof of concept and ready to formalize your business?

If you’re earning income and want to form a New Jersey LLC, Corporation, or Non-Profit, click the link below to get started the right way—with structure that supports real income.

👉 Form Your NJ Entity with Taxko