No employer match, but no contribution caps either.
Self-employment has the most powerful retirement vehicles in the US tax code: Solo 401(k) at $69K/year, SEP IRA at 25% of comp. The catch is they only work if you actually use them — and most entrepreneurs don't.
Your priorities, in order
Open a Solo 401(k) this quarter
If you're a solo operator (no employees other than spouse), Solo 401(k) lets you contribute up to ~$69K/year ($23K employee + 25% employer). Allows Roth too. Fidelity, Schwab, and Vanguard all offer them free.
Pay quarterly estimated taxes
Federal: April 15, June 15, Sept 15, Jan 15. Underpayment penalty kicks in if you owe >$1,000 at filing. Set aside 25–30% of every payment received in a separate "tax" savings account.
Separate business and personal everything
Different bank account, different credit card, different bookkeeping. Even sole proprietors. This isn't about taxes — it's about clean records, easier audits, and limited liability if you LLC up.
Build a 6–12 month runway, not just an emergency fund
Variable income means a bigger cushion. 6 months of personal + business expenses minimum. 12 months for businesses with seasonal or lumpy revenue.
Calculators built for this stage
Recommended reading
Frequently asked questions
SEP IRA or Solo 401(k)?
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When should I form an LLC or S-corp?
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