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Hey Reader!

Today, we're going to pocket watch Kai Cenat. Specifically, we'll observe his tax strategies from the Big Brother playbook, to entity structures and relocation.

Reports suggest (I watched a podcast discussing this) he earns about 3.6M per month. Though I cannot say for sure as I am not in the room with his CPA, I would imagine Kai's effective tax rate to be low despite this, as a result of proper tax planning. How, you ask?

Kai is leveraging a strategy that big time production corporations have always used: content houses. Think Big Brother (shout out Julie Chen, a legend of the game for 20+ years). These houses where people resided in for 24/7 content is the same thing Kai's AMP group does. Faze does the same. Best believe, they are taking deductions the same way CBS (Corporation behind Big Brother) does: using real estate to drastically reduce their taxable income.

The more you make, the more planning matters. Without a structure, you are just handing over massive chunks of income to the government. Instead of taking income personally, top creators set up corporations. That allows them to defer tax, split income with others, and access lower corporate tax rates. This strategy also gives flexibility with how and when they pay themselves.

Kai is from the Bronx, yet he resides in Georgia. This simple relocation comes with over six figures of tax savings alone. The state of New York levies state and city taxes that are progressive, meaning that they increase as your income increases. The state of Georgia has a flat state tax, which allows Kai's tax to be fixed and manageable.

While the headlines around top creators' income will always be flashy, I encourage you to think about how they work just as hard to retain their wealth and amplify it. They aren't special, you can do this too.

Tax planning isn't a science. It's common sense, and my goal is to simplify it one piece of content at a time.

Resources for Creators

Free Initial Consultation: It's time to be proactive! Book a session today.

Creator's Corner: The Canadian edition is available now on my website and is the best handbook for creators navigating their creator business ventures.

Creator's Corner (US): Coming REAL soon!

Creator's Corner Tax Community: A community of creators centered around helping each other navigate the tax world in the creator industry, along with access to my tax planning software that helps me generate 4-5 figure tax savings for creators, annually. Reply "TEAM" if you'd like to join!

Love y'all!

Rony Fogain, CPA Fogain & Associates Professional Corporation The Content Creator's Firm Austin, TX/Toronto, ON Email: admin@rfogain.com​ Tel: 647-510-7103 Tel (US): 512-460-8836

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