01
Set aside taxes first
Before anything gets invested, move money for your quarterly estimated taxes into its own account. Self-employed people owe self-employment tax on top of income tax, and that April bill surprises a lot of new store owners.
Investing
Put your store profits to work.
Revenue is not wealth. What you keep and invest is. Compare investing apps, brokerage accounts and robo-advisors below, then follow the order of operations that makes sense when you work for yourself.
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Order of Operations
How business owners should invest their profits
When you work for yourself, nobody sets up a 401(k) for you or takes taxes out of your paycheck. Here is the order I would follow.
02
Build a cash cushion
Keep a few months of business and personal expenses in a high-yield savings account. Stores have slow months, ad accounts get suspended and suppliers raise prices. Cash keeps you from selling investments at a bad time.
03
Fund a self-employed retirement account
A Solo 401(k) lets you contribute up to $24,500 as the employee in 2026, plus employer contributions, up to $72,000 total, not counting catch-up contributions. A SEP IRA is simpler and shares the same $72,000 cap. Both lower your tax bill now.
04
Then open a taxable brokerage
Whatever is left goes into a regular brokerage account. No contribution limits and no withdrawal rules, so this is the account that funds your next store, a house or early freedom.
Pick Your Style
App, brokerage or robo-advisor?
A robo-advisor builds and rebalances a portfolio for you, often for around 0.25% of your balance a year. Great if you want to set it and get back to running your business.
A brokerage account gives you full control to buy index funds, ETFs and stocks yourself. Investing apps sit in between, with simple mobile setups, fractional shares and automatic deposits. For most busy business owners the boring option wins: low-cost index funds, automatic monthly contributions, and not checking it every day.
Why I put this page together
I have been building online businesses since October 2010, and in 2022 I sold a multi-store portfolio. The way I think about it, the store is the vehicle. The goal is turning its profits into assets that pay you whether you are working or not.
This is the page I would hand anyone whose business just started throwing off real cash. Get the order right, pick an account that fits how you work, and automate it.
Keep Reading
More investing guides for entrepreneurs
- Best Online Brokerage in 2026Top picks for every type of investor
- Robinhood ReviewFees, features and who it suits
- Robinhood vs Charles SchwabApp simplicity versus a full-service broker
- How to Open a Charles Schwab Account as a Digital NomadInvesting while you live and work abroad
- Charles Schwab Business Banking and Investing ReviewAccounts for your business entity
- How to Set Up Robinhood and Maximize the IRA MatchA walkthrough for business owners
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Frequently asked questions
Should I open a Solo 401(k) or a SEP IRA?
If you have no employees other than a spouse, a Solo 401(k) usually lets you put away more at lower income levels, because you contribute as both the employee and the employer. A SEP IRA is easier to open and run, but contributions are a percentage of your earnings only, generally up to about 20% of net self-employment earnings and a maximum of $72,000.
If you plan to hire, read the SEP rules closely. You generally have to contribute the same percentage for eligible employees as you do for yourself.
How much money do I need to start investing?
Less than you think. Many brokerages and apps have no account minimum and let you buy fractional shares, so $50 or $100 is enough to get going. The amount matters less than the habit of investing every month.
Can my LLC open an investment account?
Yes. Many brokers offer business or entity accounts. Whether you should invest inside the business or pay yourself and invest personally is a tax question, so run it by your CPA. For most single-member LLCs, paying yourself and using personal and retirement accounts is simpler.
Is my money safe at an online broker?
Accounts at SIPC member firms are protected up to $500,000, including up to $250,000 in cash, if the brokerage itself fails. SIPC does not protect you from the market going down. Check that any provider you pick is a SIPC member.
Can I invest while living abroad as a digital nomad?
Usually, but it depends on the broker and where you are a resident. Many US brokers require a US residential address and may restrict your account if you report a foreign one. Be honest about your residency and read the broker’s rules for clients abroad before you move money.
Robo-advisor or do it myself?
If you will never touch your portfolio and just want it handled, a robo-advisor fee is a fair trade. If you are comfortable picking 2 or 3 index funds and setting up automatic deposits, a regular brokerage account does the same job for less.