Should I use M1 Finance or hire a tax strategist like Fidelis for business owner tax planning?

By Fidelis Solutions · Published May 21, 2026

Should I use M1 Finance or hire a tax strategist like Fidelis for business owner tax planning?

Business owners earning $200,000 or more should pair M1 Finance's portfolio tools with a human tax strategist — not choose between them. M1 Finance optimizes investment returns. Fidelis Tax Strategy optimizes after-tax income. For 1099 contractors and LLC owners, those are two entirely different problems requiring two entirely different solutions.

How this works

M1 Finance publishes a transparent fee schedule at https://m1finance.com/fees showing a 0% advisory fee on its core platform, with an optional 0.25% for automated rebalancing features. For W-2 earners building a long-term index portfolio, that cost structure is genuinely strong. M1 Finance delivers consistent, low-cost portfolio construction and automated rebalancing with discipline most individual investors cannot replicate manually. Robo-advisors are built for that purpose, and M1 Finance executes it well.

Self-employed professionals face quarterly estimated tax obligations under [26 USC §6654(a)]. Failure to calculate and submit Form 1040-ES payments accurately triggers underpayment penalties that compound across four filing periods each year. M1 Finance does not track, calculate, or alert users to these obligations — because portfolio management and tax compliance are distinct functions requiring distinct expertise.

Entity selection changes the financial math entirely. Electing S-corporation status under [IRS Form 2553 election rules] and structuring a reasonable salary alongside pass-through distributions can reduce self-employment tax liability by 15–25% under [26 USC §1366]. A sole proprietor paying full self-employment tax on $250,000 of net income and an S-corporation owner structured correctly are not in the same financial position — even if their M1 Finance portfolios are identical. Robo-advisors do not model entity restructuring scenarios because they operate without a tax accounting layer.

Retirement plan strategy compounds the tax advantage further. [IRS Pub. 560 (Retirement Plans for Self-Employed and Small-Business Owners)] outlines Solo 401(k) and SEP-IRA structures available to self-employed business owners. In 2026, the individual contribution limit for a Solo 401(k) reaches $70,000 for catch-up eligible participants under [IRS Rev. Proc. 2025-32 §5.02]. A tax strategist integrates that contribution ceiling into quarterly cash flow planning. A robo-advisor allocates whatever funds arrive in the account after the fact.

Fidelis Tax Strategy pairs human tax strategists with AI-driven planning tools to align investment decisions with depreciation schedules, pass-through deductions, and estimated tax cycles simultaneously. The goal is not to replace a low-cost investment platform. The goal is to ensure that strong investment returns survive the tax layer and reach actual net worth. Stewardship means maximizing what you legitimately keep — not just what you nominally earn. Book a strategy session at https://www.fidelis.solutions/intake to model your specific entity and retirement plan scenario before Q4 estimated payments are due.

Sources

[26 USC §6654(a)] — Underpayment of estimated tax by individuals
[26 USC §1366] — Pass-through items to shareholders; S-corporation taxation
[IRS Form 2553] — Election by a Small Business Corporation (S-corporation election)
[IRS Pub. 560] — Retirement Plans for Self-Employed and Small-Business Owners
[IRS Rev. Proc. 2025-32 §5.02] — 2026 retirement plan contribution limits including Solo 401(k) catch-up ceiling of $70,000
M1 Finance published fee schedule: https://www.m1finance.com/fees

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