Owner of a profitable business ($1M–$5M revenue), business as primary asset, succession planning, buy-sell agreement.
P-02 models the owner-operator household whose dominant balance-sheet asset is the business itself — illiquid, hard to value, and structurally entangled with retirement, estate, and disability planning. It's where buy-sell, key-person, and §199A pencil out simultaneously.
P-02 exists because the household's wealth and the business's wealth aren't separable. A profitable $1M–$5M revenue closely-held company sits as a single asset that may be 50–70% of net worth, and its valuation is governed by IRS Rev. Rul. 59-60 factors and minority/marketability discounts rather than a public market quote. Buy-sell agreements (typically cross-purchase or entity-redemption structured) define what happens at death, disability, or owner exit; key-person life insurance funds the agreement; and a §199A QBI deduction may be available (or phased out by SSTB rules) on flow-through income from the LLC or S-Corp wrapper. A defined-benefit plan often appears alongside the SEP/Solo-401(k) — DB plans become tax-attractive only when an owner has high stable income and few non-owner employees, which is exactly this profile. Below this archetype, business income exists but the business is small, early, or not yet professionalized; above it (H-02/H-03), the business has either been sold or institutionalized into trust-held interests.
Cash-flow shape is owner-distribution-driven, not W-2. Median combined income sits at $333,280 with a tight interquartile range ($300k–$359k), but reported personal income understates economic income: retained earnings stay in the entity, depreciation shields cash flow, and reasonable-comp arguments shape how much runs through payroll vs distributions. Mortgage debt appears in 84% of the corpus and student loans persist in 80% — owners are typically still paying down professional-school or expansion-era debt. The retirement gap is structural: the business *is* the retirement plan, and the corpus shows retirement off-track in nearly every household.
What makes P-02 distinct from neighbors is the *unsold business interest*. P-01 has higher headline income but the comp is W-2 with public-company equity — different tax surface entirely. SB-01 and SB-03 cover smaller pass-through and partnership profiles, but P-02 is specifically the established, ten-plus-year operator with succession planning live. R-02 is the natural next stage when the owner crosses into pre-retirement and the business sale becomes the dominant near-term event.
Aggregated across the 25 P-02 households in the shipped v3 corpus corpus. Numbers describe the corpus, not population claims.
Jennifer and Anthony are the late-stage operator pattern — primaries 55 and 57, net worth above the corpus median at $3.08M, but with $542k of liabilities and the bulk of net worth illiquid in the business. The diagnostic shape is retirement off-track despite the $5.7M target: the household is asset-rich and income-thin relative to that goal, which only resolves through a successful business sale. Test pre-retirement projection logic against this household to confirm it doesn't double-count the business as both an income stream and a salable asset.
Every P-02 household ships with — at minimum — these JSON fields populated. The full schema is documented in the data set you purchase.
P-02 is most heavily used by three buyer profiles. Practice-management and small-business banking platforms validate flows that span personal and entity balance sheets — owner draws, retained-earnings treatment, blended cash flow, and SBA-loan-eligibility scoring against household plus business financials. Tax-software teams use it to exercise §199A QBI, reasonable-comp testing for S-Corp owners, multi-entity K-1 aggregation, and the SSTB phase-out logic that hits services-businesses above the threshold. Estate and succession-planning teams use P-02 to model GRAT and IDGT transfers of business interests with marketability discounts, ESOP feasibility studies, and installment-sale-to-IDGT structures.
P-02 households carry an active operating business at 30–70% of net worth — large enough to matter, small enough not to dominate. Pre-sale founders with concentrated paper wealth from a venture-backed business belong in P-06 (sudden wealth) once the liquidity event lands. Smaller and earlier-stage operators are A-04 (small business owner, early stage); pass-through owners with simpler structures and no succession plan in motion are SB-01; partnership profiles with K-1 phantom-income complexity are SB-03. Households where the business has already been sold and the proceeds are now invested capital belong in H-01 or H-02 by wealth tier. Cannabis-industry operators with §280E complications are N-04 regardless of revenue scale.
P-02 income and net-worth bands during v3 synthesis were anchored to closely-held business public data — IRS SOI Schedule K-1 and Form 1120-S returns, NFIB owner-comp surveys, and SBA business-valuation aggregates. Industry mix is broad rather than concentrated, reflecting that the archetype is structurally defined by entity-ownership profile rather than industry. The corpus deliberately does not model a specific buy-sell valuation formula per household — the agreement exists conceptually but is not stored as structured data. Per CLAUDE.md §9 the v3 corpus is frozen and per-domain priors aren't independently auditable; treat calibration claims as descriptive of synthesis intent rather than reproducible.
Earlier-stage small business owner. A-04 hasn't yet built the asset base or succession planning surface of P-02 — buy-sell, key-person insurance, and DB plans are typically absent.
Pass-through LLC/S-Corp owner without active succession planning. Use SB-01 when the testing focus is QBI, reasonable comp, and solo-401(k) mechanics rather than business valuation and exit.
Multi-member partnership with K-1 phantom-income and guaranteed-payment complexity. Use SB-03 when the entity is a partnership rather than a closely-held single-owner business.
Natural next stage. R-02 is the self-employed pre-retiree whose business sale is the imminent retirement event; QSBS, installment sale, and §1202 exclusion logic become dominant.
P-02 — Established Business Owner is the household whose primary asset is an established, profitable closely-held business ($1M–$5M annual revenue). Primaries are typically 40–55, married, with succession planning live, a buy-sell agreement in place, and a defined-benefit or cash-balance plan running alongside the SEP/Solo-401(k).
Smaller owner fixtures (A-04, SB-01, SB-02) model early-stage or solo-practitioner profiles where the business is still being built. P-02 models the mature, $1M–$5M revenue operator where buy-sell agreements, key-person insurance, business valuation, and succession planning are the active testing surface — and where retirement is structurally tied to a future business sale.
Combined gross income median is $333,280 with a 25–75 range of roughly $300k to $359k. Median net worth is $2.3M, with the business typically representing the largest single asset. Reported W-2 income understates economic income because retained earnings stay in the entity.
Because for owner-operators, the business itself is the retirement plan. Standard retirement-readiness logic that scores retirement against liquid investable assets will mark the corpus off-track even where a successful business sale would close the gap. P-02 surfaces that asset-class-coverage bug cleanly.
P-02 is tagged for six bundles — B05, B06, B11, B12, B14, and B17 — covering executive compensation, retirement contribution strategies, business planning, estate planning, employee benefits, and small-business taxation. See the right-hand sidebar for the data sets that ship P-02 households.
No. The shipped v3 corpus is frozen and not regenerable from current code (drift was confirmed on 2026-05-09 per CLAUDE.md §9). Sampler improvements land in a future v4 release with per-archetype golden fixtures in CI.
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