Let’s talk a bit more about the tax advantages of owning a business.

As a business owner I get a return on my financial investment and a return on my physical and mental efforts. I am happy to pay my employees more because if they make more, I make more.

It is the same way with taxes.

Most people feel that they want to pay less taxes. I understand that if I am paying more taxes that is because I am making more money!

Imagine having to pay $25,000 more in taxes next year for making more money in a new business. Most people are conditioned to NOT want to pay more taxes. So their first response is, “I don’t want to have a business if it means paying more taxes.

Think about it, if I told you that you could make $100,000 more next year but you had to pay $25,000 more in taxes than you did last year, would you want to?

Of course you would! That’s $75,000 more IN YOUR POCKET!

When you own your own business, as we have said in the last couple of posts, you also get to take deductions from your taxable income for things you pay out of your pocket as an employee. Typical things like:

• Education
• Travel
• Some meals
• Health care
• Phone
• Home office
• And many more

You really need to work with a good lawyer and Tax professional to get ot right for you. But you can have the government help pay for many things you do now but pay for in after tax dollars.

And to add insult to injury, as an employee you pay 7.5% into FICA for Social Security. This is a retirement system that, if you believe all the reports, will be out if business by the time you and I need it.

We need to plan out own retirement.

What if you took some of that money that was going to pay your taxes as an employee (remember the $30,000 from  a previous post?) and directed it toward a retirement plan?

How much more secure could you be in later years of you were investing in yourself through building a solid business AND taking the savings in taxes to put toward that nest egg for your golden years?

Think about where your cash is flowing now. Then think how much more you could get out of your cash flows if you were contributing to the world by owning your own business.

You earn moer money in a lot of ways if you own your own business!

Leave me a coment, please!