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: Read the rest of this entry »

Yesterday I talked about some tax implications of owning your own business. Let’s talk a little more about that.

But first a reminder: I am not a tax or legal professional and am not qualified to give advice on these subjects. I just know I have worked with my professionals and they have guided me well.

I STRONGLY encourage you to enlist the services of a competent CPA and attorney when launching and running your business. The cost of their services can reduce your taxable income because they are expenses too!

Having gotten the legal disclaimers out of the way…

Let’s talk about things things you are already paying for, with AFTER TAX dollars. Read the rest of this entry »

I believe in every citizen supporting the country by paying their fair share of taxes. You will always have to pay taxes. The alternative is paying severe penalties. Think Al Capone. Think prison.

But, the US government created a tax code that encourages growth. It encourages people to live the American dream. The American dream is to have your own business. And if you understand that tax code, you will understand how the government is telling you to start a business.

The more real and value added businesses we have in this country, the more it adds to the bottom line of our economy. I believe that we can save our economy is we can get enough of us to start a value added small business. Small business is the back bone of our country and, I believe, its salvation.

If we can start a business, a real business, it moves money through the system. It stimulates the financial systems. And that is a good thing.

The US government really has two tax systems; employee and business. Read the rest of this entry »