So your #1 biggest problem that’s holding you back from creating ultimate wealth is Overpaying Taxes. And you’re not alone - according to Forbes, 93% of business owners overpay in taxes each year, regardless of whether they used a CPA or not.
The reality is there are essentially two tax systems in the United States: one for employees and one for business owners. And the easiest way to understand the difference is that Companies Make Money and Individuals Get Taxed.
So your first step is to make sure the majority of your money is not coming to you personally through a W-2 paycheck or as a sole proprietor.
In other words, Get Incorporated ASAP if you’re not already. But getting incorporated is just step one. Chances are, even if have a corporation it doesn’t mean you’re using it as well as you could.
Most business owners, as Forbes found, even if they are incorporated still pay entirely too much money in taxes each year. Typically this is because they don’t have a solid tax and entity strategy and while also blindly following their CPA’s not-so-great advice.
Not having a sound Tax Strategy is a major roadblock that will prevent you from creating the kind of wealth you aspire to. Think of all the hard work you put into your business - all the late nights and difficult clients. All the marketing campaigns you’ve had to figure out. The stress you’ve endured and the risks you’ve taken to make money in business… only to take it and hand it over, unnecessarily, to the government!
If you were to see exactly how much you’ve overpaid to the government over the years it would make you sick to your stomach! But it’s also a great wake up call and will hopefully motivate you to adopt a better tax strategy so you can keep more of your hard-earned money.
This is especially true if you live in America. With the new 2018 Tax Reform there are now over 80,000 pages of tax code available to U.S. business owners. However, most CPAs and accountants only work with about 13 pages of the code!
This means you’re missing out on the vast majority of tax deductions and Tax Savings Options you’re legally entitled to.
Many people shy away from this conversation out of an unfounded fear that they’ll be engaging in some sort of tax evasion which will cause them to get fined or go to jail. However, we’re talking about using every single legal option to lower your tax bill.
Yes, it’s about doing it “by the book” but it’s also about knowing what the book (80,000-page tax code) says is rightfully yours.
HOW TO STOP OVERPAYING TAXES
Imagine waking up one year from now, opening your computer and looking at your new Cash Flow Dashboard. You see there’s more than enough to not only pay all your expenses, but also to invest in your Wealth Account, which you use to buy income-producing assets.
As you review your finances it hits you that you’re no longer stressed about money. Your monthly income is double what it was just 12 months ago and you now know what it’s like to live in abundance instead of lack. You’re enjoying the lifestyle you dreamed of and you feel gratitude well up in your heart as you celebrate how much progress you’ve made in such short time.
So, if you’re not incorporated yet (LLC, S-Corp, C-Corp, etc.) then your first step is to incorporate (and operating as a sole proprietor doesn’t count)!
Incorporating is just the first step. Most business owners we work with are already incorporated but are still overpaying in taxes. That’s because they still think and operate like an employee instead of a corporation. Sure, they may write off the basics but they still overpay thousands of dollars in taxes each year.
Most business owners who overpay in taxes have a CPA who they hope will save them money. But remember, there’s over 80,000 pages of tax code and your CPA likely only uses less than 20 pages. They will only do the bare minimum -- they’re not focused on helping you create the kind of generational wealth you aspire to.
After you review your cash flow you make your daily to-do list, which is much simpler than it was when you were living paycheck to paycheck. You’re also working far fewer hours and are able to spend more time with those you love. In short, life is good and you’re finally winning at the Wealth Building Game!
If you want to turn this dream into a reality, and fix your Stunted Cash Flow problem, then the first step is to start a business, if you haven’t already. This doesn’t mean you have to quit your job right now but you do need to start a side business so you can free yourself from the fixed income of a job.
For those of you who already have a business you know that just “being a business owner” does not solve your cash flow problems… in fact it can quickly complicate them if you’re doing it on your own without the help of a successful mentor.
Your next step is to join my mastermind!
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