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