APP 057 New Business Top 7 Questions and the Secret 3 Success factors
How do I pay less tax? Should I be an LLC or S-Corp? What is deductible?
All of the above are a few of the most commonly asked questions and we are going to do the most common questions business owners and startup entrepreneurs ask when they hire us to do the basics like bookkeeping and taxes. Once those are nailed down we get to advisory.
Secret 3 Success factors? Listen on.
Welcome – John Gillingham here from AccountingPlay.com where you will find our master’s course Know Your Numbers and hey – be a client of ours at GillinghamCPA.com.
Today – is a big day. I visited a client at the Google campus and he recommended recording this for You Tube as well. Let’s do it. Find the You Tube channel and always… let us know what you think. Email John at AccountingPlay.com.
Disclaimer
Get some real paid advice. This is educational only.
The top 10!
How do I pay less tax?Once I was told a two-word plan to pay less tax. That’s right – all cash. Accepting cash and alternative forms of payment is the first step to tax prison. Of course if there was such a thing many a politician would be there today.
Most who ask this question generally are not making much – so – let’s not let taxes change how hard we work and when we sell stock. Sell stock when you think it is a good idea, actually make money, and then retain the profit.
Boring! I know. All to often small business owners are obsessed with paying less tax so they spend their profits. No tax! No money left. Questionable purchases. Not recommended.
Once over 100K I would recommend an entity such as an S-corp to possibly save on payroll tax. Retirement plans such as a SEP IRA and solo 401K can do wonders to defer taxes to the future where you are retired – or simply taking a break to sail around the world.
Deduct it. Small business is difficult. Make sure you are aggressively taking your deductions on anything ordinary and necessary. Home office. Amazon business purchases. All meals where business is discussed. All business mileage outside of an a to b commute. Deduct now and fight later with receipts. Small business is the backbone of Merica’ and better be taking your fair share of deductions you deserve.
Should I be an LLC or S-Corp?Consider… the state, cost, income, or evene an LLC to S-Corp switch.
What is deductible?Ordinary and necessary. Everything.
How and when do I pay taxes?Online preferred and see if you have an exception as to when tax is due.
How do I track my expenses?Excel… or better QBO or equivalent
What are tips to do things right?Separate bank accounts and plan now.
How much tax will I owe?Likely more than you think. Get a budget for tax, retirement aka strategic accounts, budget to pay a pro, and finally the fun things in life.
Secret 3 Success factors?
Time * Money * Energy
Thanks. Let us know how we did john at accountingplay.com - checkout the site master course Know Your Numbers and grow that business for a rich life.
J
