3 High-Income Earner Tax Strategies For Business Owners
Every year, Wealth Factory works with hundreds of business owners and in that time we’ve noticed that there are a handful of high-income earner tax strategies that pretty much everybody misses, especially in the first few years of business ownership. We are going to reveal 3 hidden high-income earner tax strategies for you, but there are at least 5 that you’re going to want to look into, so be sure to watch the episode to learn all 5 high-income earners’ tax strategies.
So what are these high-income earner tax strategies that almost everybody misses?
Well, they’re not that complicated, and they’re fairly common. One of the first ones being missed or underutilized is entity selection. There are a handful of different entities out there that a business can choose from that will dramatically affect how that business is taxed. The most common tax entity structuring that we see is a C Corp, an S corp, an LLC, and a sole proprietorship. They all get taxed a little differently, and they all have different repercussions. Most businesses that are currently taxed as LLCs, are probably overpaying in payroll taxes, and this is discussed in more detail in the episode.
The second high-income earner tax strategy that is often overlooked is for business owners who have kids. Did you know that when your kids get involved with helping your business, you can pay them up to 13K a year which is completely tax-free? Even if your kids are too young to be employed by your company, you can still include them in the marketing and advertising of your business through photos and videos. A lot of business owners we work with who have outgoing little ones that don’t mind hamming it up for the camera are now using this tax strategy to keep more money in their family and pay less money to the IRS.
The third tax strategy for you to discuss with your tax professional or with one of our Wealth Architects is called The Augusta Rule which states that a business owner can rent out their own property income-tax-free for up to 14 days a year to be used as a venue for business events and meetings. This means that instead of paying a third party for an event venue, you can use your own home, and pay yourself tax-free. Another benefit to using your own home as a venue is that it can bring your team closer together by breaking down barriers of unnecessary formality.
At the end of the episode, there’s an exclusive link for a private consultation that will provide you with more specialized tax-saving insights, so please don’t miss out on that!
Throughout the next year of growing a business, we want people to know exactly what savings are available to them so they can reinvest into their business and reinvest into cash-flowing assets that accelerate them towards economic independence.
