Taxes, ugh! Tax planning makes most of our minds go numb. And paying taxes, well let’s not talk about that. Or maybe we should? Just for a minute, because I actually have some good news for you. No I’m not kidding! Read on…
Here’s the part you know:
Employee’s W2’s and 1099’s should have been mailed to you buy now. People are being hit hard with the reality of how large a portion of their earnings are going to income and other taxes.
Here’s something you may not realize (no pun intended):
The average American works until May 5th just to pay their taxes. And many Americans have little or no savings or investments for retirement.
And here’s why I’ve brought up this uncomfortable topic at all:
Enter the savvy person who joins a network marketing business, or starts any home-based business this year. As a home based business owner, many of the things you are paying for now, become legitimate tax deductions.
Things like:
- Your computer
- Your Internet connection
- Your long distance and cell phone service
- A percentage of your rent or mortgage
- The initial investment or the start-up costs you pay to become associated with your preferred MLM / network marketing opportunity, or other business venture
- Your vacations when combined with the appropriate amount of business
This concept is known as “redirecting expenses”. So why aren’t more Americans aware of this and starting more home businesses? Robert Kiyosaki best selling author of ‘Rich Dad Poor Dad’ answer to that is we were not taught to do so. We were taught to get good grades, graduate and get a job, work hard and be rewarded by our employer. Ah, the good ole days! Life is asking more from us today.
According to Robert Kiyosaki, the author of ‘Rich Dad Poor Dad’ , “You would be brain dead not to start a home-based business.”
I agree to a point. Lots of people with perfectly healthy brains just don’t know what they don’t know. So I’d say, “You’d have to be brain dead ‘if you know the potential tax benefits’ and then choose not to start a home-based business.”
Robert Kiyosaki goes on to say:
- You will never get rich until you learn to get your taxes down to the legal minimum
- There are 2 tax systems in this country – one for salaried employees, and one for small/home business owners
- A home business will make you better off than a second income
- Traditional job security has declined over the years and will continue to do so, making home businesses more attractive
- You will probably save $2000 to $10,000 per year by starting your own part-time home business
Another thing you may want to look into is setting up an LLC to get more tax deductions and protect your assets. Many Vemma members set up their entity in an LLC and have Vemma pay the LLC for tax and assett protection. Below is the Vemma form that allows you to change your entity to an LLC.
The benefits to setting up an LLC are:
- A Limited Liability Company (LLC) protects your assets like a corporation, but without the burden of corporate maintenance.That’s why it’s becoming the most popular way to start a business.
- With a LLC, you can elect to be taxed as a corporation, or avoid “double taxation” by choosing to be a “pass-through” entity. LegalZoom can form your LLC in 3 simple steps for as little as $139.
Setting up an LLC is very easy to do to. You can set one up yourself by talking to your CPA or attorney. Or, you can save over $1,000 by going to LegalZoom and they will charge as little as $139 to set up an LLC for you.
Vemma dba form: Download dba.pdf
