In my years as a tax expert I have come across a bizarre idea from time to time.
I talk to self-employed individuals who have felt that their only way to save money on taxes is to spend all their hard-earned money near the end of the year.
The myth that rears its ugly head again from time to time is that if you increase expenses in December you can reduce your tax liability!
I guess the “wisdom” behind this is the linear logic of reducing tax by reducing net income, which doing a big year-end blowout spend WOULD do, in theory.
You realize that you made a decent amount of money this year.
You are dreading the idea of having to pay more in taxes.
You have probably googled ways to save money on taxes
Or even just messaged some of your other friends in business.
There is a lot of different advice around this and you might be subject to some of the BAD kind of advice.
I have good news, and some of the GOOD kind of advice.
You can actually save money and NOT pay tons of taxes by just becoming an S Corp
You take a reasonable salary, and pay a reasonable amount toward social security and Medicare.
Then the SE tax goes away, gone, for good!
Here are the steps you can take:
If you’re not already a limited liability company, do that. It’s relatively cheap in most states, and protects your personal assets anyway.
With or without outside help fill out the form to apply to be taxed as an S Corporation
In (hopefully) 8 weeks or less you receive a “GOOD” letter from the IRS, the kind you like.
You will be treated as an S Corporation effective… followed by the date!
Just like magic it is all fixed.
Now if you want help doing this I have amazing news!
This is my specialty, and I LOVE saving people money on their income taxes legitimately.
Now you can try to do this yourself, but why in the name of all that’s holy would you want to?
Isn’t what you do to make that money you’re trying to save important enough to focus on that?
Let an expert that specializes in this sort of thing join your wealth-building team.
If you are ready to STOP paying the Self Employment taxes in 2020…
~~ Schedule Time With Me ~~