Starting a New Business.
Starting a New Business.
Have you gotten your tax statements from you employer, to file by April 15th?
Did it remind you of how much income you aren’t making? Or the financial goals you haven’t achieved yet?
Did you know that …
—Starting a new business gives you tax advantages that otherwise you’d miss out on?
–So you’ll KEEP more of what you earn??
Question: ”What if my wife and I want to start up a network marketing distributorship. Should we start off as a partnership or a corporation?”
Which business entity is best?
Response: This is a great question which can significantly affect couples looking into starting a new business or starting a home business.
Sandy Botkin, C.PA. and Tax Attorney, and former IRS Attorney, who assists independent contractors and home based business entrepreneurs, recommends starting a new business or “starting a home business as a sole proprietor and paying your spouse a small wage for their work.
If you form a partnership, each of you will be deemed to earn half of the income. If you don’t make much money, this isn’t a problem.
If you do well, each of you will pay up to 15.3% next year on earnings up to $113,700, and an additional 2.9-3.8% Medicare surcharge above $113,700.
If you are a sole proprietorship, only one of you gets hit with this social security and Medicare Surcharge, although the wage will be subject to social security taxes,” which is why Mr. Botkin recommends a small wage.
“By hiring your spouse and paying minimum wage, you can benefit with a self-insured medical plan that is tax-free.
Another suggestion, though not all companies allow this, would be for you to consider making your spouse part of your business downline. You would have to check with the compliance department in your company. You will both pay social security,” Botkin suggests.
Resource materials to check out at your library or purchase at your local bookstore regarding starting a new business, starting a home business, business taxes, or owning your own corporation are:
- “Lower Your Taxes:Big Time” by Sandy Botkin
- “Achieve Financial Freedom:Big Time.” Botkin
- “Tax Strategies for Business Professionals” (video from Botkin’s tax reduction website)
- “Own Your Own Corporation” Garrett Sutton, Esq. of RichDadPoorDad Series
Here are your action steps right now …
1) Figure out what Uncle Sam owes you …
(The average American receives approximately $3,000 each year back in a ‘refund’ which is actually an overpayment in taxes. This overpayment could have been useful in paying your bills as they occurred.)
2) Use that cash to start your own business…
3) And then NEXT year … after you’ve INCREASED your income substantially … you’ll be SO happy to PAY your fair share of taxes from starting a new business or starting a home business …
… and you’ll wonder why you lived stressed out for so long!! 🙂
If you enjoyed this special blog post about “Starting a New Business” please comment, Google+ and share.
Here’s To Starting a New Business!
About The Author: Doris Hullett, Instructor turned Consultant who trains in business and marketing, fully embracing the power of business relationships.
Typically what I do with people interested in learning about starting a home business, making income, and keeping their options open is give them information, to help them, and become successful. So anyways, let’s get started here and now …
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