Quote: (04-26-2015 02:55 AM)loki Wrote:
the following comment is tax and structure related so if you have no interest in these topics , don't read any further.
Like a few others on here I am self employed, well I work for a company but I own 100% of the company equity. The last few years have been very good to me for a number of reasons that are too long to go into in this thread but what I do what to share with you all is even though my business is now generating big numbers i still pay myself jack shit on paper although I am not going to quote a number because it does not matter.
What does matter is how I do it and still live a very comfortable life.
Essentially I pay myself exactly what I need to live and no more, that way I only pay tax on exactly what I need to live and even then I take it as loans over the given year, then convert it to director fees and dividends at the and of the financial year. This has big tax implications.
This strategy enables me to dramatically lower my tax rate as well as keep capitol pumping back into the business where its always working for me, at all times every mother fucking day of the week. Getting your money to wok for you instead of you working for your money is one of the keys to building wealth, real wealth!
Any time I need to fly somewhere, I always get at least a few meetings into the trip, no matter the country making it a business trip (pre tax dollars). Phone and net, supplied by work. Car, that's works too, fuel the company pays along with service etc... Rent on 2 of my 3 leases are classified as legit running costs and 20% of the other one is deductible off my own income tax rates because I do a bit of work from home. Electricity for my home even gets claimed at 20%, all of which adds up.
Its really nice to earn 6 figures plus but its stupid if you give a lot of it away in taxes so please do make an effort to get hooked up with an awesome legal and accounting team so they can protect you and your interests.
Minimise your exposure guys, please!
Trust me when I say " its worth every cent you pay the experts if they are good"
Hope this helps.
Good advice, I just had to pay about 25k in taxes, was an idiot and didn't pay my estimated taxes so it all caught up with me at the end of the year. This year however I changed the structure of my business. I'm an LLC but am taxed as an Scorp. This allows me to pay myself a "reasonable salary" and the rest I can take out in dividends at a lower tax rate and don't have to pay all that fica and medicare bullshit and whatever else. I think last year I wound up paying 38% taxes on like 2/3 of my income.