Here's the only stack you need to scale your business to 5MM - Starting up - what you need to start..

1. An LLC -

Nothing magical about an LLC - you don't get more deductions, you don't pay zero tax.

But if you are going to scale a business, you're going to need one.

Set one up quickly through stripe atlas or @BetterLegal

The most painful conversation I have with prospect clients -

"If we had talked last November, you would have saved $50k

But here we are in February..."

There is way more to tax planning than just buying a G-Wagon December 31.

Here are 5 year-end tax saving strategies: 1. Entity Structure -

So many folks use the wrong entity type and it costs them thousands.

Recent new client making $400k/year as a solo consultant.

No entity. No planning.

We restructured and are saving $32k annually.

FOREVER.

It’s not what you make - it’s what you get to keep.

I have helped thousands of entrepreneurs save hundreds of millions in tax.

A framework for tax planning: Rule #1 - never run out of cash
Rule #2 - never stop compounding

Tax planning accomplishes these objectives, allowing you to take more home.

Tax planning employs three primary mechanisms

1. AVOID
2. DEFER
3. MINIMIZE

The number one question I get as a CPA from business owners:

Should I open up an LLC?

Choosing the right business entity costs a bit, but can save you millions over the life of your business.

Let's dig in: This thread will mostly center around tax structuring and planning for Federal Income Taxes.

One thing to understand in selecting an entity type - It's complicated.

There are different issues in all 50 states, and loads of legal considerations.

Seek qualified counsel!

Owning a small business is the best tax deal in America.

Whether it's a $10K side hustle or $10MM business, earning business income opens up amazing opportunities for tax savings and wealth creation.

Let’s walk through how it works: One of the best parts of owning a small business is the tax write offs and deferral opportunities that open up for you.

You can effectively earn less, but come out ahead through tax savings.

Here are a few 'tax levers' that we consider for every @betterbkg client:

18 months ago, my business was stuck.

Revenue was flat because we couldn’t find great talent to meet demand.

Since then we have hired over 50 people in our portfolio companies and doubled our revenue.

All with just one shift in my hiring approach.

Steal my hiring blueprint: I thought recruiting was slap dash putting a job description together, posting something on LinkedIn, tweeting it, and praying that the hiring Gods would shine down on me.

That wasn’t going to happen, and so through trial, error, money and pain I developed this hiring system.

It’s not what you earn, it’s what you get to keep.

Whether it's a $10K side hustle or $10MM business, earning business income opens up amazing opportunities for tax savings and wealth creation.

My 10 favorite tax hacks for business owners: 1 - QBI optimization

QBI is a 20% deduction for business owners!

High earners save tens of thousands getting this right.

The qualified business income is limited by wages - you have to optimize salaries to optimize the deduction.

A fundamental tax concept that many people never quite catch that can cost millions in your life (and death).

The principle of having a LIFETIME EFFECTIVE TAX RATE

LETR - total tax you pay in your life / total income you make in your life

Time to think big - 1/n Scenario - Person A works most of their life and ends up with a substantial net worth.

Timeline:

1. Grow up
2. Go off to college
3. Work your first job
4. Go to biz school
5. Back to work
6. Start a family
7. Start making good money
8. Make great money
9. Retire
10. Turn 72

After advising hundreds of multi-millionaires, there's one thing they all have in common...

They don't only think in terms of Return on Investment, but also consider RETURN ON HASSLE.

Let's walk through a simpler path to growing wealth: https://t.co/LrMfWJUE5ptwitter.com/i/web/status/1…
Let's start by defining the term - Return on Hassle (ROH)
--
The amount of money you will save or earn

divided by

The time, money, and brain damage it takes to get there

As your net worth and tax burden grow, you can spend more on the denominator to drive the numerator

Owning a small business is the best tax deal in America.

Whether it's a $10K side hustle or $10MM business, earning business income opens up amazing opportunities for tax savings and wealth creation.

Let’s walk through how it works: One of the best parts of owning a small business is the tax write offs and deferral opportunities that open up for you.

You can effectively earn less, but come out ahead through tax savings.

Here are a few 'tax levers' that we consider for ever client of @betterbkg:

Last September I sent my buddy a 6 minute video about implementing good/better/best pricing in his service business.

Since then he has doubled his revenue through the same customer set, and has made 80k/month the last 3 months.

Some thoughts on his massive growth: Businesses implement this good/better/best model because it works.

As consumers we see it everywhere.

Making a lot of money is great, but keeping it is even better!

Here are 5 strategies my small business clients use to take advantage of the US tax code: I commonly see folks walk in to my office with no tax mitigation plan at all.

As a tax strategist, I know we can completely change the way they think about taxes, and save them a bunch of dough.

That's exactly what we did with Heather.

It's not how much money you make - It's how much you get to keep.

As we reach the end of the year, there are several things you can still do to lower your tax liability.

This is the how and why of what to do before January 1-A thread 🧵 1. Charitable giving -

You probably know that if you itemize your deductions, you can deduct your donations to charitable causes. You can give all the way up to the end of the year.

What you may not know is that you can give Apprecaited stock, or give to a Donor Advised Fund.

There's an old saying,

"Money can be made in bull markets, but fortunes are made in bear markets."

Buying the right asset once in your life can make you a multi-millionaire.

As prices adjust, here are 7 strategies you can use to create a win/win and get the deal. /🧵 "Name your price, I'll set the terms"

This concept is the foundational for the next 7 ideas.

Price is the main obstacle - find a price that they feel great selling for, and find terms that will allow you to make a fortune.

It’s not what you earn, it’s what you get to keep.

My 10 favorite tax hacks for business owners: 1 - Donor Advised Funds

Give appreciated stock to charity or a fund instead of cash.

You get a double dip - a deduction for the full value of the stock while never recognizing the gain.

If you love the stock buy it back with a higher basis.

The #1 rule of business - don't run out of money.

Having a working capital cycle that works for you can help you win the game.

Let me tell you a story..👇🏼 Let's talk about Andy - Andy owns a IT firm and has 5 employees.

He does 1.3 Million in revenue each year and nets 380k before taxes. He makes a great living, and his business is growing, but there is one problem.

He never has any money. His bank lines are maxed out.

The number one question I get as a CPA:

Should I open up an LLC?

Choosing the right business entity costs a bit, but can save you millions over the life of your business.

Time for a thread 👇🏼 This thread will mostly center around tax structuring and planning for Federal Income Taxes.

One thing to understand in selecting an entity type - It's complicated.

There are different issues in all 50 states, and loads of legal considerations.

Seek qualified counsel!

Over the last two years US business owners have received over a TRILLION dollars of economic relief.

Most of these programs have ended, but affected employers still have access to one that can pay thousands to millions.

The Employee Retention Tax Credit (ERTC)

Thread 👇🏼 The ERTC lives up to its name as a dollar for dollar credit against payroll taxes paid.

It is a pure credit, where the PPP and EIDL are loans that must be forgiven or repaid.

The credit was designed to reward businesses that, you guessed it, retained employees..

It’s not what you make - it’s what you get to keep.

I have helped thousands of entrepreneurs save hundreds of millions in tax.

A framework for tax planning: Rule #1 - never run out of cash
Rule #2 - never stop compounding

Tax planning accomplishes these objectives, allowing you to take more home.

Tax planning employs three primary mechanisms

1. AVOID
2. DEFER
3. MINIMIZE

One of the most under-utilized tax breaks for high income earners:

Donating appreciated assets.

Whether it be stocks, crypto or even collectibles, donating, rather than selling these assets is a true win-win-win.

Time for a thread 🧵👇🏻 Why is donating appreciated assets so great?

It accomplishes 3 things at once.

1. You get to give to charity. Good for you.

2. You get a deduction for the the Fair Market Value of the assets.

3. You get an exemption from the tax you would have paid on the growth!!

Planning Checklist:

- life insurance
- long term disability
- umbrella
- correct liability limits on property & casualty policies
- named beneficiaries on qualified accounts and policies
- a written will
- powers of attorney
- medical directives
- named guardians for kids Life insurance - Term insurance is inexpensive for young people. You hope to never need it but you just might.