Are you building an online business? Do you make profit online?
Want to keep more profit and pay less tax? Legally of course? Then read on… .
Don’t get me wrong, I am not advocating tax evasion, you must pay tax. But no one wants to pay more tax than they should. However, there are legal ways – used by the rich and wealthy – that allow you to avoid taxes that you can implement in your business TODAY!
I am currently building my business through Partnership 2 Success with John Thornhill, and the results achieved by his students are incredible! Some earning 6 figures plus a year! So I wanted to write about how I could help them keep more profit and pay the minimum amount of tax.
I was reading one of my favourite books of all time – Rich Dad, Poor Dad, by Robert T. Kiyosaki. You can no doubt find it online cheaply if you want a read, but one of the key lessons of the rich is about how to avoid paying tax. If you have a business, but are not set up correctly, you will be paying more tax than you should!
Now, I am no tax consultant, so before implementing anything ensure you take professional advice. I have however set-up 4 of my own businesses so do have experience in this area.
And setting-up as a business to me means setting up a Limited Company or being incorporated.
Now you may consider yourself self-employed, and that’s fine, to begin with. But as soon as you start to grow, make profit and have customers I recommend you incorporate. It is a straightforward process and offers you some amazing benefits – and protections! Have you considered:
Losing your house? You could if you are not incorporated!
Protecting your brand and company name, including reputation.
But the main one I am writing about today is ££££££ CASH, MONEY.
It’s not how much you make, but how much you keep!
As a limited company you can legally pay less tax. Your remuneration structure changes and you pay less in income tax and less in National Insurance – two of the biggest deductions.
On top of that, this is how your cashflow works:
Deduct company expenses
Pay small(er) tax.
Compare that to the employed folks, where they earn, pay tax off the top-line (& therefore higher amounts), and then try and live on with what is left.
This is the biggest advantage – you can deduct all your expenses, your phone, home office, the laptop you use, etc. all deducted before you pay any tax! Winner! Therefore, as you build your business, please make sure you are set up to keep as much profit as you legally can. This isn’t digital marketing for dummies – you can read about that here – but you should think about how you structure your business from the start.
This does not constitute financial advice.
If you have any questions, or want more advice on what to do next, please email me or comment below.
John has helped me so much in building my business, and if you want to be part of his success programme, please view his free webinar via this link here.