Tax Saving Moves to Implement as a Business Owner
Audio Transcription
Business coach Clay Clark is going to break down some tax saving moves that you need to visit with your accountant about at your next planned meeting. Download previous podcast episodes at www.thrivetimeshow.com to learn more.
DEFINITION MAGICIAN – Stoicism – the endurance of pain or hardship without a display of feelings and without complaint.
Consider Converting from an LLC to an S-Corp.
This might help improve your overall self-employment tax situation, because you can be paid a reasonable salary as an S-Corp.
Hiring Your Young Kids
Reason 1 – Teach your kids diligence
Reason 2 – You can write-off more than the average employee
We are answering the questions that you have emailed it to us at info at thrive timeShow.Com. Any questions welling on today is how to save taxes as a business owner all right. So the next the next move. Once you have went, you implemented, move 100, proactive, accountant and bookkeeper. Once you scheduled a regular reoccurring meeting with the proactive accountant or bookkeeper, they might recommend for you to defer income that something to talk to your accountant about whether you should take him come this year or next year. I would highly recommend you take in come whenever it’s coming, but some people recommend to bring it and I am not an accountant, but I would highly recommend you take money as the money is available because I’ve seen it almost every single time. Everybody who defers their income finds that income is not available later secretly I like to take money when it’s not there, nice, it’s a good, it’s like right, and so the contractor’s contract $10,000 for the materials for that job. So the next move, it start a retirement plan, I recommend you go to hood cps.Com today and schedule a meeting or go to one of the business conferences with the accountant because they can help you make a plan. They can help. You set up a 401k and a roth ira, a mutual fund, maybe overfunded, annuity a whole life insurance policy, i, don’t care what you put your money into for the principles of the show for the point of the show. I do care that you do committed to saving at least three to 5% of your gross revenue into some kind of retirement via because eventually you will get older and eventually and eventually you’re going to find that you need money. So we can I just give you per my own life, but yesterday, I’m, going at 5 will change place on my wife, that’s like where we really have are deeper discussions who takes over in there and i. Were there because the idea to take 5 minutes should I go in there and pull in and I’m in the suburban? You know in the silver one. The one off of 71st and yale I go there. That’s where I typically go to the fuk to take five cuz. It takes longer for man, time I used to try to eat some old popcorn and you know maybe think about having a sprite and then looking at the sugar in it and realizing I shouldn’t.
Have it so I’ll put down preen, old, people magazine and I just need coffee and I watch a part of a reality show I used to have like the flip, the home film brother, guys two guys are flip homes that do brothers. Do the property, brothers yeah I watch those guys a lot. I just sit there, and just in that lobby I’m going to get myself I hope this takes a long time. By watching the processes I’m not kidding, I love it and I usually takes it, will go to jiffy lube, sometimes hoping that it takes hours usually takes about 30 minutes. But if I’m with my wife I go to the five minute one over there and the guy says you don’t roll down your window or whatever he tells me drive over here, dropping their turn to the left. Turn the right waving at me. Like he’s near he’s near traffic controller, I’d pick you up there and he says:can you roll down the window? You know I know. He says this because he’s going to put the window when I can understand, sign language app, have a deep mastery of it. So I hit the button window comes down. He says, sir, you know if you could turn off the engine. How many miles to have that thing. I tell what’s 105000 miles in the suburban, he says:okay will be three minute. He starts yelling at some guy. Other people going to be comes back. He says it looks like you need a little bit of this over to that. You know somehow it’s going to be $7,000 whatever you need a new car and we sell him out back. It was an exaggeration. Your blinker fluid was low important yesterday. I think I have like an air filter and a headlight that was out in something else. There’s always something to check engine light was on so he’s doing something off for you, i, said sure so. He says we need to chill turn off your whatever pump the brakes 3 times and there’s something weird,, but you do to turn off the emergency light and then he tells you he will you’re good to go. I will see you in three thousand miles put the sticker on the window, but there wouldn’t have been some deferred maintenance, and so it cost me about $90 and that cost me the $20 then, where they’re waiting 10 minutes there and they do a great job twice as long because there’s more things to do, my wife turns to me. She looks at me with the with the as long as she can and she says, I want you to know. We have a new $10,000 expense. We need to go ahead and replace the siding on the house on the side that faces west and I said:okay, I never left, but back in the day. This is how that conversation would have been chewed. Look at me and say:hey we have a $10,000, siding, weed, replace and I would look at her. Not take and I would go to business conferences and I would pray pastor today. But if you have a prayer request, if you got a prayer request, I want you to come on down.
If you have a financial issue, are you hurting the telephone that is needing a $10,000 a day after somebody out? There is expecting a miracle and I have got a limited edition once formerly prayed for oral roberts prayer cloth that has the anointing of the oil on it from several years ago and I’m going to give it to one lucky. Member of this church do i, have any money and I would say, I think he’s talking to me and then you turn it down the aisle, but she’s got a bad hip and then you’ll see you tripper, be there somebody out there that has a bad her. Some of that it has a bad hitters I’m expecting a miracle and I know. There’s one miracle in here today and this woman with it with the bad hip she’s just trying to get down to try to get down from the that the balcony be sure to make your way down and she’s got the walker with the tennis balls on it and have a financial breakthrough breakthrough or it’s an injury I’m, not sure what it was. Somebody in here. It’s somebody in this particular church service and maids american I cannot go to the churches were talking to our church. You can’t leave until somebody gets healed right and I’m going i. Think that’s because I have a $10,000 need and I watch that lady I watch I’m coming in, like on the peano you’re, the back in the back of the on the lower level and higher dimensions church i, look up and she’s, making her way down and I’m going she’s going to make a run for it, and if the current patients going to get my boys and the blessing and she’s got in her current trajectory and hobbling she’ll, probably be there in like 90 seconds and so I think to myself. I! Think myself! Well, I have not been saving 3% of my revenue and I have a really nice house by the x80, because I haven’t met with paul hoodie. Yet to defer my savings. I have to not only do I I expect her to be a miracle. There has to be a miracle because I can’t fix my siding, and so she walks by and that’s what I I I hate. You know you do think about things. I didn’t do these things, these thoughts, you think I should shopper. It’s healed, everyone’s cheering hallelujah, there’s a breakthrough, she’s healed, business conferences for everyone!
She no longer has a hip issue. Carlton pearson back of they start singing farther along, we’ll know all about how farther along we’ll know all about it farther along we’ll understand why cuz I didn’t get my blessing today farther along i. Guess I’ll figure out why I got screwed today, I didn’t get my mare didn’t try to when I was tempted and tried I almost shut this lady. That’s why I fought an old lady to wonder what it would be like on the other side mad, but I didn’t get my blessing because I she stole my blessing and I knew that at the time, with my false view of how god work she took the only blessing available that day and if she hadn’t healed, her freaking hip I would have my $10,000. That’s really kind of selfish. She need a new hip, the kind of thought since I was 16, so like 19 trip, I make a lot of money and I’m thinking. Gosh i, don’t understand why I keep getting hit with his unexpected expenses, but I will give you 10 grand if you don’t break my hip, but dude I’m 37. Now this just in I’m almost worried. If there’s not a problem, wait a minute something’s going to happen. To put my realizing like there’s, always going to be something horrible. Unexpected tax bill, always an unexpected expense. I’m going to get ready for life cuz. There will always be something horrible I mean this is a huge huge concert. People have to embrace once you get it. You’ll be you’ll, be fine, I like to put the definition of stoicism on the show notes. You can see it, but still racism is where you embrace the bad things are going to happen and never stop happening. Do you embrace that bad things are going to happen? Will never stop happening. So what you do is you do everything in your power to plan for those bad things? Let me give you another example:the united states we set aside a certain percentage of the taxes that come in to buy what nuclear weapons and do you know why the united states has a massive arsenal of nuclear weapons, and you know why the united states honor, the trump administration, is now going to be increasing. If you watch the state of the union, the state of the union address, you know why they were going to be increasing steve currington, the amount of nuclear weapons that we have not decreasing, because we’re planning for that the future in bed thing and do you know who doesn’t get picked on at the schoolyard, though the united states doesn’t the big boy good boy? Let me tell you what you don’t get picked on if you have a massive military reason, why you have a massive military, so you don’t need to use it. So you going around eating gluten-free, not working out wings, elbow pit people don’t pick on you out of the goodness of their social justice hard. Is it going to happen, man right back on the pound, get huge. Let pipe, carry a concealed weapon classes and work today and then, when you say, go ahead, make my day money for bad things that are going to happen. Shop just fired, i! Think about the last 2 years. You own the business, you have been to business conferences, fire off two or three financial calamities that happened.
They would happen in any business man with the concrete construction and general. There is always expensive equipment. Breaking $800 saw of $7,000 toy machine. We need a new diesel truck. We got to buy a new backhoe, that’s $140,000! All this stuff is breaking all the time she goes out. You got to be able to pay the mechanic. If you can’t get your material equipment guys to the job, you can’t pour concrete to make noise every single day. There’s something going on concrete and maybe the customer didn’t communicate or you didn’t overly communicate, and maybe you have to redo something there’s one we had to leave it. We were real busy and there were a few years back. We were really busy. We were doing the new tennis courts out at lafortune park sub of ours to come in and place and finish the car because we were kind of spread. Then we had too many jobs going right and one of his guys messed up one area and we had to tear out i, was about a $80,000 chunk of concrete, weigh to pay the tear it out and then pay to put it back, and the only thing that’s going to remain constant as a business owner is unexpected expenses. So you have to set aside a set percentage of your gross income and some kind of savings plan to move today, a tax, professional and it might help you with is they may recommend that you convert from an llc limited liability. Corporation to a to an s corp now an s corp is basically a corporation where it would allow you to pay yourself what is considered to be a reasonable salary, but again I see people doing that, crap all the time of the making $200,000 a year as a dentist, they switched over to an s corp another pay themselves 27000 year because they think it’s reasonable. No, it’s not in the irs is going to come. Find you in that is not a fun situation to be in so I would highly recommend that you would reach out to a guy, like paul hood, with hood cpas in to schedule a proactive consultation with a professional tax guru with a cpa certified professional account. Somebody who knows their stuff certified professional account. Any certified proactive account, make sure you find a great cpa. I know I know of no the weather cpa recommend for you than hood cpas. Com I also recommend you focus on increasing the income this year.
And how do you learn to make more money? You have to learn new strategies. You have to implement strategies that you haven’t done in the past. So if you want to spend $100 on learning strategies that can make you millions I would highly recommend that you buy your tickets for the next in person, thrive time show in person business conferences workshop the tickets are being sold right now, february, 16th and 17th is coming fast. We have 12 tickets left, stick get ready to enter the thrive time. Show three to one question was asked by a thriver how to save taxes as a business owner has a recap of the moves. One you want to hire a proactive account and our bookkeeper i, don’t know what you do for a living mr. Stryver who emailed us, but let’s say that you are my good friend and joel. David and I know that joel david, joel david did not say you’re. My good friend alex eiser, with the phone doctors two clients. So yesterday, I talked to both of those men. I, don’t know if you guys are aware of this, but the phone doctors currently is giving away free battery for anybody. Who’s iphone has been slow down as a result of the apple update, sets a real thing, and so yesterday I talked to channel 2 I talk to in 06 I talk to you late i, talk to 23 I talk to I left a voicemail to tulsa world I talk to at night i. Did that because then meet the people in tulsa can’t get over the fact then get the free iphone batteries, and so it’s a really took its a cool deal. Well, i, don’t know what kind of battery he’s giving away and I don’t understand how lithium batteries, work and I really don’t understand how smartphones work, but you know what I do know:i know how to market a business.
My core business is not phones, I talked to joel david. Yesterday he was looking to hire somebody to expand his vast jewelry empire there with his two locations of jay, david, jewelry and i, was talking to him yesterday about hiring people, but my core business is not jewelry. So if you are listen to show today in your court, business is not tax and accounting. You got to hire someone who specializes on that are so many things that alex eiser and his team at phone doctors know about phones that I don’t know it was hilarious for the person I talk to at the news desk at channel. To my call was this I said:hey, he said. There’s a news desk and I said:hey. Are you guys up against a deadline to go see? What’s up and I said? Well, my partner is giving away and iphone a battery for anybody. Who’s phones have been slow down as a result of the new iphone upgrade and he said you’re giving away a phone for everybody or iphone battery for everybody, like thousands of people as the other got more than 10 locations in reasor’s on the phone doctor. Anybody right now I think it’s until the end of february. If you want to get a free, iphone battery, you just go to phone, doctors you’ll get it and he goes oh. What kind of batteries? That’s where my knowledge stops and I Said:i’ll just send you the press release and then I’m going to alex’s phone number.
So you can call him and ask him any questions are out there. I tried it on taxes perform your own oral surgery. You shouldn’t perform your own phone repair. If you don’t know what you’re doing you shouldn’t go out there to israel and go start getting into israel and start getting on it and a peck max and start trying to find your own diamonds, you should probably hire a professional who knows their crap. That’s why I recommend, step 100, proactive, accountant and I would recommend hood cpas. Com schedule. A regular recurring meeting with the accountant 3 make sure that you meet with an accountant in figure out your strategy. So maybe you want to defer income? Maybe you don’t, for you want to start a retirement plan. I highly recommend every listen to every single human would save at least three to 5% of your gross income into a savings vehicle of some kind. So you can have a bad day, not a bad life know. The next is that recommend that I can never talk about tax strategies and moves I’d recommend you might talk to your accountant to see whether a being offering an llc or s-corp is better for you. I am not telling you to listen over the broad brush, hey listener. Everybody should switch to an s corp. That’s not what I’m saying I’m saying that you should talk to a professional accountant, tax justin say given the current laws, the lay-of-the-land. My current situation should I convert from an llc, a limited liability corporation to a subchapter s corporation and s corp should I do that or maybe in some cases. Maybe you should be a c, corp or c corp. All I’m saying is you need to talk to an account and ask him:should I convert from an llc to an s corp? The final move I want it. I want to do well on during this segment is potentially hiring in your kids and I would recommend you how your kids, for a variety of reasons but I’m, going to go ahead and fire them off your porch and then chap I’d like for you to go and put these on, that the show no tears. Okay, so bring one. Is you can teach your kids diligence? So when your kids see you go to work everyday and you’re a hard worker? What better way to instill a work ethic and your kids then buy them coming to work with you can teach him a work ethic to you can write off more money that you pay them, that you could the average employee.
So if it’s menial work, if you’re going to have your kids do about $6,000 of work. Unless for you-and it’s like you, know, printing something or doing some mailers or stapling or something needs to be done, but you know you can’t justify paying somebody. You can’t justify taking a $40,000 your employee and telling them to clean your bathroom, see how every email you want to write but I’m in the bathroom. Process mortgages right and they’re busy, and they can’t keep up with the current volume of mortgages that you have a total lending concepts. It would not make sense to have them. Take your eye off the ball, so to speak, their eye off of the tv pipeline of loans and to focus their entire day and clean bathroom, and that’s why hiring your kids is a good movie. That’s what those are my reasons for doing since I want to get your take on this side, jump jump! You work with your dad he’s a hard worker. That’s how to describe if you can describe the work ethic that he brought to work everyday, how many hours a week? Did the man work? What time did he get up about working? What what it was like to see your father work? Okay, so doing concrete work in oklahoma there’s different times a year in different seasons, and so during the hot parts of the year we would. He would be up at midnight to prepare for the day’s work and I’m going to bed at 9 p.M. So every day was early day between midnight and 3 he’s up every morning watching the weather cuz. That’s a super important part making it to do list every day.
Every single day make it to do list every single the end and he was gone before I got up and he would arrive home after I was home from school. I had all of the equipment and tools everything you had to unload, get everything ready for the next day. Then he would come inside, eat dinner with us and then I remember as a kid every night, he would have plans no actual plans that you bid projects off of laid out in the living room floor, estimating jobs, so my entire childhood he was never literally, never not working. It was just nonstop understand this. If you are listen to show today and you enjoy working a lot you’ll like this, if you don’t enjoy working a lot you won’t don’t point of this show is that we want to help you create time. Freedom and financial freedom the freedom to do whatever you want and if what you want to do is work that you can do that so I’m. Just going to give you example of myself here, I have interviewed countless millionaires on camera, and you can see the videos at thrive time should I come with. Thousands of videos. Recently recently released a interview. We did an audio interview with michael levine, the pr consulting for michael jackson for nike for pizza hut, all the all the Stars:i’ve interviewed lee cockrell, the guy who managed walt, disney, world, resorts, david, robinson, nba, hall of famer, here’s the thing robert zoellner doctors and every single person that I have interviewed every successful person, jersey or anybody else, the very foundation 11 they have had an intense maniacal work ethic that has allowed them to create the time for you and so some of them once they get a cheap time for them to decided to not work as much or work at all.
Some of them have decided to take their time for him into work. More I am more of the second camp I enjoy working and I have to be told when to stop because I just love it and i, don’t understand not working cuz I enjoy it. Some people need to be told to you, don’t get to work at get going, but I teaching your kids a work ethic will serve them well in any endeavor. You want to teach your kids a powerful work ethic. One great way to do it is to hire the kids, but that were talking today about minimizing your taxes as a business owner. You also before you can even look it up tax if you have to learn how to make money, so you don’t learn how to increase your sales and prove your branding. Your marketing I would encourage you to go to thrive time show.Com today and to book your tickets for our next in-person business conferences, february, 16th and 17th. The tickets are going fast. Currently we have 12 tickets left by our business conferences tickets today at thrivetimeshow.Com
