How Are Entrepreneurs Affected By Taxes And Subsidies

How are entrepreneurs affected by taxes and subsidies? Let's get right into it. First of all, as an entrepreneur, what's the landscaping of how you're taxed? Number two, how do you legally lower your tax bill as an entrepreneur? We have so many ways. There's actually 81,000 pages of ways to lower your tax bill, including how you invest when you have the extra money back because you're not overpaying taxes. I call taxes your invisible pain because most of you don't even know that you're overpaying. 10,000 in overpaid taxes per year for 20 years is $1.1 million. That could be in your account, but you gave it to the IRS because you're not paying attention. This is a lean in and learn topic today. Then the last one, the biggest mistakes that most people make as an entrepreneur, and we're going to get right to it. First of all, you have to live what I call corporate life, meaning the way you make your money is inside of a company. In America, they're called LLCs, S-corps, C-corps, limited partnerships, all held in trust, so you avoid probate. It's a very clear structure to how you live and how you make money. If you make money, you personally, then there's no ability to write off your phone, your car, your home office. You personally have less than, as a sole proprietor, what, 13 to 30 deductions, so why stay there when for a little bit of money and time and doing it right and protection, really, you could set up a company. We have specialists that do that. You can call our office at any time, say, I want to talk to somebody about a gap analysis. I want to talk about where I am, what I want, and then part of our plan, one of the components is getting you incorporated properly, and then followed by a tax strategist that forecasts you forward, so let's go there. Most of you don't use enough of the tax code. You don't write deductions. You don't have contracts on officer and director benefits. I have a wardrobe whole resolution. I have vehicle resolutions. I have a housing allowance. So many of you just do what I call the H&R block, check a few boxes, okay, I got some deductions. We're trying to use all of it. So, for example, I, Laura Langmuir, don't own a phone. I don't have a vehicle. I don't own a lot. I don't own hardly anything. I am controlling companies that make all the money, but because I have the companies, they're allowed legal deductions that are all documented. It's called corporate compliance, so we do that as well. So all of that is a way that we get set to be an entrepreneur. I believe when you're 18, if you're serious about this life, you get an entity, you get a corporate structure, and you start learning to use it. Now, I'll tell you the truth of both of my kids. They both got one for their birthdays at 18. It's like my daughter's headed to college. My son's now out. Now he's really, really activating that because he does have a big CPA job. He has to use the entity and the corporate structure to take down taxes. It is critical that you have this balance of how you make money and then how you do deductions. So it's imperative, and most of you don't do enough, and you don't do it fast enough, and you actually use CPAs or bookkeepers who record your history. They don't forecast you forward, meaning what do you want to do this year, and how do we make sure that you come in with a great tax percent versus allow it to happen to you. This actually can be strategically planned, and then on the other side of it is how you invest. Are you keeping enough cash that towards the end of the year, if your tax basis is coming in high, you can invest in things like water rights. I'm buying another $260,000 of water rights in the next few weeks. Mineral rights, gas and oil, real estate, aviation, and not stocks. These aren't stocks in any of these asset classes. You have to own the ground. I say you have to build a direct investment into the oil and gas world, not into a stock. Stock doesn't give you the depreciation schedule. Those are losses against your income. So it's how you make it, how you use deductions, and how you invest. There's the biggest keys. So if you go to the next level of details is how also you pay yourself. So one of my companies pays me, Laurel, the $42,000 salary. So I'm a W-2 to a little bit, but I only salary myself to the degree I can't write things off. So wherever that is, again, you need a tax strategist, you need a bookkeeper, you need me, because I designed the word forecasting. When I saw bookkeeping and finance, I'm like, why isn't anybody planning forward? You should be able to predict based on your income. If you're going to make $2.5 million and you're going to invest in these things, and this is your household with kids, however it all works for you, there's a formula you can actually lay out in advance, a year, two years, three years, to get you into the lowest tax bracket. Most of you don't do that. You just go to work, your head's down, you think your CPA is going to handle it. It's a different way to park and pray. You're not parking with a financial planner, you're parking with a CPA and hoping to God they do anything. By the way, our tax filing year for entrepreneurs, wealth builders is September and October. We don't file in April, we file right now. We've all filed our extensions. We'll get to it in the summer and really get deeper into a strategy. Before I tell you some of the big mistakes, I want you to subscribe to my channel. Click that notification button. I want you here five days a week. Share it with a bunch of friends, grab our journal. Make sure you execute coming to our Millionaire Intensive if you haven't done that. And if you have done it, come again and bring something to the marketplace and be more successful this round. You can't do things once, you need to do them anywhere between eight, 12, 21 times. So come back, join our Millionaire Intensive. There's two tickets in the show notes below. Also, binge watch. Binge watch this channel for 25 hours. You get up to $750 of credit towards a new tuition. Okay? So entrepreneurs get mentors. So the biggest mistake is that you're not getting someone to help and guide you. You're trying to figure this all out by yourself. You're poking around the bathroom wall called the internet, trying to glue some strategies together. And I know who you are because when you come to my Ask Laurel's and you come live with me, your questions are a little off because you're putting concepts together that don't make sense. You need to lean in and have some clarification. So at any point, please go to asklaurel.com, A-S-K-L-O-R-E-L, ask a question, make a request. Asking for help is a smart sign of an entrepreneurial wealth builder to reduce your taxes. Don't assume, assure. Big, big difference. Probably the biggest mistake before I wrap for the day is just the lack of planning. You don't spend time every month, every quarter really going through your finances and saying, what have I made? What am I projecting? You wrap it all up at the end of the year and you hand you a box or a big pile of stuff to your CPA and say, I'll see you the next year. That is not tax planning. That is actually reactionary overpaying taxes. So stop being those people. And I'll see you tomorrow.