One of the biggest mistakes entrepreneurs make with their taxes is having money flow directly to them.
For example…
Back in 2015 when my company Patriot Health Alliance took off, I made $535,000 that year…
Which was awesome.
But that money flowed directly to me.
Meaning that the partnership just paid me the $535,000 directly.
I didn’t know any better at the time.
But this is a big mistake.
Why?
Because if you want to reduce the amount of taxes you pay, you always want the money to be paid to your company…
And not directly to you.
Obviously the money gets to you eventually…
But if that partnership pays a company, instead of you, there’s a LOT more you can do to lower your tax bill.
Like I said, I did not know this back in 2015.
But when I finally got a tax strategist to get me setup they changed all of this for me.
They set me up with an s-corp and a c-corp.
Most of my money flows through the s-corp.
But a good chunk of it goes through the c-corp as well.
And each business also pays the other one for marketing services (thus reducing the taxes I owe even more).
It can get quite complicated.
And I’m by no means smart enough to explain it to you.
But the big point I want to make is that if you’re a high earning entrepreneur, and your money is flowing directly to you, you are basically donating like $100,000 or more to the IRS.
Now I’m a generous guy…
And I like to donate money.
But not to the IRS.
That’s why I now have my business setup so that I don’t make that mistake anymore.
However…
You’d be surprised at how many smart entrepreneurs make this mistake.
Earlier this month when I was at Mike Geary’s mastermind, one of the guys their mentioned to me that he just switched a bunch of stuff around with his business cause the money was flowing directly to him.
I was pretty surprised.
Cause this is a guy who takes home millions of dollars a year.
And he was still making this mistake.
Luckily he fixed all that.
And now he has his money flowing through multiple companies instead.
This not only lowers his tax burden…
But also gives him more protection if someone were to ever sue him (or one of the company’s).
So the big thing I want you to takeaway from this email is simple…
Your money should never be flowing directly to you.
It should always go through a company you own (usually mutliple companies).
Most high-earning entrepreneurs already do this.
But if you’re like I was back in 2015 and this is all new to you…
I suggest ya get on it.
Cause you’re leaving a bunch of dough on the table.
That’s all I got for today…
BTW…
I got a bunch of emails yesterday from people asking if I could introduce them to Jeff (my tax strategist).
Yes I can.
However, he’s very picky about who he works with.
And I don’t want to connect him to people who aren’t a good fit for him.
So if you want an intro, you need to meet the following requirements…
1. You make at least $600k a year (you personally, not your business)
2. You have at least $600k in liquid assets
3. You understand that it is not cheap to work with Jeff. Most people spend $25k-$50k to work with him depending on their income and business. That might seem like a lot, but I found that for every $1 you give him, you basically get like $5 so, it’s well worth it.
So those are Jeff’s requirements…
And if you meet them and need some tax help, I’d be glad to intro you to him over email.
Jeff’s the guy I personally use for my taxes.
And he was referred to me by Dan Roitman.
I know Garrett Gunderson also uses him as well.
So if you think you need some help with your taxes, then let me know and I can connect you with him.
One note…
If I intro you to Jeff, and you guys setup a time to talk, please do not be flaky and not show up for your call with him.
That stuff drives me nuts.
And it makes me look bad.
So if you’re the type of person who does this, please don’t bother asking for an introduction.
But if you’re actually serious about lowering your taxes, and you want to hear what Jeff can do for you then I’d be glad to intro you by email.
Just reply to this and let me know.
– Justin
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