Why Do Business Owners Have More Money?

One of the real life stories from Smart Business Stupid Business is about a client of mine who went from employee to business owner and discovered $10,000.

Before he lost his job, he was making $50,000 per year as a middle manager. His credit cards were maxed out and he worried everyday driving to work because his tires were shot. If he lost a tire, he’d have no way to buy another.

Then the worst thing happened, he lost his job.

That’s happened to a lot of people these days, so nothing new there. The fortunate thing for him was that he found a position within a month. Only he was going to be an independent contractor, not an employee. He made the same amount of gross income, but he was now responsible for paying his own taxes and medical insurance.

But somehow, at the end of the year, after his taxes were all figured out, he had an extra $10,000 in cash.

That’s because a lot of the expenses that he would normally have anyway like his car, home office, computer, cell phone, travel and the like became at least partially deductible.

He went from “Earn-Tax-Spend” to “Earn-Spend-Tax” resulting in less tax and more money.

If you don’t have a business yet, start one today! If you have a business, ask yourself: Are you getting all the benefits you should?

We’re covering How to Discover Your Hidden Business Deductions in the USTaxAid Coaching course tonight. Join us!

Remember that coaching is free when you become a client of USTaxAid Services.