EPA discussed on Marketing To Millions



At what point do you have like a milestone marker that we can look at that says like okay once we have hit this revenue and gross or net. Then it's time to switch to an escort. Yeah it depends it depends on the individuals and you know what your top line revenue is versus what your expenses are and then what your bottom line would be. And also if you're married or not and you have a spouse who was working legally outside are they. What taxes are they paying you know. So there's a to think about when you make that decision for an llc for example remembering that that is a pass through and so you're creating schedule scene but then that flows right into your personal taxes so if you have other situations where you have a spouse your choice might be to have that spouse pay more taxes on their end and that offsets what you might go on your joint tax return if you're just a single parson than we need to now start looking at purely your business says profits and when we get to a significant amount where you'll pushing into a different tax bracket for example. You know. those are some of the things that you want to be. You know considering as you'd make the decision to remain as a llc or take the escort election. Is that something that we can look at any time of year or is that something that we need to be evaluating towards the end of the year before tax season january. What is there like a good time of year to reevaluate those types of things you definitely want to be looking at that in the current tax year right so when you hit december thirty first most decisions that you could make to affect your taxes would be out the door so you wanna be looking at you know things like that throughout the year so that you make the right decisions before tax time before tax filings castle. Yeah definitely any changes. That's happening if you feel like. You're making a significant more revenue from last year. You need to have those conversations with your tax accountant so that you can make decisions together as to the best direction that you should go so definitely. Don't just see your tax accountant during tax season. But you know. Have these touch points conversations. I think at least twice during the year so that you can you know measure where things are where you're going as a business and then you can make those decisions together. Okay that's great advice touching point or connecting with our epa's twice year. And if you don't have one yet just checking in with yourself to kind of evaluate where you are going and may be increasing your savings if you're going to be making a significant amount more so that you can cover your taxes come tax time if you don't have a cpa yet and that is definitely something. I is covered in the First strategy you know making sure that taxes are incorporated in your plan so that you are not surprised or not prepared. You know for that tax bill. Should you have one Okay great i am. Always a proponent of maximizing mind taxes so what are some of those strategies that we can use to maximize our tax savings. Are there some strategies that you like to use maybe within profit. I that we can start to think about or adapt to lessen them out. We pay taxes legally of course or some tips to maximize what we're doing. Yes so i'll talk first about you know some tax strategies that you can use and then we can go into profit first later. Yeah so we're all now. Most of us right are in the online environment right and so one tax deduction to think about. Is the home office deduction a lot of entrepreneurs don't either not aware or they just don't take the home office deduction when it's available to them now remembering that you have to have revenue in order to take the deduction because it's a reduction of your income right and so let's say that your in a thousand square unit. Is your apartment your home whatever it is. Let's keep the numbers simple and you have your office. Space is two hundred square feet. So that's one fifth of your entire home than you can actually be taking one fifth of your home expenses. So if this is you know your mortgage you're taking one fifth of your property taxes one fifth of your interest expense on the mortgage one fifth of the utilities. May so this can add up to a significant amount. And so it's important to make sure that you have a tax accountant. That's going to be asking you those questions for example. Maybe they have like a checklist of things that you'll supposed to provide as opposed to some tax accountant. It's just another number for them and so whatever you give to them. That's what they use right and so it's important to have someone that's gonna produce for the extra information whether it's through a checklist so that you know all year. I need to provide this information. So that i can get that deduction Yeah and that's one. That i really love a specially if people are kind of considering maybe renting a space outside of their home or using a co working space or even getting an office. If you're just on your own your team is.

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