Everybody knows that the wealthy have been using fancy tax-reduction schemes for decades. With enough high-paid tax attorneys, any "fat cat" can get away with paying no tax at all.
But what about the average, middle-class small business owner? What about the self-employed person who is just starting out and who doesn't have an extra 5 or 10 grand to spend on complicated tax-avoidance strategies and exorbitant tax consulting fees?
So, what can you do to reduce your taxes, without spending an arm and a leg
And what can you do to protect yourself from the onslaught of frivolous, time-consuming and potentially business-ending lawsuits that clutter our court systems today?
Incorporate your business for free.
Perhaps you've heard that advice before. And perhaps you've thought, "Yeah, I should look into that." But you've stopped short. You've hesitated. You didn't follow through, for any number of reasons.
Maybe you thought it would cost too much to incorporate: lawyer fees, filing fees, and the like.
Maybe you thought it would be too time-consuming, too much hassle, too much paperwork: forms, forms and more forms!
And now you're back where you started, wondering (again), "Is it worth it? Are the advantages of incorporating really worth it?"
Or maybe you have incorporated your small business but are wondering, "Did I make the right choice of entity?" (In case you didn't know, there are 3 (yup, three) different types of corporations, and each one is taxed very differently!)
So even if you already formed a corporation, how do you know you picked the one that enables you to pay the least amount of tax?
Perhaps this story will help you decide