Busine Growth Mistake #1 - Not Understanding the Importance of Creating Multiple Busine Entities t
Busine Growth Mistake #1 - Not Understanding the Importance of Creating Multiple Busine Entities to Reach Your Financial Goals and Protect Your A ets From Lawsuits and Claims.
Some busine people I know keep their personal a ets separate from their busine . But a surprising number, maybe even you, dont. If you keep multiple streams of income together in one busine or corporation, it can lead to financial disaster and literally wipe you out. It Only Takes One Small Hole To Sink Your Financial Boat! A dramatic example ha ened to a good friend of mine that illustrates this fact.
Patrick started his own boat sales busine and sold million-dollar boats. After he sold quite a few of them, he realized that when a client buys a boat, they need a place to store it! He said to himself wouldnt it be a great idea to also open a marina? Doing so would create another stream of income. Well his marina started doing really well, and when you own a marina, a land storage busine next to it is common. Yes, Patrick also started a land storage busine . His busine es were exploding and building an excellent reputation in Florida. Next he opened a repair and warranty shop to service all the boats he was selling. His financial succe allowed him to invest in some real estate too. Patrick was feeling u to able. He was flying high!
Patrick was a good busine man, so he separated his busine es a ets from his personal a ets knowing this is a smart thing to do. To accomplish this he purchased a corporation to put his busine es a ets into. This effectively separated his personal a ets from that of his busine es. Unfortunately, he never took the next critical, yet simple step. Patrick did not follow my battle tested advice to set up multiple corporatio for his different busine es. He kept all five of his busine es in the one corporation.
On a side note: Your Odds of Getting Sued are Scary! It's no longer a mater of IF you'll get sued, but is now just a matter of WHEN. The average American will be sued 4 -7 times in their lifetime! Other natio are not far behind the USA and its only getting worse. Dont think for a New York second that it cant ha en to you. The odds are stacked agai t you. Just as they were for Patrick!To make matters worse, as a busine person your chances of getting sued are even higher! You may be thinking this is some kind of scare tactic. Unfortunately its nothing but a sad reality in todays litigious society. If you get only one thing out of this report, I hope you get the fact that you are almost guaranteed to get sued in your lifetime. Please protect yourself and your family from potentially loosing everything before its too late.
OK lets carry on with Patricks story
Well surprise, surprise Patrick ended up getting sued and the lawsuit wa t handled well. Nor did it go in his favor! After everything was said and done Patrick ended up with a 4-million dollar judgment agai t him. When the plaintiff enforced that judgment, the judgment only had to do with the boat sales busine , but because he had not separated his different busine es from each other everything was on the line. The judgment was enforced agai t the boat sales busine , the marina, the parts department, warranty shop, and the land storage busine . Every income generating busine he had! With a olutely NO cash flow Patrick could not keep his busine afloat! His multimillion-dollar busine that took eight long hard years to build came tumbling down like a house of card in a hurricane. It all ha ened on le than six months. Why? Because every division of his busine did not operate separately from each other in a separate corporation. Patrick wound up in personal and corporate bankruptcy, and was four million $4,000,000 in debt. He also lost his wife in the proce .
Now Thats How Not to Do It! Its a cla ic example of somebody who is very astute in busine , building multiple streams of income, but then not taking the critical extra step to protect everything they have worked so hard to build. So the first mistake to avoid is putting all your eggs in one entity basket!
Busine Growth Mistake #2 - You A olutely Must Divide Your Personal A ets from Your Busine A ets
The first strategy I want you to understand and implement is you need to separate your personal a ets from your busine a ets by putting them into a corporation. This is the step Patrick did take. You want to get your home, car, and your bank accountyour personal a etsinto a different entity than your busine . By entity, I mean corporatio , limited liability companies, and limited partnershi .) We typically do that by taking your busine and putting it into -- lets say a corporation, or an LLC, which is seen as a separate legal entity by law.
Why separate them? Because if you dont you could lose everything you own in a lawsuit. I will share the shocking statistics on getting sued later in this article. By separating your personal a ets from your busine a ets you contain any potential liability that your busine could create. You effectively keep it from contaminating your personal a ets or other busine es a ets. You are building a legal barrier between you and your busine . Importantly this barrier also acts like a fortre . It protects your busine from outside attacks too. The second strategy is to separate your busine es from each other. This is the step Patrick did not take and he is still paying for his mistake -- some twelve years later!
So, you may be thinking: Im smart; Im a good busine erson. Im going to set up my own entities, my own corporation, my own LLC. Yeah, you can do that. You can also build your own car, or your own airplane! You can probably perform minor surgery on yourself too! My strong recommendation is that you work with a profe ional. Get the help of an expert who knows this subject matter i ide and out and can help you custom tailor your entity(s) to your individual needs and make sure all the Is are dotted and Ts are cro ed.
For your information when I was practicing law my ecialty was collecting cash and a ets for my busine clients. I saw first hand how many mistakes and gaping holes people leave for lawsuits when they improperly set up a corporation. Thats why Im telling you to work with someone who will guide you step by step and keep you from making u ece ary and costly mistakes. If you do choose to setup your own entity good luck. Be sure to follow your state and local requirements, and update your entity every year. Be aware that unle you know the i and outs of corporatio , corporate law, contract law and related tax advantages, youll mi out on the greatest benefits a corporation can offer you.
Thats why I recommend you work with a profe ional. Enough said! Now heres the next stepTake Action Now Before Its Too Late!
Youve got to take the proper actio to get your busine es and your real estate into your corporation before theres a problem. If you tra fer your property or your busine into a corporation before theres a problem, its called pla ing. If you make tra fers after the problem its called fraud, and its illegal! The point is you need to learn how set your corporation up properly right from the start before its too late!
Busine Growth Mistake #3 - Underestimating the Wealth-Building Impact of Optimizing Tax Strategies Using Corporatio
A Le on From Bill Gates!
In 1988, when Microsoft was already becoming a very succe ful company, I saw this interview with Bill Gates. The interviewer asked him, Mr. Gates whats the single most important thing that has led to your busine succe ? Im expecting Bill Gates to talk about creativity, future vision, working in the garage until 4 oclock in the morning, perseverance, and that kind of thing.
His a wer stu ed me! He attributed his busine succe to a strong working knowledge of the tax code i.e. optimized tax strategies. Most tax uneducated people give up 50% or more of every dollar they earn in taxes. Educated people like Bill Gates kee most of it! To give you an idea of how effective these legal tax strategies are, it is reported that Bill Gates pays a meager single digit figure in taxes! Thats 9% or le of his income that he pays in taxes -- Legally! The rich like Bill Gates have been using these tax slashing strategies for decades. The perception is you have to be rich to use these strategies.
You Dont Need to be Rich to Use these Strategies! Generally if you are earning $35,000 plus a year, you can cash in on huge tax savings by a lying the legal tax saving strategies of the rich. At first glance, it may not seem worth the effort to implement these optimized tax strategies because some of them offer only very small tax savings. One strategy might save a couple thousand dollars a year; another, maybe only $500. You dont get much wow from that! But like small bills they all add up fast to a big total! When you use 12 or 15 optimized tax strategies together your total tax savings add up fast! My students often find theyll total $15,000, $20,000, $40,000, or more in tax savings per year! This found money you could be using towards your marketing budget, the purchase of much needed new equipment, or to give yourself that much deserved raise! Stop throwing it away to the tax man!
The exciting thing is once you put these strategies in place for your busine your tax savings continue year after year. Imagine what adding an extra $5,000 to $25,000 a year to your bottom line would do for your busine and your life! Now multiply these tax savings over 10, 15 or 25 years. Were talking about $50,000 to $625,000 extra after tax dollars in your pocket! Thats the kind of money that can change your lifestyle! Unfortunately most entrepreneurs overpay their taxes by countle thousands because they simply dont use the hundreds of tax strategies available to them.
You may be shocked to hear this but most accountants and CPAs dont know about optimized tax strategies either. To be fair, there are many excellent accountants and CPAs. The majority however either dont know about these tax saving strategies, or you are not giving them the information they need because they never ask you for it! Now thats a costly oversight! One of my favorite examples is Steph, who became a student of my Millionaire Maker Mentoring Program about eight months ago. She had been ru ing a succe ful busine for some time. Steph was in her own right a succe ful busine erson. She was making about $50,000 a year and paying way more than she needed to legally be paying in taxes!
She worked very closely with her accountant who is a great guy. A very knowledgeable guy, but hes not a proactive tax-pla ing accountant. Well, Stephs accountant and I ent about 15 minutes on the phone together and we went over three strategies. Each time I suggested a strategy that would save Steph money, I would ask him, do you agree with this strategy, Mr. CPA? And he would say, Yeah!, and I would say, Can you help her incorporate this?... and he would say, Yes. We created three simple strategies in 15 minutes, and by her CPAs calculatio we reduced her tax bill from about $12,000 a year to under a $1,000 a year. Thats a saving of $11,000 of after tax money in 15 minutes!
You Dont Need to Become a Tax Expert! I should know because with my Millionaire Maker Mentoring Program I've helped over 689 busine owners over the past four years learn how to LEGALLY reduce their taxes by a minimum of $10,000 USD. Graduates also learned how to protect their a ets from creditor claims and lawsuits using the strategies I mentioned in this report and countle others. If you are an American, earn a minimum of $35,000 a year and want to learn more about the Millionaire Maker Mentoring Program and how it can save you a minimum of $10,000 in taxes in the next year and want to bullet proof your a ets contact Pathfinder Busine Strategies to learn more today.
The article is refered from http://www.bbcok.com, http://www.worldloanpro.com, please go to read more.
Some busine people I know keep their personal a ets separate from their busine . But a surprising number, maybe even you, dont. If you keep multiple streams of income together in one busine or corporation, it can lead to financial disaster and literally wipe you out. It Only Takes One Small Hole To Sink Your Financial Boat! A dramatic example ha ened to a good friend of mine that illustrates this fact.
Patrick started his own boat sales busine and sold million-dollar boats. After he sold quite a few of them, he realized that when a client buys a boat, they need a place to store it! He said to himself wouldnt it be a great idea to also open a marina? Doing so would create another stream of income. Well his marina started doing really well, and when you own a marina, a land storage busine next to it is common. Yes, Patrick also started a land storage busine . His busine es were exploding and building an excellent reputation in Florida. Next he opened a repair and warranty shop to service all the boats he was selling. His financial succe allowed him to invest in some real estate too. Patrick was feeling u to able. He was flying high!
Patrick was a good busine man, so he separated his busine es a ets from his personal a ets knowing this is a smart thing to do. To accomplish this he purchased a corporation to put his busine es a ets into. This effectively separated his personal a ets from that of his busine es. Unfortunately, he never took the next critical, yet simple step. Patrick did not follow my battle tested advice to set up multiple corporatio for his different busine es. He kept all five of his busine es in the one corporation.
On a side note: Your Odds of Getting Sued are Scary! It's no longer a mater of IF you'll get sued, but is now just a matter of WHEN. The average American will be sued 4 -7 times in their lifetime! Other natio are not far behind the USA and its only getting worse. Dont think for a New York second that it cant ha en to you. The odds are stacked agai t you. Just as they were for Patrick!To make matters worse, as a busine person your chances of getting sued are even higher! You may be thinking this is some kind of scare tactic. Unfortunately its nothing but a sad reality in todays litigious society. If you get only one thing out of this report, I hope you get the fact that you are almost guaranteed to get sued in your lifetime. Please protect yourself and your family from potentially loosing everything before its too late.
OK lets carry on with Patricks story
Well surprise, surprise Patrick ended up getting sued and the lawsuit wa t handled well. Nor did it go in his favor! After everything was said and done Patrick ended up with a 4-million dollar judgment agai t him. When the plaintiff enforced that judgment, the judgment only had to do with the boat sales busine , but because he had not separated his different busine es from each other everything was on the line. The judgment was enforced agai t the boat sales busine , the marina, the parts department, warranty shop, and the land storage busine . Every income generating busine he had! With a olutely NO cash flow Patrick could not keep his busine afloat! His multimillion-dollar busine that took eight long hard years to build came tumbling down like a house of card in a hurricane. It all ha ened on le than six months. Why? Because every division of his busine did not operate separately from each other in a separate corporation. Patrick wound up in personal and corporate bankruptcy, and was four million $4,000,000 in debt. He also lost his wife in the proce .
Now Thats How Not to Do It! Its a cla ic example of somebody who is very astute in busine , building multiple streams of income, but then not taking the critical extra step to protect everything they have worked so hard to build. So the first mistake to avoid is putting all your eggs in one entity basket!
Busine Growth Mistake #2 - You A olutely Must Divide Your Personal A ets from Your Busine A ets
The first strategy I want you to understand and implement is you need to separate your personal a ets from your busine a ets by putting them into a corporation. This is the step Patrick did take. You want to get your home, car, and your bank accountyour personal a etsinto a different entity than your busine . By entity, I mean corporatio , limited liability companies, and limited partnershi .) We typically do that by taking your busine and putting it into -- lets say a corporation, or an LLC, which is seen as a separate legal entity by law.
Why separate them? Because if you dont you could lose everything you own in a lawsuit. I will share the shocking statistics on getting sued later in this article. By separating your personal a ets from your busine a ets you contain any potential liability that your busine could create. You effectively keep it from contaminating your personal a ets or other busine es a ets. You are building a legal barrier between you and your busine . Importantly this barrier also acts like a fortre . It protects your busine from outside attacks too. The second strategy is to separate your busine es from each other. This is the step Patrick did not take and he is still paying for his mistake -- some twelve years later!
So, you may be thinking: Im smart; Im a good busine erson. Im going to set up my own entities, my own corporation, my own LLC. Yeah, you can do that. You can also build your own car, or your own airplane! You can probably perform minor surgery on yourself too! My strong recommendation is that you work with a profe ional. Get the help of an expert who knows this subject matter i ide and out and can help you custom tailor your entity(s) to your individual needs and make sure all the Is are dotted and Ts are cro ed.
For your information when I was practicing law my ecialty was collecting cash and a ets for my busine clients. I saw first hand how many mistakes and gaping holes people leave for lawsuits when they improperly set up a corporation. Thats why Im telling you to work with someone who will guide you step by step and keep you from making u ece ary and costly mistakes. If you do choose to setup your own entity good luck. Be sure to follow your state and local requirements, and update your entity every year. Be aware that unle you know the i and outs of corporatio , corporate law, contract law and related tax advantages, youll mi out on the greatest benefits a corporation can offer you.
Thats why I recommend you work with a profe ional. Enough said! Now heres the next stepTake Action Now Before Its Too Late!
Youve got to take the proper actio to get your busine es and your real estate into your corporation before theres a problem. If you tra fer your property or your busine into a corporation before theres a problem, its called pla ing. If you make tra fers after the problem its called fraud, and its illegal! The point is you need to learn how set your corporation up properly right from the start before its too late!
Busine Growth Mistake #3 - Underestimating the Wealth-Building Impact of Optimizing Tax Strategies Using Corporatio
A Le on From Bill Gates!
In 1988, when Microsoft was already becoming a very succe ful company, I saw this interview with Bill Gates. The interviewer asked him, Mr. Gates whats the single most important thing that has led to your busine succe ? Im expecting Bill Gates to talk about creativity, future vision, working in the garage until 4 oclock in the morning, perseverance, and that kind of thing.
His a wer stu ed me! He attributed his busine succe to a strong working knowledge of the tax code i.e. optimized tax strategies. Most tax uneducated people give up 50% or more of every dollar they earn in taxes. Educated people like Bill Gates kee most of it! To give you an idea of how effective these legal tax strategies are, it is reported that Bill Gates pays a meager single digit figure in taxes! Thats 9% or le of his income that he pays in taxes -- Legally! The rich like Bill Gates have been using these tax slashing strategies for decades. The perception is you have to be rich to use these strategies.
You Dont Need to be Rich to Use these Strategies! Generally if you are earning $35,000 plus a year, you can cash in on huge tax savings by a lying the legal tax saving strategies of the rich. At first glance, it may not seem worth the effort to implement these optimized tax strategies because some of them offer only very small tax savings. One strategy might save a couple thousand dollars a year; another, maybe only $500. You dont get much wow from that! But like small bills they all add up fast to a big total! When you use 12 or 15 optimized tax strategies together your total tax savings add up fast! My students often find theyll total $15,000, $20,000, $40,000, or more in tax savings per year! This found money you could be using towards your marketing budget, the purchase of much needed new equipment, or to give yourself that much deserved raise! Stop throwing it away to the tax man!
The exciting thing is once you put these strategies in place for your busine your tax savings continue year after year. Imagine what adding an extra $5,000 to $25,000 a year to your bottom line would do for your busine and your life! Now multiply these tax savings over 10, 15 or 25 years. Were talking about $50,000 to $625,000 extra after tax dollars in your pocket! Thats the kind of money that can change your lifestyle! Unfortunately most entrepreneurs overpay their taxes by countle thousands because they simply dont use the hundreds of tax strategies available to them.
You may be shocked to hear this but most accountants and CPAs dont know about optimized tax strategies either. To be fair, there are many excellent accountants and CPAs. The majority however either dont know about these tax saving strategies, or you are not giving them the information they need because they never ask you for it! Now thats a costly oversight! One of my favorite examples is Steph, who became a student of my Millionaire Maker Mentoring Program about eight months ago. She had been ru ing a succe ful busine for some time. Steph was in her own right a succe ful busine erson. She was making about $50,000 a year and paying way more than she needed to legally be paying in taxes!
She worked very closely with her accountant who is a great guy. A very knowledgeable guy, but hes not a proactive tax-pla ing accountant. Well, Stephs accountant and I ent about 15 minutes on the phone together and we went over three strategies. Each time I suggested a strategy that would save Steph money, I would ask him, do you agree with this strategy, Mr. CPA? And he would say, Yeah!, and I would say, Can you help her incorporate this?... and he would say, Yes. We created three simple strategies in 15 minutes, and by her CPAs calculatio we reduced her tax bill from about $12,000 a year to under a $1,000 a year. Thats a saving of $11,000 of after tax money in 15 minutes!
You Dont Need to Become a Tax Expert! I should know because with my Millionaire Maker Mentoring Program I've helped over 689 busine owners over the past four years learn how to LEGALLY reduce their taxes by a minimum of $10,000 USD. Graduates also learned how to protect their a ets from creditor claims and lawsuits using the strategies I mentioned in this report and countle others. If you are an American, earn a minimum of $35,000 a year and want to learn more about the Millionaire Maker Mentoring Program and how it can save you a minimum of $10,000 in taxes in the next year and want to bullet proof your a ets contact Pathfinder Busine Strategies to learn more today.
The article is refered from http://www.bbcok.com, http://www.worldloanpro.com, please go to read more.
