Congratulations! You’ve made a profit in your business (go you!!), and therefore need to pay taxes. There are so many clickbait-y articles out there on “how to not owe any money on taxes this year” or “secrets billionaires use to avoid paying taxes,” and none of them are helpful to you. In this episode, I’m sharing my best tax strategies that will save you money, time, and stress year round, but especially when tax time rolls around.
Are you looking for more information on how to build wealth with your business and generate your first $1M? Sign up for my free weekly email series, Millionaire Mondays!
Key takeaways from the episode:
Overall, your focus should be on increasing and maximizing profitability, not on taxes. Learning more about tax deductions is great for financial literacy, but your focus is much better spent on increasing your profits. Hire a pro instead - you'll save yourself the stress of trying to get it right so you can focus on doing what you do best.
Clean up your books! Make sure your revenue isn’t being double counted, that your business and personal expenses are completely separate, and that you’re tracking all your expenses. This is free to do but so important!
Don’t rush to switch your business from an LLC to an S-Corp just for the tax deduction. If you’re not making at least $75,000 in bottom line profit, you are actually going to lose out on deductions you’d get as an LLC.
If you love the podcast, please leave me a review on Apple podcasts and share with a friend! This helps me share more knowledge with people like you so they can become more financially literate, create more profit in their business, and feel more financially stable and secure. Click here and scroll to the bottom to leave a review and make sure to let me know what you're finding the most helpful!
Do you have a question or topic you’d like me to cover on the show? Click here to send us your submission!
Resources mentioned in this episode:
Listen to Episode 20 (through 25!): Turning Your Business Cash Flow Into Wealth
I’m Sarah Young - a CPA, Virtual CFO, and the Owner of Young + Co! I have over a decade of experience in helping entrepreneurs scale their businesses and build wealth at the 6- and 7-figure levels, and I started the Profit + Prosper podcast to help you do the same. Profit + Prosper is a business finance podcast created to help entrepreneurs build their wealth in a way that’s fun and empowering. This is NOT a boring numbers podcast - I will share tactical tips to increase your profit so you can truly prosper in your business and in life. I hope you’ll subscribe so we can Profit + Prosper together!
Connect with Sarah: