Tuesday, June 28, 2016

How To Get The Biggest Tax Refund

During tax season, millions of Americans anxiously wait for W2's, 1099's, 1098's and other
documents needed to file income taxes. Some get excited about the lump sum refund owed to them but most professionals cringe at the thought of filing taxes. Usually praying to just break even and not owe the government any money.

The government does not give the middle class many tax breaks. Most tax credits have income limits. So climbing the corporate ladder and shooting for that six figure salary means paying more taxes. That is just the way American tax system works. However, there is a way to create credits regardless of income. Start a business. Having a small business that you run out of your home sets you up to write off expenses that normally would not qualify. Who gets the biggest tax breaks in America? Big business. Become a business.

Most cannot write off any of job related expenses paid for after taxes. For example, a $50,000 salary becomes $42,500 after taxes. That means all living expenses come from $42,500, not $50,000. Dry cleaning, meals, gas, car maintenance, utility bills, etc. Owning a business allows you to pay taxes on what's left after paying expenses. What is deductible? Dry cleaning, meals, networking events, cell phones use for business, vehicle interest, car maintenance, mileage on your car used for business, business travel, the list could go on. Deducting all of those expenses before paying taxes and lowers the tax rate.

No Business
  • Earn a $50,000 salary
  • Bring Home $42,500 after taxes
  • Live off of $42,500
  • Owe more/break even after filing income taxes
How does owning a business help with income taxes? If you earned $5,000 from your business while working to earn a $50,000 salary, part of day-to-day expenses, now business expenses, are deductible. The cost to run your business is also deductible. For example, deduct $7000 in business expenses from total income of $50,000 plus $5,000. The taxable income is now $48,000 instead of $50,000. Since $50,000 is taxable income over the course of the year, a refund is in order when it reduces to $48,000.

With a Business
  • Earn a $50,000 salary
  • Earn $5,000 from your home based business
  • $7,000 in living expenses are now business expenses
  • Taxable income is now $48,000 instead of $50,000
Individual income tax and small business refunds will vary. This is just an example of how owning a small business can benefit you. Turn a marketable talent into a business. Start a direct sales business for an immediate solution. Filing income taxes does not have end with another bill.

Fancy Free LLC. is a home based consulting company that helps people reach their financial and personal goals. Contact us at (410) 929-0302 to schedule your complimentary consultation.
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Wednesday, June 1, 2016

How to Start a Business - The First Steps in Starting a Business

Image result for open for business
The internet has made starting a business from the comfort of your own home more possible than ever before. Although there is nothing easy about the life of an entrepreneur, the reward of a successful venture is immeasurable. The most difficult part of starting a business is actually getting started. Some people have business ideas that never leave their notebook. Others just want to own a business but don't know where to start. Here are some questions to ask yourself when you're early in the planning stages.
1. What are you good at? Not referring to what you would like to do but what are you good at now. Do people like your pumpkin pie? Are you a really great accountant? Do you have team building skills that are out of this world? Sometimes we take our own talents for granted because we use them everyday. However, talents can turn into marketable resources that people will pay for.
2. How do you intend to fund your business?
Nothing in the world is free. It takes money to make money. Starting a business will need investing. Don't let having a small amount of capital or not having any capital at all stop you from moving forward. You will invest lots of time when there is not that much money. Having large amount of money to invest still requires time in due diligence to make sure you are hiring the right team to get the job done.
3. Dead set on becoming an entrepreneur but don't think you're good enough at anything?
Everyone has a skill set, you just haven't identified yours yet. Think about things that you like and consider start a home based business that offers a product that you like. Home based businesses, also known as direct sales or network marketing, link personal growth directly with success. Meaning, the only way to be successful in a direct sales company is to actually grow as a person and help others do the same. The same is required of all entrepreneurs. With a small investment, usually less than $500, you can have a ready-made business and become profitable in days. The hugely successful in direct sales usually venture off and start other businesses after discovering their hidden talents, learned how to run a business, and now have earned enough money to invest in themselves. Direct sales is a great place to start.
Becoming an entrepreneur is not a journey for the faint of heart. It all starts with an idea, just like anything else. Figure out what your skill set is and focus on turning something that talent into a business. Decide how you can invest. Be it time or money, you will have to invest something. If you do not think you have any business ideas, start with a network marketing company to jump-start your business juices.
I specialize in wealth building techniques with personal development coaching through direct sales. Call me at (410) 929-0302 or complete the form below to schedule your complimentary consultation.

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