@karltondennis
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@karltondennis A $400,000 salary and $250,000 in business profit can leave you with almost the same take home pay. On a $400,000 salary you are looking at roughly $110,000 gone in federal taxes, state taxes, and payroll taxes before you see a penny. On $250,000 in business profit you pay self-employment taxes, federal taxes, and state taxes. The take home ends up in a similar place. But here is the difference that changes everything. As a business owner you get to convert expenses that are not deductible on a salary into legitimate business write offs. Cell phone. Car and transportation. Lodging. Travel. These deductions lower your taxable income before the government calculates what you owe. The $250,000 business owner does not just match the $400,000 salary earner after tax. With the right strategy they beat them. Business owner every single time. Comment WEALTH if you are earning over $500K and want to make sure you are structured to keep as much as possible.
