Tax History

Are we in a recession?

I’m writing this on Tuesday, the day of a major primary in a number of states. I was struck by the poignant stories I heard this morning on the news, especially from Ohio residents. They talked about how there was no hope that their grandchildren would have the lifestyle that they did. And then the camera scanned to their very modest surroundings.

And, then, later today I talked to people who made more money in 2007 than they ever had before. And 2008 looks to be even better. Are we in a recession? I guess it depends on your point of view. Business owners that are reinventing and moving with ease through these transitional times have bright futures, it appears.

Still, as many people move into businesses for the first time, there are some fatal errors that could cause you to lose everything. Here are the five biggest business mistakes that could bankrupt you.

Mistake #1:        Failure to Have a Business Structure

A few years ago a lawyer friend of mine talked to a group of new business owners in San Francisco. He stressed again and again that they needed a business structure not to protect the business, but to protect the rest of their assets from the business.

After his talk, one lady came up to him and excitedly told him about her new little store. She figured that in 3 months she could afford to set up a business structure. Meanwhile, though, every penny she had was tied up in the business.

My friend begged her to reconsider, but that was the deal. About a month later, she called him at his office. He heard who it was and excitedly thought she’d found a way to get her business structure set up. He took the call and discovered that wasn’t the case at all. In fact, she had an even bigger problem now. It turns out that someone had fallen in her store and it looked like they had a case. She was being sued, and for a lot of money. Could she now have a business structure to protect her home, her car, her daughter’s education fund, her savings account, and all the rest of her assets.

The answer was “no.”

Do you have to have a business structure? No.

But, if you don’t, you’ll run the risk of:

         (1)     losing all your assets

         (2)     paying more tax; and

         (3)     a ten-times increase in your risk of an IRS audit

If you have a business, any business, set up a structure today.

Mistake #2:        Failure to Keep the Business Structure Up-To-Date

Just having a business isn’t enough. You have to also keep the structure up-to-date. If you get audited by the IRS, there is a question they’re going to ask..and you need to be able to answer it right or things are going to get very dicey.

Here’s the question, you’re sure to get asked: “Where are your corporate records?”

And, if you stutter, stammer, look puzzled, look out – the next questions are going to be tough.

That’s because you need to operate like a company in order to be a business, and get all the tax breaks. Otherwise, every single item – your car, travel, your salary, even paying your accounting (yikes!) could be at jeopardy and might just get disallowed.

Keep your records current or face consequences you don’t even want to think about.

Mistake #3:        Paying Too Much In Taxes

There is one thing you can do right now if you want to pay less tax. Change the way you make your money. And, that means start a business, if you don’t have one already.

The tax breaks have never been better for business owners. Those are the legal tax loopholes that the IRS wants you to use. The secret is that they don’t tell you want they are. You have to find them yourself.

In just a minute, I’ll tell you the other two fatal business mistakes that could cost you everything you own. First, though, I want to tell you about the March Business special.

You’re going to hear a lot more about starting businesses this year from me. That’s because we’re losing real estate loopholes, just as we’re getting even better ones for businesses. And one of the things I’ve learned is “follow the loopholes” and you’ll always pay a whole lot less in tax!

Warren Buffet recently stated that he had an overall 16% tax rate. If you’re paying more than that, then you are paying too much! Get started today in learning what it takes to get top advisors and even more importantly, learn how to talk to them.

REGULAR PRICE: $89 (1)    Business Structures for Business. This audio program walks you through, step-by-step, the business structure secrets you need to know to form the foundation. A strong business structure will protect your assets, ensure you pay less tax and greatly reduce your chances of an IRS audit.

REGULAR PRICE: $129 (2) Operation Guide for Corporations. Once you have your corporation in place, are you sure you’re running it right? We have dozens and dozens of VITAL forms you need to legally run your company, all ready for you to just drop in your name and a few pieces of information. These are the forms that your attorney would charge you thousands of dollars for, and they’re now available in a handy pack, perfect for your corporation.

REGULAR PRICE: $69 (3) Understanding Financial Statements. Business, and the way we do it, is rapidly changing. You can make your “best guess”, but wouldn’t you rather understand the secret language of financial statements? Every financial statement tells a story. The trick is being able to tell the story. If you’ve ever had your eye glaze over when you read a financial statement, you MUST HAVE this audio product. I’m not going to turn you into a bookkeeper, but instead into a business owner who has a better grasp of the numbers.

REGULAR PRICE: $99 (4) 100 Loopholes in 100 Minutes. This is the easiest product I have to sell. It flies off the shelf! Well, since it’s virtual, you have to use your imagination on that part. But, it’s wildly popular for one big reason – just one of these loopholes could save you hundreds of dollars. And I’m not going to tell you just one. I’m going to tell you 100 of them!

REGULAR PRICE: $99 (5) Advanced Business Structure Strategies. Once you know the basics of your business and the best structures for it, now what? Your business structure needs to change as your business grows and evolves. And, what happens if you bring on a partner? How do you get your assets into and out of your business structure without costing you a bunch of extra tax? Learn more in this video program.

The March Business Special includes all of those for just $299. This is the business toolkit that you just can’t be without.

But, before you rush to our website to pick up your March Business Special before the offer expires, I want to tell you about one more bonus I’m going to give you:

If you invest now, I’ll throw in the 13-hour audio course, Hot New Strategies for your Business and Investments, regularly priced at $299. You’ll get all of the above items PLUS Hot New Strategies for just one low price of $299.

Mistake #4:        Not Creating Multiple Streams of Passive Income From Your Business

Making this mistake isn’t going to bankrupt you. But, you’re going to leave a whole lot of money on the table if you’re not careful. New opportunities for business open up daily thanks to the Internet.

It’s basically what I’ve done with Tax Loopholes. I’ve taken my 20+ years of CPA experience working with clients and turned into a steady stream of mostly passive income that makes about a million dollars a year. BUT, it took me 7 years to get here. That’s my new challenge. How do I replicate it in just 2 years? Plus, how do I do this with 20 or so people who want to do the same things with business assets (knowledge, systems and IP) that they didn’t even know they had? Make sure you follow the forums at First Class Lounge to see this new project unfold.

Mistake #5:        Not Keeping Up on Tax Law Changes

I’m not sure why this is, but lately I’m seeing my old tax information repackaged by others and sold as their own. It’s plagiarism, and against the law, but even worse it’s a huge disservice to the people who are buying it. That’s because the stuff they’re getting is so old.

A friend just pointed out a website that has some of my information from 7 years ago, touting it as the latest and greatest! Of course, they’ll soon be getting a letter from lawyer and I’m sure that website, just like the others, will be brought down. But, meanwhile, I worry about the people relying on the information.

That’s why we have the First Class Lounge. For just $9.97 per month you can find out about tax law changes, learn new wealth-building strategies and form mastermind groups to provide brainstorming, networking and accountability for your plans. If you’re not yet a member, try us out for 30 days for free! We’ve just added a new forum that is creating some great discussions.

Whatever your plan for wealth-building, it’s important to protect your assets as you grow them.

Before I close this week’s enewsletter, I just wanted to remind you about a new Maui Millionaire Wealth Weekend on using Leverage in your wealth building. It’ll be held in San Diego in April. The seminar is $500 and 100% of the proceeds for tickets sold through the TaxLoopholes site will go toward my son’s charity, Thunder Mission. For more information, please drop an email to Thunder@TaxLoopholes.com.

Warmly,

Diane Kennedy

P.S. A new lawsuit is filed in the US every 30 seconds. Are your assets protected with a rock-solid business structure? For just $299, you’ll learn the basics (and advanced business structure strategies) to protect your assets as you grow your wealth. March Business Special

P.P.S. Do you remember the story of the woman who won $2.5 million after she spilled hot coffee on herself? Can you imagine being a little coffee shop owner and getting papers served that you were being sued for millions? Protect yourself.