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An entrepreneur warns against spending too much time on complex tax schemes that save only 30-40 cents per dollar. Growing your core business keeps 60-70 cents of each new dollar earned. Focus on revenue first, taxes second.
An entrepreneur warns against spending too much time on complex tax schemes that save only 30-40 cents per dollar. Growing your core business keeps 60-70 cents of each new dollar earned. Focus on revenue first, taxes second.
So don't let the tax tail wag the dog. And what I mean by this is that so many entrepreneurs will spend so much time and energy trying to avoid taxes. But the reality is the taxman always gets his and you can't truly beat the government. All of the time and energy that you're spending creating complicated structures or going out and spending money to save on taxes, you're only saving between $0.30 and $0.40 on the dollar. And the reality is, if you invested that time and effort into your business, you— by generating more income, you actually keep keep more of that dollar. You keep 60 to 70% of that dollar. So yes, there are some low-hanging fruit strategies that allow you to save on taxes, but your best return is always going to be on investing in your primary business. And, you know, ultimately you've got to pay the tax man at the end of the day.
