YouTube interview (Adam Sand with Chris Middleton) explaining how basic corporate compliance enables concrete tax-saving strategies for small roofing businesses. Key points: many owners overpay themselves (claimed ~ $50–60k), causing estimated payroll-tax waste of ~$3–5k; creating corporate resolutions to document reasonable compensation for S-corps can save roughly $3k (conservative estimate cited); adopting accountable plans yields about $3,000 on average in tax savings by allowing tax-free reimbursements; establishing a board of directors can legitimize deductible business events (example: converting a $5k hunting trip into a deductible board meeting if ≥4 hours of business occurred and documented); using the Augusta Rule and documented events (client/employee/vendor appreciation, board meetings) can reimburse owners for home or event use. Advice emphasizes signed corporate resolutions (3–4 per year suggested) and thorough recordkeeping to withstand audits.
Questions this video answers
About $50–60,000 (claimed).
About $3,000–$5,000.
About $3,000 (on average, per company, according to speaker).
Four hours.
About $5,000 (trip cost).
Chapters
Most business owners are overpaying the IRS by thousands every year just because they're skipping the basics. Corporate compliance isn't just paperwork. It's the gateway to smarter tax strategies. I'm Adam Sand, CEO of the Roofing business partner. If you want to pull money from your business tax free, watch. Chris Middleton, co founder of Make Taxes Fair Break it down.
When you do corporate compliance, that opens the door to other tax strategies. So corporate compliance in and of itself does not give you tax savings. It's. It's more of a, hey, you gotta do it right. Just like we gotta eat to survive. It's like, hey, you gotta feed your corporation, you gotta feed the baby to make it grow, right? You gotta do the things. So it opens the door though, because when we do corporate compliance now, we say, hey, we should have a corporate resolution to do a reasonable compensation study for an S corp. I have S. Corporation owners that pay themselves way too much, like two to three times what they should be paying themselves. Cause they're like, I don't know how to take money out of the corporation. So I just pay myself W2 and taxes are taken out of that and cool, I'm good. Well, they're overpaying massively on payroll taxes. Most business owners are overpaying themselves to the tune of probably 50 to 60 grand that I see. And as a result, that is like three to five thousand dollars that they're wasting on payroll taxes. Corporate compliance can save you three to five grand from the reasonable compensation aspect. The other thing that when you establish corporate compliance now you do a corporate resolution, say we're going to adopt an accountable plan. What is an accountable plan? Basically that is a, that you adopt for your company and say, hey, this is our reimbursement policy. So if you are reimbursing employees which as an owner of the corporation, I am an employee of my own corporation, right. There are things that you can reimburse and reimbursements are tax free. So it's a tax free way to pull money out of your business. On average, we see accountable plans when we establish them for Companies generate about $3,000 on average in tax savings. Let's say three grand conservatively with reasonable comp. Three grand for accountable. Nice. Board of directors. When you establish corporate compliance now, you do a corporate resolution and say, hey, we're going to establish a board of directors. Now board of directors are not officers of the corporation. Board of directors are a board of advisors or board of directors. Those are folks that are not listed on the legal documents. With your secretary of state. But they do attend, at minimum, I would say, one, probably two meetings a year at a roofing contractor in Texas. And we were talking through this. His hunting trip. He had gone hog hunting. Hunting. I'm like, josh, you know, tell me about. Who are your key people? Well, my operations manager, foreman type guy. He came. My brother's my business partner. He came. These are the key people. And I'm like, cool. What have you done recently with them? Oh, we went hog hunting. Okay, sweet. How long did you go hog hunting for? That was a good five day, six day trip with travel and like one day there and then three or four days hog hunting and then one day back. And I was like, okay, what was the cost of that? And he's like, oh, man, don't tell my wife. It was way too much. And I was like, okay, so what'd you talk about? Did you talk business while you're driving across the country? When you're sitting around the campfire, were you talking and shop? Oh, yeah, absolutely. Okay, cool. If you put those people on your board of directors, the requirement for a work day is only four hours. Did you do at least four hours worth of talking and kind of masterminding while you were out and looking up at the stars and enjoying the God's creations? He's like, yeah, at least four hours a day. I was like, okay, could you summarize that in a document and put it together? Oh, yeah, absolutely. So we turned his hog hunting trip, which cost him about five grand. He was covering the cost of, you know, ammo and equipment and food and. And all that. We turned his hog hunting trip into a tax deductible time off vacation. That's the power of a board of directors. And then the last thing is Augusta rule. You can do a corporate resolution for establish events that we're going to host. We're going to reimburse the owners for use of their home for events. Board of directors meetings. You can have client appreciation meetings. You can have employee appreciation meetings, vendor appreciation, like barbecue, these types of things. These are some of the strategies that you can leverage through a corporate resolution. So a corporate resolution is a document that goes into your corporate binder or your corporate records. And what that means is a corporate resolution is you meet as a board or as owner, as officers of the corporation, and say, hey, we're going to make a decision. And that decision is to do X, Y and Z. A corporate resolution is simply a internal legal document that goes into your binder. If you get audited and your corporation auditor's likely going to say, hey, show us your corporate documents. Show us that your corporate compliance. And if you send them a document that has, like, a piece of paper in it that you never signed, that doesn't look good. They're like, okay, you're playing small. You're not acting like the big boys and girls that are corporations. But if you send them a document or documents that have signatures on them and they have, you know, corporate resolutions, three to four a year, where you're like, hey, we're going to make business decisions, you know, that adds legitimacy to your corporation, which adds legitimacy to your tax savings that you could capture by being a corporation.
