Using last Century’s infrastructure is fatal to you business. Using last Century’s tax strategy is also fatal to your business.
British Air announced that its worldwide computers are down, again. Is your small business tax planning like BA’s XP style computer?
Here is the problem with small business tax planning. Your CPA is using the same tax plan as when your computer used Window’s XP. You have updated your infrastructure for your business but not your tax plan. Business in 2016 is nothing like in 1998.
Congress reported that U.S. business that legitimately plan their taxes have a 14% tax rate. And there is more. Half of those business paid legally paid no tax. My question to you: “Are you paying more than your fair share in taxes?”
Here are four indicators that your CPA is stuck in the 1900’s XP tax planning:
He does year-end tax planning. Great tax planning is designed for years in advance focusing on each of your sources of income.
He talks about deducting the cost of new equipment as if he has saved you money. Spending money on new equipment is not a tax plan. It is money lost unless you need the equipment. Then, it is an investment in growth and not a tax plan.
He has you in an IRA plan. Present value math models show that a 401K plan does not save taxes. IRA plans dramatically increases your taxable income after age 70 causing a net after-tax loss.
He never mentions a Nevada trust. Not only does a Nevada trust eliminate income taxes, but it also protects your assets (just in case we have another Great Recession).
Internet web-based and e-commerce businesses are saving taxes by using the internet to shift income to a low tax state or even a tax haven. Spend six minutes and listen to first few chapters of my book, below, to learn how the cloud-based and e-commerce businesses are paying less in taxes.
Internet marketing businesses and app companies can quickly shift their income to a no tax state, such as Nevada, or a no tax e-commerce country such as Canada.
Saving taxes with the cloud-based business requires innovative tax planning,
Internet tax planning provides fantastic tax savings.
The Internet-based business decides which country or state has the best tax advantage. Saving taxes is easier than ever. You will learn how to save taxes on this blog.
International e-commerce tax planning starts with placing your computer server in a low tax or no tax jurisdiction. Web-based business tax planning provides big state and federal tax savings.
To learn how big international companies are using the internet to legitimately avoid taxes, please view the California Society of CPAs 40 minutes seminar on this link or listen below on my blog Tax Talk radio show. You can also download the show as a podcast from iTunes.
Congress expects businesses to plan their taxes and be in a 14% tax bracket.
If you watch the debates, you might think the Democrats are going to increase your taxes. But, nope… that is not the American way.
In a recent Congressional report, 2/3rd’s of U.S. corporation paid no income taxes. The average tax rate for all of the of the corporations is 14%. I have an abridge version of the report on this link. The Government report includes many, but not all, of the business tax planning strategies.
Tax planners for the Wealthy have more than 100 business tax strategies that you never find on the internet.
Here is an example of business tax planning that you will never find on the internet.
Let me tell you about Antonio. His family has owned Italian Clothiers in New York. They have been making suits the same way for sixty years. They are getting killed with imports and labor costs and payroll taxes. So, they want to manufacturers some suits in the Philippines and use the “Cloud” to cut costs. Continue reading →
Hard for me to believe that I gave this lecture to the CPA Society five years ago. So, much has changed except for the tax law.
Tax planning for internet marketers, e-commerce small business and app applications continues to be popular. Thousands of small business are saving taxes by using the strategies in this free video.
Some legitimately avoid state income taxes. Other avoid both state and U.S. income taxes.
Here is what’s happened. In the 1930’s the U.S. teamed up with the world to create international tax laws. These ancient tax laws are the backbone of every country’s tax treaty and tax law. They are not changing anytime soon. These tax laws are fine for the industrial age. On the other hand, internet based business are immune from these laws.
For example. Did you know that placing your computer server in a foreign country can convert your U.S. income to foreign income?
If you have forty minutes, please spend it with me and my video. I speak in plain English without much tax jargon.
Applying for an IRS ruling on your international tax planning will save you taxes in the long run.
The Department of the Treasury is keen on getting more business in the United States. It knows e-commerce, cloud-based businesses are producing most of the world’s new income. From Netflix to Ebay to Apple music, the world is seeing a change in business.
It is here that the Treasury and IRS foresight into the future pays off. Before I give you the blueprint, I want to emphasize the skill that our Government used in drafting this tax law in 1972 with a concept that works almost a half century later.
So, let’s pretend that I am starting a business to compete with Netflix. Of course, I am an American, so all of the controlled foreign corporation laws apply to me. My capital source as my long time banking associates. Like so many ‘I” (internet) businesses, I have decided that Ireland is the best location. Continue reading →