Sign California Electrical Services Contract Secure

Document type sign electrical services contract california secure

hey what's going on if you're a general contractor a construction person or remodeling company anybody if you're a construction company first off I'm Rob from feedback ranch I'm out here in Minneapolis we help with web presence digital marketing today I want to talk about how do you make sure that your accountant is giving you the best advice possible to do a couple of things first of all my main goal for you is to help grow your business and maximize your efforts which is why we do digital marketing and we we do a good job but I also grew an accounting practice before this and I'm a tax planning expert and I love helping people build wealth if you're a general contractor a construction person and here's what usually happens Kay you set out you're like doggone I'm going to start my own business I'm gonna quit working for Joe I'm gonna go do my own thing and as you do your own thing you start out making no money right so you start out you're a sole proprietor you set up your LLC so that you can get your contractor insurance so that you're protected right become a general contractor you get your license and since you're just drying and trying to make a profit you know you become an LLC tax as a sole proprietor and essentially what happens is you get so busy doing your work you know you you basically have a basic accounting system you pay your taxes at the end of the year your tax code says that's good well then you slowly grow and you might have explosive girlf or you might have low growth whatever but as you grow you never have somebody stop and say hold on I want to work with you to make sure that you absolutely mitigate your taxes to the best of our ability this isn't about me doing your tax return this is about making sure you pay your fair share and not a penny more contractors I'm telling you I have meet more general contractors more construction folks that don't have somebody that comes in and helps them do that and the result is you get hosed in taxes so I want to equip you with a couple of things to check out to make sure that you are going to reduce your taxes as much as possible and maximize your efforts I don't know I've I grew an accounting practice to about 150 small businesses and that meant I prospected and talked to probably 400 small business owners I bet I met two that weren't concerned about mitigating or reducing their taxes in fact I don't care how liberal or leftist or progressive somebody is I don't know anybody I've never met anyone when it comes to taxes that don't take full advantage of their tax mitigation opportunities all of them try and pay their fair share and not a penny more so if that's if you're like every other red-blooded business owner that I've ever met then you're gonna want to do this right so here's the deal I want to equip you to go to your accountant not during tax time to do some massive tax mitigation you ready so the first thing you got to do is you got to make sure that you are taking advantage of the right business entity we're gonna move fast here okay you basically have three of them that you can be you can be a sole proprietor so an LLC taxes a sole prop LLC tax is assault an S corp so you become a corporation I don't know if the winds blowing into the mic here and then the last one you can become a c-corp you better not be a c-corp there are very few reasons why you'd want to be a c-corp I get all these people on my youtube channel asking why wouldn't you be a c-corp after Trump's tax plan heck no it's still double taxation really the only reason you'd ever want to be a c-corp is if you had like a 401k or a a checkbook IRA that's gonna be like buying your business and holding the stock because that's about the only reason I've ever seen that it makes a ton of sense or if you're gonna raise capital like a giant corporation right so it very subtle makes any sense to do that the sole prop the sole proprietorship is like your default taxation mode basically all of your net profits come down and you're gonna pay Social Security taxes 15.3% on all of your net profits up to the Social Security limit so up to 125 thousand basically you're gonna pay fifteen point three percent self-employment then you're gonna pay state and federal income tax right or if you convert to an S Corp and this is what I really want you to know if you become an S Corp you split your income into an owner's dividend and then a payroll when you split that the payroll is subject - the 15.3% self-employment tax the dividend or the distribution or the owners share is not so we've had people that are making $120,000 a year they started examining what it means to participate in their business and they take a reasonable salary which is what the law says you have to and they go from paying self-employment tax 15.3 on 100k down to saying well maybe I should only have a $50,000 salary that puts seventy six hundred dollars back in their pockets right away I'm telling you if you're a general contractor construction person first thing you should do is ask about if you should be an S corp but if you are an S Corp here's the catch you got to go in and you gotta ask your tax guy how are you helping me make the right decision for this is just awful for my salary - my dividend or distribution how are you making that informed decision because you have to be accurate you want to be informed you want to make sure you do it right but you also want to maximize make sure that you're being as aggressive as possible because for every thousand bucks you said uh-huh you know you're gonna save a ton of money $153 gets a fifteen point three percent so that's the first thing right here's the second thing um you'll want to look at what it means to you're gonna roll your eyes but I'm telling you this is huge especially if you're like a developer or somebody who has big swings and then down time look at what it means to have retirement plans okay now SEP simple 401k the reason why is because you can set it up so whenever you do this and you get retirement plans you can't be prejudiced against your employees all right you can't be like I as the owner get to sack away tons of money and my employees don't so the SEP IRA allows you to put between 0 and 25 percent of every employee including yourself of their wage into a retirement plan that would then be deferred that's a straight right off within your business k or you can do a 401k plan or you can do either a 4% match or you can do a profit share contribution or and then they'll have their own employee contribution here's what you should look at it to reduce your taxes it's the most tax beneficial transfer of money from you to your employees if you meet up with a good third party administrator you can concoct 401k plans that would allow you to mitigate your high high spikes and income really well okay and basically what it does is it allows you to do these officer contributions so you'll want to talk to somebody where you don't do just the safe harbor but you can pick a percentage and and do it for your officers pretty interesting if you have tons of subcontractors your risk is lowered right but here's the third thing get into real estate owned real estate for crying out loud a lot of you contractors are out there and you might have a spouse that like participates in your business or something like that I'm telling you you've got to own real estate buy and hold rental real estate and it can be commercial buildings it could be residential buildings but basically you get two things one you get the the passive income right you just diversify but two you can participate in income that can really be deducted because you have what's called depreciation and then you have these new costs segregations you don't that bonus depreciation you took on your pick up that you bought because of the tax cut and Jobs Act you can do that with big portions of the write-offs within your buildings now I'm telling you you want to save taxes you look at your business entity you take a look at retirement plans and you take a look at investing in buy-and-hold real estate and if you have a spouse have them fully participate in that business and it's just gonna work really well for you good luck I'm telling you if you need help building on a web presence do an SEO you want a a good team that's just down to earth understands your business and wants to help give me a call go to feed Curren calm we'd love to Serbia good luck