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Best Practices Economics Negotiating

How much should I pay myself?

How much should I pay myself?

When people go into business for themselves as a Sole Proprietor, they usually comingle the business’ funds. Meaning they are using Business funds for personal items and personal funds for business items. Sole Prop is the easiest way to start doing business, however, if you choose to setup a Corporation or an LLC, these habits need to change. You and the company are no longer the same. The two of you become 2 separate individuals. The company’s money is not your money, and your money is not the company’s money.
So, the question usually after setting up the Corporation or LLC is: How do I get the money out of the company? How much should I be paying myself? What can the company cover?
The Answer is: You take only what you need, to cover Food, Clothing, Shelter, Personal Entertainment, and Insurance. Let the company pick up the rest. The company should be covering things like, Business Trips, Cell Phones, Internet, Home office expenses, etc. You will never take vacations again. Vacations are not tax deductible, however, business trips are. You will need to make sure that everything is documented. I will discuss what your company should be covering in another article.
Now, usually in the 1st or 2nd years of operation, a business owner has no idea what the company is going to make, so they might take money out as an owner draw rather than a salary. However, around the 3-year mark, the IRS will figure that you have some idea as to how much the company will be making and require you to start taking some sort of salary out of the company.
In addition, if you want your company to cover health insurance, contribute to a qualified retirement plan such as an IRA or SoloK, you will need to be drawing a salary from the company. The contributions will be withdrawn by the payroll company out of each paycheck.
Now you might be thinking, if I need additional money from the company, how do I take it out. Well, if you have an “S” elected Corporation or LLC, you will receive distributions on a monthly, quarterly or annual basis. This will add to your income but won’t be subject to withholdings or self-employment taxes. If your Corporation or LLC is taxed as a “C” elected company, you can either take a dividend which the Corporation has already paid the taxes and now you the individual will also pay taxes. This is commonly referred to as double taxation.
However, your company could loan the money to you personally, which is not considered taxable income. You would then pay the company back out of the wages you take. This can be used as an Asset Protection mechanism. The company, just like any other lender could place a lien against whatever asset you may be purchasing. This will protect the asset from any liability that might affect you personally. This does require a formal written promissory note between you and the company to perfect the process.

Categories
Best Practices Personal Development Skills

The Fruit of Leadership

Just as fresh fruit can elevate a meal from ordinary to extraordinary, a leader must also be imbued with passion. But passion, though vibrant and compelling, is just the starting point. Picture it as the ignition key: crucial for starting the engine, setting ideas in motion, rallying a team, and illuminating the path to a brighter future. However, it’s the initial spark, and a spark alone cannot sustain the journey.

Insightful leaders are acutely aware of this. They understand that while passion sets the stage, it’s just the opening act in the grand opera of leadership. For the story to indeed unfold, for visions to manifest into realities, another element must be introduced: diligence.

Enter diligence, the unsung hero. As passion takes its bow, diligence steps into the spotlight. It’s the steady hand on the ship’s wheel, guiding through stormy seas, unforeseen barriers, and detours. Where passion provides the whirlwind of inspiration and drive, diligence translates it into a structured roadmap. It ensures that this roadmap is aspirational and achievable, leading to tangible, impactful outcomes.

Together, passion and diligence don’t just coexist; they harmonize, creating an influential symphony of leadership that resonates and inspires.

Here are ten truths about the dynamic interplay of passion and diligence that leaders are well-versed in:

  • Where passion envisions a horizon, diligence charts the navigational route

Passion is that indomitable spirit, that burning desire to achieve something grand. It’s what paints a vivid picture of the future. However, a vision without a plan is merely a dream. That’s where diligence steps in. Diligence is the meticulous process of planning every step, foreseeing challenges and plotting a course to reach the envisioned horizon. Together, these attributes make a leader’s journey both inspiring and practical.

 

  • While passion magnetizes a team, diligence fashions its framework

A passionate leader is charismatic, drawing like-minded individuals towards a shared goal. This magnetic pull is the heart of team formation. Yet, a robust structure is paramount for a team to function efficiently. Diligence ensures that the team has a clear direction, roles are well-defined, and every member understands their contribution to the larger mission.

 

  • As passion fosters sound judgments, diligence drives their execution

Passion enables leaders to make decisions that resonate with their core values and long-term vision. These decisions are both heartfelt and strategic. But a decision without action remains a thought. Diligence is the force that ensures these judgments are acted upon, tasks are completed, and goals are methodically pursued.

 

  • Passion lays the cornerstone of values, whereas diligence embodies them in actions

Passion instills a set of core values that guide every choice and action. It’s the foundation upon which ethical and meaningful leadership is built. But values are not just to be believed but to be lived. These values consistently manifest with diligence in day-to-day actions, building trust and respect among peers and subordinates.

 

  • While passion dreams of a thriving culture, diligence puts the bricks in place

Passion dreams of creating an environment where everyone thrives, ideas flourish, and creativity is encouraged. But dreaming alone won’t develop this culture. Diligence takes on the role of a master builder, putting systems, policies, and practices in place to foster the desired culture.

 

  • Passion outlines the destination, and diligence architects the voyage

Passion tells you where you want to go, providing a clear end goal. It’s the guiding star. But how do you get there? That’s the job of diligence. It maps out the journey, anticipates challenges, ensures resources are in place, and continuously checks if the path aligns with the desired destination.

 

  • As passion designs priorities, diligence executes the blueprint

In the cacophony of tasks and challenges, passion helps leaders prioritize what’s truly important. It sets the agenda. Diligence, on the other hand, ensures that these priorities are addressed in the correct order, with the right resources, and at the right time.

 

  • While passion sows the seeds of ideas, diligence transforms them into reality

Passion is the birthplace of innovation. It’s where groundbreaking ideas emerge. Yet, an idea without execution remains intangible. Diligence is the gardener that nurtures these seeds, watering them, providing sunlight, and ensuring they grow into full-fledged realities.

 

  • Passion goads personal growth, and diligence guides the transformation

Passion pushes leaders to evolve, learn, and better themselves constantly. It’s the internal drive for self-improvement. Diligence, meanwhile, is the mentor ensuring that this growth is structured, meaningful, and in alignment with both personal and organizational goals.

 

  • As passion fuels innovation, diligence propels its realization

The future belongs to those who innovate. Passion is the fire that sparks innovative thoughts, pushing boundaries and challenging the status quo. But innovation must be brought to life to truly make an impact. That’s where diligence comes in, ensuring every innovative idea is tested, refined, and finally introduced to the world.

 

 

Remember, it’s an embrace, a dance, not a competition. Passion and diligence aren’t opposing forces but partners, intricately twining like grapevines in a vineyard, each supporting the other’s growth and strength.

While passion may dazzle and captivate with its vibrant allure, it’s akin to a wine’s bouquet – enticing but fleeting. Diligence, in contrast, represents the depth and body of the wine, giving it character and longevity. Without the methodical nurturing of diligence, the fiery enthusiasm of passion can evaporate, leaving behind mere aromatic traces.

So, as you pour the robust wine of passion into your leadership goblet, ensure you balance it with the structured body of diligence. Much like a perfectly aged Bordeaux, this nuanced blend creates a legacy of achievements that shine in the moment and stand the test of time.

Author’s Note

Many of you know me and my affection and respect for top-quality red wines. I have been known to boast of my keen ability to rescue a glass of cabernet sauvignon from death by evaporation. I am no stranger to fresh fruit when paired with a lovely cheese joined with water crackers.

I do my best when sipping a glass of the profound scarlet gift from God so I can attest to the passion encompassing leadership, just as I have tried to describe it.

Enjoy!

Categories
Best Practices Personal Development Skills

The Fruit of Leadership

Just as fresh fruit can elevate a meal from ordinary to extraordinary, a leader must also be imbued with passion. But passion, though vibrant and compelling, is just the starting point. Picture it as the ignition key: crucial for starting the engine, setting ideas in motion, rallying a team, and illuminating the path to a brighter future. However, it’s the initial spark, and a spark alone cannot sustain the journey.

Insightful leaders are acutely aware of this. They understand that while passion sets the stage, it’s just the opening act in the grand opera of leadership. For the story to indeed unfold, for visions to manifest into realities, another element must be introduced: diligence.

Enter diligence, the unsung hero. As passion takes its bow, diligence steps into the spotlight. It’s the steady hand on the ship’s wheel, guiding through stormy seas, unforeseen barriers, and detours. Where passion provides the whirlwind of inspiration and drive, diligence translates it into a structured roadmap. It ensures that this roadmap is aspirational and achievable, leading to tangible, impactful outcomes.

Together, passion and diligence don’t just coexist; they harmonize, creating an influential symphony of leadership that resonates and inspires.

Here are ten truths about the dynamic interplay of passion and diligence that leaders are well-versed in:

  • Where passion envisions a horizon, diligence charts the navigational route

Passion is that indomitable spirit, that burning desire to achieve something grand. It’s what paints a vivid picture of the future. However, a vision without a plan is merely a dream. That’s where diligence steps in. Diligence is the meticulous process of planning every step, foreseeing challenges and plotting a course to reach the envisioned horizon. Together, these attributes make a leader’s journey both inspiring and practical.

 

  • While passion magnetizes a team, diligence fashions its framework

A passionate leader is charismatic, drawing like-minded individuals towards a shared goal. This magnetic pull is the heart of team formation. Yet, a robust structure is paramount for a team to function efficiently. Diligence ensures that the team has a clear direction, roles are well-defined, and every member understands their contribution to the larger mission.

 

  • As passion fosters sound judgments, diligence drives their execution

Passion enables leaders to make decisions that resonate with their core values and long-term vision. These decisions are both heartfelt and strategic. But a decision without action remains a thought. Diligence is the force that ensures these judgments are acted upon, tasks are completed, and goals are methodically pursued.

 

  • Passion lays the cornerstone of values, whereas diligence embodies them in actions

Passion instills a set of core values that guide every choice and action. It’s the foundation upon which ethical and meaningful leadership is built. But values are not just to be believed but to be lived. These values consistently manifest with diligence in day-to-day actions, building trust and respect among peers and subordinates.

 

  • While passion dreams of a thriving culture, diligence puts the bricks in place

Passion dreams of creating an environment where everyone thrives, ideas flourish, and creativity is encouraged. But dreaming alone won’t develop this culture. Diligence takes on the role of a master builder, putting systems, policies, and practices in place to foster the desired culture.

 

  • Passion outlines the destination, and diligence architects the voyage

Passion tells you where you want to go, providing a clear end goal. It’s the guiding star. But how do you get there? That’s the job of diligence. It maps out the journey, anticipates challenges, ensures resources are in place, and continuously checks if the path aligns with the desired destination.

 

  • As passion designs priorities, diligence executes the blueprint

In the cacophony of tasks and challenges, passion helps leaders prioritize what’s truly important. It sets the agenda. Diligence, on the other hand, ensures that these priorities are addressed in the correct order, with the right resources, and at the right time.

 

  • While passion sows the seeds of ideas, diligence transforms them into reality

Passion is the birthplace of innovation. It’s where groundbreaking ideas emerge. Yet, an idea without execution remains intangible. Diligence is the gardener that nurtures these seeds, watering them, providing sunlight, and ensuring they grow into full-fledged realities.

 

  • Passion goads personal growth, and diligence guides the transformation

Passion pushes leaders to evolve, learn, and better themselves constantly. It’s the internal drive for self-improvement. Diligence, meanwhile, is the mentor ensuring that this growth is structured, meaningful, and in alignment with both personal and organizational goals.

 

  • As passion fuels innovation, diligence propels its realization

The future belongs to those who innovate. Passion is the fire that sparks innovative thoughts, pushing boundaries and challenging the status quo. But innovation must be brought to life to truly make an impact. That’s where diligence comes in, ensuring every innovative idea is tested, refined, and finally introduced to the world.

 

 

Remember, it’s an embrace, a dance, not a competition. Passion and diligence aren’t opposing forces but partners, intricately twining like grapevines in a vineyard, each supporting the other’s growth and strength.

While passion may dazzle and captivate with its vibrant allure, it’s akin to a wine’s bouquet – enticing but fleeting. Diligence, in contrast, represents the depth and body of the wine, giving it character and longevity. Without the methodical nurturing of diligence, the fiery enthusiasm of passion can evaporate, leaving behind mere aromatic traces.

So, as you pour the robust wine of passion into your leadership goblet, ensure you balance it with the structured body of diligence. Much like a perfectly aged Bordeaux, this nuanced blend creates a legacy of achievements that shine in the moment and stand the test of time.

Author’s Note

Many of you know me and my affection and respect for top-quality red wines. I have been known to boast of my keen ability to rescue a glass of cabernet sauvignon from death by evaporation. I am no stranger to fresh fruit when paired with a lovely cheese joined with water crackers.

I do my best when sipping a glass of the profound scarlet gift from God so I can attest to the passion encompassing leadership, just as I have tried to describe it.

Enjoy!

Categories
Best Practices Economics Health and Wellness

Embarking on the Journey to Your Dream Retirement: Crafting a Happily Ever After

Picture this: a vibrant life post-retirement, where you’re not just free from the demands of the nine-to-five grind but thriving in a world of boundless possibilities. Envision retiring young, your days brimming with adventure, laughter, and cherished moments. Now, imagine coupling this newfound freedom with robust health, enabling you to relish each experience to the fullest. Can you feel the thrill of it all? Your dream retirement is no longer a distant fantasy; it’s a reality waiting for your embrace.

The canvas of your retirement journey is blank, and you hold the paintbrush to fill it with vibrant strokes of happiness and fulfillment. Your youthful dreams of a retirement adorned with joy, relaxation, and cherished relationships are within your grasp. The path to this blissful haven is paved with the art of PREparing for PREtirement.

Retirement planning is akin to crafting a masterpiece. Just as an artist carefully selects their palette, you must curate the hues of your financial future. Begin with a brushstroke of financial planning. Assemble your toolkit, understanding the intricacies of savings, assets, pensions, and health concerns.

Unraveling the Financial Tapestry

Money, a vital thread in your retirement tapestry, requires careful weaving. Craft a comprehensive financial plan that encompasses:

Savings: Delve into the art of saving, setting aside a portion of your income to create a cushion of security.

Assets: Explore the potential of your assets—properties that can yield income to sustain your desired lifestyle.

Dependents: Like a symphony, your plan should harmonize provisions for your loved ones, ensuring their needs are met.

Pension: Assess the bridge of your pension, determining whether it aligns with the expanse of your dreams.

Health Issues: Shield your masterpiece from unexpected storms; secure health insurance to safeguard against health-related financial setbacks.

Lifestyle: Conjure your post-retirement life’s vision—a realm of purposeful pursuits, be they leisurely or impactful.

The Art of Balance and Meaning

Retirement’s canvas extends beyond finances. Brush in the hues of emotional well-being and purpose. As the curtain falls on the working world, emotions may sway from elation to ennui. Ensure your life continues to radiate vibrancy by envisioning meaningful activities that bring joy and fulfillment.

Rediscover your passions, whether through continued work, part-time endeavors, or contributing to your community. Let your palette encompass not just relaxation but also the satisfaction of continued contribution.

Harmonizing Relationships

Just as every brushstroke plays a role in a masterpiece, the delicate dance with your partner shapes your retirement symphony. Engage in heartfelt conversations about your retirement aspirations. Align your dreams, discussing whether relaxation or exploration will guide your joint journey.

In this tableau, the harmony of companionship is vital. Cultivate understanding, crafting plans that bridge desires, ensuring neither partner feels left behind.

Your Retirement Masterpiece Awaits

As the final touches of your retirement masterpiece come into view, remember that this canvas is unique to you. Sculpt your vision with meticulous care, weaving together financial prudence, emotional resonance, and harmonious relationships.

Your retirement dreams are not distant stars; they’re galaxies within reach. With every brushstroke of preparation, your masterpiece evolves—a life where happiness, purpose, and fulfillment create a symphony of contentment.

Unlock the art of preparing for retirement, and let the melody of your life play on in the most harmonious and rewarding way imaginable. 

Schedule a Free Financial Fitness Strategy Session with Kris Miller, LDA. Legacy Wealth Strategist #1 Bestselling Author, Speaker & Educator

Use the Calendar Below to Schedule Your One-On-One Session 

Calendar

30+ years of experience assisting others to grow & protect their wealth. Helped more than 6,000 families avoid financial disaster by strategically planning for their futures. Not one person has lost a single dime on her watch. Her clients learn how to change their families’ financial realities and create incomes they will never outlive

For more Healthy Money Tips go to my linktr.ee/healthymoneyhappylife

Kris@HealthyMoneyHappyLIfe.com

Phone (951) 926-4158

Categories
Best Practices Capital Health and Wellness

Unleash Your Retirement Dreams: Crafting a Blueprint for Your Golden Years

Picture this: You’re strolling along the sun-kissed shores of a distant beach, savoring the freedom to explore and relishing the company of your loved ones. You’re not confined by office walls or deadlines; instead, you’re living life on your terms, basking in the golden glow of retirement. Sounds like a dream, right? Well, it doesn’t have to be just a dream. It can be your reality with the power of a well-crafted retirement planner!

In a world bustling with the demands of today, contemplating your retirement might seem like gazing into a distant galaxy. But pause for a moment and consider this – what if you could shape your future now, ensuring that your golden years truly shine?

The Prelude: A Retirement Planner Unveiled

Imagine your retirement planner as a magical treasure map, leading you toward a life of financial security and boundless adventures. It’s not just about numbers and charts; it’s about painting a vivid canvas of your dreams. The first step? Acknowledge that this journey is worth taking, no matter your age. Whether you’re a young professional or a seasoned veteran, a retirement planner is your compass to navigate the seas of your future.

Mapping Your Voyage

  1. Setting Sail – Your Retirement Date: When do you envision setting sail for your retirement haven? Setting a clear date infuses your dreams with purpose and direction. Whether it’s an early escape or a graceful exit, having a date in mind propels you forward.
  1. A Treasure Chest of Funds: Ahoy, financial security! How much booty do you need to realize your retirement dreams? Crunching numbers may sound mundane, but it’s the key to unlocking your aspirations. Calculate the riches required to fund your desired lifestyle, and let that guide your financial strategy.
  1. Designing Your Oasis: Retirement isn’t just a time to relax; it’s a time to thrive. Envision the life you want to lead – globe-trotting, pursuing passions, or simply reveling in tranquility. Your dreams fuel the engine of your planner, charting a course towards fulfillment.
  1. Guardians of Health and Happiness: Along this voyage, you’re the captain of your well-being. Secure your health with long-term care insurance, ensuring that the winds of uncertainty won’t capsize your financial ship. A living will adds an extra layer of control, ensuring your wishes guide your medical care.
  1. Legacy of Abundance: Just as pioneers leave behind trails of discovery, plan for the legacy you’ll leave. Decide who’ll helm your entrepreneurial ship when you dock into retirement. A seamless transition safeguards your hard-earned treasures and keeps your family’s sails billowing.

Hoisting Your Sail with Purpose

Think of your retirement planner as a vessel powered by your aspirations. Each piece of information is a plank, meticulously laid to construct the ship that will sail you into your dream retirement. It’s not just about numbers; it’s about steering your life towards an extraordinary horizon.

So, are you ready to craft your retirement saga? Set your sails towards a future that’s not just secure, but remarkable. Your retirement planner is the compass, the key, the map – your pathway to a life that’s guided by your dreams and driven by your plans. Begin your voyage now, and let the wind of possibility carry you to a retirement that’s beyond your wildest imaginings. 🌄🚢💰 #RetirementDreams #FinancialFreedom #SailIntoTheFuture”

Schedule a Free Financial Fitness Strategy Session with Kris Miller, LDA, Legacy Wealth Strategist #1 Bestselling Author, Speaker & Educator

Use the Calendar Below to Schedule Your One-On-One Session

Calendar

30+ years of experience assisting others to grow & protect their wealth. Helped more than 6,000 families avoid financial disaster by strategically planning for their futures. Not one person has lost a single dime on her watch. Her clients learn how to change their families’ financial realities and create incomes they will never outlive

For more Healthy Money Tips click on my linktr.ee/healthymoneyhappylife

Kris@HealthyMoneyHappyLIfe.com

Phone (951) 926-4158

Categories
Best Practices Branding Marketing

Safeguard Your Online Reputation: Defend Against the Rising Tide of LinkedIn Account Hijackings

In today’s digital age, cyber threats are a persistent reality, and the recent surge in LinkedIn account hijackings has set off alarm bells among cybersecurity experts. During the week of August 14, 2023, major sources such as Dark Reading, Bleeping Computer, Cyberint, and Help Net Security each sounded the alarm about this emerging trend.

The Growing Threat: LinkedIn Account Hijackings

Dark Reading issued a stark warning: “Hackers are on a spree of hijacking LinkedIn accounts.” This ongoing wave of attacks has left countless LinkedIn users locked out of their accounts due to security measures or falling prey to attackers who gain unauthorized access. Cybercriminals are capitalizing on this vulnerability, jeopardizing victims’ access and their online reputation.

Why LinkedIn Accounts Are Valuable Targets

Your LinkedIn account holds more value than you might realize. Cybercriminals can exploit your online identity and reputation to engineer advanced phishing campaigns that target your trusted business connections. This manipulation can lead to severe consequences, tarnishing your professional image and causing harm to your connections.

Strengthen Your Defenses NOW:  Change Your Password and Use Two-Factor Authentication

The first line of defense against LinkedIn account hijacking is a strong, distinctive password. Make it long, complex, and difficult to guess. To change your password, navigate to the Me icon on your toolbar and select Settings and Privacy. Select Sign in and Security from the Settings menu, and then select Change Password.

When you change your password, follow the instructions to enable two-factor authentication (2FA). This secondary layer of security involves sending a dynamic code to your personal device or email, effectively thwarting unauthorized access even if the password is compromised.

Detecting a Hijacked Account

If you receive a “temporary lock” notification from LinkedIn due to unusual activities upon login, though this is annoying, consider yourself fortunate. This signifies that LinkedIn’s security systems are at work, detecting potential threats and intervening on your behalf. However, note that if you receive an email notification from LinkedIn regarding a new email address from an unfamiliar domain such as “rambler.ru,” your account might already be under the control of a malicious actor. So, now what?

Responding to a Hijacked Account

If you suspect your LinkedIn account has been compromised, take immediate action. Despite reported delays in LinkedIn’s response times, you should still follow these steps:

  1. Respond to email notifications to regain access.
  2. Contact LinkedIn Support via their official pages on platforms like Facebook or Twitter.
  3. Change passwords for all associated email accounts.
  4. Notify your LinkedIn connections about the potential security breach.

Conclusion: Stay Vigilant, Stay Secure

As cyber threats evolve, individuals and businesses must stay vigilant and adapt their security measures accordingly. The wave of LinkedIn account hijackings is a reminder of the importance of proactive defense strategies. Protecting your online reputation and controlling your digital presence is a top priority. By implementing strong passwords, enabling 2FA, and staying informed about emerging threats, you can fortify your LinkedIn account against the rising tide of cyber attacks.

Stay safe, stay secure, and protect your valuable online reputation.

I am NOT a cybersecurity expert. The following sources were consulted for this article:

LinkedIn Suffers ‘Significant’ Wave of Account Hacks

LinkedIn accounts hacked in widespread hijacking campaign

LinkedIn Accounts Under Attack

LinkedIn users targeted in account hijacking campaign

If you are looking for personal branding and LinkedIn support, check out my website for the assistance that is right for you. My online course and award-winning book, LinkedIn for the Savvy Executive: Promote Your Brand with Authenticity, Tact and Power, 2nd Ed. are affordable for all. Senior leaders can benefit from my one-on-one executive coaching and done-for-you profiles.

From Fortune 500 companies to Silicon Valley start-ups, clients nationwide have passed initial muster, raised capital, and bought or sold what they wanted to buy or sell by using LinkedIn to their best advantage. I can make this easy for you if you are a C-suite executive or senior leader. Before a customer or M&A team examines your team’s LinkedIn profiles, based on my knowledge of how LinkedIn works and how people respond to what they see there, I can ensure everything is ready and that your profiles convey exactly the message and impression you’re aiming for.

Over the past ten years, I’ve helped countless C-level clients and senior executives use LinkedIn to frame conversations, impress customers, and introduce themselves before their first conversation. Along the way, I wrote the award-winning book LinkedIn for the Savvy Executive-2nd Edition. It’s received BookAuthority’s Best LinkedIn Books of All Time award, gold status in two categories from International Book Awards, and was named one of the Top 100+ Best Business Books by The C-Suite Network.

Let me help you use this essential business tool effectively. Do your due diligence through my website www.carolkaemmerer.com and profile www.linkedin.com/in/carolkaemmerer. Then, contact me here.

Categories
Best Practices Operations Skills

Living Corporate Life

Living Corporate Life

Are you currently a W2 wage earner or 1099/Sole Proprietor?

W2 wages are the highest taxed. The taxes come right off the top and you only have about 3-4 deductions such as a 401k or IRA, Mortgage Interest Deduction, HSA’s. etc.

Sole Proprietors only have about 15-30 different deductions that you can claim on a Schedule C, and you are also subject to Self-Employment taxes.

Are you aware that there is a whole other tax code out there that consists of 81,000 pages! You need to live your life like a business. What do I mean by that. If you live your life inside of a Corporation or LLC or even multiple different companies, you are allowed to take advantage of far more write-offs. The tax code provides Corporations and LLC’s up to 233- 305 different write-offs. This allows you more use of your money upfront which ultimately reduces your overall taxable liability. So what things are deductible? The IRS says what is necessary and reasonable. Below are 43 examples, however as I said, there are far more.

Accounting Fees, Advertising, Air Conditioning, Airplanes, Assistants, Business Promotion, Bad Debts, Boats, Bonuses, Bookkeeping, Alarm Systems, Business Awards, Business Consultants, Disability Plans, Decorating, Business Meals, Legal Fees, General Business Insurance, Vehicles, Corporate Setup Fees, School, Health Clubs, Home Office, Leasing an Office, Research, Medical Bills, Interest Payments, Business Travel, Equipment, Seminars, Technology, Insurance, Braces, Education, Property, Loans, Massage, Gardening, Logo’s, Web Design, Professional Services, Team Building, & Paying your kids*

Through 6 Different deductions, I can show you how to save almost $100k in taxes in your business.

  1. Safety and Longevity awards: = $1,600 each award
    Let me explain these awards. If you are the person in charge of keeping the workplace safe, you could be the one who takes advantage of the Safety Award. If you are the person who has been in the business the longest, you could be awarded the Longevity Award.
    NOW understand this, the Longevity Award cannot be taken year after year by the same person. If the same person were to receive this award again, they would have to wait a period of 5 years. Same goes for the Safety Award. It cannot be taken year after year by the same person. This award cannot be cash or cash equivalent meaning a VISA or Mastercard, gift card and CANNOT BE TRAVEL.  However, if there is something else you would enjoy, like a new set of Callaway Golf Clubs or that new Orbea Bicycle you’ve had your eyes on. The company would cut a check to the merchant for the item. It can then claim it as a deduction and is not considered taxable income to you.
  2. Medical Reimbursement Plan: = Up to $10,000 per person on the plan
     A Medical Reimbursement Plan is a Self-Administered plan that is established by the company. The company may contribute up to $10,000 to plan which is a Tax deduction to the business and is not considered income to you. If you are self-insured, the plan can be used to cover things that aren’t covered by your health insurance such as Premiums, Co- Pays, Deductibles, prescriptions, etc.
  3. Vehicle Deduction = $7,500 per year on average
    Now, I am not talking about taking advantage of the vehicle deduction on your Schedule C. I am saying that your Corporation or LLC can lease your vehicle from you and pay you based upon mileage driven, just like any other employer would do. This means that if you drive 1000 miles per month as an example, and the reimbursement rate for that year was 62.5 cents per mile, the company should be writing you a reimbursement check for a total of $625 for the use of the vehicle that month. This is a tax deduction to the business, however it will be considered income to you. Due to the depreciation of the value the personal vehicle due to business use, this could wipe out that income on your personal taxes. This money can be used to cover things like vehicle payments, insurance, maintenance, fuel, etc.
  4. Retirement Plans (SoloK) = up to $62,000 per person (Husband and Wife)
    I am not a Qualified plan expert by any means, so this information is for informational purposes only. A SoloK plan is a lot like a 401k plan that you would have with an employer. You would establish a SoloK plan for you and your spouse through a Self- Directed Administrator (There are many out there). Based upon your Salary with the company, you could contribute up to $62,000 to the plan which becomes a tax deduction to the business and puts money in a qualified plan for you and your wife. Now the beautiful thing about these plans is that you can borrow against them unlike an IRA. So, if you need a boost in your business, the company could borrow against it. This type of plan also allows you to invest in alternative investments that grow tax deferred. This is not considered investment or Tax advice so if you want to learn more about these types of plans, talk to one of the many Administrators out there. IF you want a referral, we work with several different companies that provide these services.
  5. Education for the growth of your business = $5,250 avg. (Changes from time to time)
    Do you like to attend events to learn new strategies for the growth and development of your business? The IRS code allows you to deduct up to $5,250 per year for tuition to these conferences. You must have a written Educational Assistance Program in place and there are certain requirements. The plan cannot favor highly paid employees. It can’t provide more than 5% of the benefits to shareholders or owners. Employees can’t receive cash or other benefits instead of educational assistance and you must give reasonable notice of the program to employees. If you are the only employee, this makes it easy. Now let’s define employee. In order to take advantage of this benefit, you will need to be drawing a small salary from the company.
  6. Hiring your Children = $12,200 per year*
    The IRS says that we can employ our children starting at the age of 3-18. The duties have to be age commensurate, and the services do have to be performed. What you would need to do is keep a time sheet of the work they did and for how long. This allows you to pay them up to $1,000 per month which is $1,000 less per month that you personally need to draw out of the company. This money can be used for educational expenses, Dance, Band, Sports, etc. Now of this $12,200 over the year, you can also contribute up to $6,000 per year to a ROTH IRA that you establish for your child. Now imagine if you have multiple children how this can be beneficial to you, your family, and a tax deduction to your business.

**If your Corporation or LLC is taxed like an “S” Corp or “C” Corp. you will be required to withhold taxes just like any other employee.**

With these 6 different deductions, I just showed you how to save $98,550.00 per year in your business and as I mentioned above, you have access to 233-305 different corporate write-offs!!

As I always harp on, all of these benefits come with responsibilities, Corporate Compliance. You need to have Minutes & Resolutions that memorialize these transactions.

You might be saying to yourself, my CPA handles that. Are you sure? Have you had your tax returns reviewed by another professional. Our experience is that most CPA’s overlook around $6k – $9k in deductions per year. You see most CPAs are not tax strategists! I make jokes about this all the time. There are two types of CPA’s. 1. CPA stands for Certified Public Accountant which means they are proactive and might offer you ideas to consider where number 2. CPA stands for Cut Paste and Attach. Meaning, it’s just rinse and repeat, and you might hear them say things like “This is what I have done for my clients in the past.” This means they are creatures of history. You need someone who is going to offer guidance and strategy that will enable you to take advantage of all these awesome benefits I have mentioned above. By Living Corporate Life, it allows you to keep more of your hard-earned money and pay a lot less in taxes.

To learn more about how Living Corporate Life may benefit you, call our office at 775-384-8124 or send an email to contact@controllersltd.com. You can also book an Appt with my Sr.
Strategist at www.calendly.com/stephan-controllers

Categories
Best Practices

Navigating AI in the Workplace

As Artificial Intelligence (AI) continues to revolutionize various industries, its integration into the workplace has become increasingly prevalent. While AI brings numerous benefits and opportunities for businesses, it’s crucial to be aware of its potential challenges and risks. In this blog post, we will explore the benefits of AI in the workplace, and the associated concerns, and provide best practices to ensure a responsible and effective integration of AI technologies.

The Benefits of AI in the Workplace:

Increased Efficiency and Productivity:

AI-powered automation can streamline repetitive and time-consuming tasks, allowing employees to focus on more strategic and complex responsibilities. By leveraging AI, businesses can enhance efficiency, reduce human errors, and accelerate processes, ultimately boosting overall productivity.

Data Analysis and Insights:

AI algorithms excel at analyzing vast amounts of data, uncovering patterns, and extracting valuable insights. This capability empowers businesses to make data-driven decisions, identify trends, and gain a competitive edge. AI-driven analytics can provide deep insights into customer behavior, market trends, and operational efficiencies, aiding in informed decision-making.

Enhanced Customer Experience:

AI-powered chatbots and virtual assistants enable businesses to deliver prompt and personalized customer support around the clock. Additionally, AI algorithms can analyze customer data to provide tailored recommendations, anticipate needs, and personalize interactions, ultimately enhancing the overall customer experience.

Improved Decision-Making:

AI technologies, such as predictive analytics and machine learning algorithms, can assist in making more accurate and informed decisions. By analyzing historical data, market trends, and various factors, AI systems can provide valuable insights and recommendations, helping businesses optimize strategies and achieve better outcomes.

Challenges and Considerations:
Ethical Concerns:

AI raises ethical questions related to privacy, bias, and the potential for automation to displace human workers. It is crucial for organizations to establish ethical guidelines and ensure transparency, accountability, and fairness in AI systems’ design and use.

Data Security and Privacy:

AI relies heavily on data, and businesses must prioritize data security and privacy to protect sensitive information. Implement robust cybersecurity measures, comply with data protection regulations, and regularly audit and monitor AI systems to mitigate potential risks.

Workforce Adaptability:

The integration of AI may require employees to acquire new skills and adapt to changing job roles. It is essential for businesses to invest in employee training and provide support during the transition to AI-powered workflows to ensure a smooth and inclusive integration process.

Best Practices for AI Integration:

Start with Clear Objectives:

Define clear goals and expectations for implementing AI in the workplace. Identify specific areas where AI can add value and align its integration with your business objectives.

Foster Collaboration Between Humans and AI:

Emphasize the importance of human-AI collaboration. Encourage employees to embrace AI as a tool that augments their abilities and enhances their work, rather than a replacement. Promote a culture of learning and collaboration that values human expertise alongside AI capabilities.

Ensure Transparency and Explainability:

Promote transparency and ensure that AI systems provide understandable and explainable outcomes. This helps build trust among employees and stakeholders and enables effective decision-making.

Prioritize Data Ethics and Governance:

Establish robust data governance practices, including data privacy, security, and compliance. Regularly assess AI algorithms for potential biases and ensure fairness and inclusivity in decision-making processes.

Conclusion:

AI offers significant potential to transform the workplace and drive business growth. However, it is crucial to approach its integration with caution and mindfulness of the associated challenges. By understanding the benefits, addressing ethical concerns, prioritizing data security and privacy, fostering workforce adaptability, and following best practices, businesses can harness the power of AI responsibly.

Categories
Best Practices Human Resources Operations

You’re Wrong, but Not Alone: Four Horrible Truths for Surviving Matrix Management

One of the first jobs of my professional career required me to serve as a technical link between Intel Corporation’s mask operations experts and its factory yield specialists. The challenge stemmed from the fact that, at the time, we were on the bleeding edge of what was technically possible, inventing the future as we went.  Specifications and requirements that at first seemed straightforward and uncontroversial quickly became difficult to create and confusing to interpret. It wasn’t uncommon for the two organizations to think they were on the same page only to discover that their agreement didn’t work, that it wasn’t fully understood, or – maybe most often – that what originally appeared to be a complete set of parameters suddenly seemed inadequate in light of new information.

Of course, when I say it this way, it makes it sound like we uncovered these discrepancies over coffee, in comfortable chairs, with smooth jazz playing in the background. Actually, the discoveries tended to look more like one hard-charging-part of the organization suddenly realizing that the other part had done something that DIDN’T WORK FOR THEIR NEEDS and would create CRITICAL DELAYS and cause FINANCIAL IMPACTS if it wasn’t corrected IMMEDIATELY even though what they wanted might be TECHNICALLY IMPOSSIBLE. The capitalization isn’t mine, by the way – it’s based on which words were pushed across phone lines at the highest volume. I know this because it often fell to me, a 25-year-old engineer just a couple years out of university, to get these highly intelligent, heavily goal-driven, and (ahem) relatively headstrong technical managers and leaders to have conversations, gather data, share information, come to agreement, and make adjustments that they DIDN’T WANT TO MAKE – especially since the two groups reported into different bosses and structures.

It turned out, I wasn’t bad at this – maybe because I have thick skin, and definitely because I was lucky enough to work for managers who supported my potential rather than overriding my every move. So I suppose it’s not hugely surprising that I ended up progressing from an engineer, to a leader in matrixed organizations, to a weirdo former engineer-turned-unusual-management-consultant who is more concerned about how management works as a complex, open, dynamic, emergent, coherent system than about what results it gets on any given day.

The thing is, because of that progression, I now know something I didn’t know back then:  I wasn’t alone. Plenty of people in matrixed organizations find themselves hamstrung between competing structures, just like I was.  So, whether you’re a senior leader or middle manager, should you find yourself caught this way too, pulled apart by various parts of your company debating each other in capital letters, I wanted to offer you four truths that might help. They’re excerpted directly from my bestseller Iterate: Run a Fast, Flexible, Focused Management Team, and they come with a warning: they’re not just truths – they’re horrible truths. If you’re a Ted Lasso fan, you no doubt remember Dr. Sharon telling Ted that “the truth will set you free, but first it will p**s you off.” Be warned:

First, management isn’t sexy. Making incremental adjustments to organizational resources to keep the enterprise on target may be the least attractive part of the work, as viewed from the outside. It’s not high-tech, it’s not customer facing, and it’s not terribly exciting to talk about. The fact that acting as the feedback system for the organization is critically important—and that it can be interesting and engaging to the manager who’s actually doing it—doesn’t change any of that.

Second, management is about being “wrong.” In Iterative Management®, every step leads to new information, and every new piece of information informs every step. Management is about making the best decision possible and then discovering upon implementation that things aren’t going as planned. Often that discovery comes packaged as criticism: “Why didn’t you see this coming?” The truth is, often management can’t see it coming. All it can do—must do—is adjust and adjust again. Fail forward, fast.

Third, management can only allocate resources. The management team can’t change the customer, the products, the services, the marketplace, the board, the ownership, or the future. All it can do is assign resources—people, money, and equipment—to get the work done. And since most resources are fully assigned, all it can really do is contemplate changes to resource assignments already in place. The only decision management ever makes is whether to leave resources alone or, if not, how to move them around. (Sometimes, some managers can change goals too – but not always, and not all of them.)

Lastly (maybe worst of all), management is succeeding when it’s resource constrained. Moving resources around almost always involves taking them away from something else. That’s because the balance between opportunities and resources is never perfect, and it’s preferable to have too few resources rather than too few opportunities. In the best-case scenario, management is all about stealing resources from good opportunities to apply them to better ones. And while that sounds good on paper, in reality it makes for some terribly difficult decisions, especially since those not-good-enough options always have strong, emotional advocates.

(Source: Iterate: Run a Fast, Flexible, Focused Management Team by Ed Muzio, An Inc. Original)

It sure would have been nice to know these things back in my 20’s: To know that I was serving an unpopular but important function, that I was destined to be “wrong” over and over, and that my possible avenues for action mostly involved taking resources from those who didn’t want change. The knowledge wouldn’t have made my job easier, exactly, but it would have lowered my stress while doing it. That would have made my life better, for sure, and maybe even increased my level of performance.  Unstressed brains are creative brains, after all.

If you’re leading or managing in a matrixed environment, I hope you can take some solace in the fact that you’re not alone. It’s hard, it’s supposed to be hard, and all you can do is take your next best step from here. I wish you well, and I hope that, after it p**ses you off, this truth sets you free.  Because either way, you’ll still be wrong again tomorrow.

Categories
Best Practices Culture Parenting

Dear Katherine: My two girls are in competition over everything!

Hello, Conscious Parents! Welcome to “Dear Katherine,” a Q&A with real-life parents/caregivers. If you’d like to submit a question of your own, email me at katherine@consciousparentingrevolution.com.

Dear Katherine,

Two young sisters, aged 8 and 11, seem to be in constant competition, and their parent, “Looking for Peace of Mind,” is concerned about how to handle competitive siblings and why kids are competitive with siblings. They contend over everything, from the size of the pie slices to finishing homework fastest and even who gets to take a shower first. “Looking for Peace of Mind” recognizes that sibling rivalry is a normal phenomenon, but she is eager to find ways to handle sibling rivalry and reduce competition between siblings. Can you offer some guidance on how to reduce competition between siblings and how to handle sibling rivalry?

— Seeking Solutions for Sibling Rivalry

Dear Seeking Solutions for Sibling Rivalry,

The challenge you’re facing is a familiar one for many parents. Sibling rivalry has been a part of family dynamics throughout history, and it remains prevalent today. While the competition your daughters engage in is not as dramatic as the biblical tale of Joseph and his brothers, the underlying reasons are similar—they both desire parental attention and recognition.

To reduce competition between your girls and handle their sibling rivalry, it’s crucial to act as a mediator, impartially listening to their perspectives and helping them communicate effectively. Avoid taking sides, as it can exacerbate the situation, leaving one child feeling misunderstood or unimportant. Instead, strive to interact with them on equal footing, demonstrating effective communication and modeling the behavior you wish to see in them.

As parents, showing equal love and support to our children is essential, though it may be challenging to balance interactions according to their unique personalities and needs. Each child is different, and acknowledging and celebrating their individuality can foster a sense of belonging and reduce feelings of favoritism.

Encourage your daughters to pursue their distinct interests and talents. By celebrating their uniqueness, you affirm their contributions to the family and instill confidence in their abilities.

When disagreements arise, allow them the space to calm down before facilitating a discussion. Encourage open and loving communication, helping them express their feelings and understand each other’s perspectives. Is one sister hurt because the other didn’t want to share a favorite toy? Does the younger one feel insecure when seeing her older sibling do things without supervision? Teaching your daughters loving and open communication will foster a better mutual understanding and reduce competition between them.

Amidst the busyness of life, create moments for bonding with your children. Even dedicating just 15 minutes to cuddling or reading a bedtime story will do wonders for your relationship with your children —and their relationship with each other.

Fostering a supportive and empathetic environment will enable your daughters to navigate their differences and build a stronger sibling relationship. With patience, understanding, and effective communication, you can reduce competition between siblings and handle sibling rivalry, bringing more peace to your home.

I hope these suggestions prove helpful in creating a more harmonious family atmosphere.

Love and blessings,

Katherine