How Can You Protect Your Business, Spend Less On Your Taxes, And Keep More Of Your Money?

You’ve built a reputable business and are earning great profits from it – great job! The question is, how long will you be able to keep those profits?

A single lawsuit can strip you of everything related to your business that you’ve worked so hard to build unless you organize your business in a manner where it cannot be legally acquired in a lawsuit.

It’s a fact of line in today’s world: there are tons of lawsuits, and lawyers are determined to get all of the money that they can possibly get for their clients.

If your business is not properly structured, you can potentially lose ownership of it in a lawsuit.

What Can You Do to Ensure That Your Business Is NOT Sued Against and Taken From You?

You can set up your business in a way where it could not be acquired by an opposing party in a lawsuit. In fact, there are two ways: limited liability companies (a.k.a. LLCs) and limited partnerships.

An LLC will allow your business to be protected from lawsuits, as lawyers cannot legally sue against your business, thereby insuring that you will retain ownership of your business no matter what the outcome of the lawsuit is.

Similarly, a limited partnership will keep your company from being sued against and taken if a lawsuit is filed against you and/or any of your partners who are involved in that business.

Profits of Your Business Can Be Still Attained in a Lawsuit

Due to recent changes in the legal system, however, your profits can be sued against and taken in a lawsuit, even if your company is an LLC or limited partnership and/or if the lawsuit has nothing to do with your business (such as an accident in your own personal vehicle while on a Sunday drive, for example).

Therefore, ownership of your business will remain with you, but the profits that the business has made are attainable in a lawsuit, even though your company is organized as an LLC or as a limited partnership.

How to Protect Your Profits

Fortunately, there are ways to divert your profits so that they are protected from lawsuits.

You can do this by setting up several different businesses, including a company that will manage your Internet business. This management company requires a fee to look after your Internet business.

That fee can be whatever amount your profits are, and due to this, opposing lawyers and litigants cannot acquire your profits in a lawsuit.

The IRS will place taxes on the money that the management company is paid, but not only will opposing lawyers and litigants be unable to acquire it in a lawsuit, they’ll also have to pay taxes on that money.

This is known as “imputed income,” which became a famous term because of the IRS imputing income from delinquent fathers who didn’t provide child support for their children.

Set Up Your Additional Companies

It’s critical for you to realize that setting up additional companies will cost you more money and each company will have to submit its own tax return, thereby adding to the cost.

But, it is certainly better to spend several hundred dollars diversifying your company into separate companies than potentially losing your whole business and/or all of the profits that the business has made.

Essentially, you should not put all of your companies under one banner, but diversify them as your continuity program, your seminar company, your staffing, etc.

Just as with stock diversification, It is never good to put “all of your eggs in one basket” when it comes to creating your company – it makes it very easy for opposing lawyers and litigants to acquire it in a lawsuit.

Besides lawsuits, tax rates can reduce much of the profit your business has made. What can you do about tax rates?

Certainly, you can’t avoid paying taxes, unless of course you want to call a jail cell home for many years.

However, there are legal ways to reduce the amount of tax you are required to pay if you learn what deductions you can legally take to decrease the amount of your taxable income.

Spend Your Money on Legal Deductions

The key is to spend money on business expenses and deductions – you can then legally write these off as legitimate expenses that can’t be added to your taxable income.

Some deductions you can legally include are for travel expenses, websites, copywriters, office furniture, health care, phone and fax machine, computers, and much more.

When you include legal deductions (and yes, you certainly should make a log of legal deductions depicting everything so that if the IRS audits you, you can prove to them that the deductions are legal under the tax code), your taxable income is significantly reduced.

Therefore, instead of paying taxes on $1 million, you’d only be required to pay tax on $100,000. If the tax rate is 50%, you’d only have to pay $50,000 in tax instead of $500,000 – that’s certainly worth taking advantage of deductions, right?

Therefore, having an Internet business can lead to a great amount of money for you AND enable you to keep more of that profit IF you know how to organize your business and know what legal deductions you can take to reduce your taxable income.

Now that you know this information, start using it toward your business and receive the additional profits and protection that you are entitled to receive as an Internet business owner.

Mike Filsaime discusses shielding your business and avoid becoming a victim as well as how you can use the legal and tax laws to legally and ethically guard the revenue that is rightly yours in Module 10 of "The 7 Figure Code". Go there now and learn.

Author: David Husnian

You can get more great information on How Can You Protect Your Business, Spend Less On Your Taxes, And Keep More Of Your Money by clicking this link to go to http://7FigureCode2.com