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[Bill Young Contribution Level: 1]

HI that is a great book! It was one of the books that went into the formation of my
special report shows you exactly how to use the tax laws as a Secret weapon to build your MLM business. You can download that report here, free:

MLM Recruiting Made Easy For Everyone by Secret Government Program!
Free 12 Page Special Report http://www.linkbrander.com/go/55713

Call me with any questions!

Bill Young
631-615-7974

[Chuck Bartok Contribution Level: 2]

Bill when ordering your report from the above Link...
keeps sending back with error message

[Bill Young Contribution Level: 1]

Hi Chuck, thanks for the heads up. But I tried both of the above links and they worked perfectly. Send me your email and I will send you a PDF file attachment.

Bill

[Lavina Chaves Contribution Level: 2]

The I.R.S. are a bunch of weasels.

My memory is foggy. I believe it's 10 years.

Just keep your records in your garage in a cardboard box.

They've audited me 3X. They hate how I pretty much pay zero taxes.

Next time they audit me, I'm sending my team of pitbull attorney's after them (I really do have a team of attorneys, I own a nightclub, and a stripclub), because no one gets audited that much. And it's only for my MLM stuff, nothing else.

Don't get me started on how Taxes are illegal.

Remember your best offense is a good defense. I have detailed records of everything.

Happy Prospecting,
William Whitlow

That's funny William.

I probably know you rant about taxes being illegal, and I am right there with ya on that one!!!

I need to find me some pitbulls too!:woohoo:

Post edited by: LavinaYFR, at: 2007/12/31 18:09

[Louis Waller Contribution Level: 1]

With respect to taxes, I have made it my mission to be as up to date as possible for my Team. Knowledge is power.

I have compiled a complete list of every dedcution that was available for 2006 and that my CPA allowed me to use. For each new person that enrolled with us, we send the 5 page word document. For example, if I am in Office Depot or Staples, then I am on company business. Out comes the Company credit card. Of which the bill is paid out of the company checking account. No comingling of funds. Disclaimer. I use a CPA. You should consult with a professional if you have questions.

Also, I believe that knowledge is the key. I have over the years purchased many books, cd's, attended workshops, and consulted with tax professionals. Hence, my 3rd website link.

Currently in addition to owning a home based business, I am a professional employee, manage 2 LLC's, and one S corp. My tax returns also involve multiple K1's, 1099's etc.

The comment about LLC's is probably the best. Also, as you get into higher incomes, you can set up SEP(self employeed pensions)'s. This will allow you to deduct $42,000 into a pension. Tax free. Also, purchasing a vehicle in the name of the corporation makes the taxes that much easier.

If you are new to a home based business, here is my advice. Take it with a grain of salt. Our company allows you to enroll with a ss# or a EIN. For new people, you are here to make money. I suggest the ss#. I know we teach people to dream big, but lets be smart. I would prefer someone spend a few extra dollars with their business when getting started vs setting up a corporation on day 1. More people are hung up on what to call the corp then you can imagine. On top of that, you now have the extra filing expenses at tax time. I know you can research the web, set up a corp for free, and use turbo tax. But is that really smart?

Get involved. Set goals. Get busy. Make the income. Consult professionals. When the time is right, set up your corporation. YMMV.

Hope this helps.
Louis

[Cindy Henn Contribution Level: 1]

Coming from an ex-accountant, you must keep tax records/files for 7 years, but payroll records are only needed for 5 years. The IRS has 3 years from the time you filed your return to audit you - on "good faith errors". They have up to 6 years to "challenge" your return if they think you underreported by 25% or more. Unfortunately, they can "challenge" you every year if they want to.

(I'm the ex-accountant because the company downsized)

Cindy

[Connie Seagle Company: Magnetic Sponsoring Contribution Level: 2]

Louis' post is an excellent post. You combined facts about tax deductions with common sense. I am very anxious to see how my business is going to benefit me taxwise this year but I am no where near ready to set up a corporation. I do have big dreams and I will do what is necessary to protect our assets and my business when the time comes. Setting up a corporation from day 1 is about as smart as fixing a scratch with 10 stitches.

Happy New Year.
Connie

Post edited by: cseagle, at: 2008/01/03 05:25

[Bill Young Contribution Level: 1]

Connie, sometimes things are not what they seem. You may not need an entity for asset protection yet, but...

Showing large losses, particularly from a home based business on a Sched C, my cpa told me is like going out in a lightening storm carrying one of those old roof top TV antennas!

Your chances of being audited are very high. If you showed the same losses in a corp or LLC taxed as a corp, they would not blink an eye!

Bill

[Louis Waller Contribution Level: 1]

years to keep records? I keep paperwork for a long time. In fact, I just filled out documentation for a legal claim and I have the paperwork back to '96 to validate my claims.

Am I normal?<grin>

Louis

[Louis Waller Contribution Level: 1]

kemet,

You are correct.

I always advise new people to our business to consult with a professional to determine the best course of action for their tax filings. Some spend the money and see 'said' professional. Others? Well, back to the rule of 95%. Need I say more?

Suffice to say, I have some Team members who are truly working their business as opposed to a hobby. Yes, they have a corp in place. But they initially started as a Sked C.

On the other hand.

Imagine showing up for an audit and presenting a 5 figure vacation/business expense on Zero income! Doable? Certainly. Advisable? Consult with your tax advisor.

Of course, I had someone else tell me that starting a home based business would flag me for an audit.

But then again, when I have a tooth ache, I see my dentist. When I need tax advice I call my CPA.

When listening to tax advice from the public? In the words of Jim Rohn, "Isn't that interesting".

Louis