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Incorporation Tax Secrets Revealed

A lot farther! You see, about 6 years ago, Richard incorporated his business.

How do Business Owners like the Jacobson's do so much better? "He must make a lot more than we think," Tom rationalized, as he headed for the refrigerator.

After all, who looks at his neighbor's garbage all the time? Tom reached up to his visor, and pushed the square button on the garage door opener.

You notice they also go on vacations a lot, and they sent Conner to Northwestern University? How do they do it?", Tom mused.

Only one item that accounts for Richard having so much more profit than Tom does every year - and that one area is TAXES! I've seen it time and time again in my 15 year career.

The last thing he saw as the door moved toward the concrete floor, was the pile of trash.

* * * * * A Tale of Two Small Business Owners: Why Some Self-Employed People Pay Thousands Less In Taxes Than Others As Tom pulled into his driveway, he was annoyed at himself.

She was just getting home herself.

Some better, some worse.

Becky was wondering the same thing.

He pays his taxes with anger and resentment, not realizing that there is a better way.

So Tom has continued to operate his business as a Sole Proprietorship, while Richard operates his business as a corporation.

He was lost in thought as the garage door slowly moved up.

He found himself doing it again, and he didn't like it.

It's just that if anyone knew what he was doing, he would really be embarrassed.

In fact, Richard and Tom, these two typical Small Business Owners, own very similar businesses that bring in about the same amount of money every year.

"Hi, Babe," said Tom as he kissed her on the cheek.

Then there's Richard, who is hardly The Typical Business Owner.

She still had her raincoat on, as she was leafing through the mail.

It turns out that Richard Jacobson doesn't make more money than you do.

He has learned how to squeeze more juice out of his financial orange, so to speak.

And when you compare the overhead expenses of these two businesses, again, things are pretty much the same.

Actually, she was curious why so many of their Business Owner friends lived so differently.

He pushed the door opener again as he climbed out of the car, and couldn't help but glance out toward the neighbor's house.

She replied, "Well, actually, uh, now that you mention it, yeah, I have.

I call it "The Tale of Two Small Business Owners." They have the same amount of money coming in and about the same amount of money going out - except for taxes.

I hate to even admit this, but I can't help noticing they seem to always have new appliances, or furniture, or whatever, for themselves and the kids.

Tom is The Typical Business Owner.

Yet, he seemed compelled to do it anyway.

There is really only one major difference between Richard's business and Tom's business.

Perhaps this story will help you decide.

He took his coat off and as he was throwing it on the back of the barstool he asked, "You know, I'm embarrassed to ask this, but have you ever noticed the Jacobson's garbage?" Becky had a silly look on her face.

Are you talking about all the boxes from all the new stuff they buy?" "Yes.

He has discovered that there are little known techniques to make the money we all work so hard for, go farther than it normally does.

* No, Tom.

And that has made ....

He is The Rare Exception.

He pulled the car in and had to navigate to get the car in without hitting his wife's car or the bikes that were sloppily thrown in.

And even though she knows there are some unusual circumstances, it just doesn't add up.

And about 6 years ago, Tom thought about forming a corporation, but decided it was too much hassle.

He opened the door to the house, and was greeted by Becky.

I don't want to sound nosy or anything, but I know Richard's business makes about the same as mine.

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