4 ms·
Yeah, I was interested in this one and hoping to find more substance on the tax mechanisms that make this possible: > Working for yourself means you can earn l
by d23 4y ago
Yeah, I was interested in this one and hoping to find more substance on the tax mechanisms that make this possible:
> Working for yourself means you can earn less income than a normal salary and still make more due to tax reasons.
When I clicked through to his "money" link, it was a category for his blog where he posts multiple posts per day on making money online. All with clickbaity headlines. Hard to take this seriously.
Edit: Ah yeah, he's selling money making courses and ebooks. This is complete spam.
- vikingerik 4y agoThe usual answer to that is you keep the money in the business entity while paying yourself a minimal salary. You spend it on business expenses (commonly stuff like travel or a vehicle or computer hardware, with some semi-plausible fig-leaf of business use), or take it as long-term capital gains later on. The other answer that could fit the premise is a solo 401k, for the higher pre-tax contribution limit than a standard employer 401k. I'd be surprised if there was really anything substantial besides those.
- D13Fd 4y agoYeah, that one caught my eye. If this is focused on U.S. readers, that advice is extremely suspect.
- davesmylie 4y agoThere are definite tax advantages to being self employed, but I think for most countries your total tax rate for most people would end up being around 25% to 35%. For you to end up taking home more money whilst earning only half as much - you would need to some how end up paying a negative amount of tax as an entrepreneur.