Randy Boll’s All-Time TOP 3 TAX TIPS For Entrepreneurs

A lot of the IRS tax code was overhauled at the beginning of 2018, and that’s where BollitProof comes in. Founder and Tax Architect Randall Scott Boll has perfected bringing the best strategies to our members through videos, articles, podcasts, social media and the like.

If you’re an entrepreneur searching to improve your knowledge base, or simply just pay less in tax, Randall Scott Boll will get you there with simple strategies that anyone can follow. He is dedicated to making sure you don’t pay even $1 more tax than you legally have to. Randall shares his all-time TOP 3 TAX TIPS for entrepreneurs:

1 Establish an entity. An entity can be an LLC, an S Corp, Partnership or a C Corp – I prefer an LLC and prefer utilizing a Wyoming LLC. 

Why? Wyoming is very tax favourable.

It’s great from an anonymity perspective. 

It’s great from a creditor perspective.

Setting up an LLC clearly shows the IRS that you are not a hobby and that you are an actual business. Just as a wedding ring signifies to the world you are married, the same thing goes for setting up an LLC for the IRS. You want to avoid being in that hobby space with the IRS because it limits all the incredible deductions you can make.

2 Hire your children

“I’ve been blessed over the last couple of decades to work with hundreds of entrepreneurs and I’ve never met one who didn’t show their family to the public as a part of what they do” says Randy. After all, their family is their ‘why’ – isn’t it? Whether it’s on the social media feed or in a video, you can officially hire them as models for your business and put them on the payroll.

The IRS has given us incredible favourable rulings on putting our children on the payroll and not taxing them – it’s called being an exempt employee, and it’s really an amazing facet of the IRS. We can thank the farmers out there who wanted to have their kids work as part of the family business. The IRS created this exemption for those kids so they don’t have to pay tax or payroll tax. They don’t have to be ‘models’ in the traditional sense, but if it serves your business, include your family as a part of the package.

“I love having kids on payroll because it’s a great tax deduction for you as a business owner, and it’s great for kids being able to earn a wage and not having to pay income tax or payroll tax on it” says Randall Scott Boll. “The best part? You can do what you choose with their pay – you’re the parent. Consider keeping it in a savings account for them until a certain age or to help them move out of home one day. Invest that money for them and help give them a good start in life, their first car, or a college account – the list is endless. This is a really great deduction for your business that you can use to benefit your children.”

3 The Range Rover Deduction. Section 179 – Bonus Depreciation is a deduction we affectionately call this The Range Rover Deduction. If you buy a Range Rover (or a similar sized vehicle) for your network marketing business and it is over 6000 pounds of gross vehicle weight rating (which is different to curb weight), you can actually deduct the full cost of the vehicle in year one. You don’t have to buy it in cash either – you can finance it. It doesn’t have to be a brand new car – it can be a used car, as long as it is new to you. This is such an unbelievably great deduction. I can’t tell you how often I look at people’s tax returns and see that they missed this one. Oftentimes, their accountant just claimed the miles. But, if you’re getting an expensive car for your business and can get that incredible reduction on your income, why wouldn’t you? Entrepreneurship and business ownership is one of the best opportunities in capitalism. It’s only right you take all the benefits you possibly can to reduce your taxes.