[🐝U] The $15k mistake I didn't learn from ...

A few years ago, my small business (aka me) got a $15,000 tax bill.

The sticker shock was real & there were a lot of 🤬🤬🤬 infused in everything.

I’d been building up side hustles into successful (for me) businesses for years at that point.
& I never hit a 5-figure tax bill.

Then I “justified” it with:
“but look at how much I made when I focused on 1 thing”
“the other businesses had more expenses to off-set the income”

The truth is, I put blinders on to that part of the business & just focused on helping clients.

Blinders help horses in races…
& kids walking through the toy section…
They don’t help business owners to grow businesses efficiently & effectively.

Since my goals were to:
- make the same or a bit more every year
- preferably work a little less doing it
- & ideally pay as little tax as legally possible

I decided it was time to incorporate.

I knew there were some tax (& legal) advantages to doing it

But I didn’t expect the complicated & expensive process of getting things set up.
So, I didn’t handle my search for a corporate tax accountant properly.
But I didn’t realize it until this week …

& since I didn’t learn from my $15,000 “mistake”, add $2,700 to the oops-tally.

I’m not saying I shouldn’t have had a tax accountant file my return.
That doesn’t mean we have to be experts in & do absolutely everything.
You shouldn’t.

Your focus should be on the “thing” at the heart of why you started a business.

But …
It’s important to know enough about what you delegate, so you don’t get screwed over.

You need to know:
- the steps needed to do something
- what it costs (in time & money)

& as much as you shouldn’t micro-manage, you DO need to monitor & hold people accountable.

I know this.

I teach this.

But that doesn’t mean I’m immune to it.

Obviously! 🤦🏻‍♀️

I went with the first accountant who said they could eliminate my pain point.

She checked a box on something I didn’t want to think about.

So, I delegated.
& got complacent.

I didn’t monitor, ask questions, or hold her accountable.

& now I’m literally paying for it.

The good news is it’s a fraction of the other tax bill.
& I know this time is going to be a bit different so this - hopefully - doesn’t happen again.

It’s sticking to my Teflon brain.

There are a lot of books, programs, & memberships out there that CAN help.
& some of them have very persuasive points that lure you in.

That’s not a bad thing.

It’s something you’d like to have in your business too.

But we really shouldn’t be doing “everything”.
(I’m sure the price would be even higher if I tried to do this myself … & all that time trying to do that would impact my client work … & income)

We DO need to get help from other experts …
Just like we want to be an expert who helps others.

But we need to take a breath, ask a few questions, & weigh things out.

There’s no “perfect” solution.

BUT …

It IS going to help you
Even if you’re not in the US.

That $15,000 tax bill…

When I stopped to do a proper analysis (instead of the gut reaction), it’s a lot less than what I would have paid as an employee.

& I had earned it working when I wanted, with who I wanted, & how I wanted.

Could I have waited to incorporate?
Yes

Do I regret doing it?
No

Have I “learned my lesson”?
I hope so!

Bottom line is, there are pros & cons for everything in life.

We just need to a better job of learning to list them out so we can make better, more educated decisions … based on logic instead of emotion.

These are a good place to start.

Make it a great “logically-driven“ week!
EG

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