This will be one of my shortest blog posts.
I just finished doing my tax return for 2007 (for us Canadians, the dreaded due date is the 30th of April, not the 15th).
I will be sending the Government a check that – aside from basically depleting the majority of my savings – would’ve been enough to buy a very, VERY nice car.
(We’re talking the kind of car that can go 0-60 in under 4 seconds)
Had I simply taken the time to get incorporated and structure things differently prior to leaving on my worldwide adventure travelling (which made up most of 2007), I would be sending them a MUCH smaller check. One that could only equate to being a “loss” of something like an economy sedan. Which wouldn’t be all that bad 
I say this in a light-hearted tone, but really, all I can say is that I count myself tremendously lucky and perhaps even blessed that I’m in a position where I actually have the funds to absorb a major hit like this. And it’s not like it “came out of nowhere” or anything – but I trust many of you can relate to the “surprise” of your first tax bill once you start making real money as a sole proprietor.
Yes, I’ve since set up a corporation and all that jazz – but it’s “a day late and [almost] a buck short…”
The moral of the story:
Taking a few days to talk to some professionals (attorney, accountant) about setting up an optimized business structure could be worth literally “months” of extra revenue for you come tax time.
Don’t procrastinate on this.
You’re gonna get taxed regardless, but you might as well review your legal options for setting up the right kind of corporation, tax shelters and other strategies for keeping more of what you make.
It really adds up folks – in BOTH directions!
Take care,
-Chris
P.S. Well, if nothing else, this at least gives me the mammoth-scale butt-kicking I was needing to get some more products out this year – so watch for some up-and-coming launches…
14 responses so far ↓
1 Espouser // Apr 24, 2008 at 4:27 pm
Not only do you save money by not sending it to Rev Canada (and/or Revenue Quebec in my case), but you protect you assets outside of the corporation in case you get sued.
Plus, if you pay yourself in Shareholder Dividends, your personal tax on it will benefit from the dividend tax credit, which is considerable in B.C. Google “B.C. Dividend tax credit” to see how much you can make and not pay any income tax at all. In some cases you can even get a refund.
2 admin // Apr 25, 2008 at 11:07 am
Exactly. The benefits of being set up “smart” start to mean a whole lot more once simple organization structures (like incorporating, paying dividends, splitting income between spouses, etc.) is literally the difference to the tune of what many would consider an excellent annual income.
Cheers,
-Chris
3 Wes // Apr 28, 2008 at 4:37 pm
Chris,
I was fortunate enough to have guidance on this early on. I recently read an article about why taxes are the way they are. It talked about how the masses (the poor and middle class) demanded the code for personal taxes be the way they are today (the richer you are the higher the taxes) . The rich (the smart) simply lobbied and obtained the right to setup corporations to avoid these high personal taxes. It was very interesting. I wish I could remember where I saw that article. Just another reason why the rich get richer. Thanks for the post.
4 Mike // May 1, 2008 at 6:09 pm
Hey Chris,
I’ve been reading your posts lately and something that I’ve been wondering is what you would consider an “Authority” site? Any examples you can use to help me understand this? I have a couple mini-sites and I’m in the process of creating more as we speak, but I am a little confused on what YOU would consider an authority site and what about it would lead you to call it an authority site?
Thanks
-Mike
5 Vivek // May 6, 2008 at 10:03 am
Hi Chris,
i just finished reading your book,it was the best i have read on this topic ever,i would like to see any mini site of yours for some inspiration
Vivek
6 ROADDOG // May 7, 2008 at 1:10 am
Hiya Chris,
Sorry to here of the tax woes, but if it’s inspiring you to put out another book, your loss is our gain.
Peace
Roaddog
7 admin // May 8, 2008 at 4:21 am
Hi Mike,
An authority site is something that either a visitor or webmaster would link to as a reference, or because it’s interesting.
In other words – something worth sharing.
It can be 1 page or 1,000+
Mini-sites, in my mind, are something that taps into existing demand sort of like a parasite. You’re making money by leveraging the brand power, demand and research conducted for certain products. (If your site includes reviews).
Cheers,
-Chris
8 admin // May 8, 2008 at 4:22 am
Hi Vivek, you can check out my public video of a sample mini-site at http://www.thelazymarketer.com/flash/registry.html
Take care,
-Chris
9 admin // May 8, 2008 at 4:22 am
Road-dog,
Thanks dude
Much appreciated
-C
10 The Mad Webmaster // Jun 12, 2008 at 12:41 am
Thanks Chris.
I thank you just gave me another idea for another site.
taxbuster.com
Paul
11 admin // Jun 12, 2008 at 1:21 am
Make sure you use DomainsByProxy for that one
-Chris
12 Abdullahi // Nov 1, 2008 at 3:26 pm
Hello Chris.
Please I have purchase Confessions of a Lazy Super-Affiliate but I forgot to purchase the second offer on Lists of Niches. How can I get these lists of Niches now?
Please I am urgently waiting for these Niches now.
Thanks,
Abdullahi
13 admin // Nov 1, 2008 at 10:33 pm
Hi Abdullahi,
Which product did you mean specifically?
I’ve got two out there regarding niche selection…
Please send me a support ticket at http://www.thelazymarketer.com/contact.html
And we’ll clear up which product you missed out on.
-Chris
14 Abdullahi // Nov 2, 2008 at 11:33 pm
Hello Chris,
Please the product I bought that offered Niche list was VIP Essentials.
Thank you,
Abdullahi
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