Good Time to Start a Business

We recently got some good advice in a newsletter from the author of the TaxLoopholes blog. She talked about the good tax reasons for starting a business now. Apparently, Congress has still failed to come up with a plan to solve the Alternative Minimum Tax (AMT) crisis. Regardless of the results of the AMT, you won’t lose the ability to take most deductions from your business.

So here is what she suggests:

Business Strategy 1: Don’t risk what you have – The key is having the right business structure and then in making sure you follow the proper formalities in running it. That way you are not personally liable for any business losses.

Business Strategy #2: The less tax you pay, the faster your wealth grows – But one of the keys is to invest the money you save.

Business Strategy #3: Know what works and doesn’t work. – Learn what works and what doesn’t and don’t be afraid to cut your losers quickly.

Submitted by Ron Jensrud
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