068 - It’s All According to Plan with John pollock
We sat down with the founder of Financial Gravity, John Pollock. He’s a financial planner by trade and an entrepreneur by birth. John joins us to break down “complex” tax code, the real necessity of a good accountant, and the hidden truths we all should be aware of when running a small business. If you’re intimidated by terminology and areas outside of your core competency, listen to this interview to learn how to get ahead of the unknown in your business. Johns shows you how to plan ahead by applying real facts and numbers.
Show Notes
He’s not a CPA. Who is he? (5:40)
Know your skill set. (12:00)
Tax code and planning. (19:00)
LLC. Yes or No? (32:00)
Why you need someone. (41:00)
Setting up the family. (51:00)
Tax myths. (1:02:00)
Your options. (1:12:00)
Quotable Moments
“The real deadline isn’t April 15th. That’s the filing deadline. You could file an extension or file your return. The real date for a business owner is October 15th.” – John
“The accounting industry wants one of two things. 1. They want to help their clients. 2. They want lower personal income taxes and numbers that help them run their business better. Yet accountants aren’t providing either of those services. They’re number historians.” – John
“CPAs don’t have exclusive rights to the internal revenue code. Do you know where you find the 401k and internal revenue code? In section 401, subsection k.” – John
“IRA stands for individual retirement arrangement (laws).” – John
“Amazon is nothing unique. They’ve just executed on it.” – John
“If you’re the business… then you’re NOT a business.” – John
“Think of a chasm where the only way to cross is to pay the toll bridge. And that chasm has a bunch of toll bridges. One of them is capital gains… it’s 15%. Every time you want money from the left side and move it to the right of the chasm, I have to pay a toll.” – John
“The entrepreneur is the economic engine of the country. The US is the biggest economic power because we attracted the original entrepreneur – the pilgrim.” – John
“If you’re making over $100,000 a year, your likelihood of being audited as a sole proprietor is 5x higher than if you were to be an S Corp.” – John
“LLC is legal structure and the way you file. The default is the highest cost, which is a sole proprietor. You can change is to an S-corp with one simple form.” – John
“You need to learn things that are outside of your core competency.” – John
“As a business owner, you make money twice. You make money as an employee of the business, and you make money as an owner of the business where you earn dividends.” – John
“If you stop working, would you have to hire someone to do what you were doing? If the answer is yes, then you’re an employee.” – John
“Good tax planning should never violate good financial planning.” – John
“There’s 4 ways to never pay taxes: make no money, don’t pay them, lose money every year, and give it all away.” – John
“The likelihood of being audited is half of 1%.” – John
Resources
Tax Myths free book.
Financial Gravity website.
Buy our stock – FGCO.
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