MLM Tax Tips
“Customers who set up a tax file rarely cancel. Customers who cancelled rarely set up a tax file.”
— Bob Schmidt
My dad was an accountant, and while I’m not, I’ve always realized the importance of getting at least the basic understanding of the tax system to avoid overpaying on your taxes.
There really are two tax systems in the US – one for people who have a business and one for those that don’t. Believe me, the advantages tilt heavily in favor to those who own their own business!
If you are reading this, YOU own your own business.
The only requirements to write-off your home base business expense is **intent** to make a profit and to set up a tax file.
When you receive an automatic shipment each month, youâ€™re sending a signal to your taxman that you intend to earn commission on every person you enroll as a customer or distributor. It makes no difference whether you enroll 1 customer a day or 1 customer a year. Your intent is to earn your MLM commission whenever you do.
One other simple thing you can do is get a credit card and or a checking account that is used exclusively for your business. This not only simplifies your accounting, it further strengthens your position as a business in the eyes of the tax man.
I learned a lot about taxes and home based business and minimizing your outlay by reading a great ebook titled “It’s How Much You Keep That Counts”
Download a copy here:
Find the link “It’s How Much You Keep That Counts” on the left menu.
I also use a software package specifically designed to organize your MLM tax file that has really helped me stay on top of my business. It’s called “MLM Tax Helper” and there is now a free download available for this as well:
The key to this process is to take ownership in your business. Learn the simple steps you can take to put more money in your pocket immediately, regardless of your success in building a network. You literally can take home the extra money to pay for your companies product each month (or much more!)