You know them by heart:
ESPN, Apple, McDonald’s, Bank of America, Nike, In-n-Out, Uber, Amazon…
Besides being some of the most well-known brands…
They have one more thing in common:
None of them pay more than 15% income taxes (some even pay 0%).
For example, Amazon made the news last year when they paid federal taxes for the first time since 2016.
So how much did they fork over to the IRS?
A paltry 1.2%.
About 400 of America's largest corporations paid an effective rate of 11.3% in federal income taxes in 2019.
And while news outlets and politicians argue this is illegal…
I’m telling you it’s completely legal.
Yes - some businesses use a list of shady tactics to save on taxes - such as registering their headquarters in a foreign state.
But after working as a professional in this field for ever two decades, I can tell you this:
Except for a couple of “rotten apples,” big corporations follow the same tax code you and I do.
So what’s their advantage?
First, they invest most of their profit back into their business, further reducing their tax load (since only their net profit is subject to income tax).
Second, they hand over a small fortune every year to the best tax professionals and lawyers that help them find the most profitable tax-saving strategies.
It’s what I saw first-hand when I worked at a tax law firm, helping the wealthy and financially educated keep more money in their pockets.
But how can you use this knowledge to reduce YOUR tax load this April?
After all, you don’t run a large corporation - and mustering up thousands to pay those high-end tax firms may not make sense for you.
First, if you haven’t done so yet, register a business.
Doesn’t matter if it’s just a side gig, something you plan to grow big, or simply an idea you’re dabbling with.
The minute your business is registered, you can write-off purchases towards your pursuit of income.
Then you apply the same, simple strategies these large corporations use every year to keep more cash in your pocket.