Hi everyone! I’ve just filed my first LLC & am planning to open a vintage boutique in my city- I’m completely new to owning a legitimate business of my own. I thought this would be a great question to ask as I know I’ll be making many mistakes in my first year of business.
Please feel free to comment your favorite mistake!
Everything you said was good except reinvest profit back. No way. That’s yours. Take it and do something else. Your business should be growing on its own merit.
Well if you reinvest profit, your business is growing on its own merit. There are tax advantages to reinvesting profit in your business. You reinvest by getting parts, new equipment, and that dinner where you entertained a client, that’s business expenses. I personally want to leave the LEAST amount of money on the table to be taxed. They get enough from my regular 9-5. When you take money out of your business, that’s taxable income.