In This Episode
Did you ever wonder why most people look forward to tax day in the U.S. while business owners rarely look forward to April 15th? Most folks pine for tax day because they are going to get a refund on that day. It’s like a shot of dopamine to get you all excited with that extra “paycheck” or two. For business owners, they are usually writing a check on April 15th. But this should be viewed as a positive.
The simple reason a business owner should be excited to write a check to the government on April 15th is that means they haven’t given the government a free loan. The reason most people get a refund back is because they’ve overpaid their taxes so on April 15th the government is just giving your money back to you. Why as a business owner would you want to give the government more money than you need to during the year?
There are other ways for a business owner to get that “extra paycheck” from their business and they can do it more than once during the year. It comes in the form of owner distributions or owners draws. If there is a little extra money or profit in the business why not put it in your pocket vs. the government’s pocket?
During the show today we shared some different stories and examples from our personal lives as well as those of our clients. As a business owner you should be celebrating the fact that you have to write a check every April 15th instead of getting your money back in the form of a refund. Don’t you trust yourself more with your own money vs. the government?
People, Companies and Resources We Mentioned in the Show
- Li’l Abner and Joe Btfsplk (https://en.wikipedia.org/wiki/Li%27l_Abner)
- Pigpen from Peanuts (https://www.peanuts.com/about/pigpen)
- Dilbert (https://dilbert.com)
- Hudson Motor Car Company (https://en.wikipedia.org/wiki/Hudson_Motor_Car_Company)