Money Hack For Small Biz Owners

As a small business owner your finances are more complex and intertwined. If your business revenue goes down your personal income goes down. You often sacrifice personally to allow employees to keep a consistent income. You take the hit and don’t really get any credit for it. So when you are looking for funding ideas they often intersect your person life as well as your business. Here are a few ideas from Lifehacker on how you can hack your financing.

teenworkerI will add one more item to this article on college funding.

Make your child an employee of the company

You are going to ‘give’ your son or daughter money for their education in any case. Why not pay them for it. By paying them as an employee they pay taxes on the income they bring in at their rate while that same money is an expense to the business which you no longer need to pay taxes on at your rate. You effectively get a savings of the difference between your tax rate and your sons/daughters rate. So if you need to get them $10,000 for college they pay taxes on $10k with little to no tax other than social security and you pay no tax on that $10k. Discuss with our accountant to make sure your specific business setup will allow for this.

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