Business owners can significantly reduce their effective tax rates by implementing proper tax structures, such as trusts, management companies, and strategic loans, rather than relying solely on income; the tax code rewards well-designed business structures, as demonstrated by the difference between Donald Trump's 2.5% effective tax rate and the average S corp business owner's 28.5% rate.
Deep Dive
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Deep Dive
The Tax Structure Donald Trump Uses to Protect Millions LegallyAdded:
If your business is profitable and you don't have a tax strategy, then you're pissing money away every single year.
Here's the problem. The tax code was not designed to reward you for working hard.
It was designed to reward your structure. Before you ignore me and skip, let me prove it to you. Donald Trump's effective tax rate was 2 and 1/2%. Whereas the average S corp business owner is around 28.5%.
And I can damn near guarantee that you worked harder than Donald Trump. What's this huge gap? It's all in the setup.
Problem is not that you make too much money, which I hear all the time from accountants. It's that no one ever built the structure under your business to help you operate like the Trumps, the Rockefellers, the Soroses, etc. So, you don't have an income problem. Obviously, Donald Trump has proved that. You have a foundational issue. And this is where we set up trusts, management companies, loans, and special tax strategies all enforced by our tax attorneys. It's legal and defendable. Clients don't reduce their tax liability by an average of 25% merely by luck. It takes a lot of work, planning, and a whole team.
Comment trust down below if you want to learn how to set this up for yourself.
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