If you are following the Leadership Engagement Process then you know that step two is coaching your team members to know their numbers.
In my next post, you will learn how to coach your team members to know their numbers.
Knowing your numbers and your team member’s numbers are important to ensuring maximum productivity from everyone.
Is every team member 100% engaged in their job?
When your team members know their numbers, they are instantly more engaged in their job.
In my next post you will learn how to look at each position, employee or contractor, and determine the numbers most important to track. To start the three numbers that report your productivity are your income, expenses, and profit.
Every employee should have income they generate, expenses they cost, and profit they create.
For every business owner it is important keep track of your income, expenses, and profit, per employee and contractor.
How you earn your income and what expenses you expect to pay, play a significant role in selecting the right tax structures.
According to IRS.gov most Real Estate Agents are sole proprietors, meaning they are not employees, do not have a partnership, and have not incorporated. (IRS has their own tips for Realtors: CLICK HERE).
How should you set up your business, in that, your taxes can be significantly reduced?
Picking a tax strategy can be a complicated decision, if you do not have an expert helping you.
If you are a Realtor, Broker, Real Estate Investor, or Property Manager taxes are often the last thing on your mind.
If you have a choice in business structure then you should consider your options.
Taxes are the last thing on your mind, until tax liens appear, bank accounts are levied (or drained), IRS audits are required, tax collectors come knocking, or simply a high tax liabilities appear.
If you work with independent contractors who produce for you, they may be finished before they start. They can become discouraged easily, if they are not set up properly.
Do you know John Beidle, if not you should?
John owner of 1040 Wealth Designs, LLC, and author of, Fast, Free, & Easy Accounting for Small Business, Self Employed & Startups, is a tax strategy expert for Realtors, Real Estate Investors and small business owners.
John has spoken to many of the St. Louis, MO meetup groups about tax strategies and deductions that many seasoned investors and realtors often miss.
During our conversation John reported, “One number you should be keeping track of is how much you are paying in taxes.”
During our conversation John reported, “If you are not paying attention to your tax number, then you are missing opportunities. If there is a chance you could hire another employee or have additional working capital available, you need to review your tax strategy.”
What types of business structure does John say all Realtors and Real Estate Investors should set up?
According to John, If you are planning on hiring a lot of employees, you may be missing significant tax savings, if you are not utilizing an “S-corporation.”
But an “S-corporation” may not be the best option, if you need to deduct significant medical expense, or if you are positioning for retirement.
If medical expenses or retirement planning is important, then your best option may be a “C-corporation.”
John, also reported, “Depending on how you earn your income, it may be best to set up different types of corporations.”
If you earn commissions, you may have one type of corporation to receive real estate sales commissions, and you may set up another type of corporation to receive rent from investment properties.
John and I discussed, “There is not a single killer answer, to tax planning. The best strategy is to have enough business to benefit from all types of entities under the tax code because each brings its own benefits."
Here is the link to John’s e-book, Fast, Free, & Easy Accounting for Small Business, Self Employed & Startups, on his site http://taxplanningstl.com/fast-free-easy-accounting/ When you click through you can use this coupon code PK68Q. There are 50 free copies available through November 30,2016.
This simple, easy-to-read guide will show you how any small business can be run on better business and accounting software for free.
This simple, easy-to-read guide will show you how any small business can be run on better business and accounting software for free.
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Nathan is the Senior Property Manager for US Revi Rentals a numbers driven Property management firm in St. Charles, Missouri. Nathan holds an MBA with an emphasis in accounting from Keller Graduate School of Management and a B.A in Nonprofit Management from Lindenwood University. In addition to his degrees, he holds a Missouri real estate license and a National Apartment Leasing Professional (NALP) certification. He is currently a member of SCORE which is a nonprofit organization that serves to mentor start-up and growing businesses. Lastly, Nathan wrote the book Leadership Coaching as a Strategy for Employee Development and has been a guest speaker and facilitator at national conferences on the topics of leadership.