Last Updated on August 26, 2022
Most people start an Herbalife business to create extra income…
…but something that is often overlooked is the massive tax savings that are available to you right away by starting a Home-Based Business.
Sandy Botkin, a nationally re-known tax advisor, says in his new book “Lower Your Taxes Big Time” says most people can save $5,000 or more in taxes just by starting a home-based business!
How is that possible?
It’s because the IRS allows you to start deducting expenses that are needed to run your business. Many of the expenses you are paying for whether you have a business or not (you just aren’t able to “deduct” these expenses if you don’t own a business)
Here are some example expenses you can begin to “deduct” by starting an Herbalife Business.
- Cell phone
- Mileage on your vehicle (currently 54 cents per mile)
- Product inventory
- Office expenses (including computer)
- Website expenses and marketing tools (like HBZoom.com)
- FB Advertising (Learn more about How to Promote Herbalife on Facebook)
- and much more…
So as you can see, even if you never made Mill team, Prez team or higher in Herbalife … you should have an Herbalife business for the tax benefits alone!
Here Are 4 Steps You Can Take to Maximize Your Tax Savings
#1 Get Educated
A great book to pick up is “Lower Your Taxes Big Time” by Sandy Botkin.
This will give you a great idea on what is and what is not tax-deductible.
DO NOT leave this completely up to your accountant or anyone else. You don’t have to know all of the ins and outs or know how to file your own taxes. But you need to know what tax deductions are available to you and this book will lay it out in a very simple and common-sense approach.
Here is a great video by Tom Wheelright (Who is the CPA for Robert Kiyosaki) explaining why the government gives these tax deductions and the mindset around it.
#2 – Separate Your Business Expenses with a Business Credit Card
Separating your business expenses is the first and most important step.
One of the big reasons is so that when you go to categorize your business expenses with Quickbooks you’re only categorizing the business expenses.
Personally, we use a Southwest Visa Card for our business expenses so that we can maximize rewards.
We’ve flown all over the world FREE because of the points we earn from our Southwest Visa so we highly recommend it!
But if you prefer just using a debit card from a business checking account you can do that too.
#3 – Track Your Expenses with QuickBooks Online
The most tedious part of reducing your taxes is keeping track of expenses…QuickBooks Online makes it very easy.
It allows you to easily…
- Categorize your expenses (with automated recognition rules)
- Invite your accountant to review reports (without manually taking them the paperwork)
- Generate profit/loss reports
- And more…
We suggest the online version because your expenses will sync between all of your devices and if you ever switch devices you don’t lose your work.
Get 50% off of Quickbooks Online Here (This is a special link for our readers only to get this discount)
#4 – Find a Small Business Accountant
Even though you have a good idea of what tax deductions are available to you and you’ve got all of your expenses neatly categorized a good small business accountant is worth its weight in gold.
Tax laws are continually changing and you want an accountant who stays on top of all of the latest rules and regulations for several reasons…
- Following the latest tax laws
- Continue to maximize your tax savings
- File your taxes at the end of the year
- Prepare any quarterly estimates
- Advise you on business structure (depending on how much you are making certain business structures may be more advantageous from and tax and/or legal standpoint)
Disclaimer: This is probably a great place to mention that we are not accountants. This article is to outline some simple steps we have taken to simplify our own record keeping, taxes and maximize our tax savings. We are not liable for any actions you may take. As with anything in life you are responsible for your own actions and any benefits or consequences that may come from your actions.