I have a favourite acronym when it comes to growing a small business, protecting their assets, and keeping their taxes down.
That’s right. Not KISS. The acronym is KICS, and this is what it stands for:
Many accountants advise their small business clients in a manner that keeps their structures simple and easy to understand.
However, after many years in the industry, it is very clear to me that keeping it complex is the way to ensure maximum tax savings and the best asset protection for you and your family.
In a growing small business, if you want to be potentially saving 10% or 12% more in tax, you need to keep it complex.
And what’s the key word in my acronym? It’s stupid! Because you’re really stupid if you’re trying to keep it simple and then you’re costing yourself 10%.
Yes, small business tax gets complex. Of course it gets complex. But if you’ve got a growing small business and creating valuable assets that are growing for your family, and you wanna reduce your taxes and keep them to a minimum legally, you’ve got to keep it complex.
That includes Trusts, Company Beneficiaries and Self Managed Super Funds. A combination of these structures is what will set things up properly for you.
Make sure you engage with a really good accountant that understands tax law and the various business structures available for you. A good accountant should be able to deal with the complexities easily, and they will not place you in a simple structure for ease.
If you’re not sure if your current accountant is giving you the best advice, come and visit myself or one of our tax champions. Your first consultation is 100% free, and we will be able to tell you whether you’re saving as much tax as possible.