Advantages of Being a Business Owner

Early on in my career as a W-2 Salaried Employee, I can remember the numbers just did not seem to add up to be on my side. I was a probation officer and felt extremely overworked and under compensated for the job I was doing. This caused my to reflect on my situation and take a closer look at the lifestyle I was living and wanted to create for myself. I was making a salary of $28,000, far from what I know I was worth, however, being fresh out of college, I saw it as a starting point of my journey. I was entrusted with the supervision of approximately 550 Felony Convicts, that were to report every month with a payment of $27 payable to the Department of Corrections.

IF, and I stress, IF with pessimism, each person I supervised made their monthly payments, in two months solid my salary would be paid with $1700 to spare. I understand the business aspect and know that with employees comes soft costs in the form of taxes, training, and insurance, however if I am able to possibly generate $178,000 over the course of a year and only be compensated $28,000, I must be on the wrong side of the business structure. The only way I saw to solve this problem was to become a business owner myself and enjoy all the added benefits that come along.

There are a plethora of advantages available to business owners that are not immediately available to the W-2 Salaried Employee. This first and what I believe most important in forming a Corporation is that it will act as a buffer and allow you to protect yourself and your assets from many liabilities. The second is time, as time is money, it will allow you to do the things you want and not be subjected to having to run in the “rat race” 5 days a week for 8-10 hours a day.

A corporation is simply another individual living entity that is created on paper, with the benefits of establishing credit, opening bank accounts, buying and selling real estate and automobiles, investing and wealth creation. Additionally, corporations have the privilege to determine when they choose to pay their taxes be it quarterly, bi-annually, or annually, having access to all income and capital and not being subjected to paying taxes before you even see your check.

Finally, as business owners you are more likely able to generate larger lines of credit and capital than you are as an individual. Start a business, any business, incorporate your business and enjoy the benefits that are available to you. You may fail, and that’s okay, although if you persevere and continue to learn and educate yourself about businesses you can eventually be on the RIGHT SIDE OF THE BUSINESS STRUCTURE. Let me know if I can help.