He didn’t test me. Pay impulses I say. In the end you can’t help it if you’re looking to grow faster. You need financing as leverage in your business. There is no other.
Everyone has to pay taxes. The stupidest thing you can do is try to defraud the state to save yourself miles or even millions of money. Your freedom is priceless. Going to jail for money is not worth it. In addition, we do not want to live in a society where breaking the rules of coexistence is something normal and well seen.
Then there is the part of having a strategy when it comes to paying taxes. If you try the theme there are options to pay more or less in a 100% legal way. There are even more options if you operate between several countries, as is the case with me. One thing is essential for this. You have to know more than your tax advisor. Yes, he heard me correctly. A media consultant listens to the “normal things” to call it something. You have to put your batteries to check taxes and structures that allow you to save legally. It’s what I always do. I call up advisers and tell them “I have an idea…”. Then you are an advisor who tells you where the risks are and if your plan can work or not.
Last year things have been going well financially. The downside of all is that this entails a significant payment of taxes. 2 or 3 years ago I always wanted to minimize this part. Now I allow accumulating a minimum amount of benefits that entail a relevant tax payment. Why? For a very simple reason: to demonstrate solvency to the bank.
Banks are an essential instrument to continue investing and use your existing capital as leverage. Right now I am closing a financing in Germany of 305k for the purchase of a local. It is not yet 100% confirmed, but it looks good, although you can close the purchase without having to put a single euro on the table. They even lend me 7k to do a little reform.
When they do the studies they always look at your income from last year. A person who does not pay taxes consequently has no income (or very little). Many entrepreneurs act in this way to maximize the cash flow available to invest. I always tell my advisor that my goal is to maximize cash flow. I don’t need to have the money on a personal level. As long as I have it in the company, I can use it to grow assets.
What little has been taken into account in the past is the impact of paying taxes. Let’s say we pay 30k taxes. This amount can serve as leverage to get 300k financing. That is why it makes no sense to minimize the part of paying taxes. You have to find a good balance. The issue of accumulating debt is a dangerous game. You have to know very well what you are doing because things can go wrong. When I get into debt, I take into account different scenarios and I do so if I really think that a possible catastrophe of any kind is not going to ruin me. You will never be able to anticipate everything that can happen but you have to at least give it some thought.
So things have changed. I like paying taxes, if it opens doors for me with banks.
Stay tuned.
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