3 Critical Business Mistakes
Hi, I’m Dave Denniston with Centurion Financial Strategies, and if you’re a business owner, I’m here to help you avoid some common pitfalls. As a financial professional, I work with a lot of business owners.
And, while every business is unique, a lot of their issues are the same. In this video, I’m going to talk about some of the most common business mistakes I’m seeing lately.
If you own a business, you’ve got a lot on your plate. And in today’s constantly changing world, it’s easy to let certain mistakes happen because you’re busy focusing on other, more urgent things.
Here are three critical mistakes I see over and over that could cost you big-time.
Mistake number one: Not knowing what kind of business structure or entity is right for your business now and in the future. Because it can change over time.
Whether you’re set up as an LLC, S Corp, C Corp, and so on, your structure affects your business’s taxation, liabilities, and even your future exit opportunities. So understanding the differences and choosing the right one is crucial.1
Mistake number two: Not planning for your ideal exit. What do you plan to do with the business? Will your children or employees take it over some day?
If you’re going to sell it, how should you structure the sale to maximize your success and reduce your tax liability? Is this your retirement plan?
Each of these exits requires a different strategy, and you need to start thinking about it long before you hit the eject button so you can maximize the value.
And finally, mistake number three: Not paying yourself the right way. Many entrepreneurs I see aren’t taking their income the right way to maximize their goals and limit their tax liability. Having the right payment structure in place can help you accomplish all of that while avoiding raising red flags with the IRS that could lead to painful tax audits.2
If any of these mistakes sound familiar — or spark the need for a conversation — I’m here to listen and help you take action, so you can focus on your business.
If you have a question about what I’ve discussed with you or you’d like to speak personally about what’s going on, please use the form below to send me a message. I’ll respond personally.