In this episode of the Main Street Business Podcast, hosts Mark J Kohler and Mat Sorensen provide insights and tips specifically geared towards those with a side hustle. They dive into a wide range of topics, from tax planning strategies to the importance of claiming all income.
Here's what you can look forward to:
This episode is a must-listen for anyone looking to optimize their side hustle and navigate their tax obligations effectively.
In this episode of the Main Street Business Podcast, hosts Mark J Kohler and Mat Sorensen provide insights and tips specifically geared towards those with a side hustle. They dive into a wide range of topics, from tax planning strategies to the importance of claiming all income.
Here's what you can look forward to:
This episode is a must-listen for anyone looking to optimize their side hustle and navigate their tax obligations effectively.
Welcome, everybody, to another episode of the Main Street Business podcast. My name is Mark Kohler. I'm here with the illustrious Matt Sorensen, my co host. We are both entrepreneurs, small business owners, real estate investors. We had lemonade stands as a kid. We love you. You side hustlers out there getting it all on, getting the gateway drug to the american dream going, this show's for you.
Mat Sorensen:Yeah. And the last thing about a side hustle is hopefully you're making money.
Mark J Kohler:Yes.
Mat Sorensen:The downside to the side hustle is the IR's wants to know about it. And there's some stuff you need to do on your tax return. But we've got some solutions for you. The cool thing about a side hustle is this gives you tax planning opportunities to write stuff off you never even thought about. And so we want to break that down further today so you know what to look for and where you can save when you're filling out your 1040.
Mark J Kohler:Absolutely. And let's get right into it. And please share this podcast with any friend or family member you know that has a little side gig, getting a 1099 in any way, shape or form. So I want to lead with this. Don't stress. It's okay. I know many of you have never had a 1099 before. This is the first time this has shown up on your doorstep or in your email. And you're like, this isn't like a w two. And you may be worried, oh, my gosh, this is going to be harder to prepare my tax return. I've got to hire someone now. What can I write off against this? Lots of good questions, and we want to hit as many of those we can today. But the first thing is, you should know that if it's a small, little operation, this is your first time you've gotten side income, if you will, in 2023. You're working on your taxes right now. The first thing is you can still prep your return. If it's simple, you could still use a turbotax or a tax layer type software and be okay. It may also behoove you if it's a little overwhelming. Just file an extension. File an extension. There's no cost. You might want to send in a little deposit. We'll come to that later as well. But you could file an extension. You actually reduce your chances of an audit with an extension. It's okay. So my first message is, don't stress. We got you, and you shouldn't worry.
Mat Sorensen:Yeah. Just to understand the way the 1099 works is this is gonna go on schedule C on your 1040, which is where you're gonna claim the income. Now, a lot of times your schedule C, and some of you might be a small business. You might have an e commerce business. You might be doing some consulting on the side. Some people didn't send you a 1099. You didn't even get a 1099. Well, you still have to claim the income, okay. It's called tax fraud to not do that. So you still need to claim that income so you don't add up your 1099. And some of you, that income might just be coming from a 1099. You had a 1099 from Uber or maybe a 1099 from onlyfans. Yeah, that's right.
Mark J Kohler:Big money.
Mat Sorensen:Big money. So. But then some of you, of course, you're dealing with customers and stuff that don't ten eye on you. You still gotta claim that. And so this is the income line. That's, I think, all we got to say about income here, at least of what you got to gather that on the income side. But where the fun is and where the savings are is over here on the expense side and some of the strategies that you can implement and how to capture this income and. Cause there's some options. Do I use an entity or not? Should I had an LLC? Does an LLC save me taxes? What about the cess corp I've heard about? We'll hit that, too, of course. Yeah.
Mark J Kohler:There's a lot to say here, so you're not going to stress, and I like what Matt said, too. Just because someone paid you under the table doesn't mean you're not required to claim that income. And I've been at food truck festivals where they're like, well, I don't have to claim my 1st $600. No, you do. Yes, you do. You still have to claim that's not true. It's just they don't have to send you a 1099. There's a difference. The 1099 rule is on the person sending it, not the person getting the money. So I hate to break that bad news to you. If you get audited and the IR's figures out that you actually were paid more money that didn't come on a 1099, you're in trouble. So claim all your income. Next point. 1099 can look different. There might be a 1099 NEC. There might be a 1099. Miss a 1099 ret. There's ins. There's all these different types of 1099s. If that's starting to happen again, this is a good time to follow file an extension, get a little help and support. Now, I still want you to write down all the expenses and listen to the rest of the show because you got to help yourself. It's just not going to magically happen at an accounting office. They're going to extract all these write offs, but they are going to help you put them in the right area. For example, an nil athlete, you might have a 1099 miss for the name, image, and likeness. But then you might also have a 1099 NEC because you showed up at a car dealership on a Saturday and shot a basketball while they were having their party. So you're going to get two different types of income that are reported in two different ways. Again, don't stress, get help, file an extension, and claim all your income. All right? Do we have to have an entity to do all this? Did we screw up? We're looking back at 2023.
Mat Sorensen:Yeah, I mean, here's the. I don't want this to sound negative, but what's happened in 23 is already done. Okay. There are some things we can do here, and we're definitely gonna try to extract what happened in 23 so we know we can get the best bang for our buck on our tax return. And there are a couple of things you can do, but good tax planning needs to be happening in the tax year. So for those of you that are new to this can sometimes be a wake up call to be, I should've been doing this in 2024 on my 2024 income. And so that might be a good thing to think about now. So the process is really going to be looking back what is important for me to go capture? What is important for me to go know about to pick up? Cause I'm going to expense it. Now, obviously, when we're talking about expenses, again, I just want to keep this basic. You got a 1099 for ten grand. If you can pull up $10,000 worth of expenses, you will pay no tax on that ten grand. Okay.
Mark J Kohler:That's a good thing.
Mat Sorensen:Okay. That's what we're trying to do here. And maybe even you get a loss, we might be able to use that somewhere else. So that's the name of the game here. We want to gather as many expenses as we can.
Mark J Kohler:The list is good.
Mat Sorensen:The list is good, but you do not need an entity. I'm getting back to the question. It took me a second to get there. Like I got lost in my own answer. You do not need an entity. Llcs. Let me make sure everybody says that. Do not save taxes. A lot of people think, oh, I set up this LLC, I'm going to get all these expenses and write offs. The LLC doesn't create any different tax outcome for you. It's a pass through entity. What goes on that flows right through that LLC on your personal return anyways. Now, an S corp can save you taxes. We're going to hit that. And when you want to use the s corp, it's not necessary for every side hustle, but for some of you it might. So we'll get into when you need to know that. But don't stress about the entity. Now think about an entity for being legit as a business owner, looking more official, getting some asset protection if something happens, or maybe the S corp. Of course, if you're going to fall into that boat, which we're going to hit in a second.
Mark J Kohler:Yeah, I like the wake up call comment, Matt, because when you start to prepare your taxes for 2023, it's a chance to work on your business, not in it. See, when you have a side hustle, that's when you're grinding. You're trying to make money, whether it's at a some sort of Saturday event or consulting and online, whatever it could be. But working on your business is saying, how can I make this better? How can I save more taxes? How can I make more money with less time? And I'm hoping this podcast, if you're new to this, is starting to resonate and help you feel comfortable that it's not complicated and there's some easy steps. So what are you going to go back and look for? I would recommend you start with a really good spreadsheet, Google sheets on your laptop. Don't try to do this on your phone. You're going to really need to snuggle up on the couch with a blanket and your laptop, put on an old movie you've seen 100 times and start going through and thinking of all the expenses you had last year related to your side hustle. Now, some of the basics, and we have so many different podcasts you can geek out on. But let's talk about home office. Home office is going to be a great write off. There's little rules for that, how you take it on the software, but put it on your list. You may not have a dollar amount allocated to it, but don't be afraid of it. Don't listen to anyone that says, oh, you'll get audited. For home office. I've got articles and podcasts galore on this. We'll help you get do it right. I'll just mention a couple more, Matt, and you can go. And I like auto. Auto is a great write off, and it can be super simple. All you're going to do is think of all the miles you drove related to your business. Could be running errands, picking up supplies. Maybe you were driving Uber or doordash. That's gonna write all those mileage is gonna be a write off, but you're gonna be thinking of mileage rather than fuel. Repairs and maintenance, which is called actual or medium sized or larger businesses. Those of you that have a full time side gig, that's when we're gonna start looking at the actual expense for auto. But grab your mileage, grab your home office, and I'm going to throw one last more. One more out there. A little Hail Mary I love is your electronics. Be thinking of everything you may have spent on a cell phone, charging cords, laptops, iPads, cameras, tripods, lighting. You might be doing social media, website design, and need additional electronics. As a small business owner, pretty much anything. You buy it. Home Depot and tools, as well as Apple store, best Buy. That should all have some sort of relationship to your side hustle. Write it down. So that's what you're putting on this Excel spreadsheet. Any expense you can think of. Start combing through credit card statements, your bank statements, receipts, anything you have laying around, or just your memory, ballpark it and get it written down. But those are the first three that come to mind to me.
Mat Sorensen:Yeah. And one of the things I think that's important as you're doing this, is I want you to look at your bank account. And for those of you that do not use a separate bank account for your side hustle, your business, you are doing it wrong. You're going to miss stuff. Okay? You don't have a bookkeeper. You don't have an accounting and finance department tracking every dollar that's spent. You are going to miss expenses. Now, there's a couple of things that are write offs that aren't in the bank account. And Mark mentioned some of those. These are ones you got to think about because it's not in your bank statements. Even if you're going through every line item in your personal bank account because you didn't separate this stuff first was home office. I mean, there's a simple method of the home office that many people, particularly people with a side hustle, take doesn't matter what's in your bank statements. Okay? Also, auto, you talked about most people are going to do mileage nothing you need to track in your bank statements on that. You just need to track the miles itself. But let me make sure everybody understands auto, because this is a big one for any of you new small business owners or something doing this for the first time, I want to make sure you understand how powerful this is. Just think of the real estate agent, you know, common side hustle, or someone new in the industry. For example, maybe you had one, you sold a property or two that year, you got your 1099. If you had 10,000 miles, you could have take 65 and a half cents a mile on that. That's a $6,550 write off. That's an expense. If you do not catch that, you are, like, volunteering more money to the IR's. Okay? Like the IR's has told you, hey, here's how you pay us less money. Are you paying attention? This is how. Okay, so make sure you're tracking that, but then start looking through the bank account and be like, did I use this in the business? Were these supplies I bought for my home office, for the business? Am I driving an Uber? Or was this like an air freshener or something I got in the car? Or some of the candy I'm giving out or the water bottles or whatever it is. I don't even wanna get into the stuff in onlyfans, Simon. I probably shouldn't have brought that up. What are they writing off there? I don't wanna know.
Mark J Kohler:And we have Onlyfan clients. And with all respect, it's an online business. And so many people are influencers and making money on YouTube, Rev and all that. You gotta be thinking, what am I spending money on to generate it?
Mat Sorensen:Yeah, exactly. Okay, so I try to get around for you. Cell phone. Okay, let's remember cell phone. What about equipment, too? That laptop mark said you need to cozy up to. To watch with the old movie that you're using in your business right now.
Mark J Kohler:Yep. Right off.
Mat Sorensen:Okay. And so start thinking of things in your business now. Everybody's industry is a little different. You know, when Mark was going through college and stuff, he had a commercial cleaning business.
Mark J Kohler:Yeah. Oh, no. Okay, I don't know where this is going.
Mat Sorensen:Keep going.
Mark J Kohler:I did have onlyfans back then. Yeah. Yeah.
Mat Sorensen:Okay, so he's got the commercial cleaning business. And so, like, there's materials, there's supplies, there's the mops and the vacuum and stuff. That's unique, of course, to that business, you know? And so every business is a little different on the things that you're gonna need. I had. I didn't even know I had this little marketing business that I would go, you know, in, like, gas stations. They would, like, have these little signs at the top of the gas stations where you could put advertising. Now they got, like, tvs and screens. But this is back in the day, I would drive around, and this is a little side hustle I had. You know, I was a freaking attorney. I was, like, a prosecutor, and I was doing this side hustle, and I put these little display things on top of the gas things, you know, and I got paid on how many I did, and I, of course, tried to bang them out. I had a ton of mileage. Okay. I also had, like, these little fasteners that I had to buy because, like, the stuff they gave me didn't work. That's an expense. These little fasteners I was using to put that thing on. So everybody's got these little things in your business that are going to be unique. They might not hit our list here, but just really think about that stuff you're using and spending money on.
Mark J Kohler:Okay? A few others. Love those comments. Is dining with any side hustle? You're gonna go out to at least one dinner a month and talk with your significant other or maybe other strategic relationships, contacts, vendors, providers, any affiliates. So dining is a regular expense. There needs to be some dining expenses on your tax return. Now, you can't write off dining by yourself unless you're traveling. We're gonna come back to that. But whenever you go to meet with anyone related to your business and you're having food and you're talking about it, even if you don't pay for their food, your food's a write off. As long as you're with someone having your. So look back to last year, what dining expense could I grab or take advantage of? Travel, as I just said, so in your business, your side hustle, did it involve going to a conference? Could we write off any airfare, any hotel, Airbnb, Uber, taxi, sleigh rides, whatever it takes to get that job done. And travel could be is 100% write off where dining is 50%. Now, let's say you're a consultant. Let's just give an example. So you're doing a little something on upwork, and you travel to a conference in Dallas that helps you be a better consultant. It could be business related, self help related, or an industry specific conference. Well, all of your travel to get there is 100% write off, and dining is a 50% write off the whole time. Even if you eat by yourself because you're traveling for business. So we want to be thinking, did that conference relate to my side hustle at all? Did it help me be a better consultant? Could I write off the fees to attend and all the travel and half the dining? More than likely, yes. And so we want to be thinking again of those two items. Do you have another one you love?
Mat Sorensen:I like training. You know, many people took a training course for their industry. Just go back to the realtor that had to take the licensing class and the training class. And there's some cost to that, not only the travel and stuff to get back and forth to that class, but also the cost of that class in and of itself. Some of you might be doing a certification training in your industry. That training is a write off. That's an expense. Now, if you went to like a college and you're like, well, I went and got an accounting degree, or I went and got a physical therapy degree, I went and got a law degree and now I'm a lawyer, do I get to write that off? No. Yeah.
Mark J Kohler:Standard education, that's going to be a different write off on your tax return.
Mat Sorensen:But industry specific credentials or training is going to be a write off in the business.
Mark J Kohler:The other one, I'd like to that, and believe it or not, this is, I'm going to get a little technical here. If you have children and you also have a small business, there are specific ways to have the kids involved in the business. You might call it allowance for personal chores. That's not a write off. But if you have the kids involved, helping stuffing envelopes, cleaning, doing office chores, helping with social media, helping with data entry, going out to the rental property and mowing lawns or whatever the case, we, if those kids are involved in any way, shape or form in your business, you can take a tax right after paying your kids. And if they're under age 18, they don't pay any taxes up to certain amounts based on the state. And in the federal, it's around 13 grand for last year. So you're getting a write off. They're not even having to file a tax return and it reduces your taxable income. So quit paying taxes and paying for stuff for your kids. You would be paying them and taking a write off. Now that's the concept. So last year, what's kind of nice is when you are messy and you've got a personal account and you're just running your side hustle. If you were to pay the kids for helping out with the business and you can see that in your bank statement. You may have transferred money into their account or whatever, given them cash. This is a chance where you can be pretty aggressive and say, I gave my kids money last year for helping in the business. And because you didn't have a formal llc or a formal s corporation, the protocol was messy. But the write offs actually becomes more valid and substantiated once you have formal entities, you got to pay those kids through the right structure, but then you're getting savings in other ways. So as you graduate as a business owner, you're going to use different procedures. But this is one for last year. If you're kind of a mess, this is what you want to take advantage of. Make a list of all the dollars you may have given your kids to help you in your business. And that's going to be a write off, too.
Mat Sorensen:Yeah. And when your kid gets that income, think about it. For them, they don't pay taxes on it because they're going to below the standard deduction of even needing to file a tax return because you're not going to be paying them tens of thousands of dollars. They're gonna be under the standard deduction they need to file a return. So expenses comes off you where you do have tax you have to pay and you have to file a return. And we push over the kids if they're legitimately working in the business. Now, one big thing I think that happens when people are doing this on schedule c, right? They picked up all their 1099 and any other income they might have had in the side hustle. They're writing all this stuff up that we talked about. Their auto, their travel, their home office, all this stuff we talked about cell phone equipment, stuff used in the business. All that stuff is getting. They're expensing it, and then they get down to it and they're like, wait a second. What is this self employment tax? This is even before I pay my income tax, I've got to pay 15.3%. When you get a w two. What happens when you get a w two is 7.65% is coming off of your paycheck and going into Medicare and Social Security. And you see that on your paycheck, right? Everybody's used to that on a paycheck.
Mark J Kohler:And you want to say, what the f. And you do and it's called FICA. You're like, what the FICA?
Mat Sorensen:But you know what your employer's doing that you don't see? They're also paying in 7.65%. It's just not coming out of your pay. The employer is paying that. It's a cost for them. Cause they have to pay into the Medicare Social Security system, too. Now, when you're self employed, guess what? You get to do both. You get to pay for the employee and the employer, and it totals this 15.3%, which is painful. And you see that add up and you're like, holy cow. And I got to pay income tax on this, too. Plus 15.3%. And I'm in a 30% federal tax bracket. I'm paying 45.3%. Or, you know, whatever it adds up to in your scenario. But then what? I'm talking about state tax. So there's a strategy on the self.
Mark J Kohler:Employment tax, which you will be able to employ this year in 2024.
Mat Sorensen:Yes.
Mark J Kohler:So when you see this come and you're like, oh, my gosh, I'm paying more tax than I want to. This is when it's time to get a consultant to help analyze the situation. Now, we've got prior podcasts and YouTube videos on the self employment tax s corporation, as in small corporation strategy. And you can take the LLC you already have and turn it into an S corp very affordably. Now that's a forward thinking strategy. So for today, we just want to plant that seed, that now that your tax return is going to be done soon, schedule a consult with a tax advisor. And we have a network on our website. We'll make sure it's down in the description below where you can get to the taxpro network and interview and find an advisor around the country. They don't need to live in your town. You can do a Zoom strategy call. It can be very affordable. We don't make money off that network. We make money training the network and supporting them and sending them leads and helping them. But you can work directly with them and have your own client relationship with an advisor, which you should have. You have a relationship with a dentist, a doctor, an insurance agent. Even the guy at Geico or Jake at State Farm is down in a cube somewhere helping. You have a tax advisor doing the same thing. Now that you have a side hustle, it might be time to quit doing your own tax return. So let's muddle through it. Let's dig up every write off we can for last year and then start moving forward with a better plan.
Mat Sorensen:You had to throw in Jake at State Farm to, like, get me off track here. And what are you wearing, Jake at State Farm? Khakis.
Mark J Kohler:Yeah, right.
Mat Sorensen:Good job, state Farm. Now, here's why the S corp matters. And I just want to make sure everybody understood what were saying there. Using an S corporation or an LLC taxes an S corporation, you can minimize the self employment tax. We can reduce how much self employment tax you have to pay because the S Corp has a strategy built into it that we implement with our clients every day. Every small business owner client of ours, I have an S Corp. Mark has an S corp. Are using this strategy to minimize that little tax, self employment tax. That, again, is even before we get to paying income tax at whatever tax bracket you fall into. But it takes the s corp. We can't go back in time and set that up, but we can do this moving forward. So if that self employment tax line was a little painful for you, we want you to be thinking about doing the S corporation. Now. Our law firm sets those up, too. We help clients set up entities across the country at KQS lawyers. The tax pro network is where you can get a lot of the tax advice and planning. Get help on this dang schedule c on your tax returns that you need to get doing. Get help with some tax analysis. So, but that is the s corp, and we've got other shows and episodes on that. Each one of these strategies we've talked about here, by the way, we're just giving rapid fire. We have a whole podcast on auto. We have a whole podcast on cell phones and equipment. So you can deep dive in this more if you need to. We just want to let you know. Think about this. This needs to be on your return. This is what's going to save you money.
Mark J Kohler:Now, I want to a couple of final points. One, that is something I want to say, and it's difficult to create a list for you. So I'm going to say it this way. And Matt kind of alluded to it as well. And that's being creative. You have to get addicted to this. It's kind of fun. You know what? It's actually easier sometimes to save money than make money. And so if you can say, oh, my gosh, guys. All right, what could I do? Well, there's clients that have a warehouse and they do landscaping, and they have a little metal building, and their stuff's getting stolen all the time. So they have a guard dog, and they feed their dog morning and night, and they leave a dog on premises. That dog is a write off. The pet is a write off. I have an article on nine ways to write off a pet. They also may say, well, we've got mice and all sorts of problems here in our garage with where we store our supplies for shipping, for our little side hustle out of our basement. And we need a cat. Okay, your cat's now right off. So everything at the vet and everything for the cats are right off. I've had realtors that show property on the mountain in the winter, and they have to pay for a special ski pass to take their clients up on the hill at Park City or Deer Valley. Their ski lift passes now write off clients that have snowmobiles and four wheelers to access properties they might manage with an Airbnb. You have clients that have specific uniforms that they need to wear when they're on the job. And so clothing can become a write off if it's got logos on it and it's required for the job. You can't just write off your nice suit because you need to look good on camera. And then you start just saying the word camera. So much of business now has a social media presence. So every camera, drone, screen, tripod, speaker, microphone, earbuds, Apple Watch, anything electronic that's going to help you build and market your business is going to be a write off, too. So I just wanted to throw out some ideas there, because I can't give you that list that's specific to what you're doing, per se. The golden rule is, any expense incurred in the production of income. That's code section 162 at the IR's, any expense incurred directly or indirectly to build your business. Now, when I say indirectly, you may not be able to write off 100% of the snowmobile, but you could write off 50% of it because you use that 50% for business, 50 for personal. So you get that indirect angle as well.
Mat Sorensen:Yeah. And if you weren't bought in that planning, doing tax planning is fun, like Mark said. Let me give you another reason why you should be thinking about this. This is a Dave Ramsey quote. Every once in a while, that guy hits gold. I don't agree with everything, but every once in a while, he has some gold. Okay. This is what he said. The fastest way to get wealthy is to get control of your income. It's about controlling who gets your income. Guys, as a small business owner, do you know what the number one expense of anybody making money as a successful small business owner side hustle. Big business is? Taxes. This is how we get control of it.
Mark J Kohler:You're gonna send this to me?
Mat Sorensen:Yeah. This is how we get control of it, is by doing good tax planning. Good tax planning here is gonna minimize what goes to the IR's and what gets to stay in your pocket, that is how you build wealth.
Mark J Kohler:Well, I just text that to myself. I'm gonna post that on my social media this afternoon. Love, Dave Ramsey. He says so many good things. So my final point after this, after talking about creativity, is please get engaged in the process. This. I like what Matt said. I think the wake up call, I think I said earlier, gateway drug. If you want to build wealth, you want to get out of debt, you don't want to be married to always, always working for someone else. Let's have that side hustle and let it grow and facilitate it. We at our company, we love it when our employees have a side hustle. We don't want them to quit their day job. But when they can make money on the weekends and evenings, and when they're asleep at night online, they're going to come to work stronger, they're going to come to work happier and confident because they're not stressed out about their finances. Over 50% of working Americans now have a side hustle. The key is keeping that side hustle optimized, making money so you can go to your day job and get the benefits and build that community and those relationships and that tribe at work, but also have this double life where you're also building wealth on the side, and now you're in control of your destiny. It's not one or the other. They're not exclusive. Let's embrace both of them and find that american dream that fits us. And someday that side hustle may turn into a main hustle. You don't know. But if you don't try, and you know what? You're going to make mistakes. You're gonna be stressed out at times. But you know what? Taking action is always better than taking no action.
Mat Sorensen:All right, let me hit one other thing that you can do right now. Now before April 15, you can still make your IRA contributions. So if you're catching this early, and you're one of our faithful listeners, you caught this early, you can still make your IRA contribution. That's 6500 for 2023. That you can do up until April 15 of 2024. Obviously, you can make your 2024 contribution. That amount goes up to seven k. But for any of you self employed, that got this 1099, and now you're dealing on schedule C. If you made good money and you're like, I'm looking for more write offs, you can set up what's called a solo four hundred one k and still make 2023 contributions. If this is something that might interest you. What I would recommend highly is extending your April 15 return up until October 15.
Mark J Kohler:Yep.
Mat Sorensen:You're a sole proprietor going on schedule C. This is gonna give you more time. And you can make that solo k contribution up until October 15. That saves you on taxes nine months ago, back in 2023.
Mark J Kohler:And you can still have a work and you still can do an IRA.
Mat Sorensen:Yes.
Mark J Kohler:So you can do all three.
Mat Sorensen:And the max you can put in this solo k is $69,000. Okay, ten times what you can put into an IRA. We're not just talking about $6,500. We're talking about you've made some good money in this business. You're like, dang, I'm getting hammered on this. Let's think of the solo k. We set these up in our law firm, KQS lawyers, and handle the accounts over at our company, directed IRa and directed trust company. So we're doing this every day. Every day. We're setting up a solo k for.
Mark J Kohler:A client, and we have the health savings account contribution. That is up until this coming Monday the 15th at midnight. So if you want to contribute to an HSA at the same time you're opening up your IRA online, you can check the box and say, I need to get my health savings account going. You had to have had a high deductible plan last year. Look at the rules. We've got podcasts on that as well. And really, I mean, this is, there's so much still. You can make some contributions to your kids education accounts, the Coverdells before the 15th, and little things like this. But don't let your professional completely control the process for you. You are the captain of your ship, an accountant, a tax advisor, a lawyer. They all work for you. And you don't have to know exactly how to frame a house, but you know what? You want that house to look like. And you can manage the project because you may think they're thinking about you all day long.
Mat Sorensen:They're not.
Mark J Kohler:They're only going to think about you when you're paying them to think about you. And if all you want them to do is plug numbers in your return, that's all you're going to get. So take the initiative to get a little more engaged. If you found this podcast helpful at all, please know we put a lot of thought into the topics here to help you succeed. We want to keep it tight and to the point. And please continue to follow us. Check us out on YouTube. We've got conferences every quarter, somewhere in the country or online at our websites. And all that information is down below. We want to help that Main street business owner succeed forever. And if you've got an LLC or a corporation, you still got to do your reporting for that to the state and the federal government. Now, you may have heard about it. The business owner information form to FinCen. We are here for you on that. Don't forget about that. And some are like, I don't have to do that. I didn't make money. Nope. You have an LLC, you got to do it. So we'll be talking more about that throughout the year. That deadline is the. Is December 31.
Mat Sorensen:Yeah, yeah, it's December 31 for those of you that had an entity set up before 2024. But if you set up an entity in 2024, you have 90 days. So some of you are like, oh, man, I listen to guys podcasts. I need to do this s corporation I heard about because I got crushed on self employment tax. Well, you're gonna need to do a BoI on that. Now, if our law firm sets it up at KQS lawyers, we'd love to help you. Of course we do that for you. That's part of the service. If you hack it out on your own online, I'm just telling you, those online services don't know what they're doing. And did you make sure that got filed? And when you add up the cost of legalzoom or a lot of our competitors in the law firm, it's more than using a law firm and being able to talk to a real tax lawyer who's going to help strategize for you. So we're here for you. Thanks for tuning in, of course, to the mainstream business podcast. We're going to be back next week with another incredible topic. Less ten less onlyfans comments. I promise.
Mark J Kohler:No, I know. It's good.
Mat Sorensen:Same great tax strategies.
Mark J Kohler:Yeah, it's fun. We were talking about young and old, male and female, and there's so much money to be made right now online. And just the crypto trading in the crypto metaverse world and NFT is blowing up for so many people. So take control of your ship. We're going to be here every week or more. Please subscribe and give us a like or a love, and we'll try and do our best to not let you down. Thanks so much.