A massive goal of a corporate structure is......
Paying 0% Personal Tax
That’s the goal. While corporate tax must be paid, it can be optimized to a certain extent. The good news is that corporate tax is generally low.
For example, the first $500,000 of Opco income is taxed at 11%.
How you design your real estate, mortgages, banking, and insurance will dictate how much personal tax you pay.
Consider this: Based on $500,000 net income, a business that is 100% optimized will pay $55,000 in personal and corporate tax combined. On the other hand, a business that is 100% unoptimized will pay a total of $250,000 in personal and corporate tax.
That’s a $195,000 difference every year. Compounded over a decade or two, the savings are massive.
In general, most people fall somewhere in the middle.
The corporate, mortgage, real estate, and insurance service I provide addresses exactly this.
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