Real Benefits of Buying a Business Part 2
My top 5 reasons for owning your own business (continued)
beyond the income it can generate for you and your family.
2. It offers control over income tax rates at the lower corporate rate and not personal marginal rates, which can be a lot higher than companies. Talk to your accountant it may be the best few hours you ever spend.
3. Sit back and earn without working. For the smaller businesses the income and the business profit are really combined into one. For larger businesses the goal for some is to buy a business and treat it like any other investment. In a lot of circumstances it is no different to a property investment or share market investment, the yields are a lot lower but so is the risk. A typical share return might be 3% to 5%, a commercial property 6% to 8% and a business anywhere from 15% upwards, but in a lot of cases closer to 20% plus. In the long term with correct management, a business can be converted to a managed scenario where the after management wages gives a long term return with little or no involvement.