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of the US's 130 million taxpayers would take the normal tax credits and

deductions of about $4k they would get in the first year for starting a

micro-business, they would instantly deprive the government of $552 billion

(over half a trillion!) dollars in tax revenue.  My question is: why isn't

everyone who believes in this country starting a tiny business?  With such

sudden and huge fall in revenue, the government would either have to openly

enslave us or reduce big government to a much more realistic scale!  And

the new business owners would have total job security because they can never be

fired.'

Pajamas Media's Dr. Helen has been discussing

'going Galt' or just 'Galting' for short.  Galting is the idea that you

have the option and even the patriotic duty to legally reduce your income and

taxes owing to deprive the government of revenues to over-regulate your life.  

My friend's company and my own company have become highly successful

laboratories for Galting while still continuing to contribute to our improving

lifestyles.  Yes, I am saying that you don't want to hurt yourself by

reducing your taxable income to the poverty level voluntarily, but there are

legal ways you can shield income, benefit from tax deductions and credits,

creatively domicile your business or revenue streams, and reduce the taxes you

must pay while still improving your lifestyle.  All while being your own

boss and getting to make the final decision as to whether you get fired or laid

off by your company! 

Our biggest question to each other, of course, was why aren't more people

doping this?  We decided it was because there are many myths about small

business that must be exploded before potential small entrepreneurs take the

leap.  Full disclosure:  I help manage an ecommerce service that has

helped over 10,000 online merchants, so I have lots of opportunities to talk to

small businesspeople who are highly creative about making their small businesses

appear as big businesses.  Including 'going international' in micro-ways

that make mega-contributions to their profits, without being a big 'mutinational

company'.

Myths Exploded About Starting a Small Business

( for everything below, consult your accountant and and local regulations, but

be bold!)

Myth: There are too  many regulatory hurdles to starting a business. 

Truth: You own a business when you say you do - not when the

government agrees to it.  Many businesses are started for $12.00 by simply

publishing a fictitious business name in the local paper (or purchasing a local

business license for $50) and for the first year or two, run out of the owner's

personal checking account.  As long as your business revenues are less than

'in the millions' (even the SBA considers a $19 million business a 'small

business') the government bodies at all levels have almost zero interest in you! 

This is especially true if you own an online business, which is the most popular

type of business to start these days on a micro-budget.  The simple fact is

that new small businesses fly almost completely under the government's radar -

the sums involved are simply too small to trouble governments that need BIG

revenues.   Also, a few simple strategies (discussed below) can take

you mostly off the 'local domicile' radar.

Myth: The tax credits and deductions for new businesses are hard to get. 

Truth: nothing could be further from the truth!  You have to be honest, and

your tax preparer can help you with this, but one thing the Obama administration

has not been able to do yet is take away the honest (and by some lights,

generous) tax deductions and credits for small business formation.

Myth: I will be regulated to death.  Truth: Nonsense.  It is indeed

scary when we read about the regulations that will be applied if the Obama

agenda is furthered.  But most of those regulations apply to businesses

with 50 or more employees.  Some of the scarier proposed new ones apply to

companies with only 10 employees, but how big can your own paycheck get with

still only 9 employees?  My friend and I, who both own B2B businesses, both

have clients who are making millions online with only half a dozen employees. 

Is your goal to produce an IPO within 2 years (which will put you in a big

compliance posture really fast!) or to simply provide for yourself and your

family?

Myth: Our local economy is more depressed/compliance is more expensive here

than in the rest of the nation.  Truth: that is why so many are starting

internet businesses!  They reach a global market and have high flexibility

for domicile decisions, and so are much, much less dependent on their local

economy.   Think for a second: even if you are in Boqichita, Oklahoma,

if you

rent a web server outside the US then were does your business really live? 

What if you decide to hire

a programmer

from India help you build your web site for a very cost-effective $60 fee? 

Just got a little more vague, didn't it?  Who has jurisdiction over you? 

What if you decide to

bank outside the US for at least part of your company's revenues?  What

if you take advantage of this highly electronic world we live in to pay for

offshore services and products with an offshore debit card?  Or even if you

pay for US business services and products with an offshore debit card? If you

take a few measures like this (or many other measures you could think of

yourself), does your business really fall under the law in Boqichita, Oklahoma,

just because your brain is located there?  What if you never inventory

product, but have it drop-shipped instead?  What if you don't sell tangible

products at all, but sell downloads, content or advertising on a well-visited

site?

Better still, what if you spend $400 to set up an offshore management company

that charges steep fees to your domestic company for expert management services

(ie: the use of your brain)?  So far, there is no law that says the fruit

of your imagination and skills must be paid for in the same country where the

biological process that produces your great ideas takes place!  If the

Obama administration ever figures out how to tax my brain, (and I think they

will really, really try) then I'm moving to Costa Rica!

Myth:  I don't know how to raise the capital.  Truth: you don't

have to raise any 'capital'.   Or, more realistically, your 'capital'

comes in the form of small monthly charges you can already afford, and the

'sweat equity' of learning to build your own web site.  We've seen it done

using all FREE tools (yes, there are

free web sites and

free domain names and

free web editors) and all the tax deductions for home office (up to 20% of

your rent or mortgage), transportation/auto expenses, internet connection, phone

bills, office supplies and much more suddenly become tax breaks.  And

nobody (even in government) says you have to learn how to use all these tools

before you can start your business.  The company I work for was started in

1994 with a $15/month Earthlink account (which was actually free because we

signed up other customers) and a guy who had decided he was going to learn how

to write web pages and learn some programming.

Sometimes it takes fear to get us to take bold action.  If the fear for

your country isn't enough to do the trick, then perhaps the fear of unemployment

(or continued unemployment) will get you to take the bold step to start your own

micro-business. 

But for my friend and I and for many others we know, starting a business

meant actually living the attractive concepts of freedom and liberty; of being

the one on the spot to succeed of fail; of getting up every morning with a

splendid mission; of rising to the many fun challenges of winning in business. 

And serving our country by being a provider rather than a taker. You can do

the same!  Just click.

The author is a senior executive at 800Cart Shopping Cart/SEO an advanced ecommerce solution that combines cart, chackout and payment processing PLUS highly advanced, relevant SEO in one simple solution that takes only minutes to set up and copy/paste onto your web site (any web site).

See our entire line of highly useful eCommerce/SEO videos at youtube.com/800Cart||Cross-posted with additional details in our eCommerce and SEO Libarary

Thanks for reading: Your Personal Obama Smackdown Deprive Big Government of Tax Revenues While Improving Your Own Revenues. 

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