New Business Opportunity

DamnYankee

DamnYankee

Loyal to the end
I've been recruited for the past two years by an national association of a franchise type of business. It leverages my full 25 year's experience and gives me tremendous marketing ability in the highest hourly rate portion of my existing business. Two years ago when they called my business was doing very well and I had more work that I could do, so I told them "no". This year the construction industry is down 50% or more and my business is following it along. This opportunity is recession-proof and in fact actually does better during poor economic times. I would have the potential to make well over $200k annually before hiring any employees.

Sounds like a no-brainer, right?

The problem is that my other investments and businesses are also doing well, are 'recession proof', and this would take my total income well into the "Obama enemies" list. Due to income taxes in this high bracket, when the "Bush tax cuts" expire, I'd only take home about half of what I actually earn from this new opportunity.

Why should I work my ass off only to pay half of it to the government in taxes? I'm thinking of telling them "no" again. :(
 
Southern Man said:
I've been recruited for the past two years by an national association of a franchise type of business. It leverages my full 25 year's experience and gives me tremendous marketing ability in the highest hourly rate portion of my existing business...... snip
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Wow, they still have those Fuller shoe brush door-to-door salesmen gigs?
 
Southern Man said:
I've been recruited for the past two years by an national association of a franchise type of business. It leverages my full 25 year's experience and gives me tremendous marketing ability in the highest hourly rate portion of my existing business. Two years ago when they called my business was doing very well and I had more work that I could do, so I told them "no". This year the construction industry is down 50% or more and my business is following it along. This opportunity is recession-proof and in fact actually does better during poor economic times. I would have the potential to make well over $200k annually before hiring any employees.

Sounds like a no-brainer, right?

The problem is that my other investments and businesses are also doing well, are 'recession proof', and this would take my total income well into the "Obama enemies" list. Due to income taxes in this high bracket, when the "Bush tax cuts" expire, I'd only take home about half of what I actually earn from this new opportunity.

Why should I work my ass off only to pay half of it to the government in taxes? I'm thinking of telling them "no" again. :(
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You don't have any write offs? You would REALLY pay 50%? Looks like you need to find some tax shelters!
 
Rana said:
Damn, that is bad, but, it is the price one must pay to be a success! If you are a loser. according to some, you don't pay anything!!!!!!
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That's my point, Sherlock. Why should I work my ass off only to pay half of it to the government in taxes?
 
Couldn't you funnel more into tax deferred places, and not pay the taxes until you pull the money out?
 
Damocles said:
After paying half, would you still be better off than before? It is foolish to cut off your nose to spite your face.
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That's true, but I can make less with a lot less effort. I have what I need and am on track to retire in 15 years. If one of my other businesses sells than it would be earlier than that. If it was a question of survival or wanting to live a better lifestyle than the decision would be different.

And I can't defer the compensation very easily. The only way I know how to do that is to buy a building as an office then use the income to pay the loan. Then when I retire sell the building, or rent it. I'm already doing that with another business and its messy.
 
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