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Transcript
00:00Here's why it's better to be a business than an employee.
00:02The employee makes $100 by working hourly.
00:05The business makes $100 from making an online sale.
00:07Before the employee gets his money, taxes have to be taken out.
00:10The business, however, gets to spend that whole $100 on all kinds of expenses.
00:16They get to reinvest by taking write-offs.
00:18After taxes, the employee gets $80.
00:20After expenses, the business still has $20.
00:23The employee still has to pay for their expenses.
00:25The business has to pay taxes.
00:26At the very end, they're both left with $16.
00:30The employee only got to spend $64 on expenses and had to pay $20 worth of taxes.
00:36The business got to spend a whopping $80 on expenses and only had to pay $4 in taxes.
00:41It all comes down to one thing.
00:43Do you get to spend your money before you pay taxes or after you pay taxes?
00:47The one thing is that the employee income is guaranteed.
00:50You show up for a job, you're getting paid for that day.
00:53The business, that $100 is not guaranteed.
00:55It can be zero.
00:56So there is a lot of safety and consistency with being the employee.
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