00:00Here's why it's better to be a business than an employee. The employee makes $100 by working hourly.
00:05The business makes $100 for making an online sale. Before the employee gets his money,
00:09taxes have to be taken out. The business, however, gets to spend that whole $100 on all kinds of
00:15expenses. They get to reinvest by taking write-offs. After taxes, the employee gets $80. After expenses,
00:22the business still has $20. It's not over yet. The employee still has to pay for their expenses.
00:27The business has to pay taxes. At the very end, they're both left with $16 in profits.
00:33The employee only got to spend $64 on expenses and had to pay $20 worth of taxes. The business got
00:40to
00:40spend a whopping $80 on expenses and only had to pay $4 in taxes. It all comes down to one
00:46thing.
00:46Do you get to spend your money before you pay taxes or after you pay taxes?
