In this installment of their "basics" series, Lucas and David have Cecil Bullard, an industry veteran and expert, discuss the intricacies of financial management for auto shop owners. Cecil underscores the importance of drawing a salary, not just distributions, to prevent IRS red flags and to contribute to Social Security benefits. He emphasizes the twin revenue streams of a salary for work done and dividends as a return on investment. David chimes in on the crucial role of accountants in tax saving strategies, lamenting that too few provide proactive advice to reduce tax liabilities. For anyone running an auto shop, this episode is a must-listen for insights on smart financial practices and long-term wealth building.
00:00 Shop owners get paid through salary and reward.
03:32 Investment in the stock market yields a 10-12% return.
08:13 IR code allows family's health insurance pre-tax.
11:58 Consider hiring an accountant if profitable.
12:33 Seek accountant for income over $200,000.