According to the Economist, family-owned businesses outperform others. So if you’re launching a business, this is the best time to start a business with your spouse. Together you can help more people and have a more significant impact.
Besides the advantage of not having to do everything on your own, here are five reasons to start a business with your spouse. The perks might surprise you. Now is your chance to monetize your passion, build an empire with your family, and win financially.
Spend More Time Together
If you and your spouse share a passion and know a great way to solve people’s pain points, why not launch a business together? The most successful entrepreneurs do one thing–they solve a problem.
Just think, you could be someone’s hero for solving their problem, and you get to make money too. That’s a win-win in my book.
Plus, you don’t have to take on the burden of running a business alone. Working with your spouse will allow you to split responsibilities for the company. The two of you could also balance each other’s strengths and weaknesses. You’ll be able to complement each other and succeed.
But here are some perks you might not have considered. When you both work for your own company, you can write off many business expenses. Check out some of my favorite tax deductions below.
Financial Reasons to Start a Business With Your Spouse
Write Off More Meals
The last time I checked, everybody’s gotta eat. Why not eat together and discuss a little business too? Do it right, and it becomes a working meeting with your business partner. That’s one expense you can deduct legally.
Turn Business Trips Into Vacations
What places are on your bucket list? I am sure there is a country or two you both have always wanted to visit. Now is the time to take that country off your bucket list and turn it into a business trip! Book your travel and add a conference or a business meeting or two, and bam, you’ve turned your vacation into a tax-deductible work trip.
It’s crucial to ensure your trip plans include business activities. Don’t start taking personal vacations and telling Uncle Sam I told you to write it off. Make sure your business activities outnumber your personal days. But there isn’t anything against traveling for work and then adding a day or two to explore the place.
Keep track of all expenses, including plane tickets, meals, gas, and rental car receipts. Use the trip to increase your network, seek new clients, and check out a place you’ve always wanted to see.
Make It a Family Affair, Hire Your Kids
If you have children, your tax deductions increase even more. You can hire your children to work for you, help them start saving for retirement and write off their pay and retirement contributions from your taxes.
There is power in teaching your children to start saving for retirement early. I started saving for retirement at 16 years old, and I understood the benefit of compound interest and time from an early age.
After I saw my paycheck from a retail job grow into thousands of dollars, I was convinced that saving and investing early is a smart money move. And with today’s market, I find myself saving at least $80,000 each year for retirement.
Keeping more money from your business in the family and minimizing your taxes is a great way to deduct everything.
Build a Legacy that Lasts
The mission of The Purpose of Money is to help you build generational wealth one dollar at a time. So I am a huge believer in building lasting legacies. When you create a business with your family, you have more help and more people behind the company’s long-term success.
Everyone can have their role in the business, but everyone’s skills and experience can complement each other. Teamwork has the potential to help you build a legacy that lasts for generations.
Resources to Help You Start a Family Business
Not sure how to get started? First and foremost, figure out what type of business you want. Remember, I strongly recommend you solve a problem and identify your ideal customers first.
Then build the business and find the people like your spouse or your kids to complete the empire.
The goal of most businesses is to make money. But don’t just stop there. Use this tax guide to help you maximize your income and minimize your taxes. Here’s also a business blueprint to help you set up the right business entity from the start.
I also think it helps to learn from other successful couples. Check out You and Your Partner, Inc, a book that teaches couples how to win at businesses together.
Other Factors to Consider
If you take my advice and start a business with your spouse, remember to make time for yourselves as a couple too. Get together for date nights and don’t talk about business.
It might make sense to have separate office space or work schedules. For example, you can plan time to collaborate on ideas and give each other time to work apart. If you have children, you might need to do this to ensure childcare is covered.
Also, remember to take time for yourself. As fun as it is working together, everyone needs a little “me time,” too. Figure out what you both need to work successfully and make it happen. Level up your finances and succeed this year. Let’s win together.