September 5, 2025 • 19 mins
Worried about protecting the wealth you've built in your painting business?
In this episode of the Profitable Painter Podcast, Daniel Honan (CPA, former painting business owner) and Richard Dunton (Enrolled Agent) reveal the exact framework to shield your assets, slash your tax bill, and secure your legacy.
You'll learn the "Cover Your B.U.T.T." framework to defend your business and family wealth:
- Built to Sell: Discover how to calculate your business's true value (even if you never plan to sell!) and the #1 risk that slashes your valuation by 3x.
- Untouchable Assets: Learn legal strategies to protect your assets from lawsuits, creditors, and bad actors. Are your personal assets on the line?
- Tax Planning: The IRS is your biggest expense. Uncover 12 powerful tax strategies used by profitable painting businesses to keep more of what you earn.
- Transfer Wealth Wisely: Ensure your estate passes to your family efficiently and avoid the bureaucracy of probate. It's not just for the ultra-wealthy!
If you're growing successfully but worried about becoming a target, or if the thought of a complex tax or legal situation keeps you up at night, this episode is your essential guide to peace of mind.
FREE BOOK & LIVE WEBINAR INVITE!
This episode is a sneak peek into Daniel's new book, "Profitable Painter," which is releasing on September 8th.
You can get a FREE copy of the book + a valuation calculator + exclusive resources by joining our LIVE Book Launch Webinar!
Date: September 9th
Time: 9:00 AM Pacific / 12:00 PM Eastern
Where: ZOOM
Register here NOW: https://profitablepaintercpa.com/webinar
At the live event, we'll dive DEEPER into building untouchable assets and strategic tax planning. You'll get the book for free and other special gifts. Don't miss it!
Subscribe to The Profitable Painter Podcast for more weekly strategies on mastering your numbers, boosting profits, and building a business that works for you.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to the Profitable Painter Podcast.
The mission of this podcast issimple to help you navigate the
financial and tax aspects ofstarting, running and scaling a
professional painting business,from the brushes and ladders to
the spreadsheets and balancesheets.
We've got you covered.
But before we dive in, a quickword of caution.
While we strive to provideaccurate and up-to-date
financial and tax information,nothing you hear on this podcast
(00:22):
should be considered asfinancial advice specifically
and tax information.
Nothing you hear on thispodcast should be considered as
financial advice specificallyfor you or your business.
We're here to share generalknowledge and experiences, not
to replace the tailored adviceyou get from a professional
financial advisor or taxconsultant.
We strongly recommend youseeking individualized advice
before making any significantfinancial decision.
Welcome to the ProfitablePainter Podcast.
(00:45):
I'm your host, daniel Honan,cpa and former painting business
owner, and your guide tomastering the numbers that drive
success.
I'm super excited to be joinedtoday by Richard Dunton,
enrolled agent.
Welcome to the podcast, richard.
Speaker 2 (01:00):
Oh well, thank you, daniel.
I'm always happy to be hereno-transcript about a framework.
Speaker 1 (01:30):
It's called Cover your Butt.
B-u-t-t is a backronym.
It stands for B for built tosell, u for untouchable assets,
t for tax planning and then theother T is for transferring
wealth wisely.
And this is out of my book,profitable Painter, which is
(01:51):
releasing on Amazon on September8.
And we have a book launch onSeptember 9 at 12pm Eastern, 9am
Pacific, which you can registerto attend the book launch.
If you attend the book launchyou will get a copy of
Profitable Painter, thepaperback, and also a whole
bunch of resources.
So if you go toprofitablepaintercpacom slash
(02:13):
webinar, you can register forthis event.
I'm super excited about it.
But today's topic we're going tobe diving into one of the three
frameworks out of the bookwhich I just mentioned at the
top, which is the B-U-T-Tframework, and this one, like
Richard mentioned, it's actuallymore in his expertise than mine
, but a lot of the ideas I stolefrom Richard, so I'm glad he's
(02:36):
here to talk about it with me.
But the first one is built tosell.
So this is just understandinghow much your business is worth.
And I think it feels like it'skind of the Wild West when
people try to understand like,how much is my business worth?
And you can pretty much use acalculator to determine this
(03:01):
especially private equity firmsThey'll use essentially a
calculator to determine howespecially private equity firms
they'll use essentially acalculator to determine how much
a business is worth.
Now, on the private side, youcan probably sell.
You can sell a business for anyamount of money, just like you
can sell anything for any amountof money.
But when it comes to things likeprivate equity, they do have
certain methods to value abusiness, and so in the book we
(03:24):
actually cover, you know how youcan calculate the value of your
business, like a private equityfirm would do, and so it's
really helpful to understandthis, because even if you don't
want to sell maybe you don'teven want to sell I'm going to
keep this business for the restof my life, which I totally get
(03:44):
because I'm the same way I'm notgoing to sell my business.
But the reason why it's stillhelpful to understand how much
your business is worth isbecause when it's more valuable,
when a business is morevaluable to other people, it's
also more valuable to you.
So if you understand what makesit valuable, what are the
(04:05):
things that are healthy about it, and then what are the things
that are making it unhealthy orrisky, then you can make changes
to increase the value whichwill bring more wealth to
yourself and your family.
So, even if you don't want tosell, it's definitely something
to have a good understanding ofso you can grow your wealth for
(04:28):
yourself and for your family.
Speaker 2 (04:29):
Yeah, I like that you use the word built to sell.
Built implies action, somethingintentional, and that's really
true when it comes to having avaluable business.
It's not something that justhappens overnight.
Even if we've been in businessfor a long time, we think, oh,
one day I'm just gonna sell thisthing for millions of dollars.
(04:52):
But actually it requires someplanning.
I usually tell folks if you arelooking to exit your business
either by selling it or maybejust like exiting from the
day-to-day operations this is atwo to three-year process that
you want to start planning for.
There's things that need tohappen, there's positions that
(05:17):
need to be filled, there'sconstraints that need to be
overcome so that your businessis going to be the most
attractive and command thehighest price to potential
buyers.
So if you're looking to exit,give yourself some runway,
because we don't want to throwyour business out there and have
(05:37):
a cheap price.
Right, it's not priced to sell.
It's built to sell and commandthe highest price possible.
Speaker 1 (05:46):
Yeah, and actually in the book launch event I'll be
giving out the calculator aspart of all the gifts that we'll
be giving out to the attendeesof the webinar.
If you go toprofitablepaynercpacom slash
webinar, you can register forthe book launch and get a free
(06:07):
copy of the book, but also allthe resources that come with it,
which one of them is avaluation calculator so you can
value how much your business isworth.
And there's certain factorsthat buyers will look at that
make things more attractive.
One is EBITDA, which is a fancyway of just saying net
operating income.
(06:28):
Basically the bottom line howmuch money is the business
generating after paying for allexpenses?
The higher that is, the morevaluable your business is going
to be.
And then, usually based off ofthe EBITDA or the net operating
income, you're assigned amultiple, and if you're under a
million dollars, your multipleis one, meaning that you
(06:52):
multiply one times the netprofit to determine as a
baseline for how much yourbusiness is worth.
Now, from there, you add on tothe multiples depending on other
health metrics and risk factors.
So, for example, a healthmetric would be how fast is your
(07:12):
business growing?
If it's growing over 30% peryear, year over year, then that
would be an additional halfmultiplier.
So instead of one, a multiplierof one, you have a multiplier
of 1.5.
Multiplier so instead of one, amultiplier of one, you have a
multiplier of 1.5.
And then another health metricwould be what your net profit
margin is, so your EBITDA margin, what's the actual percentage
(07:36):
of what's left over?
So if it's 30% margin or higher, that's another 0.5 multiple.
So there's several of thesehealth metrics.
That kind of you can look atyour financials and see do you
know to calculate what your,your multiple would be?
Now, on the other side of this,there's risk factors, there's
things that make your businessless attractive for a buyer, and
(08:00):
the top one, the number one, iskey man risk, meaning that if
you were to leave your businessfor two weeks, three weeks, with
no contact with your team,would your business continue to
grow without you?
So this requires basically thatyou're not in any kind of key
(08:22):
role.
You're not the salesperson,you're not the production
manager, you're not doing theoffice work, you're not painting
the homes, of course.
So you have to kind of be outof all those key roles for you
to not have that key man risk.
And because that key man riskis a big hit.
It's a minus three multiplier.
So this is the biggest riskthat you have to get rid of to
(08:42):
really unlock the value of yourcompany.
Cool, so that is the bill tosell.
There's a lot more details thatgo into that, obviously, but if
you want to hear more about thistopic, definitely go to
profitablepaintercpacom slashwebinar and register for the
book launch to hear the fullscoop on that.
(09:06):
Plus, you'll get the book and abunch of resources to include a
valuation calculator.
All right, so the next topic isuntouchable assets.
All right, so the next topic isuntouchable assets.
So as you grow in your paintingbusiness, as you become more
(09:32):
wealthy and your businessbecomes bigger, you become more
of a target for bad actors, forcreditors, for disgruntled
employees, and so you got tostart thinking about how can I
be less of a target?
What can I do to to do that?
So you want to.
You want to talk about this.
Speaker 2 (09:45):
Richard, I can see you just really wanting to say
something Well, yeah, I meanit's.
It's unfortunate we do.
We live in a very litigiousworld and when you start to have
success, you do kind of put atarget on your back.
So we want to structure ourbusiness legally in a way that
we have those untouchable assets.
So most of us have an LLC inplace, which is awesome because
(10:07):
that's going to be like yourfirst line of defense.
But we're going to want topossibly consider having
additional LLCs once we startbuilding up assets, whether
that's real estate or equipment.
We might have multiple companiesinvolved where we are renting
or leasing equipment to anothercompany, so that we're creating
(10:30):
silos.
So if one of our silos isattacked, like, for example,
let's say, somebody slips andfalls on our property and they
file a lawsuit against us, wewant that lawsuit contained to a
specific silo.
We don't want them to be ableto come after our business
(10:50):
operations or our personalassets.
So we're using legal frameworks, llcs.
We might be forming these LLCsin states that have charging
order protection entities, whereit makes it harder for folks to
come after us.
We might be using grantortrusts, revocable living trusts,
(11:13):
for privacy measures.
It's a lot of just kind ofgetting your ducks in a row and
dotting your I's and crossingyour T's, not using your
personal name and address if wecan avoid it, taking advantage
of things like registered agentservices so that official
mailings are not coming to ourpersonal home.
(11:36):
I know I'm throwing a lot ofjargon around here, but it's
working with someone who hasbusiness knowledge and a little
bit of legal knowledge as well,to know how we can protect
ourselves and maintain ourprivacy and also set things up
where, when it does come time tosell, we are able to sell off
(11:59):
the assets that we want to selland retain the assets that we
want to retain.
So, for example, if you have apainting business and you own
the property that your businessworks out of which is a
wonderful strategy, by the waythere's some awesome financial
and tax benefits to owning realestate when it comes time to
(12:22):
sell that business, do you alsowant to sell the real estate?
Or would it be better for youto sell the business, keep the
real estate and perhaps becomethe landlord to the new owner?
If you want to do that, we needto set it up correctly from the
start, or we need to kind of dosome cleanup work to get
(12:44):
everything where it needs to beso that, when it does come time
to sell, you can get the maximumprice.
Let go of the assets you'rewilling to transfer and retain
the ones that you want to keep.
Speaker 1 (12:57):
Yep, cool.
So the next topic is T for taxplanning.
So we talked about built tosell untouchable assets and now
T for tax planning, and so thisreally is about protecting your
wealth from the IRS.
The biggest expense you'regoing to have in your business
career is going to be all themoney you have to pay to the IRS
(13:17):
.
But fortunately, you do havecontrol over how much you pay to
the IRS, and so in the book wecover 12 key tax strategies that
we use for painting businesses,and there's also a bonus 13th
one that we see a lot that helps, so we'll go into more detail
at the book launch on September9th at noon Eastern, 9 am
(13:43):
Pacific time.
You can register atProfitablePainterCPAcom slash
webinar to get the full detailson those 12 tax strategies, and
also you'll get a copy of thebook as well as a bunch of other
resources.
So definitely recommend youjoin us then.
(14:03):
And then the last T in theframework is transfer wealth
wisely.
So this is all about how do youactually, when you pass on,
what can you do to make sureyour estate goes to your family
in a way that is tax efficientbut also not caught up in
(14:26):
bureaucracy?
So there's things like probatethat you want to avoid like you
don't want.
It's already hard for your,your loved ones, to deal with
that situation.
You don't also want to stack ontop of that a bunch of
paperwork and annoying things todeal with the government and
the courts.
So that's something that you'llneed to think about as you grow
(14:48):
your.
Your painting business and yourwealth is about how to transfer
this to your, to your family,after you pass away.
Speaker 2 (14:57):
Yeah, that we.
We typically call that sort ofthing estate planning, which is
kind of a fancy term, but youknow it's hard it's.
You know it's like insurance.
You know you don't, nobody everwants to think about it, but
when it comes time to use it,you are darn glad that you have
it.
When you're in your 20s, 30s,even 40s, you don't want to
(15:19):
think about estate planning andpassing wealth on to the next
generation, but that is theperfect time to get these things
in order.
So often we see this happen allthe time.
People have an idea of whatthey want, but they don't ever
commit it to writing and theydon't do the legal work to make
it actually happen.
(15:40):
And then they're at the mercyof state laws, probate judges,
relatives that come out of thewoodwork when they hear that you
pass away.
We don't want that to happen.
You've worked hard to buildyour wealth.
You have ideas of how you wantthat to be spent, whether it
(16:02):
goes to your children or to yourfavorite charity or just.
You know you want to have somecontrol over what you built and
you can do that while you're.
You should do that while you'restill young, and that's where
your will comes in yourrevocable living trust.
We're talking about durablehealthcare powers of attorney,
(16:22):
so that your medical wishes areknown and that there's you,
there's the legal work in placeso that they're going to be
actually carried out.
My wife and I we've done ourestate plan and we obviously
want our son to inherit themajority of our wealth.
But right now he's 10 years oldand he wouldn't know what to do
(16:45):
with it.
So we have tranches set upwhere he inherits certain chunks
of money at different ages Ithink it's like 21, 25, and 30.
There's provisions in therewhere he can get money early for
college or to buy a house or tostart a business.
It's like having that controlfrom the grave.
(17:07):
I can still parent him andirritate him even after I'm gone
, and that makes me kind ofhappy.
No, but it's really cool whatyou can do with an estate plan,
and it sounds intimidating.
It's not.
It doesn't take that long toset up, it doesn't cost that
much money to do it right, andwe recommend reviewing these at
(17:29):
least once every five years tomake sure that your wishes
haven't changed and that youdon't need to make any updates.
But it should be a part ofanybody's life, whether you have
kids or not, especially if youdon't have kids, then you might
have charities or nieces andnephews, but anyway, I guess my
(17:52):
point is it's not just for theultra wealthy, it's for
everybody and it's accessible toeverybody.
So give it some considerationwhile you're still young.
Speaker 1 (18:03):
Yeah, so that is the cover your butt framework, and
this, this framework is reallyabout protecting what you've
built and thinking about exitingeither exiting the business or
you know your final exit uh,pass away.
So you know that that's whatthis framework is about, and we
(18:27):
work with a lot of folks to helpthem with this part of their
business that are kind of, youknow, in the this is more of
later stages of business.
So if you're interested inlearning more about this topic,
this framework, definitely signup for the book launch on
September 9th at 12 noon.
Sign up for the book launch onSeptember 9th at 12 noon, 9 am
(18:48):
Pacific time.
You go toprofitablepaintercpacom slash
webinar to register Forattendees.
You'll get a free copy of thebook, but also a bunch of
special gifts as well that aregoing to be super useful for
growing your business and alsocovering your butt.
So, with that, we will see youat the book launch on September
(19:09):
9th, hopefully.
Speaker 2 (19:12):
Yeah, it's going to be a wonderful event and I hope
everybody listening gets achance to sign up, because it is
a really great book that you'vewritten, daniel, and some of
these freebies are going to bepretty exciting.
Welcome to the Profitable Painter Podcast.
The mission of this podcast issimple to help you navigate the
financial and tax aspects ofstarting, running and scaling a
professional painting business,from the brushes and ladders to
the spreadsheets and balancesheets.
We've got you covered.
But before we dive in, a quickword of caution.
While we strive to provideaccurate and up-to-date
financial and tax information,nothing you hear on this podcast
(00:22):
should be considered asfinancial advice specifically
and tax information.
Nothing you hear on thispodcast should be considered as
financial advice specificallyfor you or your business.
We're here to share generalknowledge and experiences, not
to replace the tailored adviceyou get from a professional
financial advisor or taxconsultant.
We strongly recommend youseeking individualized advice
before making any significantfinancial decision.
Welcome to the ProfitablePainter Podcast.
(00:45):
I'm your host, daniel Honan,cpa and former painting business
owner, and your guide tomastering the numbers that drive
success.
I'm super excited to be joinedtoday by Richard Dunton,
enrolled agent.
Welcome to the podcast, richard.
Speaker 2 (01:00):
Oh well, thank you, daniel.
I'm always happy to be hereno-transcript about a framework.
Speaker 1 (01:30):
It's called Cover your Butt.
B-u-t-t is a backronym.
It stands for B for built tosell, u for untouchable assets,
t for tax planning and then theother T is for transferring
wealth wisely.
And this is out of my book,profitable Painter, which is
(01:51):
releasing on Amazon on September8.
And we have a book launch onSeptember 9 at 12pm Eastern, 9am
Pacific, which you can registerto attend the book launch.
If you attend the book launchyou will get a copy of
Profitable Painter, thepaperback, and also a whole
bunch of resources.
So if you go toprofitablepaintercpacom slash
(02:13):
webinar, you can register forthis event.
I'm super excited about it.
But today's topic we're going tobe diving into one of the three
frameworks out of the bookwhich I just mentioned at the
top, which is the B-U-T-Tframework, and this one, like
Richard mentioned, it's actuallymore in his expertise than mine
, but a lot of the ideas I stolefrom Richard, so I'm glad he's
(02:36):
here to talk about it with me.
But the first one is built tosell.
So this is just understandinghow much your business is worth.
And I think it feels like it'skind of the Wild West when
people try to understand like,how much is my business worth?
And you can pretty much use acalculator to determine this
(03:01):
especially private equity firmsThey'll use essentially a
calculator to determine howespecially private equity firms
they'll use essentially acalculator to determine how much
a business is worth.
Now, on the private side, youcan probably sell.
You can sell a business for anyamount of money, just like you
can sell anything for any amountof money.
But when it comes to things likeprivate equity, they do have
certain methods to value abusiness, and so in the book we
(03:24):
actually cover, you know how youcan calculate the value of your
business, like a private equityfirm would do, and so it's
really helpful to understandthis, because even if you don't
want to sell maybe you don'teven want to sell I'm going to
keep this business for the restof my life, which I totally get
(03:44):
because I'm the same way I'm notgoing to sell my business.
But the reason why it's stillhelpful to understand how much
your business is worth isbecause when it's more valuable,
when a business is morevaluable to other people, it's
also more valuable to you.
So if you understand what makesit valuable, what are the
(04:05):
things that are healthy about it, and then what are the things
that are making it unhealthy orrisky, then you can make changes
to increase the value whichwill bring more wealth to
yourself and your family.
So, even if you don't want tosell, it's definitely something
to have a good understanding ofso you can grow your wealth for
(04:28):
yourself and for your family.
Speaker 2 (04:29):
Yeah, I like that you use the word built to sell.
Built implies action, somethingintentional, and that's really
true when it comes to having avaluable business.
It's not something that justhappens overnight.
Even if we've been in businessfor a long time, we think, oh,
one day I'm just gonna sell thisthing for millions of dollars.
(04:52):
But actually it requires someplanning.
I usually tell folks if you arelooking to exit your business
either by selling it or maybejust like exiting from the
day-to-day operations this is atwo to three-year process that
you want to start planning for.
There's things that need tohappen, there's positions that
(05:17):
need to be filled, there'sconstraints that need to be
overcome so that your businessis going to be the most
attractive and command thehighest price to potential
buyers.
So if you're looking to exit,give yourself some runway,
because we don't want to throwyour business out there and have
(05:37):
a cheap price.
Right, it's not priced to sell.
It's built to sell and commandthe highest price possible.
Speaker 1 (05:46):
Yeah, and actually in the book launch event I'll be
giving out the calculator aspart of all the gifts that we'll
be giving out to the attendeesof the webinar.
If you go toprofitablepaynercpacom slash
webinar, you can register forthe book launch and get a free
(06:07):
copy of the book, but also allthe resources that come with it,
which one of them is avaluation calculator so you can
value how much your business isworth.
And there's certain factorsthat buyers will look at that
make things more attractive.
One is EBITDA, which is a fancyway of just saying net
operating income.
(06:28):
Basically the bottom line howmuch money is the business
generating after paying for allexpenses?
The higher that is, the morevaluable your business is going
to be.
And then, usually based off ofthe EBITDA or the net operating
income, you're assigned amultiple, and if you're under a
million dollars, your multipleis one, meaning that you
(06:52):
multiply one times the netprofit to determine as a
baseline for how much yourbusiness is worth.
Now, from there, you add on tothe multiples depending on other
health metrics and risk factors.
So, for example, a healthmetric would be how fast is your
(07:12):
business growing?
If it's growing over 30% peryear, year over year, then that
would be an additional halfmultiplier.
So instead of one, a multiplierof one, you have a multiplier
of 1.5.
Multiplier so instead of one, amultiplier of one, you have a
multiplier of 1.5.
And then another health metricwould be what your net profit
margin is, so your EBITDA margin, what's the actual percentage
(07:36):
of what's left over?
So if it's 30% margin or higher, that's another 0.5 multiple.
So there's several of thesehealth metrics.
That kind of you can look atyour financials and see do you
know to calculate what your,your multiple would be?
Now, on the other side of this,there's risk factors, there's
things that make your businessless attractive for a buyer, and
(08:00):
the top one, the number one, iskey man risk, meaning that if
you were to leave your businessfor two weeks, three weeks, with
no contact with your team,would your business continue to
grow without you?
So this requires basically thatyou're not in any kind of key
(08:22):
role.
You're not the salesperson,you're not the production
manager, you're not doing theoffice work, you're not painting
the homes, of course.
So you have to kind of be outof all those key roles for you
to not have that key man risk.
And because that key man riskis a big hit.
It's a minus three multiplier.
So this is the biggest riskthat you have to get rid of to
(08:42):
really unlock the value of yourcompany.
Cool, so that is the bill tosell.
There's a lot more details thatgo into that, obviously, but if
you want to hear more about thistopic, definitely go to
profitablepaintercpacom slashwebinar and register for the
book launch to hear the fullscoop on that.
(09:06):
Plus, you'll get the book and abunch of resources to include a
valuation calculator.
All right, so the next topic isuntouchable assets.
All right, so the next topic isuntouchable assets.
So as you grow in your paintingbusiness, as you become more
(09:32):
wealthy and your businessbecomes bigger, you become more
of a target for bad actors, forcreditors, for disgruntled
employees, and so you got tostart thinking about how can I
be less of a target?
What can I do to to do that?
So you want to.
You want to talk about this.
Speaker 2 (09:45):
Richard, I can see you just really wanting to say
something Well, yeah, I meanit's.
It's unfortunate we do.
We live in a very litigiousworld and when you start to have
success, you do kind of put atarget on your back.
So we want to structure ourbusiness legally in a way that
we have those untouchable assets.
So most of us have an LLC inplace, which is awesome because
(10:07):
that's going to be like yourfirst line of defense.
But we're going to want topossibly consider having
additional LLCs once we startbuilding up assets, whether
that's real estate or equipment.
We might have multiple companiesinvolved where we are renting
or leasing equipment to anothercompany, so that we're creating
(10:30):
silos.
So if one of our silos isattacked, like, for example,
let's say, somebody slips andfalls on our property and they
file a lawsuit against us, wewant that lawsuit contained to a
specific silo.
We don't want them to be ableto come after our business
(10:50):
operations or our personalassets.
So we're using legal frameworks, llcs.
We might be forming these LLCsin states that have charging
order protection entities, whereit makes it harder for folks to
come after us.
We might be using grantortrusts, revocable living trusts,
(11:13):
for privacy measures.
It's a lot of just kind ofgetting your ducks in a row and
dotting your I's and crossingyour T's, not using your
personal name and address if wecan avoid it, taking advantage
of things like registered agentservices so that official
mailings are not coming to ourpersonal home.
(11:36):
I know I'm throwing a lot ofjargon around here, but it's
working with someone who hasbusiness knowledge and a little
bit of legal knowledge as well,to know how we can protect
ourselves and maintain ourprivacy and also set things up
where, when it does come time tosell, we are able to sell off
(11:59):
the assets that we want to selland retain the assets that we
want to retain.
So, for example, if you have apainting business and you own
the property that your businessworks out of which is a
wonderful strategy, by the waythere's some awesome financial
and tax benefits to owning realestate when it comes time to
(12:22):
sell that business, do you alsowant to sell the real estate?
Or would it be better for youto sell the business, keep the
real estate and perhaps becomethe landlord to the new owner?
If you want to do that, we needto set it up correctly from the
start, or we need to kind of dosome cleanup work to get
(12:44):
everything where it needs to beso that, when it does come time
to sell, you can get the maximumprice.
Let go of the assets you'rewilling to transfer and retain
the ones that you want to keep.
Speaker 1 (12:57):
Yep, cool.
So the next topic is T for taxplanning.
So we talked about built tosell untouchable assets and now
T for tax planning, and so thisreally is about protecting your
wealth from the IRS.
The biggest expense you'regoing to have in your business
career is going to be all themoney you have to pay to the IRS
(13:17):
.
But fortunately, you do havecontrol over how much you pay to
the IRS, and so in the book wecover 12 key tax strategies that
we use for painting businesses,and there's also a bonus 13th
one that we see a lot that helps, so we'll go into more detail
at the book launch on September9th at noon Eastern, 9 am
(13:43):
Pacific time.
You can register atProfitablePainterCPAcom slash
webinar to get the full detailson those 12 tax strategies, and
also you'll get a copy of thebook as well as a bunch of other
resources.
So definitely recommend youjoin us then.
(14:03):
And then the last T in theframework is transfer wealth
wisely.
So this is all about how do youactually, when you pass on,
what can you do to make sureyour estate goes to your family
in a way that is tax efficientbut also not caught up in
(14:26):
bureaucracy?
So there's things like probatethat you want to avoid like you
don't want.
It's already hard for your,your loved ones, to deal with
that situation.
You don't also want to stack ontop of that a bunch of
paperwork and annoying things todeal with the government and
the courts.
So that's something that you'llneed to think about as you grow
(14:48):
your.
Your painting business and yourwealth is about how to transfer
this to your, to your family,after you pass away.
Speaker 2 (14:57):
Yeah, that we.
We typically call that sort ofthing estate planning, which is
kind of a fancy term, but youknow it's hard it's.
You know it's like insurance.
You know you don't, nobody everwants to think about it, but
when it comes time to use it,you are darn glad that you have
it.
When you're in your 20s, 30s,even 40s, you don't want to
(15:19):
think about estate planning andpassing wealth on to the next
generation, but that is theperfect time to get these things
in order.
So often we see this happen allthe time.
People have an idea of whatthey want, but they don't ever
commit it to writing and theydon't do the legal work to make
it actually happen.
(15:40):
And then they're at the mercyof state laws, probate judges,
relatives that come out of thewoodwork when they hear that you
pass away.
We don't want that to happen.
You've worked hard to buildyour wealth.
You have ideas of how you wantthat to be spent, whether it
(16:02):
goes to your children or to yourfavorite charity or just.
You know you want to have somecontrol over what you built and
you can do that while you're.
You should do that while you'restill young, and that's where
your will comes in yourrevocable living trust.
We're talking about durablehealthcare powers of attorney,
(16:22):
so that your medical wishes areknown and that there's you,
there's the legal work in placeso that they're going to be
actually carried out.
My wife and I we've done ourestate plan and we obviously
want our son to inherit themajority of our wealth.
But right now he's 10 years oldand he wouldn't know what to do
(16:45):
with it.
So we have tranches set upwhere he inherits certain chunks
of money at different ages Ithink it's like 21, 25, and 30.
There's provisions in therewhere he can get money early for
college or to buy a house or tostart a business.
It's like having that controlfrom the grave.
(17:07):
I can still parent him andirritate him even after I'm gone
, and that makes me kind ofhappy.
No, but it's really cool whatyou can do with an estate plan,
and it sounds intimidating.
It's not.
It doesn't take that long toset up, it doesn't cost that
much money to do it right, andwe recommend reviewing these at
(17:29):
least once every five years tomake sure that your wishes
haven't changed and that youdon't need to make any updates.
But it should be a part ofanybody's life, whether you have
kids or not, especially if youdon't have kids, then you might
have charities or nieces andnephews, but anyway, I guess my
(17:52):
point is it's not just for theultra wealthy, it's for
everybody and it's accessible toeverybody.
So give it some considerationwhile you're still young.
Speaker 1 (18:03):
Yeah, so that is the cover your butt framework, and
this, this framework is reallyabout protecting what you've
built and thinking about exitingeither exiting the business or
you know your final exit uh,pass away.
So you know that that's whatthis framework is about, and we
(18:27):
work with a lot of folks to helpthem with this part of their
business that are kind of, youknow, in the this is more of
later stages of business.
So if you're interested inlearning more about this topic,
this framework, definitely signup for the book launch on
September 9th at 12 noon.
Sign up for the book launch onSeptember 9th at 12 noon, 9 am
(18:48):
Pacific time.
You go toprofitablepaintercpacom slash
webinar to register Forattendees.
You'll get a free copy of thebook, but also a bunch of
special gifts as well that aregoing to be super useful for
growing your business and alsocovering your butt.
So, with that, we will see youat the book launch on September
(19:09):
9th, hopefully.
Speaker 2 (19:12):
Yeah, it's going to be a wonderful event and I hope
everybody listening gets achance to sign up, because it is
a really great book that you'vewritten, daniel, and some of
these freebies are going to bepretty exciting.
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