Arnold Schwarzenegger

Arnold Schwarzenegger is one of the many business guru who know how to work in the IRS tax system. Thirty years ago, Arnold Schwarzenegger had nothing. Nowadays, Arnold Schwarzenegger is the governor of California and has a net worth of  200 million dollars. How did Arnold do it?

Arnold Schwarzeneggar and the tax system

Unlike many Hollywood actors, Arnold Schwarzenegger has a great understanding of the US legal system and the US tax system. Arnold Schwarzenegger found ways to pay less taxes to the IRS and in some cases pay no taxes to the IRS.

Arnold Schwarzenegger incorporated himself

Early in Arnold Schwarzenegger 's career, Arnold Schwarzenegger realized how to work in the US IRS tax system. Arnold Schwarzenegger incorporated himself. So, when Arnold Schwarzenegger earned any income from the studios, the studios write checks, not to Arnold Schwarzenegger himself, but to Arnold Schwarzenegger 's corporations.

If the studios had written checks to Arnold Schwarzenegger himself, Arnold Schwarzenegger will be views by the IRS and the US tax system as an employee of the studios. Arnold Schwarzenegger could not have that and by incorporating himself, Arnold Schwarzenegger and his Arnold Schwarzenegger corporations are separate entities. We already discussed on this website that employees pay the most taxes and business owners pay the least taxes. So Arnold Schwarzenegger avoided paying the most taxes by incorporating himself, therefore Arnold Schwarzenegger pays the least taxes. By having a good understanding of the US legal structures, Arnold Schwarzenegger uses corporation status to lower his income taxes. Arnold Schwarzenegger, in a nutshell, made his money in real estate and tax liens among other things.