You have been praying and believing to help people receive transformation. You also have been dreaming about having your own business and now you’re at the point where you are ready to take the steps to turn this into a reality! Today I am going to walk you through the steps I took as I started my business so you can begin to put your platform and systems in place for consistent lead generation.
Technically there is a point where you are going to have a problem with the IRS if you don’t run payroll and stay tax compliant but that will be a little further down the road after you make some basic decisions.
- First is deciding what kind of business identity you want. An LLC or a Sole Proprietorship. This is pretty important from protecting yourself personally. Generally, sole proprietors are started because they are free. However, one of the great benefits with an LLC versus the sole proprietorship is that a your liability is limited to the amount of the money you invest in your business. A sole proprietor would be liable for the debts incurred by the business. and more scary is if someone sues you and takes you to court, they can go after a sole proprietor’s home, car and other personal property. A sole p uses their social security number instead of EIN. If you go LLC you will need an EIN. Have a conversation with your CPA basically. If you make more than $400 coaching you need to pay taxes on it. See more here.
- You need to file for a EIN number if you answer yes to any of these questions.
- You will need to register your business with your state’s tax office. Here is Georgia’s for example.
- You will need to register with the Department of Labor in your state. Here is Georgia’s.
- You will need an occupational tax license in your city even if you work from home. Example. When you apply you need to bring your state license.
Now, here’s good news. Once you launch your business, you can officially write off business coaching as an expense for your business. Leadership coaching cannot be written off but business coaching can!
There are also numerous things you can write off for your business tax wise including marketing you do on social media, events you host, speaking you do around your business and expenses like writing books, your website and any support you receive for that. Of course talk to your tax accountant about details but this will get you started!
Faith Forward! Love, Bec:)
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