Foundations Part 1: Entity Types

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12/06/21 • 25 min

Get your notebook - today we’re diving into the different entity types and what they all mean. Some things you need to consider:

Are you planning to continue this business, or are you just dipping your toe in?
Do you have employees or contractors?
How much profit do you expect to make in a year?
Do you want to do all the registrations yourself or do you want help?
Do you want your home address listed publicly?

Listen for definitions, recommendations, and tips to sort all this out, because it’s a lot!

We cover ALL of this in the “Get Your Finance Sh*t Together” self-study course at confidentmoneypodcast.com!

Join our community at confidentmoneypodcast.com where we’ll share tips and resources, and you can suggest topics for future episodes.

Enter to win a free strategy session with me! Leave a 5-star review and include your IG handle to enter. We draw the winner at the beginning of each month.

FTC/Affiliate Disclaimer: By using some of these links, at no extra cost to you, I may earn a small commission or referral fee, which helps me continue to produce content like this, support my business, and my team.

DISCLAIMER: I am not a financial advisor and this is not financial advice. My podcast is for educational purposes and is my personal opinion only. To make the best financial decision for your situation, please do your own research and if needed, seek the advice of a fee-based, fiduciary.

Music credit: Neon Fairies by Wolves

Get your notebook - today we’re diving into the different entity types and what they all mean. Some things you need to consider:

Are you planning to continue this business, or are you just dipping your toe in?
Do you have employees or contractors?
How much profit do you expect to make in a year?
Do you want to do all the registrations yourself or do you want help?
Do you want your home address listed publicly?

Listen for definitions, recommendations, and tips to sort all this out, because it’s a lot!

We cover ALL of this in the “Get Your Finance Sh*t Together” self-study course at confidentmoneypodcast.com!

Join our community at confidentmoneypodcast.com where we’ll share tips and resources, and you can suggest topics for future episodes.

Enter to win a free strategy session with me! Leave a 5-star review and include your IG handle to enter. We draw the winner at the beginning of each month.

Music credit: Neon Fairies by Wolves

Previous Episode

Your Successful Business Foundation

We’ve chatted about why you need to really understand your numbers, now it’s time to go deeper with your infrastructure and foundation.

Business entity types - should you be a sole proprietor, LLC, or S-Corp? Don’t just go to legalzoom - understand what each of those is and what you actually need. Get registered with the IRS and your state, and possibly your county.
Set up a business bank account.
Set up contracts and insurance if you need to have liability or errors & omissions insurance.
Make sales! Track everything the way we’ve discussed.
If you decide to pay estimated quarterly taxes, do it personally through your SSN, even if you have an EIN! You don’t need to file separate taxes until you’re an S-Corp.

We cover ALL of this in the “Get Your Finance Sh*t Together” self-study course at confidentmoneypodcast.com!

Join our community at confidentmoneypodcast.com where we’ll share tips and resources, and you can suggest topics for future episodes.

Enter to win a free strategy session with me! Leave a 5-star review and include your IG handle to enter. We draw the winner at the beginning of each month.

Music credit: Neon Fairies by Wolves

A Podcast Launch Bestie production

Next Episode

Foundations Part 2: Paying Yourself

Now that you’ve narrowed down what entity type fits best, it’s really common for entrepreneurs wonder about the best way to pay themselves. For sole proprietors, single member LLCs and partnerships, for the most part you can’t pay yourself wrong. You’ll be taxed on all of the profits either way, whether you pay yourself all the profits or leave them all in the business account. For an S-Corp election, you will need to run payroll in order to get the tax benefits. I recommend using Gusto* for your payroll. As for timing, you can set that up however works best for you. Just be aware that as an S-Corp you can’t just transfer money to yourself without either running it through payroll as a bonus or writing yourself a check as a profit share.

We cover ALL of this in the “Get Your Finance Sh*t Together” self-study course at confidentmoneypodcast.com!

Join our community at confidentmoneypodcast.com where we’ll share tips and resources, and you can suggest topics for future episodes.

Enter to win a free strategy session with me! Leave a 5-star review and include your IG handle to enter. We draw the winner at the beginning of each month.

*FTC/Affiliate Disclaimer: By using some of these links, at no extra cost to you, I may earn a small commission or referral fee, which helps me continue to produce content like this, support my business, and my team.

Music credit: Neon Fairies by Wolves

A Podcast Launch Bestie production

Wealth Witches - Foundations Part 1: Entity Types

Transcript

Katelyn Magnuson00:00:16.199

And this episode, we're going to talk about all things. Business foundations.

Katelyn Magnuson00:00:20.624

And we're going to deep dive into what even should your business foundations be? You know, what, what should you be looking for? What type of business should you register as, what do you need to do on the legal side of things? You know, do you have employees, do you have contractors? Do you need to regi