Don't Be Afraid of the Big Bad Tax Wolf (Setting Your Podcast Up for Tax Success) with guest Jeni Thomas

03/05/22 • 55 min

2 Listeners

Did you know that you can set your podcast up as a corporation to give you maximum tax benefits? This week's podcast guest, Jeni Thomas is both a podcaster and a tax expert. She gives us some great tips for setting our podcast up as a business.

Episode takeaways:

Know the endgame for your podcast- is it a hobby or business? The IRS frowns on hobbies- cannot deduct expenses. So set your podcast up as a business from day 1.
LLC or Corp?-LLC is business entity... SCorp is a tax classification- layer on top of the LLC
SCorp has stand alone 1120s all income and expenses go through 1120s- K1 (like a W2) split profit...K1 goes on 1040 and taxed at regular tax rate
Save expenses, receipts, mileage logs. Jeni recommends the Stride App.
SCorp takes deductions- any biz costs...ex: podcast host, online recording, equipment, software, travel to conference (hotel, airfare, mileage, meals)- Red flags - stay away from meals & entertainment unless at a conference, home office
Sponsorships- any income over $600 reported to IRS (1099 from the company) Be sure to give biz EIN# (not SS#) to sponsors
LLC protects from legal suits- cannot come after you personally
Have a separate bank account for everything to do with podcast
Ok to take biz expenses out of personal account in the beginning. However, income needs to go into a business account from ad rev or sponsorships.
Any $$ personally invested in your biz/podcast is considered a “loan from the shareholder”
Take list of expenses to accountant- loan from shareholder...K1 comes off your taxable income or adds to your taxable income
Pay yourself through corp- deduction- will pay SS

Join our membership and get Jeni's tax masterclass! Join here

IG: iamjenithomas, keriandjeni

Pod: Honestly Unfiltered with Keri & Jeni

Email: [email protected]

__________

Tiphany's Mic: Blueberry by Blue

Jeni's Mic: Shure MV7

David's Mic: Shure SM7B

__________

Produced by: KaSa Media Productions

Edited by : David Sais (aka Sexy Sound Guy)

Episode takeaways:

Know the endgame for your podcast- is it a hobby or business? The IRS frowns on hobbies- cannot deduct expenses. So set your podcast up as a business from day 1.
LLC or Corp?-LLC is business entity... SCorp is a tax classification- layer on top of the LLC
SCorp has stand alone 1120s all income and expenses go through 1120s- K1 (like a W2) split profit...K1 goes on 1040 and taxed at regular tax rate
Save expenses, receipts, mileage logs. Jeni recommends the Stride App.
SCorp takes deductions- any biz costs...ex: podcast host, online recording, equipment, software, travel to conference (hotel, airfare, mileage, meals)- Red flags - stay away from meals & entertainment unless at a conference, home office
Sponsorships- any income over $600 reported to IRS (1099 from the company) Be sure to give biz EIN# (not SS#) to sponsors
LLC protects from legal suits- cannot come after you personally
Have a separate bank account for everything to do with podcast
Ok to take biz expenses out of personal account in the beginning. However, income needs to go into a business account from ad rev or sponsorships.
Any $$ personally invested in your biz/podcast is considered a “loan from the shareholder”
Take list of expenses to accountant- loan from shareholder...K1 comes off your taxable income or adds to your taxable income
Pay yourself through corp- deduction- will pay SS

Join our membership and get Jeni's tax masterclass! Join here

IG: iamjenithomas, keriandjeni

Pod: Honestly Unfiltered with Keri & Jeni

Email: [email protected]

__________

Tiphany's Mic: Blueberry by Blue

Jeni's Mic: Shure MV7

David's Mic: Shure SM7B

__________

Produced by: KaSa Media Productions

Edited by : David Sais (aka Sexy Sound Guy)

Previous Episode

Taking Your Podcast Listener on a Transformational Journey

1 Recommendations

“Our job is to inspire people to change their stories so that they can change their lives.” That story for the Podcaster and their listener is the transformational journey. David drew a small picture on our whiteboard with a stick figure (our listener), a bridge that is a fantastic blue line representation of the Golden Gate bridge in San Francisco (the journey), and a little house (where we want to take them).

Transformational- make a thorough or dramatic change

Listener transformational journey- imagine a path your listener is walking.... Where are they starting, where do you want them to end, what obstacles might they meet along the way?

Listen to Episode 3 Brianne Davis

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Next Episode

How Many Podcast Episodes do I Need to Record Before Launching? (The Pros & Cons of Batch Recording)

How many episodes should I have before I launch? This question gets asked so many times in every podcasting forum that we participate in and the number varies widely! There are people that say they have 20-30 episodes already recorded and ready to upload. There are people saying they record the same week or even day that they post a podcast episode.

Batch recording is a term used to describe recording several podcast episodes at once. A “batch” is a group... like baking a batch of chocolate chip cookies.

In summary:

Batch recording in small batches is very helpful to keeping a systematized workflow and lowering the stress of uploading and staying consistent.
But be aware that you are not batch recording so many episodes that you do not stay in alignment with your audience's pain points or your areas of interest.
Especially in your first 6 months of podcasting, you will grow and change so much that it is important to stay nimble.
General recommendation: when launching have your trailer and 2-3 episodes ready to upload so that when you launch people have a few episodes to listen to. From then, try keep at least 2 weeks ahead of schedule so that you do not have to stress about consistently uploading. Because as you all know, consistency matters.

Join our Podcast Membership Community- click here for the link

Join our FREE Facebook community: Mastering the Podcaster Mindset Support Group

Get the Guide “The Biggest Mistake Podcaster Make and How to Avoid It”:

DM us on IG: @podcastermindset

______

David's Mic: Shure SM7B

Tiphany's Mic: Blueberry by Blue

_______

Produced by: KaSa Media Productions

Editied by: David Sais (aka: The Sexy Sound Guy)