Before You Form an LLC: What Every New Business Owner Needs to Know

Thinking about starting a business? This episode is for entrepreneurs and aspiring business owners ready to take their first step—but unsure what comes first: pricing, systems, or an LLC. Host Terrance Hutchins and co-host T’mia Kelly dive into the practical and financial considerations that can make or break a new venture. From setting up the right structure to avoiding common (and costly) tax mistakes, this conversation is a must-listen for anyone wanting to start smart.

Key Topics Covered:

• Pricing and Profitability: Why competing on price is usually a losing game—and how to define a value proposition that actually pays.
• Core Business Systems: The four essential systems every startup needs: attracting, converting, servicing, and retaining customers.
• Business Expenses vs. Business Value: A powerful mindset shift for evaluating every dollar spent through a lens of long-term business value.
• The Truth About LLCs and S Corps: Clarifying what LLCs do (and don’t do) for taxes—and when an S corporation makes sense (hint: not at the beginning).
• Good Habits From Day One: How monthly “board meetings,” separate bank accounts, and record-keeping can set the foundation for compliance and future deductions.

Featured Tax Tip:

Use the Augusta Rule to pay yourself tax-free. If you hold legitimate board meetings (even solo) at your home, your corporation can rent the space—allowing you to move money from your business to yourself with no tax hit, up to 14 times per year.

Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts. Keep More of What You Earn.

Let me know when you're ready for Episode 24 or if you'd like me to add this one to the catalog next.