Live - Build - Change the Christian faith and business show

Business entities. It’s a fancy way of talking about the types of companies that people can legally create in the United States. It sounds intimidating but it’s not, you just have to be careful about how you set them up and how you keep your records.

When I first got started in business I honestly didn’t know what I was doing. I simply needed to make some money to put food on the table.

But that can only be an excuse for so long. I wound up having to pay far too much taxes the first year my Podcast Production business took off and learned the hard what that I needed to get a new business entity set up, pronto.

On this episode I’m diving into my understanding of these things - and why they are important. It’s more than simply having an impressive name for your business.

There are legal protections that come with some of the types of companies you can create and there are tax benefits in some cases as well.

This episode tells you what I’ve learned, how it’s impacted me (positively and negatively) and why I think you’d be better off to make a decision about the type of business you’re going to have sooner rather than later.

It takes some very specific, careful steps to set up any type of company in a way that is legal - except for a sole proprietor company, that happens by default the minute you start doing business… and I’d NEVER recommend that anyone stick with that business type for long.

But you CAN LEARN what it takes to set this up - you can get help from professionals if you need to. I just don’t want you to put it off because it sounds difficult.

I’m not going to fool you - some of it IS difficult, but it’s worth it.

And you can do it!

Keep in mind, I’m not a tax attorney or accountant, so my advice is just that, MY advice.

When it comes to making decisions about this kind of stuff, seek the advice of someone you trust who has gone through the educational steps needed to know what they’re talking about inside and out.

• [0:39] Today we’re going to talk about the types of companies, or business entities you have at your disposal.
• [3:28] The type of company you choose impacts how the government taxes you.
• [7:30] Sole proprietor: taxes reported through your personal return, no legal protection.
• [9:27] My basic warnings about partnership: Draw up a partnership agreement.
• [11:35] The LLC: Limited Liability Company.
• [14:16] What is a corporation? Should you set up a C-Corp or S-Corp?
• [16:30] Why I decided that the type of company for me to use was an S-Corporation.
• [18:50] How distributions or dividends are given to members of an S-Corp (and how you pay less in tax because of it).
• [24:31] Don’t let the difficulty of learning deter you from doing the best thing.

• What the IRS says about LLCs (Limited Liability Company)
• Here’s what the IRS says about setting up a C-Corporation
• Guidelines from the IRS about setting up an S-Corporation
• Here’s a link to tell you how to apply for an EIN (employer identification number)
• Gusto Payroll & HR Services
• Mark J. Kohler Youtube Channel (an accountant I’ve learned a lot from)

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Website: www.LiveBuildChange.com

Facebook Community: www.LiveBuildChange.com/FB

Email: [email protected]

Website: www.LiveBuildChange.com

Facebook Community: www.LiveBuildChange.com/FB

Email: [email protected]

Website: www.LiveBuildChange.com

Facebook Community: www.LiveBuildChange.com/FB

Email: [email protected]

Website: www.LiveBuildChange.com

Facebook Community: www.LiveBuildChange.com/FB

Email: [email protected]

Website: www.LiveBuildChange.com

Facebook Community: www.LiveBuildChange.com/FB

Email: [email protected]

Website: www.LiveBuildChange.com

Facebook Community: www.LiveBuildChange.com/FB

Email: [email protected]

OK, just for the fun of it let’s say you are ready to start a business. I hope the next question that’s coming to mind for you is “What KIND of business should I start?”

Yep, that’s what I thought. You’re a smart one!

There are many, many options of the kind of business you can develop - many more than I’m able to cover in this blog post or the podcast episode that accompanies it. But I was sitting in my favorite coffee shop doing a bit of work and thought it would be helpful to walk through just a few of the most common options for you, so you could have some food for thought.

Speaking of food… the crepes at the coffee shop are amazing! Check out the link in the resources to come visit sometime.

In this audio I’m going to walk through 3 types of businesses that you could consider. Here’s how I think of them.

#1 - A traditional “brick and mortar” location-based business.

#2 - A completely online business that’s location independent.

#3 - A hybrid model that supplies physical products to consumers but does it all online.

And keep in mind, that really IS the issue - what’s best for you, the life you live, and the calling God has placed on it.

You won’t be able to achieve the things He wants for you through some kinds of businesses, you will through others. So be clear about that.

I’m convinced that more and more Christ-followers can build businesses of various types to truly have an impact on the world through the income their businesses produce.

Thanks for listening.

• [0:40] What does it really look like for YOU to build a business? You get to decide.
• [2:28] The coffee shop as an example of a “brick and mortar” business and the expenses involved.
• [6:44] Business example 2: A non-physical location business.
• [9:33] Comparing the expenses as a consideration for what kind of business you begin.
• [11:29] Why I’m sold on the kind of business I do - but it may not be for you.
• [12:05] Ecommerce businesses through Amazon (or other) online product sales.

• The Midland Station - Coffee and Crepes
• Podcast Fast Track - my business
• Bluehost (affiliate link - means I may get some cash for referring you)
• Dropbox
• Nozbe (affiliate link - means I may get some cash for referring you)
• Episode about creating an online course.

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