Business 101s
Business 101s
Stop being afraid of what could go wrong, get excited about what can go right. The world of freelancing is not a straight path or straight ladder climb. More often than not, it’s like skiing down a mountain side where there are hundreds of obstacles such as trees, rocks, and cliffs. A lot of the obstacles you think you can see, until you accidentally ski off a cliff without knowing how far down the fall is. It can jolt you back to the reality of your situation. If you’re a skilled skier and have taken the time to understand how to jump, you’re prepared for the obstacles. If you’re unprepared, you could get seriously injured.
When you’re a freelancer, solopreneur, doing your hustle, you need to be prepared for all situations. I’ve been working as my own boss since 2015 and I wish I could say that it’s been a breeze but, there are certain business tasks that cannot be avoided. Once set up properly, you can continue business as usual. Until then, I’ll be sharing a few business 101s that I highly recommend anyone who’s just starting, or thinking about escalating their hustle, to do. Please note that I’m not a lawyer and am only sharing from my personal experience. But, there does exist an amazing resource to help you with the legal side of things: legalzoom.com.
Incorporating
Understand the difference between working as sole-proprietor vs. business. If you ever happen to get sued and you are a sole-proprietor, your personal assets could potentially be liable. The primary benefit of incorporating allows you to separate your personal assets from your business. This way, if you did run into any legal trouble just your business assets would be liable.
There are a few different types of business entities you can set up:
- LLC
- S-corp
- C-corp
They each have different benefits. I recommend that you reach out to your legal professional to help recommend which would work best for you.
Some companies have policies require that you have an EIN in order for them to hire you. This means that they only want to work with business entities, most likely for their own legal reasons or business practices. They may also require you to have a certain type of business insurance that includes $1million indemnification. For example, you’ll see this a lot if you are a photographer shooting on location in a venue, the venue would require your insurance information in order for you to conduct business on their property.
There is a minimal cost associated with incorporating, along with additional steps when filing your taxes. If you’re going to take your company seriously, this should be a no-brainer expense. This is an investment into your company to ensure that you’re properly set up for any scenario. To me, it’s a no-brainer.
If you’re looking to incorporate, or want some legal help, can use the code “POINTBOOK” to get started. This is just the next step in the process to get your business properly set up for success.
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