People constantly ask me about how taxes work when building a teaching business.
I also get questions regarding registering a business and becoming self-employed.
Here is my best advice…
Disclaimer: I’m not a legal expert. This video shares my experience when it comes to taxes and business registration. That’s why you should…
Talk to Someone ?
Set up 2-3 meetings with an accountant in your local area, explain your situation, and create a plan moving forward.
Most offer a free initial consultation and will help you according to your situation.
Like I said in the video, I was putting off making some changes as no one likes to deal with taxes.
However, now that I have clarity on what I need to do, I can move forward with confidence.
I started out as a sole proprietor. I did this as I wanted the easiest way to get things off the ground.
As my business grew, I decided to incorporate.
I did this through Legal Zoom (aff link) and registered an s-corporation (I think this is mainly a U.S. term).
This was based on the advice from my first CPA.
I use a couple of programs to help me track income and expenses and run payroll.
WaveApps: this is free and you can connect your bank account(s) or upload your statements and then categorize your incomings and outgoings.
Gusto: I use this to run payroll (to pay myself!) so that the right amount of tax is applied and gets paid automatically.
I need to turn the levels down on the mic, otherwise, I really like it.
Here is what I used to film this video (aff links):
iPhone 7+ – it’s an amazing camera
Microphone – need to turn down those levels!
Tripod – I got the smartphone holder too
Over to You
What type of business entity do you have? Let us know in the comments!
Thanks for reading.