If you have dreams of running a business that’s sustainable, efficient, and makes you gobs of money, then you need to understand financial operations for your business.

Trying to figure out the right legal structure to set up now that you’re self-employed?

Some find this process one of the most confusing and tedious aspects of going into business. If you’re one of them, then you’ve likely cried of pure frustration a time or two during your legal research.

Well, what if I laid out your options in a way that will save you hours of time and headaches later on? You can thank me later. 😉

After all, I’m speaking from experience. When I was setting up various businesses, I really didn’t know which entity to choose. People gave me all sorts of advice. And not much of it was actually helpful…

I ended up floundering among the choices, and as a result, I set up a few different structures.

Ultimately, I decided to set up my consulting business as an S-Corp. Thankfully, my accountant advised that I go that route—and he was spot on! I wish I had done that from the start since being an S-Corp saves me money in taxes (compared to when I had no legal structure).

That is why I suggest taking a look at the options you have before you make any decisions.

Also, a little disclaimer: I’m not a legal adviser. I’m just sharing this helpful information based on my real-life experience and research. So I recommend discussing your options more in depth with an accountant or lawyer.

Legal Structure Option 1: Sole Proprietorship

A sole proprietorship is one of the easiest structures to set up. Unfortunately, though, it can be headache later on as you make more money.

That’s because, with a sole proprietorship, everything the business makes goes straight into your personal bank account… which often means higher taxes and no “business expense” exemptions.

The other downside is that there’s not really any legal protection. So if you screw up and someone sues your business, they could go after your personal assets since your business isn’t a separate entity.

Pros:

• Easy to implement (since there’s hardly anything to actually set up!)
• Costs next to nothing to create
• Simple to deal with come tax time (since all you have to do is include it in your personal taxes)

Cons:

• Lack of legal protection
• Higher taxes once your income increases

Option 2: Partnership

Like sole proprietorships, partnerships are super simple to set up if you want to include a business partner. And also like sole proprietorships, partnerships don’t pay business taxes—just personal taxes.

But again, we find the same problem: Little to no legal protection. If anyone sues you or your business partner, they can go after your personal assets. This is why, if you create a partnership, you need to make sure you and your partner sign an agreement!

Pros:

• Easy to set up and maintain
• Taxes are simple

Cons:

• No legal protection
• Your business partner could affect your personal finances if something goes wrong

Option 3: Limited Liability Company (LLC)

LLCs are a great option for small businesses because they provide tax exemptions and legal protection, but they’re still simple to set up and maintain.

And although it does cost money to create an LLC, the yearly fees and maintenance are minimal compared to other corporate structures.

Pros:

• Gives you legal protection in case someone sues you (they can’t go after your personal assets)
• Less maintenance than a corporation.

Cons:

• Filing fees and yearly maintenance fees
• Could pay more taxes than if you were an S Corporation

Option 4: C Corporation

C-Corps are a lot more work to set up and maintain, but they also provide more protection. (I’m talking liabilities and debts here.)

And while LLCs are great for new or small businesses, being a corporation allows you much more room to grow as a company since it allows you to have shareholders from anywhere around the world.

A downside of this legal structure is that the taxes are more complex. You also may be subject to double taxation, depending on your situation. That means you would be required to pay taxes at a federal and state level as well as additionally taxed for the personal salary you take from the corporation. Yeah, not fun…

As a result, C Corporations aren’t a good fit for small businesses or freelancers. So chances are, this isn’t a good option for you.

Pros:

• Protects you from debts and liabilities
• Allows for unlimited shareholders, including internationally

Cons:

• Requires a lot more administrative work
• Taxes are more complex and may cost you more
• Inflexible

Option 5: S Corporation

Like I said before, an S-Corp is the legal structure I decided to use for my business. An S-Corp provides the same stable structure and legal protection that a C-Corp does, but it only has one level of taxation.

Another difference is that, with an S-Corp, you can only have up to 100 shareholders, and they must all be U.S. citizens. So it provides some room for growth without forcing you to morph into some huge company.

Because of that, an S-Corp can be perfect for new or small corporations.

Pros:

• Legal protections
• Allows for shareholders

Cons:

• Requires a lot of upkeep
• Limited to 100 shareholders, only U.S. citizens
• Not as flexible as an LLC

Use LegalZoom Set Up Your Legal Structure

If your mind was spinning as I described the various entities you could form for your business, then take a deep breath. It’s gonna be OK, trust me!

You can use a company like LegalZoom to set up your legal structure so you can rest easy (and pay less!).

I’ve used LegalZoom many times to set up different companies, including my consulting business. And I’ve never run into any problems with them.

They make the process so much easier as they hold your hand and walk you through each legal step. And on top of that, they’re quick to show you ways you can save money while setting up your legal structure.

Of course, if you join my Six-Figure Freelancer Facebook Group, you can ask fellow entrepreneurs about their experiences setting up their legal entity. Hearing from those who have gone before you is a great way to prepare!

Lastly, if you haven’t already downloaded my Six-Figure Freelancer Guide, make sure to do so now. You’ll 54 pages of value-packed tips, insights and strategies you can start implementing right away.

Best of luck as you begin this journey!

One of the first things you have to learn as a freelancer is that money savvy is a mindset, not simply a skill or a set of knowledge.

Choosing to believe I’m not good with money cost me hundreds of thousands of dollars (not even kidding!) … and why? Pure. Ignorance.

I still want to bang my head against my keyboard just thinking about it.

Don’t be fooled, though. Money beliefs aren’t easy to change. They’re usually a byproduct of limiting beliefs we grew up with.

How Limiting Beliefs Sabotage Your Money Savvy

I’m curious…

Did your mom ever tell you to put a toy back on the store shelf and say, “How on earth could we afford that?”

Or did your dad ever ask you, “Do you think money grows on trees?” (Which it technically does, but anyway…)

Those limiting beliefs taught you: Money is scarce. I can’t afford this. We can’t risk investing in this. I won’t have enough money.

You have to take full responsibility for these beliefs if you want to successfully kick them to the curb.

When you take full responsibility, you also acknowledge that you and you alone are in charge of your finances. That means you have a duty to know your finances intimately. By doing so, you can maximize your income, scale your business, and make overall smart choices. (Yes, yes, and heck yes!)

3 Books to Build Your Money Savvy

If you have no clue where to start with changing these limiting beliefs, don’t freak out! I actually have a list of three incredibly helpful books you can start reading right away.

These books changed my life—seriously! They taught me to stop bumming around when it came to money and actually freaking do something.

The authors taught me to believe that I can make real money. Like hundreds of thousands of dollars in real money.

If you’re worried that you’re short on time, you can get these books on Audible and listen to them while you walk the dog, drive your kids to school, or do chores in the yard.

Sign up for Audible today and get two free audiobooks!

Here are the three books I think you should start reading:

Think and Grow Rich

Napoleon Hill wrote Think and Grow Rich back in 1937. And before you think this book is outdated, you should know that it’s still one of the top 10 best-selling self-help books of all time.

Hill insisted that in order to improve your life, you had to have huge, nonnegotiable expectations. That meant having a positive attitude, having a clear purpose, and channeling the power of your subconscious.

Make sure you write down the 13 steps to success that Hill outlines in this book!

You Are a Badass at Making Money

In this book, New York Times best-selling author Jen Sincero teaches you how to stop money from rolling into your bank account … only to roll right back out.

This is the ultimate guide to making the kind of money you could only dream of.

I Will Teach You to Be Rich

Ramit Sethi has some countercultural thoughts about money—and the best part? They work!

Sethi busts the myths that you have to scrimp and save in every teeny tiny way you can in order to get by financially. The secret to being rich isn’t saying no to lattes, Sethi says. It’s making the right investments with your money!

Sethi goes through how to completely crush your student debt, how to set up high-interest bank accounts, how to talk your way out of late fees and more. (It’s kind of scary how well that last one works!)

Get Support on Your Freelancing Journey

You don’t have to flail around in your freelancing journey like I did. You can get instant access to plenty of other freelancers like you in my Six-Figure Freelancer Facebook Group. Join today and get the support and community you need!

And if you haven’t already, I highly suggest you download my Six-Figure Freelancer Guide. This 54-page guide is jam-packed with helpful information… from mindset shifts to establishing yourself in your niche, to figuring out what to charge clients. Get your hands on it today!

No job can give you the freedom, flexibility, security, and control that a freelance career can give you.

…and how a white label ticketing solution can help you achieve this.

I created my first draft of this post a couple of months ago and never published it. Here we are today. In the midst of the COVID-19 Pandemic. A crisis that has essentially brought the event industry to a bit of a standstill for hopefully, what is a brief moment in time. With this happening though – the message of owning your data, brand, and MONEY has never rung so important and true. All of which are achievable with the right white label ticketing solution.

🤑MONEY🤑

Let me start with money. We can all agree that in time like RIGHT NOW, having cash on hand is vital to keep basic operations and payroll afloat for your event company. As you may or may not know, I work with TicketSocket which is a white label ticketing platform, supporting their clients with their marketing. Now, at TicketSocket, our clients process their own payments. TicketSocket is NEVER a middle man. This means, TicketSocket never accepts payment on your behalf, then pays you out later. We set you up with a merchant processor (such as Stripe, Digitz, or Square), and as a customer purchases a ticket, the payment is processed and deposited directly in your bank account. This gives our event organizers the advantage of healthy cash flow, branding within receipts or even just the name on bank statements, as well as full control over ticket fees, ticket transfers, refunds, and more.

Sadly, this past week, many big names in the ticketing service industry (I’d love to name, but I won’t – you know) announced that they will be holding all merchants payouts until 5-15 days AFTER an event is able to take place. With this kind of hold on cash flow – event organizers are struggling to make final deposits with venues, secure vendors and contractors, and just keep the core staff afloat. Some of the biggest names in the game had to put many employees on temporary leave or scaled back salary. The whole situation breaks my heart.

🤓DATA🤓

Owning your customer data, especially in the events industry is vital. The events industry can be competitive. Not just similar events competing against each other – but just time and entertainment in general. Think about it, if there is a Food Truck Palooza happening the same weekend nearby as your Beer Festival, most people can only go to one because of budget and time. By owning your customer data, you can take more control of your marketing. By taking more control of your marketing, you can make sure you close the deal. Sometimes websites that allow you to sell tickets among a sea of other events also selling tickets – someone can easily be distracted by other event options. Make sure you are clear on who owns your customer data and how other people may be “sharing” that data with you to remarket other events.

😎BRAND😎

You work hard to sell every single ticket. The time and money that goes into making a sale should compound your brand equity – so when you come back again year after year, people know you. They know your brand. They know your reputation. You want to make sure that someone has a seamless brand experience with you – from the second they see your Facebook Ad (running under YOUR events Facebook Page), to your sales page, to your ticketing check out page – make the experience seamless. Don’t bounce them around to a checkout page that is not 100% white-labeled. Make your brand the hero – so it is in the domain name, the logos, the color scheme, etc. This type of consistency builds trust amongst consumers and supports higher conversion rates.

Be sure to utilize a white label ticketing platform to have full control over your business.