Welcome to the How She Quits Show – Episode 10: Taxes – Insurance – Legalities
These can seem like big scary topics that end up being mental blocks to moving forward in your Virtual Professional Business.
Listen, there are simple black and white answers to all of this. We’ll push the noise out of your head so you can move forward to more important steps…. like landing that client who’s going to give you the money
Show Notes: Taxes, Insurance, Legalities
This video is for you if:
- You are considering starting an online business of any kind and aren’t sure of the legal and tax implications
- You are a VA or Virtual Professional still operating as a sole proprietor or without contracts or insurance
The Simple Steps You Need to Start Your Online Virtual Professional Business Off Right
6:07 Determine your legal entity (sole proprietor, llc) – You can start today as a sole proprietor without any heavy legal process.
10:50 Register your legal entity officially in your state/county as required
17:27 Have a simple contract in place for clients – A simple contract can cover many freelance / VA client-service work agreements. Don’t let that hold you back from applying.
Track your income and expenses
11:45 Understand your tax laws and file your taxes
18:25 Protect yourself with the right insurance – Some clients may want you to have your own liability insurance. Don’t worry. It’s affordable.
25:45 Your business name does not have to be your website name (and probably shouldn’t be).
Note that we can google anything and it will put us in a ballpark of answers. But for complete answers in the legal and tax space, you should consult a local professional in small business. Here are a few examples of resources from around the web:
Example state sales tax resource (from consulting service, check your local resources)
While you probably want this to be all steps 1-2-3, and much of it is, the most important aspect is setting yourself up right for financial gain and the right level of risk for you. the best book on this topic currently is called “Profit First”. http://amzn.to/2DykgAs
Here’s a description of the Profit First methodology:
Conventional accounting uses the logical (albeit, flawed) formula: Sales – Expenses = Profit. The problem is, businesses are run by humans, and humans aren’t always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula: Sales – Profit = Expenses. Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs will transform their businesses from cash-eating monsters to profitable cash cows. Using Michalowicz’s Profit First system, readers will learn that:
- Following 4 simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances.
- A small, profitable business can be worth much more than a large business surviving on its top line.
- Businesses that attain early and sustained profitability have a better shot at achieving long-term growth.
With dozens of case studies, practical, step-by-step advice, and his signature sense of humor, Michalowicz has the game-changing roadmap for any entrepreneur to make money they always dreamed of.
I hope that wiped away some unknowns that have been holding you back. If you’re fuzzy, go back to the simple steps and knock them out one by one. If you still have questions specific to your online / virtual professional business, the How She Quits Collective is a great place to have them answered. (or if your husband has questions, you can ask them for him there too. We’re getting a lot of “My husband wanted to know…” questions lately!