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Speaker 3: Be protected sponsored by the United States Department of Homeland Security.
Speaker 2: You have to think about up front who's doing what
Speaker 2: and who is responsible for what, especially in partnerships and
Speaker 2: when it's just you it's cool. Everything falls on you
Speaker 2: when you start needing to answer questions and you're being
Speaker 2: checked by people. It's good to be able to say no,
Speaker 2: this is the rules, this is what we said, this
Speaker 2: is what we agreed on. People are emotional, and emotions
Speaker 2: in business do not mix. They may say, oh, well,
Speaker 2: I'm gonna buying I need some money, so I want
Speaker 2: to take out some money from the business. No, no,
Speaker 2: we said that the money was locked up. It's a
Speaker 2: lock up. Nobody's taking any distributions for the first two years.
Speaker 2: That now makes it a personal problem and not a
Speaker 2: business problem. And we agreed on this. My graduates from
Speaker 2: my school being forced back drop drop drop, backdrop.
Speaker 4: All right, guys, welcome back, e y l. This is
Speaker 4: a very nostalgic episode. I'll explain. So, you know, we
Speaker 4: started earning Alesia and the original concept was just me
Speaker 4: and Troy and we were talking about like different relevant
Speaker 4: stuff and pop culture relating into business, business case studies,
Speaker 4: things of that nature. And we didn't have any guests.
Speaker 5: No, no, no, just us.
Speaker 4: Yeah. And then the first guest that we had episode
Speaker 4: eight eight.
Speaker 5: You said, let's just invite somebody man.
Speaker 4: Yeah, sure, yes, Miss Business. So I met I met,
Speaker 4: I met Miss Business through MG shot at MG went
Speaker 4: to his workshop that he had. I spoke at his workshop,
Speaker 4: and this is two years ago and going on three
Speaker 4: years man almost three, but it's like it was like
Speaker 4: two because we didn't have a guest. We start, yeah,
Speaker 4: like two and a half years ago. To long story short,
Speaker 4: I met Miss Business there and you know, the accounting CPA.
Speaker 4: So around that time, Amazon had a big story in
Speaker 4: the news where they didn't pay any federal taxes taxes
Speaker 4: federal right, no federal taxes. Yeah, and they had made
Speaker 4: like eighteen billion dollars that year and they didn't pay
Speaker 4: any taxes. So it was a real big trending topic.
Speaker 4: So I'm like, all, this is the perfect time to
Speaker 4: actually talk about this, but instead of me and Troy
Speaker 4: talking about it's bring an expert in to talk about it,
Speaker 4: and then not only talk about that, but to give
Speaker 4: general you know, tax tips because for like, taxes was
Speaker 4: something that was very, very important. So, long story short,
Speaker 4: inviting Miss Business and she was the first guest of
Speaker 4: E Y L. And then I was opened up the
Speaker 4: floodgates for everybody.
Speaker 5: Everybody about you did have me.
Speaker 2: Talking about we were talking about every brother. Yeah, I
Speaker 2: believe that was two years ago. Yeah, that was that
Speaker 2: has happened in two years.
Speaker 5: A lot has happened, a lot of things in change,
Speaker 5: a lot of things.
Speaker 2: We was at the we was at the dining room table.
Speaker 5: This is a fact. Now I just eat dinner there.
Speaker 4: Yeah, that is a fact. So so this is a
Speaker 4: full circles moment. So if you're familiar with us, then
Speaker 4: you're probably familiar with miss Business CPA short in there
Speaker 4: and she's been one of these people that's kind of
Speaker 4: been a fiction with ey L where she's done events
Speaker 4: for us. She's did market Mondays, We've done YouTube live,
Speaker 4: We've done she's done taught a lot of classes for
Speaker 4: Eyo University. She's been she's been with us, kind of
Speaker 4: like how MG has been with us, but we have
Speaker 4: not done a follow up episode. So I thought this
Speaker 4: was the perfect time and for a follow up episode.
Speaker 4: Different topic though this time is probably one of the
Speaker 4: most requested topics that we have ever had, where it's
Speaker 4: like we talk about business so so much, and one
Speaker 4: of the top topics is how do you start a business?
Speaker 4: Like what is the steps to start a business? From
Speaker 4: setting up an LLC to setting up EI in number,
Speaker 4: the bank account, the idea of actually starting a business,
Speaker 4: the operation agreements, and then once you have a business,
Speaker 4: as far as how do you put stuff in your
Speaker 4: business name, how do you take tax deductions? Yeah, all
Speaker 4: of that stuff. Retirement, how do you sort of retirement plans,
Speaker 4: How do you hire employees? How do you put employees
Speaker 4: on payroll? So much stuff. It's like, you know, even
Speaker 4: if you go to business school, a lot of this
Speaker 4: stuff is not taught. Most of the stuff's taught in
Speaker 4: business school is like more theory, things of that nature,
Speaker 4: supplying demand charts. But this is real world business and
Speaker 4: what happens is most of the time is that you
Speaker 4: just learn as you go. The problem with learning as
Speaker 4: you go is that you make a lot of mistakes,
Speaker 4: and you can avoid some mistakes if you have some
Speaker 4: level of mentorship. And this is what EYO has become,
Speaker 4: kind of like mentorship and the sorts. So this conversation
Speaker 4: is extremely important. We're gonna be talking about how to
Speaker 4: start a business, how to keep the business afloat, how
Speaker 4: to run a business, operations, everything you need to know
Speaker 4: to have a successful business this year, next year, and
Speaker 4: every year. So first and foremost, thank you for joining us, appreciate.
Speaker 2: It, Thank you for having me again.
Speaker 5: Welcome back, now back. This is you know what, it's
Speaker 5: also perfect timing.
Speaker 3: We just saw of report that four point five million
Speaker 3: people quit their jobs, right, and we saw that a
Speaker 3: lot of people are not they're not going back to work,
Speaker 3: but they are becoming entrepreneurs. So we saw the ADP
Speaker 3: numbers rise, and so that's an encouraging sign, especially if
Speaker 3: you're looking at like who's trying to start their own business.
Speaker 5: So this is the absolute pristine time and.
Speaker 2: The perfect way to start the year, perfect way to
Speaker 2: start on twenty twenty two.
Speaker 4: Indeed, that's a fact. Yes, that's a fact. A lot
Speaker 4: of people have New Year's resolutions of starting a business.
Speaker 4: So what better way. And even if you have a business,
Speaker 4: this is gonna be information that you can usually take
Speaker 4: your business to the next level and just run things
Speaker 4: more efficiently. So all right, not even gonna waste any time.
Speaker 4: Let's get into it. So the first question that I
Speaker 4: have we're gonna start from like the beginning all the
Speaker 4: way to the end, is choosing a business. Like when
Speaker 4: you're considering a business, you have passion projects and you
Speaker 4: have businesses. A lot of times people start businesses for
Speaker 4: the wrong reasons. They start the wrong businesses. So what
Speaker 4: are your advice as far as like starting a business idea?
Speaker 2: So when people have everyone has ideas, right, I believe
Speaker 2: that we're all phenomenal and we all have these amazing ideas. However,
Speaker 2: I think that when you're considering I say passion versus profit,
Speaker 2: because you hear all the time you need to like
Speaker 2: follow your passion, and you need to follow your passion,
Speaker 2: and sometimes that passion leaves you broke right, And so
Speaker 2: I think that when you are thinking about all these
Speaker 2: different ideas that you have, you have to think about
Speaker 2: what is going to turn me a profit, so that
Speaker 2: way it will allow me to then go after my
Speaker 2: passion and then serve my passion. If your passion happens
Speaker 2: to serve you and turn you a profit, then congratulations.
Speaker 2: But most of the time people are just one looking
Speaker 2: at what other people are doing, and that's not the
Speaker 2: right thing to do. You have to think about what's
Speaker 2: important to me. What problem am I solving?
Speaker 3: Right?
Speaker 2: Like with you guys, you guys came out and yes
Speaker 2: you were talking about financial literacy, but you were presenting
Speaker 2: it in a more digestible manner. You knew that you
Speaker 2: like the culture needed to hear financial literacy from a
Speaker 2: different perspective, and so just thinking about, Okay, what what
Speaker 2: is the market missing? What can I add? What's important
Speaker 2: to me? Answer all of those questions and then say, okay,
Speaker 2: I'm going to first do this one thing because that's important.
Speaker 2: One thing is important because people will say I want
Speaker 2: to do real estate, I want to start t shirts,
Speaker 2: I want to you know, do a sock line, and
Speaker 2: they will try to do everything at one time. You
Speaker 2: can do that. So I think the first thing is
Speaker 2: becoming very clear on what is that first thing that
Speaker 2: you're going to put out that's going to either be
Speaker 2: your your passion if it turns a profit. If and
Speaker 2: this is my opinion, you guys can say what you think.
Speaker 2: I think that people should go after it should be
Speaker 2: what's important to them. But I think that you should
Speaker 2: figure out how can you make an impact while making
Speaker 2: a profit to then do all the things that you
Speaker 2: know make you feel all gushy inside. So what do
Speaker 2: you guys think?
Speaker 3: Yeah, I was told like, if it doesn't make profit,
Speaker 3: it's not your passion, Like then you're just having a hobby.
Speaker 3: It's something that you like to do, but it's not
Speaker 3: something that you necessarily should be doing. Right, you're not
Speaker 3: passionate about it. You got to find out how can
Speaker 3: I add value?
Speaker 5: Right?
Speaker 3: Once I have those things all right, this is my passion,
Speaker 3: I've added value. Now what like I got to crumb
Speaker 3: up with a business name or something like. That's what's
Speaker 3: the next thing I want to do.
Speaker 2: So after you figure out and you're very clear on
Speaker 2: what product or service you're going to offer, the next
Speaker 2: thing that you have to consider is your name. So
Speaker 2: your business name is going to be everything, right, because
Speaker 2: this is what people are one going to refer you,
Speaker 2: refer to you as as well as thinking about and
Speaker 2: considering what does that mean in the future, how will
Speaker 2: that affect funding? Like a lot of people are denied
Speaker 2: regularly for loans or any type of line or credit
Speaker 2: because they may put investments or real estate in their name.
Speaker 2: Lenders are like, no, that's risky, right if you put
Speaker 2: that you I don't know you do anything risky. The
Speaker 2: bank is going to be like, no, I'm not approving
Speaker 2: that loan because guess what, I don't know if I'm
Speaker 2: going to get my money back. And that's the only
Speaker 2: thing that any lender or investor cares about. How am
Speaker 2: I going to get my money back? So you have
Speaker 2: to think about a name that one represents your brand
Speaker 2: and two is not going to mess you up with lenders.
Speaker 4: Let's talk. Let's get right into this conversation of name
Speaker 4: since you brought it up first. You also want to
Speaker 4: make sure you have a name that is original and
Speaker 4: not trademarked, right, yes, So how can you search that
Speaker 4: to know if the name is actually something that you're
Speaker 4: not going to get sued for because somebody else is
Speaker 4: already using.
Speaker 2: So before starting any business or putting out any slogans,
Speaker 2: you have to make sure that it's not already in use.
Speaker 2: If another business already has it trademarked, then you have
Speaker 2: to consider the fact that you probably can't use it.
Speaker 2: And so you want to go on the USPTO's website
Speaker 2: and search to confirm to see if that name is available. Okay,
Speaker 2: So that is like step one or step two, because
Speaker 2: you want to check your LLC's, which I'm sure we're
Speaker 2: going to get into. Yeah, right, But you want to
Speaker 2: make sure that the point is that you want to
Speaker 2: make sure that you're not infringing on someone else's business.
Speaker 2: You don't want to sit down and create products and
Speaker 2: packaging and create an entire brand, and you're ranting and
Speaker 2: raving about it for you to just receive a cease
Speaker 2: and desist letter from another business because you're infringing on
Speaker 2: their brand.
Speaker 3: So yeah, a lot of times people just come out
Speaker 3: with things and put it on their product and then
Speaker 3: you get to see some desist letter. But also one
Speaker 3: of those things you got to look at is what
Speaker 3: the actual slogan is or the name is being used
Speaker 3: for because there's different categories right, different category. It could
Speaker 3: be for clothing and good for food, it could be
Speaker 3: for educational purposes. So you got to make sure you
Speaker 3: look at all those things.
Speaker 2: Yep. Because I and I actually got this information very
Speaker 2: early on from the BIS lawyer. She does all of
Speaker 2: my she does all of my trademarks, and so she
Speaker 2: had to break it down to me. She's like, because
Speaker 2: when I first tried to do miss business, there was
Speaker 2: like all these different categories and I'm like, well, I
Speaker 2: want to do this and I want a trademarked in
Speaker 2: this category, in that category. And so I actually got
Speaker 2: an office action because there was someone else in education.
Speaker 2: We fought it and I own this business now. However,
Speaker 2: it's so important to understand, and there's all. She gives
Speaker 2: an example where it's like, you have Pandora Music, but
Speaker 2: then you have Pandora Jewelry, right, so those are two
Speaker 2: different categories. But what's happening is that you can literally
Speaker 2: have businesses with the same name but just in two
Speaker 2: different categories because it's all about what a consumer can
Speaker 2: identify as your brand. So no one's gonna like think
Speaker 2: that Pandora Music is Pandora Jewelry. Right, It's two different things.
Speaker 2: So we have to uh, we have to think. That's
Speaker 2: an amazing example. When she Yeah, when she talked about that,
Speaker 2: I was like, oh, wow.
Speaker 4: You're right unless but that's why. Also if you get trademarks,
Speaker 4: because you never know, you might want to start at
Speaker 4: one thing and then go to another thing later on
Speaker 4: where you're not you might start as a clothing line
Speaker 4: and you're thinking that's only going to start as a
Speaker 4: clothing line. But using references, Griselda shout out to Benny
Speaker 4: the Butcher and West Side Gun and Conway. You up
Speaker 4: on them, I'm not heard.
Speaker 2: Yes, yes, yes, I'm I no, no, I know I
Speaker 2: know who they are. I know who they are and
Speaker 2: I like their music. But to be honest with you,
Speaker 2: I just listened to.
Speaker 4: Safe Bet, but I used them because they started as
Speaker 4: a fashion line, so even their drop is like Risel
Speaker 4: the fashion Rebels. But obviously now they're in music, so
Speaker 4: I don't necessarily know if that was the original plan
Speaker 4: to go to music, but let's say that wasn't the
Speaker 4: original plan. They started as a fashion clothing company, but
Speaker 4: now they're a music company. So I say that to
Speaker 4: say it's good to kind of trademark as many different
Speaker 4: things as possible because you never know where your business
Speaker 4: is going.
Speaker 2: To take and being able to look into the future too.
Speaker 2: Sometimes we're thinking too small. So to your point, it's like,
Speaker 2: and figure out what your gateway is going to be
Speaker 2: to get into different industries. So it looks like they
Speaker 2: reversed it, and that's why I was so shocked to
Speaker 2: know that they first got into fashion then went to music,
Speaker 2: because most people go into music then go into fashion, right,
Speaker 2: So it's it looked like they said, you know what,
Speaker 2: we're going to do fashion and then we're going to
Speaker 2: go into music, because maybe they felt that it was
Speaker 2: a good marketing strategy, but sometimes just kind of figuring out,
Speaker 2: like what's going to be your can't do it to
Speaker 2: get to the masses is important and you want to
Speaker 2: make sure that you're protecting yourself at every aspect.
Speaker 3: There was these two guys from Greenberg that had a
Speaker 3: slogan that had access liabilities on the shirts to start
Speaker 3: as closing and ended up at the TV.
Speaker 2: You might know them or you may not.
Speaker 3: Also, this is true too, right, not only trademarking the category,
Speaker 3: but trademarking.
Speaker 5: The place you are, like location.
Speaker 3: So like having a trademark in the United States doesn't
Speaker 3: mean that it's trademarking Europe and Asia.
Speaker 2: Let's talk about that. Let's talk about that, right, because
Speaker 2: a trademark is federal, right, So federal meaning that it's
Speaker 2: going to cover you throughout the US. But as you mentioned,
Speaker 2: that does not cover other countries. And are we going
Speaker 2: to get to LLC's Yeah, okay, yeah, yeah, but yeah,
Speaker 2: so like LLC's as an example, we could go back
Speaker 2: into it, but LLCs is more so going is more
Speaker 2: so registering on the state level, right, And then people
Speaker 2: will always ask me about let's say, like a DBA
Speaker 2: that's registering it on the county level, right, So you
Speaker 2: have to be careful and understand what you're protecting and
Speaker 2: at what level you're protecting, because if you you know,
Speaker 2: someone can take your same name in a different state
Speaker 2: and then start a business because you only you know,
Speaker 2: register in that state. But if you do your trademark,
Speaker 2: that's going to protect you federally. Right, So the.
Speaker 3: Price is not that much when you do like well
Speaker 3: LLCs or trademarks, it's like maybe a couple hundred dollars,
Speaker 3: maybe a thousand dollars.
Speaker 2: Unless you gotta fight it. But yeah, it's not fast,
Speaker 2: it's not that up yet.
Speaker 5: It's not to national a little bit more expensive.
Speaker 2: Yeah, definitely.
Speaker 4: So let's talk about, all right, starting it your business
Speaker 4: yourself or working with partners.
Speaker 3: This episode of Erni a Lisia is brought to you
Speaker 3: by McDonald's, proudly serving communities since nineteen sixty five. McDonald's
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Speaker 3: When I stop in for my morning breakfast of three
Speaker 3: hot cakes and a hash brown, seeing students using the
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Speaker 3: the routine. It's become the epicenter of the community, whether
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Speaker 3: I'm loving it.
Speaker 2: You know, I'm the accountant, so I get all the information, right,
Speaker 2: so people have to consider what I like to say
Speaker 2: every time someone comes to me and they're asking should
Speaker 2: I start a business by myself or should I get partners?
Speaker 2: Sometimes people are getting partners for the wrong reason. They're
Speaker 2: getting partners because they want someone to lean on. When
Speaker 2: this person does not provide any sort of value to
Speaker 2: you at all. It's just someone that you can talk to.
Speaker 2: People want a therapist, right, They want a therapist. They
Speaker 2: want someone that they can bring along on their journey.
Speaker 2: So that way it can you know, be I guess, yeah,
Speaker 2: they can have a partner. They can have somebody to
Speaker 2: go along and showed a lean as I said, a therapist.
Speaker 2: But business is so business is so complicated and there's
Speaker 2: so many decisions that's going to be made that you
Speaker 2: want to make sure that if you are partnering with
Speaker 2: someone that they are of benefit to the business. And
Speaker 2: so there's so many different ways when you have partners
Speaker 2: everyone doesn't have to be in the forefront. You may
Speaker 2: have someone that is a partner for you, but it
Speaker 2: may be on a monetary perspective, right, you may need
Speaker 2: their capital, or you may need someone that they may
Speaker 2: have the knowledge. You may have the capital, you may
Speaker 2: have the time, they may have the capital. But let's
Speaker 2: say both you have the capitol, but nobody has the knowledge.
Speaker 2: What are you doing right? You know? And so I've
Speaker 2: seen so many partnerships come together and then dissolve. Like
Speaker 2: I've literally had people form an entity with me and
Speaker 2: then on the phone because they could not get things together,
Speaker 2: dissolve the company right on the phone with me, like
Speaker 2: you know what, let's just dissolve this. And that's because
Speaker 2: they did not do their due diligence upfront and they
Speaker 2: were just trying so desperately to make it work. Guard
Speaker 2: your ideas. I find that sometimes there's usually a group
Speaker 2: of people in a room and they're just like, hey, yeah,
Speaker 2: I want to start this business, you want to start
Speaker 2: it with me? It's like who makes this person qualified
Speaker 2: to start a business with you? And so that's the
Speaker 2: first thing that you have to do. Really figure out
Speaker 2: what asset is this is this partner going to be
Speaker 2: an asset or they going to be a liability and
Speaker 2: so figuring that out and what they bring to the
Speaker 2: table is going to be extremely important. Then deciding based
Speaker 2: on their value in the business, what ownership percentage do
Speaker 2: they have? Do they does that automatically entitle them to
Speaker 2: fifty percent of your business? Did you already have a
Speaker 2: concept already proven? Have you already did all the research?
Speaker 2: What exactly are they coming with? They may only need
Speaker 2: twenty five percent, they may need ten percent, they may
Speaker 2: need fifty percent. You really need to consider if you're
Speaker 2: giving away fifty one percent, because that's control, right.
Speaker 5: These a real conversation.
Speaker 2: These are real conversations that people are not having. And
Speaker 2: as we move into this space where there's so many entrepreneurs,
Speaker 2: that's kind of like how miss business started because I
Speaker 2: was looking around at the time, I was in corporate
Speaker 2: and I'm looking around and everybody's having the conversation about, oh,
Speaker 2: we're gonna get this money. We're gonna get this money.
Speaker 2: We're gonna get this money. I'm like, whoa hold up?
Speaker 2: What about taxes? Right? And so now what I'm sitting
Speaker 2: back and I'm looking at is COVID happen. Everybody has
Speaker 2: some time, you guys educate in the world on what's possible,
Speaker 2: and now everyone knows what their options are. However, no
Speaker 2: one has that blueprint or someone to be like, listen,
Speaker 2: this is you know what you need to do. So
Speaker 2: there's a ton of LLCs being created, but not a
Speaker 2: ton of profitable businesses. And as I say, I'm on
Speaker 2: the accounting side, so I know everything right, like who's profiting,
Speaker 2: who's not, who's you know, doing business for free? You
Speaker 2: know who can't get it together? And so it really is,
Speaker 2: you know a lot of things that we have to
Speaker 2: also pay attention to if we are going to start
Speaker 2: these businesses as well as be profitable.
Speaker 5: So so you said LLCs, you can do that by yourself, right.
Speaker 2: You can definitely form your LLC by yourself.
Speaker 5: You can do it with partners.
Speaker 2: Yeah, you can definitely form an LLC if you have partners.
Speaker 5: What's that process like?
Speaker 2: So you definitely Okay, So there's a two step process
Speaker 2: when you're forming an LLC. As I mentioned, an LLC
Speaker 2: is when you are forming your business on the state level.
Speaker 2: So you have to register your articles of organization with
Speaker 2: your Secretary of State, and as I mentioned, that's on
Speaker 2: the state level. You then need to apply for your
Speaker 2: ei IN number, so your ei IN number is federal.
Speaker 2: That's done with the IRS. You have to do both,
Speaker 2: and it's best if you do both around the same
Speaker 2: time because December, so many people will rush and be like,
Speaker 2: oh my god, like I haven't articles, but now I
Speaker 2: need an ei IN And it's like some people now
Speaker 2: don't have their ei IN until twenty twenty two.
Speaker 5: That's like the tax identification.
Speaker 2: Yeah, that's their tax identified So that's your employer identification number.
Speaker 4: That's like your Social Security number.
Speaker 2: That's what I call it. It's like your Social Security
Speaker 2: number for your business. So going forward, you're no longer
Speaker 2: providing your name and social You're providing your business name
Speaker 2: that you formed with the state, and then you are
Speaker 2: going to provide your ei IN that you've formed with
Speaker 2: the IRS.
Speaker 4: So all right, let's get into this conversations. We're talking
Speaker 4: about this LLC. What's the difference between LLC C CORP.
Speaker 4: There's different ways you can form the business, yes, with
Speaker 4: some pros and cons and yeah, talk about that perfect.
Speaker 2: So let's talk about when you're registering, you have to
Speaker 2: consider just like you're just like choosing a partner, you
Speaker 2: have to decide what entity type you are going to choose,
Speaker 2: because it's more than like the same process with registering
Speaker 2: your LLC. If you decide to be a corporation, then
Speaker 2: you would register your corporation with the Secretary of State
Speaker 2: as well. But one thing that you have to consider
Speaker 2: is if you choose an LLC, that's telling the IRS
Speaker 2: that you want to be taxed as an LLC. If
Speaker 2: you choose a corporation, that's telling the IRS that you
Speaker 2: want to be taxed as a corporation. So the difference
Speaker 2: between all of let's say, let's start with LLCs because
Speaker 2: that's the popular entity as I.
Speaker 4: Call it, limited liability, limited.
Speaker 2: Liability company, limited liability company, and an LLC is not
Speaker 2: a tax structure and LLC is a legal structure. So
Speaker 2: what that means is that if you form an LLC,
Speaker 2: it does not allow you to write off anything additional.
Speaker 2: Then if you are operating as a sole proprietorship, meaning
Speaker 2: that you did not register your business. So the reason
Speaker 2: why as an LLC you can write off the same thing.
Speaker 2: So I have so many people that come to me
Speaker 2: all the time and they'll say, I want to start
Speaker 2: a business, and I want to start an LLC because
Speaker 2: I want to be able to write these things off.
Speaker 2: You can write it off. You can still write it
Speaker 2: off if you're operating as a sole proprietorship. The big
Speaker 2: benefit with an LLC is that it protects you against liability.
Speaker 2: So if you are if someone were to sue you,
Speaker 2: they and you're operating as a sole proprietorship, then now
Speaker 2: your personal assets, your home, your stocks. I know you guys,
Speaker 2: you know have everybody invest in you guys, have everyone
Speaker 2: invested in stocks. But these are assets. And so if
Speaker 2: you decide today to start a business and then someone
Speaker 2: sues you, they will now all of your assets. You know,
Speaker 2: your cash, your personal your home, your primary residents, your stocks,
Speaker 2: that will now all be at liberty in that lawsuit
Speaker 2: because there's no separation between you and the business as
Speaker 2: a sole proprietorship. But if you're an LLC, then what
Speaker 2: happens is if you were sue then they're just suing
Speaker 2: the business, they're not necessarily suing you. Okay, so that
Speaker 2: is something to consider. Now from the tax side of things,
Speaker 2: with a sole proprietorship or an LLC, what happens is
Speaker 2: that you have to worry about self employment tax. So
Speaker 2: now when you're getting taxed, you're worried about your your
Speaker 2: income tax on the federal side, your income tax on
Speaker 2: the state side, and then you also have self employment tax,
Speaker 2: which is about fifteen point three percent additional on top
Speaker 2: of that. And to drive it home to people, I
Speaker 2: always say, would you allow somebody to walk up to
Speaker 2: you and just say, let me get fifteen point three
Speaker 2: percent of your business, you would look at them like
Speaker 2: they're crazy. But because it's the irs, most people are
Speaker 2: not questioning it because they're afraid to actually, Well, one,
Speaker 2: I think they're afraid, but then I also think that
Speaker 2: people don't understand taxes, so they'll just say, you know what,
Speaker 2: I'm gonna just like I'm gonna just pay whatever, and
Speaker 2: not really looking at exactly what's what's due. So, I mean,
Speaker 2: what's the taxes are made up of? Right, And so
Speaker 2: that fifteen point three percent is a lot. It's a lot.
Speaker 2: So that's what you're looking at. And so that's pretty
Speaker 2: much a con of an LLC. Right, that's a con
Speaker 2: because you have to pay that additional fifteen point three percent.
Speaker 2: Now let's talk about a corporation. So corporations does have
Speaker 2: a pro of it depending on how much money you make.
Speaker 2: A pro of a corporation is that there's a flat
Speaker 2: tax twenty one percent for a corporation. However, however, you
Speaker 2: have to consider double taxation. So now that's the con.
Speaker 2: The con with double taxation is that you have to
Speaker 2: pay taxes on the business side, that's twenty one percent,
Speaker 2: but then profits then have to be distributed to the shareholders.
Speaker 2: I if it's just you as the owner, then you
Speaker 2: would be that shareholder and then profits will need to
Speaker 2: be distributed to you. So you have to consider that
Speaker 2: as well. And so it's very and you know, I
Speaker 2: like to just talk about let's say Apple. With Apple,
Speaker 2: Apple is paying taxes at the business level and then
Speaker 2: they distribute out the dividends to all of the shareholders.
Speaker 2: The dividends then have to be reported on the personal
Speaker 2: tax return and then from there you then have to
Speaker 2: pay tax on it again. Right, So that's pretty much
Speaker 2: how it works when you have a corporation, and a
Speaker 2: lot of people will form corporations either if they're grossing
Speaker 2: a lot of money or if it's a situation where
Speaker 2: they may have investors or they want to go public.
Speaker 2: Situations and scenarios like that will require you to be
Speaker 2: operating as a as a corporation versus an LLC.
Speaker 3: In an example that you just gave it, but the
Speaker 3: dividend payment, what tax does that on? Does it matter
Speaker 3: how long you held the position, is it short term
Speaker 3: or is it like a flat tax?
Speaker 5: Short term? Long term?
Speaker 2: Short term and long term are taxed differently. So short
Speaker 2: term capital gains mean in less than one year is
Speaker 2: tax at your ordinary income tax rate. So just as
Speaker 2: though you were working at a job, you have those
Speaker 2: you based it's going to be based on a bracket. Right.
Speaker 2: Long term it's also based on a bracket. However, the
Speaker 2: brackets are much larger. So as an example, if you
Speaker 2: are married filing joint and you have let's say marry
Speaker 2: filing joint and you have long short term capital gains
Speaker 2: from about zero to about forty thousand, you have like
Speaker 2: zero capital gains in short term no sorry, ten percent
Speaker 2: capital gains, but if you are married, filing joyed with
Speaker 2: long term capital gains, and let's say you profited forty
Speaker 2: thousand dollars, you would have no tax, no tax liability,
Speaker 2: it would be zero. So the idea, as we always
Speaker 2: talk about, is that the tax code is a series
Speaker 2: of incentives. The government wants you to keep your money
Speaker 2: in the stock market longer because it's driving the economy.
Speaker 2: So therefore they're going to reward you having your your
Speaker 2: money in sitting in the stock market a lot, you know,
Speaker 2: a lot longer. So if you want to like be
Speaker 2: in and out of trades on a daily then they're like, okay,
Speaker 2: well that we're going to tax that as earned income.
Speaker 2: So that's something to think about.
Speaker 4: So all right, let's talk about the C corp escorp.
Speaker 4: So the C corp you got to put yourself on salary, right, yeah.
Speaker 2: Secorp you have to put yourself on salary as well
Speaker 2: as an escort.
Speaker 4: Okay, And so the benefit, the main benefit with the
Speaker 4: C corp and the escorp as opposed to the LLC
Speaker 4: is that you save money in taxes.
Speaker 2: Correct, all right, So it depends it depends in the
Speaker 2: C corp. So C corp you really start to save
Speaker 2: on taxes. If you're making I want to say anything
Speaker 2: over let's say like three or four hundred thousand dollars
Speaker 2: right now, you are saving because what happens on the
Speaker 2: individual side is that tax rate is that like forty percent.
Speaker 2: So if I can just pay a flat rate of
Speaker 2: let's say twenty one percent. It gets very complicated, right
Speaker 2: with a with a corporation, But there are instances with
Speaker 2: a corporation where you are saving significantly more if you
Speaker 2: are profiting more because you know, with a corporation you
Speaker 2: may have different things that you need to set money
Speaker 2: aside for for future use, and it's it gets a
Speaker 2: little complicated, more tax plan and stuff. But a corporation
Speaker 2: out the gate unless you are I do have some
Speaker 2: clients that start businesses and they are like, listen, I
Speaker 2: have these big contracts waiting for me. But it may
Speaker 2: make sense for you to either start out as an
Speaker 2: LLC or an escort because you can always change, right
Speaker 2: if you start out.
Speaker 4: So as an LLC, you can always change.
Speaker 2: If you are an LLC, you can always elect to
Speaker 2: be taxed as an escort, or you can elect to
Speaker 2: be taxed as a corporation.
Speaker 4: What about a DBA. What's a DBA.
Speaker 2: So a DBA just means that you're doing business as.
Speaker 2: So that means if you, let's say you didn't register
Speaker 2: your business and you wanted to just follow a DBA,
Speaker 2: you're saying, all right, well, I'm operating a business and
Speaker 2: this is what I'm doing business as. You also have
Speaker 2: an option if you're an LLC. Two, sorry, if you're
Speaker 2: an LLC, to say I said that my business name
Speaker 2: is earned your Leisure, but we want to go by
Speaker 2: assets over reliabilities, so we'll be doing business as assets
Speaker 2: over reliability.
Speaker 3: So in the LLC, now you said, the difference obviously
Speaker 3: in the corpse as corpse corpse is yet you got
Speaker 3: to pay yourself a salary. And so when you pay
Speaker 3: yourself a salary, now that's when you can have set
Speaker 3: by our ads and four one ks as opposed to LLC.
Speaker 5: Is that correct or no?
Speaker 2: No, yeah, you can have it in an LLC. So
Speaker 2: let's just talk about s corpse because everyone loves escorpse now,
Speaker 2: so let me just break ESEs corpse down a little bit.
Speaker 2: So with an s corp, you do have two main requirements.
Speaker 2: One is to pay yourself a salary and the others
Speaker 2: to file your taxes every single year with pay yourself
Speaker 2: a salary. What happens, as I mentioned before, you will
Speaker 2: go you'll have Well, what I mentioned before with the
Speaker 2: LLC is that you on one hundred thousand dollars, you
Speaker 2: still have to worry about that self employment tax. With
Speaker 2: an ES corp, you don't have to worry about the
Speaker 2: self employment tax on your total profit. What happens is
Speaker 2: self employment tax is really made up of Social Security
Speaker 2: tax and Medicare tax. So when you are an employee,
Speaker 2: if you look at your W two, you have Social
Speaker 2: Security tax and Medicare tax. But when you are the employee,
Speaker 2: you pay half and your employer pays tax. So you
Speaker 2: guys are splitting it. But when you are the employer,
Speaker 2: you're required you're responsible for paying one hundred percent. And
Speaker 2: that's how we get to that fifteen point three percent, right.
Speaker 2: And so now when you're an ES corp, your only
Speaker 2: requirement is to pay yourself a salary. So when you
Speaker 2: pay yourself a salary, you let's say, and let's say
Speaker 2: it was one hundred thousand dollars profit, and you may say,
Speaker 2: you know, well, I'm going to pay myself irs just
Speaker 2: says that you have to pay yourself a reasonable salary.
Speaker 2: It's not like a specific number or percentage. So let's
Speaker 2: just say you say, you know what I'm going to
Speaker 2: pay myself thirty five thousand dollars. You go from paying
Speaker 2: that Social Security tax and Medicare tax on that whole
Speaker 2: one hundred thousand as a LLC or a sole proprietorship
Speaker 2: to only paying it on that thirty five thousand dollars
Speaker 2: as an es CORP. So that's how you're able to save.
Speaker 2: That's how you're able to save on the s CORP side.
Speaker 4: So okay, so let's talk about registering a business. So
Speaker 4: what is the process you have? Okay, you got the trademark,
Speaker 4: what is the process of actually doing the business registration?
Speaker 2: So the things that you want to make sure that
Speaker 2: you have when you're registering your business is, again, you
Speaker 2: want to make sure that you have your business name
Speaker 2: on every state's website. They have a function for you
Speaker 2: to check to see if your name is already taken,
Speaker 2: so you want to make sure that you know your
Speaker 2: name is available. So after determining if your name is available,
Speaker 2: the things that you'll need to consider and think about
Speaker 2: is your address right, Like, so that's one thing. What
Speaker 2: is going to be your business address along with your name.
Speaker 2: Another way to get denied for funding is the address.
Speaker 2: So if you're putting your personal home address as your
Speaker 2: business address, there's instances where lenders will deny you because
Speaker 2: they're going to do a quick search and your house
Speaker 2: is going to pop up on Google Maps, right, and
Speaker 2: so that has to be considered. What's going to be
Speaker 2: your business address? I suggest getting a virtual address if
Speaker 2: you do not have an address. Virtual addresses are perfect
Speaker 2: and you can utilize them in so many different ways.
Speaker 2: Like when I first started my company, I was working
Speaker 2: from home and I had a virtual address. It was
Speaker 2: on Fifth Avenue. I had to you get an option
Speaker 2: to choose, so I was like, oh, put me on
Speaker 2: Fifth Avenue in the city. And so I'm in this
Speaker 2: big high rise in mahaees and in the city. And
Speaker 2: then they also with virtual offices, they'll have different options.
Speaker 2: So they'll have one option where they can you can
Speaker 2: just use their address, or they have other options where
Speaker 2: they can act as like your receptionists, so they'll pick
Speaker 2: up the phone and they'll, you know, just say hi,
Speaker 2: Brock's Alliance, right, And so people were like, oh, can
Speaker 2: I speak to Shiquana and then they'll transfer it to
Speaker 2: my cell phone. Right, So nobody knew, but I needed
Speaker 2: that virtual address when I first started, when I was
Speaker 2: registering in my business, because I knew going into it
Speaker 2: I wanted to build business credit. And so because I
Speaker 2: knew that I wanted to build business credit, I had
Speaker 2: to make sure that I, you know, did all the
Speaker 2: things that I needed to do, and one of those
Speaker 2: was making sure that I wasn't using my home address.
Speaker 2: So that's the next thing that you have to think about.
Speaker 2: After that, you have to think about who is going
Speaker 2: to act as your registered agent. As a register register
Speaker 2: agent just pretty much means who's going to be served?
Speaker 2: If somebody comes to sue you, who's going to be served?
Speaker 2: And you have to think about with a registered agent,
Speaker 2: there are requirements. The space needs to be opened during
Speaker 2: regular business hours, There needs to be somebody that they
Speaker 2: could technically come and serve, and so you have to
Speaker 2: think about that are you are you and your do
Speaker 2: you want people rolling up to your home address to
Speaker 2: serve you? And you have to think about that all
Speaker 2: of this information is public, right, and so you may
Speaker 2: not want the entire world to be able to you know,
Speaker 2: see you know where you live, and depending on the state,
Speaker 2: not all states, they'll make your address public, but the
Speaker 2: registered agent address is public, so you have to think
Speaker 2: about that, right so with the registered agent. So with
Speaker 2: the registered agent address, you have to think about do
Speaker 2: you want to be the you know, the registered agent
Speaker 2: or do you want to hire a registered agent right
Speaker 2: to to get served on your behalf. Keep in mind, no,
Speaker 2: you do not need to be there. If you put
Speaker 2: them down as your registered agent and someone comes to
Speaker 2: serve you, then they are still serving you because that's
Speaker 2: who you put down as your register agent. And outside
Speaker 2: of that, it's just really your name, your business address,
Speaker 2: your register agent. Make sure you fil you know, you
Speaker 2: have to pay filing fees, and most states ninety percent
Speaker 2: of them, you can do this all electronically, some dates.
Speaker 2: Most some states have like you know, a waiting process.
Speaker 2: Other states that it's automatic. But the ideas that you
Speaker 2: can do it online. It's not like somewhere that you
Speaker 2: have to go to to get it done.
Speaker 3: One of the things you said inside of creating that
Speaker 3: that business, we got the name, but you said to
Speaker 3: operating agreement is one of those things that you have
Speaker 3: to have. So I want to make sure everybody understands,
Speaker 3: like what needs to be inside of the operating agreement
Speaker 3: when it is created?
Speaker 2: What really okay? Yes, so after you register your business,
Speaker 2: then you have your EI in. Now you have to
Speaker 2: think about those supporting documents, those documents that's going to
Speaker 2: dictate what happens in the business. Again, there has to
Speaker 2: be a lot of thought put into a business before
Speaker 2: for the business starts, and most people don't do this.
Speaker 2: So in an operating agreement, it's to make it very simple.
Speaker 2: It's the rules of the business. This is where you
Speaker 2: detail out if there's multiple owners who, what ownership percentage
Speaker 2: each member has, how will the profits be split, who's responsible,
Speaker 2: who is the operating manager of the business, who has
Speaker 2: access to the bank. Because when sometimes most of the
Speaker 2: time if it's just one person, it's two people, they'll say, okay,
Speaker 2: everyone has access to the bank, and that's fine, But
Speaker 2: what if you had a silent partner and they didn't
Speaker 2: necessarily need access to the bank. You have to detail
Speaker 2: all of these things out and so really establishing at
Speaker 2: what point are you going to share those profits at you?
Speaker 2: Is it a specific date, is it at a specific time.
Speaker 2: Do you want to create a lock up period meaning
Speaker 2: that you all can't touch the money at all up
Speaker 2: until a certain period. Who's going to be responsible for
Speaker 2: distributing out these funds? All of those things have to
Speaker 2: be detailed out. And I like to say when you
Speaker 2: are kind of walking through your business plan and you're
Speaker 2: thinking about it, because everyone should have a business plan,
Speaker 2: but you know, and so when you yes, so when
Speaker 2: you are walking through your business plan, you have to
Speaker 2: think about who's going to be responsible for this? Who's
Speaker 2: going to be responsible? You know, like who's your accountant?
Speaker 2: Do you have someone in your business like it is
Speaker 2: you know one of your partners. Are they really good
Speaker 2: at bookkeeping? Are you going to hire someone that's doing bookkeeping?
Speaker 2: Are they going? Is that a part of their role?
Speaker 2: Because what a lot of people don't know is let's
Speaker 2: say someone brings me into their business and they say,
Speaker 2: you know, what's business. I just want you to like,
Speaker 2: I I love your brand. I just want your brand
Speaker 2: to be associated with this business. And I also just
Speaker 2: want you to do that accounting. But then down the
Speaker 2: line you sit me down and you're like, yeah, I
Speaker 2: want you to do marketing and I want you to
Speaker 2: work in a store too. That's out of the scope
Speaker 2: on what's and I will operate an agreement that I
Speaker 2: agree to. Now, in theory, yes is my business. I
Speaker 2: should go as hard you know. However, you can also say,
Speaker 2: all right, well as a business, I mean, that's not
Speaker 2: what I signed up for for this business. So I
Speaker 2: want to be paid additional. That's what's called guarantee payments.
Speaker 2: So with those guarantee payments that you're saying, okay, well,
Speaker 2: I'm going like I'm going to be paid out of
Speaker 2: the business. Yes, I'm an owner, but I'm going to
Speaker 2: be paid additionally before you know, these additional services, and
Speaker 2: so you have to think about up front who's doing
Speaker 2: what and who is responsible for what, especially in partnerships
Speaker 2: and when it's just you, it's cool. Everything falls on you, right,
Speaker 2: you don't have anyone to answer to. But when you
Speaker 2: start needing to answer questions and you're being checked by people,
Speaker 2: it's good to be able to say, no, this is
Speaker 2: the rules, this is what we said, this is what
Speaker 2: we agreed on. Because people are emotional, right, So people
Speaker 2: are emotional and emotions in business do not mix. So
Speaker 2: they may say, oh, well, I'm gonna buying. I need
Speaker 2: some money, so I want to take out some money
Speaker 2: from the business. No, no, we said that the money
Speaker 2: was locked up. It's a lock up. Nobody's taking any
Speaker 2: distributions for the first two years. That now makes it
Speaker 2: a personal problem and not a business problem. And we
Speaker 2: agreed on this, you know. And so I see a
Speaker 2: lot of partnerships dissolve a lot because no one took
Speaker 2: the time to say what the rules were in the beginning.
Speaker 4: Exc So as far as the EI in, you go
Speaker 4: on the government's website, you set the EI in up
Speaker 4: and that's like same day turnaround, right.
Speaker 2: Yeah, same day turnaround. So there's.
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Speaker 2: There's two different ways you can apply for it. One
Speaker 2: is manually filling out a form and then faxing it
Speaker 2: over or mailing it over. Some people only have that
Speaker 2: option because sometimes keep in mind you have to make
Speaker 2: sure that your name in social matches the IRS record.
Speaker 2: So sometimes you're you are able to file it electronically
Speaker 2: and that's like same day, you'll get your EI in,
Speaker 2: same exact day. However, sometimes there will be an error
Speaker 2: message because you're let's say someone got married and the
Speaker 2: IRS may only have your you know, your maiden name
Speaker 2: and then you know you You now are trying to
Speaker 2: tell them that you know this is another name. They're like, Nope,
Speaker 2: that doesn't match our records, and now you have to
Speaker 2: like mail it in. So ninety percent of the time
Speaker 2: with my experience, people are able to do it electronically,
Speaker 2: but sometimes you will have to complete that SS four
Speaker 2: form and send it.
Speaker 4: In and then all right, so once you get the
Speaker 4: EI in number, now you can set the bank account up.
Speaker 4: You can't set the bank account up until you have
Speaker 4: the e.
Speaker 2: In right, the EI in and your articles, so those
Speaker 2: are the and sometimes you're operating agreement. So some banks
Speaker 2: will require you to have your operating agreement, your ei
Speaker 2: in as well as your articles of organization or in
Speaker 2: corporation if you're a corporation.
Speaker 3: Now, if you do it by yourself, that's fine, but
Speaker 3: if you have partner's day also need to be with
Speaker 3: you at the bank to do.
Speaker 2: This, not necessarily not all banks, and so that's important
Speaker 2: as well, just getting the communitycation to find out what
Speaker 2: the bank is looking for. So sometimes banks will allow
Speaker 2: just one of the partners to open up the bank
Speaker 2: account and then you can list out who else has
Speaker 2: sign an authority. But that's the thing. Banks will require
Speaker 2: your partners to sign, like who has signed an authority
Speaker 2: on the bank account. But in terms of opening up
Speaker 2: the bank account, depending on the bank, most of the
Speaker 2: time one person can go in and do it.
Speaker 4: So since we're on topic of banks, so a it's
Speaker 4: extremely important right for you to have money coming in
Speaker 4: and out of the business bank account. That's the whole
Speaker 4: point setting up a lot of times people running businesses
Speaker 4: and they just putting the money in their personal account,
Speaker 4: taking money out of their personal account, mingling why why
Speaker 4: why should they never do that?
Speaker 2: Okay, so you shouldn't do that because now you have
Speaker 2: to realize you have established this business. You now have
Speaker 2: an EI in that's a whole separate entity. You have
Speaker 2: to treat it as that's that's like your friend. You
Speaker 2: wouldn't come and pay your friends bills. You wouldn't your
Speaker 2: friend wouldn't deposit all their money into your bank account.
Speaker 2: You have to treat your business as a separate entity,
Speaker 2: and so that's the first thing. First thing is just legally,
Speaker 2: you're just not supposed to do it right. It's like
Speaker 2: at the end of the year, I have so many
Speaker 2: people who will say, yeah, I have an LLC and
Speaker 2: I have a bank account, but I don't use it
Speaker 2: and I ran everything under my person or I'm like, okay,
Speaker 2: well you were operating as a soul proprietorship. Because if
Speaker 2: in the event you're audited, the IRS is going to
Speaker 2: want to see your bank statements. And if you have
Speaker 2: no money coming in the bank statements, you have no expenses,
Speaker 2: what did you report? Where did this money come from?
Speaker 2: So now you're opening up a whole new can of worms,
Speaker 2: because now they want to understand where's this money that
Speaker 2: you're reporting. Are you making this up and you don't
Speaker 2: have any indication of your other business or you receiving money.
Speaker 2: So now that is important, and I stress it so
Speaker 2: much to clients, but it is hard. It's a transition,
Speaker 2: and I think that it's something that people just have
Speaker 2: to be cognizan enough. When you start this business, you
Speaker 2: have to open up your business bank account and utilize
Speaker 2: your business. If it's a situation where a lot of
Speaker 2: people have an issue at is they're like, all right,
Speaker 2: well I open up this business bank account, but my
Speaker 2: business isn't making any money, So how am I supposed
Speaker 2: to buy supplies or how am I supposed to actually
Speaker 2: pay for things? If I can't use my personal only
Speaker 2: thing you have to do is take money, transfer it
Speaker 2: from your personal over to your business. That's not considered income.
Speaker 2: It's just considered a capital contribution and to your business.
Speaker 2: And you then need to pay for all of your
Speaker 2: expenses out of your business account.
Speaker 4: What a debit card, So make sure you get a
Speaker 4: business debit card.
Speaker 2: Business debit card, credit card, or a credit card a
Speaker 2: business credit card as well. And so that is also
Speaker 2: a thing where people are like, oh my god, well
Speaker 2: I just started this business and I don't have any
Speaker 2: business credit and they're not going to approve me. So
Speaker 2: that's not true. You can, especially with the bank that
Speaker 2: you're opening up the business bank account with, you can ask, hey,
Speaker 2: I want to apply for a credit card. They may
Speaker 2: use your credit your personal credit to like as a
Speaker 2: personal guarantee to make sure. But if you have good
Speaker 2: personal credit, you can get approved or a business credit card.
Speaker 2: And just keep in mind that business credit card on
Speaker 2: a monthly basis is not going to report to your
Speaker 2: personal to your personal report. It's only going to report
Speaker 2: to the business report. Right, So it's kind of like
Speaker 2: using your personal credit as leverage to then build your
Speaker 2: business credit.
Speaker 3: So it's one of the things you said is a
Speaker 3: foundation of your businesses bookkeeping, And now that we're talking
Speaker 3: about bank acount and keeping records, I think probably that's
Speaker 3: the best way to do it right.
Speaker 5: And so what are some ways we can.
Speaker 3: Track our books or create our books and why is
Speaker 3: it the foundation of the business?
Speaker 2: Bookkeeping is the foundation of a business. It is the
Speaker 2: most looked over process in a business. Most people do
Speaker 2: not understand that you have to have bookkeeping in place
Speaker 2: in order to understand what money is coming in, what
Speaker 2: money is going out. Some people have multiple streams of income.
Speaker 2: One stream is just paying for the other stream. They're
Speaker 2: not necessarily understanding what's how they're profiting, what's doing good,
Speaker 2: Which months were they doing better and then another month,
Speaker 2: why were they doing better in that particular month, and
Speaker 2: so bookkeeping is really the foundation and for twenty twenty two,
Speaker 2: if you have a business, you will have a bookkeeping
Speaker 2: processes in place. Right, can you guys tell them that
Speaker 2: they need to have bookkeeping right?
Speaker 3: Vitally important, violently important, Like you want to know where
Speaker 3: your money is? Like you want I remember, like like
Speaker 3: fifteen years ago, I would go out with him and
Speaker 3: he would like we go out to dinnity, like, give me.
Speaker 5: To receipt, give me receipt, give me receipting. I'm like, yo, why.
Speaker 3: And I realized later like he was tracking his books.
Speaker 3: He's like, yo, this is this is my dinner. I'm
Speaker 3: taking this. I'm keeping books on myself. I'm like, oh,
Speaker 3: that's what he's doing. He's doing his own bookkeeping. Because
Speaker 3: you need to know where the money's going.
Speaker 2: You need to understand where the money is going. And
Speaker 2: again that it is so overlooked and no one is
Speaker 2: thinking about I need to tell I mean, I need
Speaker 2: to understand where my money is, Like how much money
Speaker 2: is coming in? Are you operate? You do not understand?
Speaker 2: How many people I point out, I'm like, you know
Speaker 2: you're doing business for free. You cannot afford to quit
Speaker 2: your job and then do business for free. So many
Speaker 2: people don't.
Speaker 4: Understand that's a fact. Yeah, that's a fact. But the
Speaker 4: thing about it this year, when he's referring to like
Speaker 4: years ago I had, I used to keep white envelopes
Speaker 4: and I used to label them like meals, travel equipment.
Speaker 4: It's like seven different things that you can take deductions
Speaker 4: off of it. I would keep all my receipts and
Speaker 4: then I would put the receipts in each envelope that
Speaker 4: it fit, and then at the end of the year,
Speaker 4: I would meticulously. It took me forever, but I would
Speaker 4: go through every single one and track it and be like,
Speaker 4: all right, I spent five thousand dollars on food, and
Speaker 4: even then that was my deductions for the year. So
Speaker 4: that was a manual.
Speaker 2: Obviously, the manual process that we don't have to do anymore.
Speaker 2: So I mean, listen, different things work for different people, right. However,
Speaker 2: now we have so much technology, so I use quick
Speaker 2: books with my clients. So quick books has different different
Speaker 2: levels of you may have self employed. As more complex
Speaker 2: as your business becomes, you have different options. I suggest
Speaker 2: getting like quick books, QuickBooks essentials at minimum, because when
Speaker 2: you have quick books, it does a few things. One,
Speaker 2: you're able to sink your bank accounts, so now it's
Speaker 2: not a situation where your business bank account not your
Speaker 2: personal I have so many people that come to me
Speaker 2: and their personal accounts are connected, personal credit cards are connected,
Speaker 2: their husband's accounts. I'm like, why is all this stuff
Speaker 2: in your business account? This is not business right, and
Speaker 2: so your business account should be connected to QuickBooks. What
Speaker 2: happens is that your transactions automatically sinking. You then go
Speaker 2: in and then you categorize all of your expenses, saying, okay,
Speaker 2: this went here. You know this is meals, this is travel,
Speaker 2: this was supplies, this was repairs, and then what other
Speaker 2: feature QuickBooks have that I love Because I'm bad. I'm
Speaker 2: not as organized as Rashad is with his envelopes. So
Speaker 2: for me, I have receipts everywhere. They're in my purse,
Speaker 2: in my pocket, it they're everywhere. So to for a
Speaker 2: solution for that, I started taking pictures of my receipts,
Speaker 2: because even if you hold onto receipts, receipts crumble, they fade,
Speaker 2: and I feel like that's like I felt set up.
Speaker 2: I'm like, well, I kept my GUS receipt but it's
Speaker 2: nothing on this receipt. And so what I started doing
Speaker 2: was taking pictures of the receipts, and quick books allows
Speaker 2: you to attach the receipt to the transaction, so now
Speaker 2: you don't have to worry about, you know, keeping anything
Speaker 2: like on hand, and now it can be like a
Speaker 2: total like virtual process. And so it's just like a
Speaker 2: total virtual process, and it does make a difference. While
Speaker 2: I have some clients who try to, you know, do
Speaker 2: it Excel, and that's fine, whatever works for you, I
Speaker 2: don't recommend it because as a business owner, you have
Speaker 2: enough hats to wear. The last thing that you need
Speaker 2: to do is come in every day to say this
Speaker 2: money came in. I spent this money on something that's
Speaker 2: already being recorded in your bank account anyway. So you
Speaker 2: have to get a system in place, and that's important.
Speaker 2: So bookkeeping is the foundation I tell clients, and I
Speaker 2: go back to it all the time, because even when
Speaker 2: it comes to filing your taxes, people don't understand that
Speaker 2: bookkeeping is really a requirement. They don't look at it
Speaker 2: as a requirement because the irs isn't explicitly saying you
Speaker 2: need bookkeeping. But what happens when you're audited, they need
Speaker 2: the following things. They're going to ask you for your
Speaker 2: bank statements. You cannot just provide receipts alone. Cannot just
Speaker 2: provide bank statements alone. So what they're going to look
Speaker 2: for is your bank statements. They're gonna want receipts, they're
Speaker 2: also gonna want your general ledger and your trial balance.
Speaker 2: In what your general ledger and trial balance is, which
Speaker 2: if you have quick books, it'll be an easy download
Speaker 2: for you. Your general ledger is pretty much your detail
Speaker 2: of your transactions. So let's say if you say, you
Speaker 2: know what, I had ten thousand dollars of travel, that's
Speaker 2: gonna show that one line item shows up on your
Speaker 2: trial balance travel, but said ten thousand dollars ten thousand dollars.
Speaker 2: Now in your general ledger, that's going to show all
Speaker 2: of the like what makes up that ten thousand dollars,
Speaker 2: So the hotels, the flights, the meals while you were there,
Speaker 2: and so you have to think about it's really a
Speaker 2: requirement because if you're audited, the iris want all of
Speaker 2: those things. They want to know what made up that
Speaker 2: line item You reported it on your tech you reported
Speaker 2: ten thousand dollars of travel, what makes that up. Okay, cool,
Speaker 2: you said you had some hotels, you had some flights, Okay,
Speaker 2: where does that show up on your bank statement? You
Speaker 2: said the flight was seven hundred dollars. What does the
Speaker 2: seven hundred dollars show up on your bank statement? Okay, cool,
Speaker 2: it's showed up on your bank statement. Still not enough.
Speaker 2: We still need to see the receipt, right, So you
Speaker 2: need all of those things. And then a step further.
Speaker 2: It provides insight. You don't really know, as I mentioned,
Speaker 2: where you're profiting. You know what's your profit margin, if
Speaker 2: you're doing business for free, if you need to increase
Speaker 2: your prices, you don't have that insight without having those numbers.
Speaker 2: And then final step, I can't text plan for clients
Speaker 2: that do not have bookkeeping because if I don't, if
Speaker 2: you don't know where you are, I can't help you
Speaker 2: because I can't tell you what adjustments need to be
Speaker 2: made because you don't know where you are. So without
Speaker 2: having that foundation, it's like it's so bad for your business.
Speaker 3: Word Otherwise I would say, if you're on quick books,
Speaker 3: if you're not check every month, right, because yeah, when
Speaker 3: it gets to like no November and you're looking at
Speaker 3: uncategorized purchases in February, it's going to be tough to remember,
Speaker 3: so I would suggest looking every month.
Speaker 5: Also, go through your pictures. That helps a lot.
Speaker 3: So like if you go through your pictures and you're like, wait,
Speaker 3: February fifth, where was I Oh wait, I was.
Speaker 5: Here, I was in Miami. Oh we had dinner, it
Speaker 5: kind of helps you with that as well.
Speaker 2: Okay, that's your strategy. That's how you answer those uncategorized transactions.
Speaker 3: For me, exactly, yeah, but it helps because like, oh,
Speaker 3: wait that we were there. Now I can explain this purse.
Speaker 3: This makes sense, So it falls in line.
Speaker 5: So at what.
Speaker 2: Point strategy should we be thank you?
Speaker 6: Oh?
Speaker 3: At what point should we say, you know, I can
Speaker 3: do this myself. I need to hire somebody to do
Speaker 3: my quick books.
Speaker 2: Two things that you have to consider. You have to
Speaker 2: consider your capacity and you have to understand the person
Speaker 2: that you are. So what I mean by that is
Speaker 2: what is your capacity? When you first start out in
Speaker 2: your business, you are going to be wearing nine million
Speaker 2: different hats. So you are in marketing, you are in finance,
Speaker 2: you are the CEO, You're in product, you're in shipping,
Speaker 2: you you're everywhere, right, and so you have to consider
Speaker 2: as your business starts and it grows, what stays with
Speaker 2: you versus what you can outsource. Because where you put
Speaker 2: your energy, that's where it's going to pretty much flow.
Speaker 2: And so if you're putting your energy into bookkeeping, your
Speaker 2: finances may be right, but guess what your marketing may
Speaker 2: not be or your you know, the operations of the
Speaker 2: business may not be. So you have to understand what's
Speaker 2: pulling you away. And people underestimate bookkeeping in terms of
Speaker 2: the amount of time that it takes in order to
Speaker 2: be organized, and so it's so important to just consider that. Right,
Speaker 2: first thing you have to consider is Okay, do I
Speaker 2: need to be doing this or should I be hiring
Speaker 2: somebody to do this?
Speaker 5: Right I get the email, I'm thinking.
Speaker 4: That, yes, let's let's switch topics for a minute, because
Speaker 4: this is something that a lot of people will want
Speaker 4: to know. How to buy assets in your business name?
Speaker 4: What's what's the deal with that?
Speaker 2: So buying assets in your business name, you have to
Speaker 2: make sure. So first thing that you need in order
Speaker 2: to buy assets in your business name is a business
Speaker 2: bank account, right foundation, And this is what I am
Speaker 2: stressing going forward. I used to be so nice like,
Speaker 2: oh no, you know, made people feel like it was
Speaker 2: an option. It's not an option. If you're gonna thrive
Speaker 2: and you're gonna make this decision to be a business owner,
Speaker 2: you have to do what you need to do. So now,
Speaker 2: buying business in your I mean buying assets in your
Speaker 2: business name is it's amazing, right, And I love it
Speaker 2: because it's more so shifting what would typically be a
Speaker 2: personal expense and then shifting it over into your business.
Speaker 2: And so whenever you have not whenever, but most of
Speaker 2: the time, when you have an asset, you have some
Speaker 2: sort of you know, interest, because you have a loan,
Speaker 2: you can if it's personal, let's just use a Let's
Speaker 2: use a vehicle, right, because everyone loves to write off
Speaker 2: your vehicles. Jay, Remember they remember the six thousand pound roll,
Speaker 2: right that was actually about a year ago. All right,
Speaker 2: So let's talk about a vehicle. Typically, it will be
Speaker 2: your personal vehicle. You'll be paying your cardinal or your lease,
Speaker 2: your insurance, your registration, your repairs, your maintenance, everything. If
Speaker 2: you're paying it on your personal side, it would just
Speaker 2: be coming out of your personal checking account or credit card.
Speaker 2: But if it's a now, a business expense. What happens
Speaker 2: is that now you're able to write those things off,
Speaker 2: and so everyone wants to do it. But now let's
Speaker 2: talk about how you can do it. So the first
Speaker 2: thing that you want to make sure of is that
Speaker 2: you have your business bank account because lenders, again, when
Speaker 2: you go to a lender, the only thing they want
Speaker 2: to know is how are you going to pay them back?
Speaker 2: So they want to make sure that you have money
Speaker 2: coming into your account. They want to make sure that
Speaker 2: you have money going out of your account, right, and
Speaker 2: then not make sure that you have money going out
Speaker 2: of you account, but see what you're spending money on
Speaker 2: when it's going out of your account, and so that's
Speaker 2: pretty much their way to analyze what's happening. Another thing
Speaker 2: that they are going to want to see are your taxes,
Speaker 2: so they want to make sure that you can again
Speaker 2: afford to pay them back. So what exactly did you report?
Speaker 2: They will also want to see a current profit and
Speaker 2: lost statement. So let's just say right now, it's January
Speaker 2: twenty twenty two. The last tax return that was filed
Speaker 2: was twenty twenty, Right, we're gearing up to file twenty
Speaker 2: twenty one. You may say to them hey, yeah, I
Speaker 2: have my twenty twenty taxes. They're gonna say, okay, well
Speaker 2: I need a profit and loss bookkeeping. I need a
Speaker 2: profit and loss statement and a balance sheet. So that way, yeah,
Speaker 2: so that way they want to see those financials, So
Speaker 2: that way they can see what activity happen in twenty
Speaker 2: twenty one, because they still need to make sure that
Speaker 2: you didn't dissolve the business or you know, for whatever reason,
Speaker 2: it isn't operating this same and so they're going to
Speaker 2: pretty much want an update. So those things are going
Speaker 2: to be extremely important in some cases, when you are
Speaker 2: buying an asset in your business name, you also want
Speaker 2: to consider the You also want to consider if you
Speaker 2: have to be like a personal guarantee I'm sorry, personal
Speaker 2: guaranteur to the loan or if it's something you know
Speaker 2: your business can handle it. And so you have to
Speaker 2: think about all those things. And that's pretty much the
Speaker 2: things that you're gonna they're gonna look at.
Speaker 3: So, I mean, when you have to be a personal guarantee,
Speaker 3: that has to do with how old or how long you've.
Speaker 5: Been in business.
Speaker 3: Right, So, at one point, because a lot of people saying,
Speaker 3: you know what, I heard that rule I got a business,
Speaker 3: I just opened it.
Speaker 5: I'm gonna go use my business to get this car.
Speaker 5: But there's a time frame that you do.
Speaker 2: There's a time frame business for yes, and every lender
Speaker 2: has a different timeframe. But typically what I see is
Speaker 2: that they're looking for you to be in business for
Speaker 2: three years or more, and they would be looking for
Speaker 2: at minimum one year of tax returns, but in most
Speaker 2: cases they'll ask for two years of tax return and
Speaker 2: of course, like your most like six months of bank
Speaker 2: statements because they want to see they want to get
Speaker 2: a full picture of what's happening.
Speaker 4: So and then the financial statement P and L. People
Speaker 4: hear about like P and L a lot, Like what
Speaker 4: is P and L? And you know what's the importance
Speaker 4: of having profit and law statements? Financial statements?
Speaker 2: Yes, so financial statements are very important because it tells
Speaker 2: the story of your business. I tell clients all the time,
Speaker 2: I really don't have to have a conversation with you
Speaker 2: if I take a look at your financials, I can
Speaker 2: kind of see exactly what's happening, right, because you'll start
Speaker 2: to see like a cause and effect. As an example,
Speaker 2: you may be doing more marketing in this particular month
Speaker 2: and your sales are going to be up. Now with
Speaker 2: a profit and lost statement. That is really just the
Speaker 2: statement that captures your revenue and your expenses. So that's
Speaker 2: important because you need to understand how much your business
Speaker 2: is profiting. That's going to tell and that is like
Speaker 2: the most That is the number one financial statement requested
Speaker 2: by lenders on a consistent basis. I think my office
Speaker 2: phone rings on a daily because people are like, I'm
Speaker 2: going for a house, some of they want a profit
Speaker 2: in law statement. I'm going for you know, some equipment,
Speaker 2: and they want a profit in law statement. That's because
Speaker 2: they want to know are you profiting? That's typically what
Speaker 2: that statement. That's what that statement is telling lenders. Are
Speaker 2: you profiting or are you operating at a loss. So
Speaker 2: it's going to report your revenue, your money in and
Speaker 2: your money out, your expenses. Now you're a balance sheet.
Speaker 2: The balance sheet is not talked about enough, but it
Speaker 2: is very important and also important to lenders because you
Speaker 2: could be making a profit and I know you guys
Speaker 2: talk about this and sort of health of companies and
Speaker 2: you know on market mondays. The balance sheet is an
Speaker 2: important statement as well because when you are looking at
Speaker 2: you need to know how much cash, Like lenders want
Speaker 2: to know how much cash do you have in the bank?
Speaker 2: Investm may want to know, right, it's not only lenders.
Speaker 2: If you are going to someone saying that you want
Speaker 2: them to invest in your business, they are going to
Speaker 2: want to know how much cash do you have in
Speaker 2: your bank? How much liability do you have? These assets
Speaker 2: of reliabilities, you guys are really like the balance sheet. Okay,
Speaker 2: so when you think of it's.
Speaker 4: An account, it's actually an accountant slogan.
Speaker 2: Yes it is.
Speaker 4: Everybody sees it like are you accounting? Are you an
Speaker 4: account Nobody ever, really, you know, ever thought about like
Speaker 4: put But the ironic thing about that is that when
Speaker 4: I came up with the idea as is of reliabilities,
Speaker 4: I didn't necessarily know that that was so popular in
Speaker 4: the accounting world. Oh yeah, I just thought that that
Speaker 4: was a good slogan. But it is like, yeah, like
Speaker 4: what we go by, it's an accounting term. But it's
Speaker 4: so crazy that that's nobody ever thought about putting it
Speaker 4: out there like that, like you. But every time somebody
Speaker 4: always says are you an account here, I feel like
Speaker 4: it's like an underworld society because their accounting.
Speaker 2: Yeah, because that's what shows up on the balance sheet.
Speaker 2: Your assets, so your cash, your stocks, your real estate
Speaker 2: if you have if you know you're in the business
Speaker 2: of real estate, what your bonds, your account's receivable. So
Speaker 2: if anybody owes you money, right, that's what's gonna sit
Speaker 2: under your asset section, your liability section. If you owe somebody,
Speaker 2: the banks want to know I'm giving this person money.
Speaker 2: Who else do they owe? So that's important because if
Speaker 2: you have high revenue, but then you have high liability,
Speaker 2: technically you know you may be operating at a loss
Speaker 2: almost right if you pay these people back. Another thing
Speaker 2: that everyone is always so crazy about, you know, people's
Speaker 2: net worth. That's pretty much how you calculate somebody's net worth.
Speaker 2: You take their assets, you might as see liabilities. You
Speaker 2: also are going to take in you know, to consideration
Speaker 2: their equity and then that's how you get to the
Speaker 2: their net worth. And so yep, all right.
Speaker 3: So when we spoke about personal guarantory, that speaks to
Speaker 3: not having business credit. And so how does one build
Speaker 3: business credit if we just started our business, Like, what's
Speaker 3: the process or some steps we can take?
Speaker 2: So steps that you can take when first outing a
Speaker 2: business as we spoke about before, is that one you
Speaker 2: can leverage your personal credit to then help you build
Speaker 2: your business credit. So acting as that personal guaranteur for
Speaker 2: your business credit cards, for line of credits that is,
Speaker 2: that is like the easiest way to get approved starting out,
Speaker 2: Before you establish any sort of business credit. The second
Speaker 2: thing that you want to do is start some trade lines.
Speaker 2: So those tier one trade lines like quill and staples
Speaker 2: and you know gas cards, those are really good ways
Speaker 2: to start building your credit, your business credit. You want
Speaker 2: to make sure that whomever you're building trade lines with,
Speaker 2: and it's pretty much what you'll do is create like
Speaker 2: net thirty accounts or net sixty accounts, and what that
Speaker 2: really just what that means is that they're going to
Speaker 2: supply you a product and then you're going to pay them,
Speaker 2: but you know within thirty days, right, Once you pay
Speaker 2: them within thirty days, they will then report that to
Speaker 2: dune in Bradstreet, right. And so that's important because just
Speaker 2: like with your personal credit, you want to build up
Speaker 2: that history. When starting out, I would order stuff from
Speaker 2: Quote all the time because I needed I needed to
Speaker 2: build my business credit. I didn't need all those supplies.
Speaker 2: I would like have like big dish detergent in my house, right,
Speaker 2: But I did it because, yeah, it came in a
Speaker 2: bigger bulk, but it was something that I was going
Speaker 2: to use anyway, So instead of going to you know,
Speaker 2: a local store to buy it, I just ordered it
Speaker 2: there and they were able to report to my to
Speaker 2: Dune and Bradstreet that I was making those payments on time.
Speaker 4: So there you have it. So that's a whole lot
Speaker 4: of game. We can keep going on and on and on.
Speaker 2: We can, you know, So.
Speaker 4: Let me ask you this switching gears because you know,
Speaker 4: when you go to business school and one of the
Speaker 4: things that people always ask about is like, how do
Speaker 4: I put together business plan? What happens is that nobody
Speaker 4: really ever puts together business plan. One of the reasons
Speaker 4: why they actually end up failing in business. And most
Speaker 4: of the time most businesses fail because they're not properly
Speaker 4: prepared all of this stuff that we talked about, but
Speaker 4: this is only like the chip of the iceberg. There's
Speaker 4: so much stuff, and it's like, you know, unfortunately, if
Speaker 4: you don't come from a situation where the businesses passed
Speaker 4: down to you or you have a level of mentorship,
Speaker 4: you just start in a business. Most of us just
Speaker 4: start businesses. You're just learning. But the learning curve can
Speaker 4: take you out of business if you're not successful enough.
Speaker 4: So that's something that's vitally important. It's like this is
Speaker 4: one of the most important episodes because it's like the
Speaker 4: information that you have can make or break if your
Speaker 4: business is going to survive or not. And that can
Speaker 4: Who knows, your business could be a million dollar business,
Speaker 4: multi million dollar business, a billion dollar business, but if
Speaker 4: it never actually gets a chance to get to that point,
Speaker 4: it's going to be a failure. So you decided to
Speaker 4: actually put all of your years and expertise together and
Speaker 4: create an educational portal. So what made you get into
Speaker 4: the educational component?
Speaker 2: So I got into the educational space because, as I mentioned,
Speaker 2: as the accountant, I see a lot of things. I
Speaker 2: have access to everything, and what I realized is that
Speaker 2: so many people were starting businesses, but a lot of
Speaker 2: people were not operating successful businesses. And it wasn't as
Speaker 2: you mentioned, it wasn't because they didn't have million dollar
Speaker 2: and billion dollar ideas. We see the most basic things
Speaker 2: become billion dollar ideas, and it's not because they don't
Speaker 2: have great ideas, but the execution isn't there, the resources
Speaker 2: isn't there, the understanding of what's necessary to actually build
Speaker 2: a business. I had, you know, the opportunity of being
Speaker 2: a part of a small business since I was six
Speaker 2: years old, right, So for me, I got that small
Speaker 2: business side and just really understanding like what it took
Speaker 2: to start a business, and then go in corporate understanding
Speaker 2: what corporations we're doing to operate their business their business.
Speaker 2: And so I love business. If it's one thing, I
Speaker 2: just love business, like I that's gonna be my thing forever.
Speaker 2: And so I wanted to get into the education educational
Speaker 2: space because I knew that people didn't understand how to
Speaker 2: operate businesses. And so it's cool that everybody's starting a business,
Speaker 2: but I want everybody to actually create and operate sustainable
Speaker 2: businesses that they're profiting and they're able to build, you know,
Speaker 2: this generational wealth because most of the time that is
Speaker 2: the foundation one. You first have to get the money in.
Speaker 2: So now that you get the money in your business,
Speaker 2: then you can take it and invest it and you know,
Speaker 2: then take it, you know, to that next level. And
Speaker 2: so it's important we are no longer in twenty twenty
Speaker 2: two and beyond. Twenty twenty two is Year of the bosses, Right,
Speaker 2: we are bossing up, we are doing the things that
Speaker 2: we need to do, and I want it to just
Speaker 2: be that person. Very similar to how it was with taxes.
Speaker 2: I'm like, yeah, nobody's talking about taxes. We have to
Speaker 2: make it a part of the conversation. And so now
Speaker 2: I'm like, we have to make business, like real business
Speaker 2: a part of the conversation.
Speaker 4: So you came up with the business blueprint. What is
Speaker 4: the business blueprint?
Speaker 2: The business blueprint is pretty much taking your idea and
Speaker 2: helping you execute it. So inside of the business blueprint,
Speaker 2: we're going through deciding your business name, marketing, funding. We're
Speaker 2: also talking about dissolving your business, taxes, financial statements, bookkeeping, hiring, payroll, HR,
Speaker 2: We're talking about everything, buying assets in your business name.
Speaker 2: And the best thing about it is that I've brung
Speaker 2: experts in to talk about so many of these topics. Like, yes,
Speaker 2: I took care of the you know, the business stuff
Speaker 2: and the tax thing when it came to like, you know,
Speaker 2: we have an HR expert. You know, we have we
Speaker 2: have so many people in this course and they were needed.
Speaker 4: You know, a lot of them, you know a lot
Speaker 4: of you know, it's very similar to like when I said, Matt,
Speaker 4: he created the encyclopedia for real estate with the Homeboys blueprint,
Speaker 4: And when I got a chance to just check out
Speaker 4: the blueprint that you created for business, and I had
Speaker 4: never seen anything like it as far as you know,
Speaker 4: I just wrote down some notes where you have the execution, contracts, trademarks,
Speaker 4: going over business credit, business insurance, budgeting, taxes, marketing, hiring, payroll, retirement.
Speaker 4: It's like, you know, being when I was in the
Speaker 4: financial advising world. You know, people used to pay to
Speaker 4: get business plans put together. In that business plans anywhere
Speaker 4: from like two thousand to five thousand dollars for a
Speaker 4: good business plan for somebody to like put it together
Speaker 4: for you. So I had never seen anything. And that's
Speaker 4: just the business plan. That's not really the retirement part
Speaker 4: of it. That's not the payroll, that's not all of
Speaker 4: the different stuff. So it's literally the only equivalent I
Speaker 4: could really give is like going to college. It's like
Speaker 4: going to college, like if you could wrap four years
Speaker 4: business school together, and.
Speaker 2: It's like getting your MBA. This is like the NBA
Speaker 2: for small business.
Speaker 4: It's No, it definitely is. It's an online NBA program
Speaker 4: for sure, without you know, actually having to go for years,
Speaker 4: four years painting one hundred thousand dollars and taking our
Speaker 4: student loans and things of that nature. And you also
Speaker 4: have a workbook attached to it. So that's like really academic.
Speaker 4: So talk about this, talk about the work I.
Speaker 2: Was not doing this course without adding some sort of
Speaker 2: business plan and something that people can leave the course with.
Speaker 2: As you mentioned, business plans can cost from two thousand
Speaker 2: to five thousand dollars. But they're just telling you, okay, well,
Speaker 2: this is how you get started, this is what you
Speaker 2: can look forward to, right, But it's not giving you
Speaker 2: those experts and making you really think through all of
Speaker 2: these different topics. And so the workbook pretty much is
Speaker 2: going to be like a guide, a hand by a
Speaker 2: side by side, a tool that can be used with
Speaker 2: the course. So as you're going through the course, you
Speaker 2: have to complete the workbook. So as you're completing the workbook,
Speaker 2: once you're done with the course, then guess what you have?
Speaker 2: You have a business plan, So you don't need to
Speaker 2: hire somebody to do your business plan, because as you're
Speaker 2: getting all this information, you're now going to be able
Speaker 2: to write all the things down. You also have contacts,
Speaker 2: like I made sure every single person that was in
Speaker 2: this course gave the blueprint, so they gave the blueprint
Speaker 2: to their industry. You now have those people as a resource,
Speaker 2: so you don't have to worry about oh my god,
Speaker 2: I want it, like I need contracts. Who can I
Speaker 2: hire to get a contract? Nope, you have their contact
Speaker 2: right and so that's worth more than that's eliminating mistakes, Yeah,
Speaker 2: and mistakes cost in business.
Speaker 5: No one plans to fail, they just fail the plan.
Speaker 3: So that's pretty ill that you have an actual business
Speaker 3: plan when you complete the course.
Speaker 4: You also put together all star lineup where you have
Speaker 4: people talking from the car industry how to buy cars
Speaker 4: in your name. You have people from marketing industry talking
Speaker 4: about marketing. You have the business lawyer talking about you know,
Speaker 4: the aspects of that as far as actually doing it
Speaker 4: right the legal way. Of course, our good friend and
Speaker 4: our lawyers. Sabine contributed to it, Connie Falls contributed to it,
Speaker 4: and I contributed to it as well.
Speaker 2: Yeah, Yeah, contributed to it.
Speaker 6: Yeah.
Speaker 4: I talked about some retirement planning, talked about buy sell
Speaker 4: agreements and yeah, I have a whole section in there,
Speaker 4: so you know, it's an amazing body of work. And
Speaker 4: once again, you know, it's something that I don't want
Speaker 4: people to necessarily look past it because yeah, it's easy
Speaker 4: to go to like, Okay, this is a course on
Speaker 4: how to make money on stocks. This is a course
Speaker 4: on how to do four x with that's exciting, but
Speaker 4: it's like, if you're starting a business, literally literally, people
Speaker 4: pay hundreds of thousands of dollars. I'm not I'm not
Speaker 4: over exaggerating that, Like if you go to any top
Speaker 4: business school, that's how much you want to pay. At
Speaker 4: least a couple hundred thousand dollars and even bigger than that.
Speaker 4: Not knowing the mistakes can cost you hundreds of thousands
Speaker 4: of dollars, millions of dollars, who knows, even a billion
Speaker 4: dollars if your business isn't successful. So you know that actually,
Speaker 4: like I said to actually, you know, spend some time
Speaker 4: on the course and actually go through the course myself.
Speaker 4: I was just amazed that, you know, somebody can actually
Speaker 4: put together that much information. Like what we just did
Speaker 4: in this podcast was an hour of the course. I
Speaker 4: believe it's fifteen hours, so imagine that fifteen times. What
Speaker 4: a workbook. So thank you for putting that together. First
Speaker 4: and foremost, you're welcome. And then also in true eyl
Speaker 4: f ash, you know, anybody that has of course, because
Speaker 4: I invested in my education all the time. But one
Speaker 4: of the you know, prerequisites for anybody that comes on
Speaker 4: that has a course, we always you know, asks if
Speaker 4: they would do a deeper discount than what they're currently
Speaker 4: offering for all the earners, anybody that watches the podcast,
Speaker 4: and that's something that's exclusive where nobody else on the
Speaker 4: market has that price. We try to do that as
Speaker 4: an incentive. So you were gracious enough to oblige for
Speaker 4: that voice, So we got one thousand dollars off of
Speaker 4: the regular price. So the website is ms B the
Speaker 4: letter B Blueprint eyl dot com. That's ms B blueprint
Speaker 4: eyl dot com. Will put the link in the description
Speaker 4: of this video and then on Spotify and Apple and
Speaker 4: then also it'll be on our website on the alumni tap.
Speaker 4: But that's the only website that will have that special
Speaker 4: thousand dollars off. And once again that includes the four
Speaker 4: modules that includes everything from the idea to execution, the contracts,
Speaker 4: the trademarking information, the business credit information, the business insurance
Speaker 4: information and retirement planning information, the budgeting for your business
Speaker 4: information and taxes, the marketing, the payroll, all of that,
Speaker 4: and the workbook as well.
Speaker 2: The workbook it has a six figure of blueprint. It
Speaker 2: has a seven figure blueprint, right because as you're starting
Speaker 2: your business, most people are thinking, hey, I need to
Speaker 2: make seven figures, but hey, let's first get you the
Speaker 2: six figures. So now that you've got your six figures,
Speaker 2: then it also has a blueprint because what it took
Speaker 2: for you to make one hundred thousand and processes, the anxiety,
Speaker 2: you're gonna have to deal with some different things to
Speaker 2: get to seven figures, right, and so it also includes that.
Speaker 2: So we also talked about talk about funding in there,
Speaker 2: like there's a funding lesson and so it's literally everything
Speaker 2: that you need from A to Z as it relates
Speaker 2: to business.
Speaker 4: Better than college, way.
Speaker 2: Better than college. I went to business. I went to
Speaker 2: college study business. None of these things.
Speaker 4: Were yet telling if you don't if you don't know
Speaker 4: what you're doing, you're not going to be successful. I
Speaker 4: know that because I'm a business owner. I've been a
Speaker 4: business owner my whole life, well my whole adult life
Speaker 4: started businesses. Some businesses work, some businesses didn't work. And
Speaker 4: the ones that didn't work is because you know, you
Speaker 4: didn't have a plan and strategy in place and didn't
Speaker 4: know what we were doing. And even the ones that
Speaker 4: did work still made a lot of mistakes because you
Speaker 4: didn't know what we were doing. Just fortunate enough to
Speaker 4: get through those mistakes. But but before we leave, let's
Speaker 4: give let's give a couple more gym before we wrap up.
Speaker 4: You want to talk.
Speaker 3: About Yeah, so in true EUIO fashion, right, people had
Speaker 3: to six thousand pound, So let's give them something that's
Speaker 3: new for twenty twenty two. As far as taxes, I
Speaker 3: want to talk about payment processes third parties, specifically paid.
Speaker 2: Packs one hundred dollars cash out.
Speaker 5: Vimeo is a big thing that has changed. Let's talk
Speaker 5: about that.
Speaker 2: Okay, So starting January twenty twenty two, I know there
Speaker 2: was a lot of speculation, but what they have settled
Speaker 2: on is that any payments that goes through payment process
Speaker 2: at third party payment processors in excess of six hundred
Speaker 2: dollars or more, you will be receiving a ten ninety
Speaker 2: nine K. So this is so important. And this is
Speaker 2: such a huge change because previously the benchmarks or the
Speaker 2: thresholds was if you made if it was two hundred
Speaker 2: transactions or twenty thousand dollars. That's now six hundred dollars.
Speaker 2: That's a big jump and a big difference, you know.
Speaker 2: So there will be a lot of ten ninety nine
Speaker 2: ks coming in the mail next year. So keep in
Speaker 2: mind January twenty twenty two is when this went into effect.
Speaker 2: Twenty twenty one, it doesn't go into effect. It's still
Speaker 2: the two hundred dollars, I mean the two hundred transactions
Speaker 2: or twenty thousand dollars. But yeah, this is a game
Speaker 2: changer because a lot of people was not reporting a
Speaker 2: lot of the money and funds that they were receiving.
Speaker 2: And so now and keep in mind it is six
Speaker 2: hundred dollars total, not six hundred dollars transactions, because I
Speaker 2: get that question all the time.
Speaker 3: So if you put something on sale and it's two
Speaker 3: hundred dollars, once that goes over three.
Speaker 5: Sales, you gotta start reporting. Yeah, So the government wants
Speaker 5: to make sure that they get all their money.
Speaker 2: They want to make sure they are not playing with
Speaker 2: this digital money they're like, wait, hold up, we do
Speaker 2: not have a holdover like a hold on this. And
Speaker 2: one more thing, because I know that you guys are
Speaker 2: like big in crypto. The irs is getting their hands
Speaker 2: wrapped around crypto as well. In twenty twenty one was
Speaker 2: the last year that washed sales was available, I mean
Speaker 2: was possible for crypto. So for those of you who
Speaker 2: are not familiar with what washells is when you sell
Speaker 2: a stock and then rebuy a stock right and then
Speaker 2: be able to recognize that loss. And so in twenty
Speaker 2: twenty one, that was the last time that you could
Speaker 2: do that. Now going forward, wash shells are not not
Speaker 2: possible with crypto.
Speaker 5: Stuff go with so volatile that that could happen.
Speaker 2: Yeah, that could happen, Like you could be they could
Speaker 2: be December twenty fifth, you could be like, you know what,
Speaker 2: it just dropped. I'd have a loss. I'm going to
Speaker 2: you know, sell it, recognize the loss, re buy it,
Speaker 2: you know, January first, you know, just rebuy it a
Speaker 2: few days later. And so that that's a big one.
Speaker 2: That's a big one because a lot of people were
Speaker 2: offsetting a lot of their gains with those losses and
Speaker 2: then just picking up the picking up whatever coin it
Speaker 2: was in a few days, but now that's no longer possible.
Speaker 4: So there you have it, Ladies and gentlemen, whole lot
Speaker 4: of game Jeff, definitely a lot, a lot of gems,
Speaker 4: a lot of gyms. How can the people contact you?
Speaker 4: What would you like to tell the people before we wrap?
Speaker 2: So before we wrap, I want to tell the people
Speaker 2: that twenty twenty two, start your business, start it the
Speaker 2: right way. It is important. We are no longer okay
Speaker 2: or content with just having LLCs. No, we are starting
Speaker 2: profitable businesses and so do the work. Hire who you
Speaker 2: need to hire, get the education, and do what you
Speaker 2: need to do. That's like my theme, like going forward,
Speaker 2: no more babysitting it right. So that's what I want
Speaker 2: to leave you all with. In regards to contacting me,
Speaker 2: my it's business Miss Business one on one, on Instagram,
Speaker 2: in all platforms, so follow me, send me a DM,
Speaker 2: you can always email me. My website is miss Business
Speaker 2: one on one dot com, so you can always reach
Speaker 2: me through any of those platforms.
Speaker 5: Make make sure you tell it that you're an earner.
Speaker 2: Love, make sure you tell me that you are earner.
Speaker 2: I have Oh my god, we were just talking about it.
Speaker 2: I'm like, oh my god, I have you know, the
Speaker 2: earnest call and they're like, I'm an earner. I'm like,
Speaker 2: all right, you guys are VIP. Listen. If you are earner,
Speaker 2: you are VIP. So don't even worry about it.
Speaker 4: Reach out there, you have it. There, you have it,
Speaker 4: and don't forget MSB blueprint eyl dot com for the
Speaker 4: special price on the business blueprint. Everything you need to
Speaker 4: know idea. It's the execution and get the business up
Speaker 4: and running, profitable and taking it to the next level.
Speaker 4: Troy Housekeeping item.
Speaker 3: Yeah, man, shout out to all our Patreon remember the
Speaker 3: shout out to ey University, all our earners that are
Speaker 3: in there.
Speaker 5: Shout out to the merse team and shout out to you.
Speaker 3: This is episode number two, which now means that just
Speaker 3: let him in jacket or maybe let him in sweater
Speaker 3: card again. Yes, yeah, I mean, I mean not many
Speaker 3: people have two episodes or earning leaders.
Speaker 5: So thank you. Appreciate for coming and giving so much game.
Speaker 5: We appreciate you.
Speaker 2: Thank you for having me.
Speaker 4: Yeah for sure. So there you have it, ladies and gentlemen,
Speaker 4: take execution. Let's make this year great. Thank you for
Speaker 4: rocking orders. We'll see you next week.
Speaker 2: My graduates from my school being force back.
Speaker 4: Drop bag drop drop droft.
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