You have no idea how much you have helped me. I took notes on paying myself, calculated my expenses,took a leap of faith and I now work exclusively for myself. Look at God.🙌🏾
I started my photography business not knowing much about the different types of businesses out there and what they meant in depth. After looking into real estate and reflecting on my journey as a freelance photographer I realized that I'm a sole proprietor. With my first wedding this year and after learning the different types of business I really wanted to create some speration beyween myself & my buisness while I am atill a sole proprietor. And one of my big questions was how do I pay myself and take out Uncle Sam's cut? And you've answered that in full!! This has been superhelp!! Up until now I was using my funds as an ATM because I wasn't making over $100 a shot. I was still getting my feet wet. Now, I see I can amount to much and that people expect something from me and like my work. Thus it makes me want to do better and you've done nothing but aid me in this process.
I use one account for everything but I log all expenses in a spreadsheet. This includes everything for the business, and personal. For me it works because of the way I earn money only gets deposited once a month. I also have no business expenses because I already owned my equipment before starting.
Another informative video. This is particularly useful for my business as it's my very first year in business and I'm still learning along the way. Thank you for all you do and the invaluable information you continuously provide.
So happy to have found you. I am going to even listen to this ads so you get what you deserve to be paid some how to keep helping us. I am new to biz and see how you can help me!!! Thank you Jesus young beautiful lady!! God sent angel! May He bless you abundantly.
Thank you for this video! I am taking my business up a notch but want more of an understanding of how to run it correctly. There's so much info out there, you did a great job at explaining clearly.
I'm saving this video to watch it over again. It's perfect. No one has explained this as clearly. I recently read the book Profit First and it has a similar idea except it only says 15% for taxes. I'm guessing you say 30% because when you pay quarterly and yearly at once it would be 15% + 15%. Am I right?
Thanks for the information that you share with us, I'm just thinking about how to form my own business and you had provide me a lot of information. God bless you for sharing your knowlege.
When should home businesses reach out to tax professionals? Before they actually go into business or when they start making money? I’m launching in July! Thanks for all your help!
As a tax professional and as a lawyer, I recommend before you start your business so you can avoid problems. If you seek professional advice after you start making money, you might make mistakes that will cost more money to fix. It's cheaper to prevent the problem than to fix the problem.
Best darn video I’ve ever seen on this subject. Didn’t take 45 minutes either. Thank you! You confirmed what I already understood and answered on my mind. I do want to ask is there an operating agreement for sole proprietors like LLC, can you just that style or is it not needed. Thank you.
Thank you so much for this info!!!! You answered a question I’ve been thinking about lately, which is how much to pay myself. Look forward to more videos!
I’m starting a drop shipping t-shirt business and am in the process of setting up the biz as a sole prop. Could you talk about tips or best practices to track expenses and prepare for 2020 taxes for sole prop businesses?
I love your content! Subbed! I’m 28. I have an associate in accounting from a local community college. I had a daughter and been working at the Post Office but I’ve been thinking about going back to finish my degree and become a CPA. Is 28 too old to be trying to do this?
i consulted a CPA and he told me to be safe 35-40%. i live in MA. is this ballpark? im planning on running a marketing agency on my own as a DBA to start then hopefully moving to an LLC
This is the best advise I have seen in a long time. I am just starting a home based business and had so much conflicting info. I really like the way you present it. Great Job!!!! BTW do you do tax preparation?
Great points. love your personality!! I am a professional, agency signed model and as a result, I started a model coaching business to help aspiring models. I had an attorney set up an Scorp for myself and I have a separate bank account for that business as of a few months ago. When I get paid, I write myself a check from the business account and deposit it into my personal account. I have been depositing all work-related checks from my modeling agency (modeling jobs they book me on- I am 1099 with them) and then also monies earned from freelance clients who hire me to coach them, into that 1 business account. 1) **Does that all sound correct as the best method in terms of deposits (from 1099 agency and personal clients) into 1 business account for all earnings and payments?** 2) I will reserve 30% for taxes, 20% for operating since my expenses are low and paying myself the rest. 3) If you pay yourself lets say 30% is that from the ORIGINAL total, or is that 30% FROM the remaining 70%? What happens if at the end of the year I did not use all of the 20% for operating and some $$ is left over..is that a problem tax-wise? Is that the same concept of having leftover with taxes? I wanted clarity on the payment structure and your video came up in a search. I was on the right track but this was more of what I needed to get clarity on. Thank you so much. God bless!
Ok, so I'm really glad I watched your video.. I actually started being self employed back in July but I had all my money in my personal bank and I never set up a business bank until today. Finally going to separate everything as you suggested... is it too late?
About the commingling part, what if I don’t have a business account? Can I even qualify for a business account if I’m starting out with little to no money?
Just still confused on the actual rules for paying myself ik 30% goes to the side for tax but what percentage goes to my personal how do I pay myself so that I won’t overpay myself
Love the video! very informative. Question: If I pay rent for my apartment, but have a home studio that takes up a large portion of my living room should I pay my rent from my personal account or business account. Thanks, much appreciated.
I love everything you said. I am new to all of this and I did all the do-not’s lol not gonna lie. I wanna fix this. A little bit of what I do, I don’t get paid weekly. I get paid by service. So I could get paid some weeks, and not at all. (again, I am starting out!) So should I separate the 30% for taxes and income when I get paid for my services or should I just do it once a month and see how much I made in that month and do the separation? I already paid for the first 2 quarters of the taxes (that’s something I don’t mess with) so I am all set there. But I do want to make things right financially. Thank you!
Hello love i am so blessed that i have come across your channel. I have subscribed of course I have a question about the "leftover" money after separating the profits correctly. With the options for the "extra" money will i be able to open a HYSA or a trust? Also really quick is this email address still valid for a consult? (Oct, 2022)
really informative and clear video, thank you! I am wondering when we take that 30% for tax into other accounts to temporarily not touch, do you mean a personal checking or savings account? Will these transactions things unclear for the IRS / considered co-mingling?
I know a sole proprietorship can have more than one business and have multiple DBA's or fictitious names...I want to start a t-shirt business, but I want to have multiple brands for my t-shirts and keep them separate for example a Fishing t-shirt brand and a Hot Rod t-shirt brand. Is it possible to operate a sole proprietorship with multiple brands if I keep them separate with separate business accounts or are they to similar? thank you for the great videos.
Great video! I actually trying my hand at a designing business. It's just me. I am building my website, and need a business bank acc. That lead me here lol. Also, support to the small channel! I plan to be here to some day!
For the 30% put aside for taxes, that is only based on profit correct? So if in my first year of business I made $800 but I spent $1000 on expenses to get started, would I still owe taxes? Obviously the idea is to make more than you spend, but many business aren't profitable right away.
i will be doing ebay starting 2022 as a sole proprietor from my home (basically bedroom/living room)...i have a bunch of personal electroinics/computers that i have bought (saved) as well as collected for free over several years span. also, alot of the stuff i will be selling in ebay, will be stuff i will be getting for free from friends, familiy members, relatives, and free unwanted garage sell left over items. so the only expense/deductions/write offs i know of will be: mileage, business supply expenses (mailing tape, shipping boxes, etc?)..can my phone number associated with my ebay account, can that be used as a deduction/write off? is there any other expense that im missing that i can use as business expense/write off? thanks much for your great video.
Hey i just start a reselling online bussines will you recommend me to go as a DBA or sole-prep for now.also will i also need a business bank account?or can be a separated checking account and just live the 30%there every week when i transfer to my personal account?thank you so much
welllllll THANK YOU because i was about to start paying myself via payroll. So do i only pay quarterly tax on the buisness end? or on the money i paid myself too? also how does it work with paying sales tax? im going to start charging sales taxes on hair services
what Tax benefits do you get as your first year in business ? and is this first year the year you set up your business (file LLC or register a GC license)
You can deduct your expenses, but there are limitations. When you can deduct depends on when you start operating. Having a LLC is not necessary to deduct expenses. You can be a sole proprietor and get the same tax benefits. You just have to determine the structure that is best for you to start with.
Very good explanations! Quiestion: i trade stocks daily for income to pay my bills but im starting a new business (single member LLC). Instead of putting a bigger start amount on my business account, i would prefer putting a bit of money in monthy from my trading profits (the more money i can trade with the more profits i can make so i kinda need that money on my trading account instead of depositing a lot on my new business account where it would not make immediate profit). Is it considered commingling? After a while i wouldnt need to do this, just for like the first few months until the business starts to generate profit. Thank you 🙏
Hey Sister love what you have to say ! Question though. I am on commision with my new LLC. Some of my paychecks are 50$ and some are in the low 4 digit area. I need fuel because I am on the road sales. How do I take 30% out for tax and what should I pay myself? Say if I made 2-3 hundred that week? Also they pay me on a wisly pay card .Last time I transferred 1000 to my personal bank acct and I was charged 60 $ My personal acct in in another state because I have lots of other things tied into it so I can't just take it out with an ATM . What say you ?
You would generally just take 30% of what you make and set it aside for taxes for federal and self employement taxes. I would also suggest including an additional 3% to 5% for state taxes (if there is any). I would also suggest moving to another bank if your bank charges so much for transfers, and you should check and see if they can pay you via direct deposit, check, or some other means other than a pay card since its not that easy to transfer something from them to a bank. You might want to schedule a consultation with her though because it sounds like there is more to what youre saying.
Thanks for your video! Question. Our Governor here in KY is allowing Self-Employed/Sole-Prop to file unemployment due to COVID-19 and mandatory closings. How do I proof my salary? Thanks in advance!
Hi, this video was very informative. I have a question. I have products that I sell, is it recommended that I take 30% for taxes and to pay myself from each product?
When you take 30% out for taxes can we put it in a savings account and then at the end when it’s time to do taxes just take it out of that account? Or is it best to put it in a checking account?
