While many entrepreneurs are simply focused on making enough money to support their biz and pay themselves, you have graduated to the point where you have more than you know what to do with.
Great problem, sister.
However, you want to ensure that all the work you put into earning those dollars isn’t for naught. Excess cash in the bank isn’t a free pass to start upgrading to first class or renting out office space you don’t need.
It’s a chance to start building even more financial freedom for you and an opportunity to scale your income to the next level.
You want to know something I probably shouldn’t tell you as someone who’s an “expert” in this field?
I waited WAY too long to form an LLC for my business.
I started my company as we all do, in a whirlwind of ideas and social media marketing, trying to figure out how to create a website and attract clients.
And once everything was up & running, I was also up. And RUNNING.
At the start of 2019, I officially got official – I put on my big girl pants, registered for LLCs, and opened my FIRST EVER business bank accounts for both my real estate business AND Britt & the Benjamins. I now have so many debit & credit cards, I need two wallets.
However, while I wrote a post a while back telling you WHY you need to get a business bank account, I didn’t divulge the HOW, i.e. the laundry list of items to look for when you decide your business is ready to put on its big girl pants, too.
I would say that 90% of the questions I receive from entrepreneurs center around one thing: taxes.
And I get it. They are confusing. And always changing. And sometimes extremely boring.
Trust me, I’ve done hundreds in my lifetime. I should know.
Which is why I hopped on Instagram to ask you what your biggest tax question is, and girl, here are your answers:
If you’re anything like me, your world seems to reside in a state of constant movement. I work 50 hours per week at my full-time job, spend my spare time renovating properties or working on my business, and somehow manage to squeeze in time to pop a Stouffeur’s in the oven for the Keithster and I while we drink wine on the couch & catch-up on our day.
It’s like being the child of Olivia Pope & Leslie Knope in the best & worst kinds of way.
Today, we’re tackling the last of those and diving into exactly how much money you should be taking out of your business to put back into your pocket. I mean, a girl’s got to eat. And pay rent. And afford her weekly Starbucks because GET ME OUT OF THE HOUSE.
Now, the two-word answer to how exactly you do that is this:
Girl, your website is GLAM.
And the clients are rolling in. Your social media campaigns are well-oiled machines, your services & products are really connecting with your followers, and you feel like you’ve finally got something here.
But you haven’t moved the needle on your money situation.
Your savings account has barely grown (if at all), you’re paying yourself less than what you did at your full-time job, and you’re working a schedule that may support a wardrobe of leggings & top knots but also is causing those bags under your eyes.
While it seems like 401(k)s are more popular than Instagram pics of Starbucks cups (oh, hey, Pumpkin Spice Latte…I see you’re back), the data shows otherwise. In fact, over 31% of American households don’t have access to a plan like a 401(k) to save for retirement. And a majority of those are most likely made up of people just like you.
The wild ones. Creatives. Risk takers. Uber successful entrepreneurs kicking a$$ and taking names.
But just because you’re rolling in the dough now doesn’t mean that you shouldn’t give thought to your own retirement. This still needs to be a priority for you just like it was back in your days when you played Corporate Barbie for 9 hours a day, 5 days a week.
I don’t know about you, but I have a very hard time making decisions that will affect me for a long period of time.
For instance, it’s been 5 years since I moved into my house, and I still don’t have anything hanging above my couch because I can’t quite decide what I want.
However, there are times when you have to have a tad bit more urgency in getting something done, and when you’re starting out your business or aren’t happy with your current bank, opening a new checking account is one of them.