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:
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.
6 years ago, I was preparing more tax returns in a period of 2 months than most people do in a lifetime.
Newsflash: not my most exciting years.
However, I am now down to one each year (my own), and love him or hate him, Trump’s new tax bill is definitely going to affect it.
Guys, it’s the post you’ve all been waiting for.
If you follow me on Instagram, then you know that Keith and I purchased our first official rental property back in September. And while I wanted to write this post MUCH sooner (you know, out of sheer personal excitement), I waited a few months to ensure at least a small level of success (and paid rent) prior to jumping the gun.
However, 3 months later, all is running smoothly (*knock on wood*), and I wanted to give you all the details behind how we got into this real estate game, the process we went through, and the numbers on our FIRST EVER rental property.