Reib Law - February 2022

Reib Law - February 2022

SHATTERPROOF NEWSLETTER

FEBRUARY 2022

WWW.REIBLAW.COM | 940.591.0600

SHOULDYOUR ONLINE BUSINESS BE AN S-CORP? ELECT TO STAND OUT FROM THE CROWD

One of the smartest moves you can make as an online entrepreneur and coach is to form either an LLC or a corporation. You probably already know that LLCs and corporations can protect your personal assets from your business, and this protects you from lawsuits against your business. But did you know that there are some other key benefits besides the legal liability protection that you haven’t heard about? My favorite entity is the LLC because it blends the best characteristics of a sole proprietorship, a partnership, and a corporation, especially when

working with a legal coach — like those in our Access Program — then you will do things right and the legitimacy of your LLC will be sound. The final reason is tax savings, and I know that everyone wants to pay as little in taxes as possible. Your LLC comes in a fashion that you can make it into whatever you want. There are many flexible ways to complete taxes, but for most online businesses, S-Corp is going to make the best difference for you if you’re doing leverage programs. You won’t pay that self-employment tax anymore. You have to set up a payroll tax account for yourself, withhold some taxes, and distribute dividends or distributions to yourself as the owner who isn’t subject to some of those payroll taxes. It ends up making a 10%–15% difference in your tax bill. Additionally, there are no taxes that are paid by the LLC or S-Corp, so it all goes to your personal return. Your LLC will issue a K-1 to you as the owner. You base your taxable income off of the profits and losses from your business that are shown on the K-1. It’s much cleaner and helps you with the IRS if you ever have to deal with that dreaded audit. It’s imperative that you make sure that you’re looking at the form of business that you have. If you’re a sole proprietor mom and pop, try and change to an LLC or corporation and look at the most efficient way for you to run your business from a tax standpoint. Make sure that you’re talking with a tax professional during this process, but always consider the S-Corp because it can be a lifesaver.

you add on the S-Corp election. There are three main benefits to doing this that most people aren’t aware of. Keep in mind that the LLC is governed by a state statute and every state is a little different, but they’re all mostly the same. Still, you need to know the law in your state and make sure that you’re set up correctly for where you’re operating your business.

The first reason you should do an LLC is the enhanced credibility it will give you and your

business. One of your business’s most valuable assets is credibility. If you start out by forming an LLC and making that S-Corp election, your business will stand out from the crowd. You’ll look better to customers, vendors, and even your competitors. Additionally, you’ll have a much cleaner tax return than if you are doing it as a sole proprietor using your Schedule C. Make the choice to form an LLC and get your account with us. We’ll talk about it and make an S-Corp election so that you can take advantage of that increased credibility. The next reason is liability protection, which is a big deal. Like setting up an LLC properly, it protects your assets at home so ideally, you’re making a profit in your business, taking it home, and creating net worth. This becomes exposed if your business is a sole proprietorship. If you get sued and they get a judgment, it’s going to stay in that LLC and not come back home to you. There are things that you have to do after forming the LLC that are incredibly important, but if you’re

–Scott Reib

As your Access Lawyer, we're specifically trained to help entrepreneurs like you put these cornerstone systems in place, providing your company with a shatterproof foundation. To see how stable your foundation is, take our Shatterproof Business Audit and assess your confidence in how much your legal, insurance, financial, and tax foundations will support your business growth. Just go to REIBLAW.com/shatterproof-audit and complete your audit. We will send you back a report card.

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FEEL CONFIDENT IN BUSINESS!

3 STEPS TO IDENTIFY YOUR VALUE

We've all been taught that bragging is annoying, but when you’re afraid to identify your worth, it can really hurt your confidence and success in business. To prevent that from happening, here are three tips to make it easy to name your price!

happy emails, texts, and reviews from clients and create an easy reference for instant, uplifting support. If a client seems happy, never be afraid to ask for a testimonial. Many people simply need to be asked, and they’ll be happy to provide one. In the same stride, consider the people who help you and your business every day and find ways to show appreciation. Passing that love around can make a huge difference in energizing the way you perceive your value.

No. 1: Get to know your value.

How do we figure out our value? Specifically, how do we come up with a quantifiable method to reach an exact, irrefutable number? Well, we don’t. The best place to start is deciding who you want to be in your business and industry and building from there. With a solid mission statement and concrete affirmations that support your value in the business, you’ll gain more confidence in arriving at a price point.

No. 3: Make the final game plan.

After considering what your offerings are likely worth, whom you’re looking to serve, and what they’d be willing to pay, you can name your final price. After all, prices don’t fall from the sky. Without obsessing over it, look at what kind of value your competitors have set for themselves. That’ll give you a great starting point.

No. 2: Be open to receiving — and giving — love.

Accepting compliments can be tough, but in business, compliments can be powerful catapults to your continued success. When you take time to notice all the people you’ve helped, the accomplishments you’ve achieved, and the difference you’ve made, the motivation it fosters is monumental. Keep your

Take good care of yourself, friends — and don’t forget that a confident price tag is a great way to do just that in your business.

IMPROVE THE SKILLS OF YOUR EMPLOYEES

WITH THIS MONTH’S BIZ TOOL: COURSERA

When you’re hiring a new employee, it’s hard to truly grasp where their skill sets lie. You can conduct your interview and look over their resume, but that only tells you part of the picture. Once they become a part of your team, you

courses, specializations, and guided projects are created by some of the top minds and educators in each industry.

Coursera claims that its classes will help your employees build critical skills that help your company reach its goals, improve your company’s use of technology,

may wish they had more knowledge regarding science, AI, marketing, sales, or even effective leadership. This isn’t just a new employee issue either. You may wish that your current employees knew more about these categories too. This can essentially leave you with two options. You can hire yet another new employee that meets the specific needs, but this will cost you plenty of time and money. The much easier solution would be to invest in improving the skills of your current employees.

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