How to Start Your Own Business – Coaching Success
Matt explains, in detail, how to start your own business. Seriously, you can be a business owner today following these steps.
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Here is Matt’s presentation on how to officially start a business.
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How to Start A Business
This applies to starting a business in the United States. If you’re in another country, the specific details differ. That being said, find out what those simple steps are, and go crush them.
There are 3 steps to start a business in the United States.
- File an Articles of Organization in your state (LLC)
- Get an Employer Identification Number (EIN)
- Open a business bank account
File an Articles of Organization in You State
Do this online, not on paper, to avoid delays.
To begin, Google search “Articles of Organization + [your state].” When sorting through the results, make sure it’s the Secretary of State official government website (e.g. .sos.mo.gov).
You may need to Register as an Agent with your State (free). Do a quick business name search (in State) for conflicting names. You likely should also search the US Trademark Office.
“Register a Business” or file “Articles or Organization for a Limited Liability Company.”
You just completed Step 1.
Get an Employer Identification Number (EIN)
This is essentially a Social Security Number for your business.
Go to this website. Click on “Apply Online Now” and answer the questions.
It’s easy, free, and fast. Don’t overthink or stress out about the questions – just answer them to the best of your abilities.
Step 2 is done (that was fast)!
Open a Business Bank Account
Pretty much all you need to complete this step are documents from the first 2 steps.
Gather your Articles of Organization, EIN, personal identification, and maybe an Operating Agreement.
You should only need an operating agreement if you have a partner. That being said, you can use this template. An operating agreement answers simple questions about ownership percentages, initial personal investment, etc. Again – don’t overthink it. Answer to the best of your abilities.
Matt recommends setting this business account up with a local bank. Why!? Because to a local bank, you can be an actual person whom they’ve met. This may help, if you need to acquire a loan or some other issue arises.
Okay, you’ve completed step 3. You’re a business owner.
Using Your Business Bank Account
Once you have the account open, deposit all coaching revenue into this account.
All business and business-related expenses should be spent from the business bank account (tax free – these expenses come right off your income so that you don’t pay taxes on that income).
Below are some business expenses:
- Equipment (lifting gear)
- Car used specifically for business
- Laptop for online coaching
- Internet for online coaching
- Business meals (50% tax free)
- Marketing expenses
Additionally, if you have a home gym and/or home office that square footage is tax deductible each year for things like utilities and renovations.
If you are a sole proprietor, you may pay yourself anything you want out of the business bank account (best practice is to write a check with “payroll” in the memo line for easier accounting).