- This topic has 17 replies, 9 voices, and was last updated 9 years, 10 months ago by
.
-
Posts
-
I have a question… say we have a web based training business with e-book sales, personalized programs or a monthly membership. Then, we also have the Isagenix side of things. Say I register my business as Kate Stewart Fitness, would I include the income from Isagenix in that as well? Do we group it all into the same business?
a. What is your business?
Known as Hov Hustle Fitness, my business includes online training, nutrition, and contest prep services. We specialize in contest prep, but help everyone, from the teenager getting serious about their training for sports, to the “average” individual looking to lose a little weight, to the elite athlete gearing up for the next level of their training and exercise goals.
<br style=”color: #141823; font-family: Helvetica, Arial, ‘lucida grande', tahoma, verdana, arial, sans-serif; font-size: 14px; line-height: 19px;” />b. What is your legal structure? Sole Proprietor, LLC, Sub S, C Corp, (none)
We are an LLC, Limited Liability Company.
<br style=”color: #141823; font-family: Helvetica, Arial, ‘lucida grande', tahoma, verdana, arial, sans-serif; font-size: 14px; line-height: 19px;” />c. Would you like to change your structure?
No, my structure has served me well for the just over two year span my business has been running. I'm completely satisfied being an LLC.
Hey Kate,
In my opinion, and for what I do now, I would count Isagenix as it's own income and business. I have created a completely different account for my business via my bank, so that I know how much I'm spending on “business” expenses, therefore, using that debit card and account for those things.
Isagenix is a different source of income, and not coming directly from your “focused” services, if that makes sense. For instance, I do online and 1-on-1 training, so whatever my income would be from those things, my main services, would be different from cycles or supplements bought through my Isagenix website.
Just my opinion. Anyone else have any thoughts?
I've been looking into the different forms of business ownership in Canada. We don't have LLC here. My options would be
- sole proprietorship
- partnership
- corporation
Since I have not yet registered my business (still want to finalize the name), I think I will begin with sole proprietorship.
a. What is your business?
Barbell Strong- Online Personal Training and eventually electronic goods/resource
b. What is your legal structure? Sole Proprietor, LLC, Sub S, C Corp, (none)I have not set this up as my business hasn't made any money yet. In California it costs around $900 now so I am thinking I am a Sole Proprietor by default ( is this right? or do I have to fill out a paper for this) and will sign up for the LLC as soon as the business makes some money.
c. Would you like to change your structure?Once revenue flows I will change my structure.
I like where this is going. Great job everyone. For the most part, there really is not a right or wrong answer here. It is, by design to provoke critical thinking and interaction.
Pedro – for tax benefit purposes, you can either be considered a sole proprietor, LLC/LLP (limited liability company or partnership), or C or Sub S Corporation. All of these have pros/cons based on your business' growth and health. For California, a single start-up is probably going to go as a S.P. in the beginning. As cash flow increases, then one can convert it to a LLC which is what is ideal for a single owner of a business. More asset protection (meaning, if a lawsuit occurs, they can only go after what the company owns/has, not you as a individual) available with an LLC.
Megan – You can still get the benefits of tax deductions by being a sole proprietor. It is a simple task. A resource for anyone in their state is the respective state's “Secretary of State” website that will give details on how to incorporate.
In California, it is fairly simply. Register at the county clerk's office, post a small add and you're in business. It most likely it is as simple as that in New York State as well.
Kate – good researching. I can help with that this week (researching).
Paul – good viewpoint. That is a way of tracking cashflow from revenue stream. That was a great viewpoint to share here on the forum. Excellent work.
Jamie – good plan. You want some kind of business entity for tax benefits. It is a hefty annual fee in CA, so SP is a good start.This is good guys & gals. Like the interaction that is picking up here. See you in a few hours at 10am EST.
@Megan:
Amazon Affiliate Sales: Visit http://www.drsarasolomon.com/product-category/home-gym-equipment/ and click to buy any of Sara's products. It will redirect you to Amazon via her affiliate link, for purchase. This is a fancy way of presenting Amazon affiliate links. It could as easily be done if you were writing a blog and you made hyperlinks on photos/words with your Amazon Affiliate link.
Prior to starting my job at the gym, any money I spent on business related expenses, can or cannot be considered tax deductible? ( Because I didn’t earn an income, and it wasn’t for the length of time Natalie mentioned, correct?
>>> Keep track of all of your business expenses (and incomes), you can carry a loss forward or backward per tax law, for up to 7 years.
Pertaining to the expenses (voluntarily) that incurred as an employee under a corporation (I’d assume the gym was a corp.) I’m pretty much at a loss over that too or no? Sorry if this sounds confusing, don’t know the proper language?>>> There are some provisions under tax law to expense your out of pocket costs like this even if it was for a corporation, they would be considered “unreimbursed costs”. Keep note of it and either present to your accountant or input into TurboTax.
@Kate:
I have a question… say we have a web based training business with e-book sales, personalized programs or a monthly membership. Then, we also have the Isagenix side of things. Say I register my business as Kate Stewart Fitness, would I include the income from Isagenix in that as well? Do we group it all into the same business?
>>> I would for simplicity and consider Isagenix income as a “product” under the Kate Stewart Fitness company. You can always change it later should you need to.
@Kate @Jamie The sole proprietorship is the easiest thing to do as it requires no real paperwork other than tracking your expenses and revenue. At the most basic level it's like opening up a lemonade stand and reporting your business at the end of the year. Now, the thing to think about as a sole proprietorship is that down the road if you want to get a bank loan, business credit card, or protect your personal assets from lawsuits/creditors you have to setup some form of corporation in order to do this. In order to build business credit, you also will want to setup some corp structure to get the business credit card so that you can build credit.
Kate , that is what I do – i have an LLC] and every $$ I make goe sinto my company account – Isagnenix and online sales
Kate , that is what I do – i have an LLC] and every $$ I make goe sinto my company account – Isagnenix and online sales
Team —
I'm catching up now, as I was in Europe last week (having the time of my life and not thinking about business).
What is my business type?
- Currently I have been filing as SP for the past 3 years — writing off modeling, travel and business expenses. I have not made any money from my business — just keep putting money in.
- Question: Should I incorporate LLC before I do taxes this year? Would this benefit me?
Do I want to change?
- Yes, I know I want an LLC — the biggest thing holding me back was the name of my business — Camy Kennedy Consulting or “Fit.Faith”… after my phone consult with my other coach, Jill Coleman, I've decided to make Fit.Faith more of a community, rather than an source of income. And I will form an LLC under Camy Kennedy Consulting — offering Corporate Wellness, Nutrition Coaching and Personal Training in the Raleigh-Durham area
Question: What type of insurance do trainers get? Any recommendations for something affordable but with adequate coverage?
Natalie – thank you for the resources. Admittedly, I am not good at numbers or bookkeeping and I'm NOT organized. This needs to change if I am to make my business successful.
Question: Gary/Natalie — do you think it would benefit me to get further education in business? My undergrad degree is in Biology — and I really have no business acumen. Thoughts? Online MBA? Online business school?
~Camy
Hi Camy,
Question: Should I incorporate LLC before I do taxes this year? Would this benefit me?
>>> The formation of a LLC would be mutually exclusive of any transactions that occurred before its existence.
Yes, I know I want an LLC — the biggest thing holding me back was the name of my business — Camy Kennedy Consulting or “Fit.Faith”
>>> Even if you chose one name for your LLC, you can always file a DBA with the state (“Doing business as”). So for example, my LLC is Natalie Minh Management LLC and I filed a dba for Natalie Minh Interactive. This allows me to accept checks under both names. I filed my DBA via LegalZoom, super easy 🙂
Question: What type of insurance do trainers get? Any recommendations for something affordable but with adequate coverage?
>>> In the FMI Guild Membership site (click the Members tab above), you can watch the Business Insurance lecture which goes into great detail all of the types of insurance that fitness entrepreneurs/trainers should be aware of.
Question: Gary/Natalie — do you think it would benefit me to get further education in business? My undergrad degree is in Biology — and I really have no business acumen. Thoughts? Online MBA? Online business school?
>>> I have a philosophy about education that my refugee parents who lost everything in the Vietnam War told me when I was young, “You can lose everything in life, you can have everything taken away from you, but you will NEVER lose your education.” Funny thing is that even as an entrepreneur, having a formal business education has benefited me with not only the skill set to do business, but also the authority/trust in the market so that I have regular, high end opportunities open up to me because people see the degrees and don't need to hesitate about doing business with me.
Is it necessary to be successful in business? No. But if you want to do deep dives into all areas that an MBA would provide, do it. Especially before marriage/kids enter the picture and your life no longer has the time to consider that option. Just my two cents!
- You must be logged in to reply to this topic.