Episode Overview – How to Setup Your Business Entity

There are a lot of steps involved in getting your business started.  One of the critical ones to to choose and create the right business entity (legal structure).  There are a lot of options out there and it can be confusing to try and compare and contrast them.

So in this episode, we are going to give you a brief overview of each type and some information about what types of businesses tend to use each type.  We also discuss the importance of hiring an accountant, some tips for finding a good one, and why we think you should learn to do your books.

Episode Key Timestamps

• 01:08 – Show introduction & background


• 01:45 – Investing in yourself


• 03:46 – The 5 main business structures


• 05:50 – Sole Proprietorship


• 07:28 – DBA (Doing Business As)


• 08:00 – Partnership


• 10:07 – S Corporation


• 12:05 – C Corporation


• 13:18 – LLC (Limited Liability Company)


• 15:20 – Do you need to choose a business type and file?


• 18:20 – The importance of an accountant


• 22:00 – Why you should learn to keep your own books


• 28:16 – Tip of the week

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Links and Resources Mentioned in the Episode

• The Free Serial Startups Community (A great place to find an accountability partner)


• LegalZoom (A company that can assist you in creating your company and is cheaper than a lawyer)


• Gusto (The online payroll provider that we use)


• 5 Challenges of Not Knowing your Business Financials (Podcast Episode 27)


• Understanding the 3 Main Financial Statements (Podcast Episode 28) 


• Cashflow – Does Your Business Have Enough? (Podcast Episode 29)


• QuickBooks (The bookkeeping software that we use for all of our businesses)


• Quicken (A bookkeeping application)


• Wave (An online bookkeeping platform)


• Freshbooks (An online bookkeeping platform)


• Keeping the Books (A great book to get you introduced and help you understand bookkeeping)

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