Blog Contributor Maggie French is a Business Coach and former Financial Executive. She helps people seeking to balance the key elements of running their business.
You are coaching, soliciting new clients, giving workshops and all excited about your new venture. But do you wish to simply offer Coaching Services or run a Coaching Business? What are some of the basics for all businesses when starting out?
There are three components for all businesses, regardless of size.
1. Business Structure -
The five business structures as defined by the IRS are, Sole Proprietorship, Partnership, Corporation, Subchapter S Corporation and Limited Liability Company.
When choosing a structure, it is important to define what level of liability for financial and debt obligations you want to personally assume and what level of income you wish to earn. It’s okay if this evolves over time; remember life is about change.
2. Professional Services -
Three services are recommended, an Insurance Broker, an Attorney and a Financial Advisor; one is essential, an Accountant. Your accountant provides invaluable assistance in your business particularly when it comes to Structure and Tax Returns.
In selecting services, research what you require, get recommendations, interview at least three candidates, get a written estimate and formalize your agreement in writing.
3. Record Keeping -
The two key components of record keeping are Sales and Expenses. Sales are the funds you garner from client sessions, workshops, product sales and consultancy. Expenses are very simply all the carrying costs of running the business. Consult with your accountant as to what can be included as expenses for tax purposes.
Well maintained record keeping is very important. It identifies your sales and expenses to calculate business income, which define investment opportunities and tax responsibilities.
These considerations allow you to move from simply providing Coaching Services to running a Coaching Business. The IRS website is a most valuable resource that you can refer to.