Cons: A fee is required to file and register an LLC, plus annual costs to keep the LLC active.Īlthough coaching is often done on an individual basis, some coaches may want to start a business together under one company.Pros: If you’re sued, your personal assets are protected since your entity is separated from your business’s entity.A single-member LLC is known as a “disregarded entity.” You can still run your business on your own, but it will separate your individual entity from the business. It’s important to note that you’ll still file your taxes under your social security number or employer identification number even if you set up your coaching business as an LLC. Starting an LLC provides individuals with a bit more protection, as this business structure separates the individual business owner from the business. Single Member LLC (Limited Liability Company) Cons: If you’re sued, your personal assets are at risk since there is no separation between your personal entity and your business.Pros: Limited paperwork and fees when you choose to operate under your own name.Eventually, you’ll want to register for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number-this will help identify your business as its own entity and separate it from you and your personal assets. Typically you’ll own an unincorporated business by yourself and use your social security number if you ever need to submit identification. This is the easiest and fastest method to get your business up and running without an excessive amount of paperwork. Most people starting a small business will choose to operate under a sole proprietorship. ![]() Sole Proprietor or DBA (Doing Business As) There isn’t a hard-and-fast rule regarding which path to take, but keep in mind some options will provide you with legal protection while others may not. Whether you plan to work part-time or full-time, there are a few options for how you can set up your coaching business. This is not tax advice, if you need tax or other legal advice, please contact your tax or legal professional. Grab a calculator, open a spreadsheet, and let’s dive in.ĭisclaimer: The information is for educational purposes only. In this guide you’ll learn about self employment tax forms and deadlines, how to track expenses and organize your accounting reports, what counts as a tax deduction, and how to save for your tax payments to avoid sticker shock come April. What do those numbers mean? How much do I need to pay? When do I file my tax return? What can I claim as expenses toward a tax deduction?ĭon’t worry, we’ve worked on this guide with the assistance of a professional accountant to make your next tax season as easy as possible for you-without boring you to tears. ![]() April 15th is the tax return deadline, but did you know you may also be required to pay quarterly estimated tax payments throughout the year? There are also new forms for you to familiarize yourself with, such as 1099, W-9, and 1040. Unlike employees who work at a traditional job where they receive a W-2 from their employer, coaches and freelancers are responsible for handling their taxes on their own. ![]() We know tax season is the least exciting season of the year, but it’s one small business owners can’t forget or ignore. But before you start taking on clients and promoting your coaching services, have you given any thought to your taxes? It’s a chance to help others realize their dreams, their potential, and set them up for success. Most people who become a coach go into this field because they want to help people.
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