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This module discusses why we will structure your company in a certain way. We will focus on systems to reduce joy sucking administrative work but build systems to scale your business. By taking the time to see how your business fits together; you begin to see how this isn’t just tactics to reduce risk and taxes, but how to preserve, protect, and grow your wealth.
Also in this module, there are basic housekeeping and orientation tasks to complete that will help you get familiar with the format of the modules and prepare you for the rest of the course.
You will notice if you watched the video to the end it checks off the task. If you haven’t please let the video play through to complete the task.
TASKS FOR MODULE ONE
What Is This All About?
This is a business course for writers. We are about to set out to build a system for wealth creation and preservation. The foundation is your writing. If you cannot create revenue from your writing, then this won’t work. If you are showing the capacity to sell books, then I will show you how to build a rock solid business system on that foundation.
We need to move you away from having no liability and asset protection and inefficient tax treatment, to a structure that gives you protection and flexibility. Once you are clearing about $15,000 a year, the economics of this system begins to work for you. This is the point for most where the savings in taxes outweigh the fees of incorporation.
Below on the left is the Sole Proprietor Model (more on this in Module 2) and on the right, the IAA model. You will use an LLC and subchapter S election (again Module 2) to create a business separate from you.
You now will have to file two tax returns and pay additional fees, but this is offset by saving at least $800 for every $10,000 you make. Furthermore, we will create systems to ease the filing requirements. I personally think if you go at this to see how much you can save in taxes, it will become a bit of a game and could be enjoyable. It certainly will be fun, when you’re spending the money on what you want rather than sending it to the tax man.
How do we make this happen?
There will be two types of activities;
One-off procedural work: These may seem daunting, but if you can load a book onto Createspace you have the intelligence and the fortitude to register a company. Together we will slay this dragon.
Systems implementation: I will teach you the how and why of planning and processes to make your business work for you. We will build a low maintenance business that keeps you writing and takes advantage of the legal and tax systems to reduce risk and preserve your income.
Planning & Execution: We will also do some strategic exercises to get you focused on what makes you money and building your wealth building machine.
Let’s get started by going through the tabs below.
Read the “Let’s Begin Tab” for the basics of why.
Please complete the Survey Tab.
Please read through the communication tab and complete the task. This will show you how to use the office hours function for 1:1 help.
When you are done. You will have completed tasks to create a legal entity. This entity will give you limited liability protection. Then you will elect to have this legal entity treated a certain way to provide you with the most flexible tax treatment.
We do this?
To give you the means to create and preserve wealth.
There are two tenants we will look to in the business.
Maximizing the payment of your expenses with deductible pretax dollars.
Minimizing and deferring taxes.
More on that in the tax section and expenses section, but to be able to do this we have to set up legal structures and make elections with the IRS to get this to work.
Chartering a company: A one-off task, that creates the structure and liability protection. This becomes a separate entity from you that you manage.
Electing for specific tax treatment: A one-off task that gives your business separate and specific tax treatment. Sort of like a person and sort of like a corporation.
Next, we will go into how the business will run. Again we will need to do some one-off work to set up accounts and create organizing documents. The documents in some states are required but more important for you to set the rules of the road going forward for your company.
Organizing Documents: Creating the documents you need to clarify how the business operates and creating clear ownership rights to various assets.
Setting up Business Accounts: Establishing a separate business checking and savings account and then associating all of your business income and expenses to those accounts.
Finally, we will create plans to keep you focused on goal attainment and to help you execute the regular weekly, monthly and annual tasks. The end goal being the revenue your create gives you the biggest bang today (read this as you spend it rather than Uncle Sam) while we build wealth for you that is diversified, tax efficient, and creating a business that is worth something in the future.
To do this, we will need;
Create a Record Keeping System: Learning how to track your records and staying organized.
Tracking Expenses: Attributing the costs to your business.
Pay Yourself: Get you the money you need today and for the future through retirement planning.
A system that Keeps You Writing: The foundation is your content creation. You need to be doing as much as possible with as much joy. We do this by having a system that we follow to do the routine and mundane.
In the end, you want a structure that maximizes the number of dollars that you get to use appropriately as tax deductible (tax-free) dollars or tax-deferred (retirement) while optimizing free cash flow to you.
By the end of this course, you will have discussed all of the boxes shown in the wealth creation pyramid, and you will understand the importance of them.
Please complete the intake survey. Take some time to think about these questions. We ask them to motivate you and to help you get clarity as to why you are here.
There are 3 ways of communicating
Join the Facebook private group
This link brings you to the private Facebook Group for this specific course. Please join us there will be an interaction between members of that group. This is not mandatory but it will be a good place to interact with fellow students. If you choose to not join the group then just tick off the objective.
Communication Within the Modules
You can always email email@example.com to ask any question but we also have two in module features that help to get you answers fast. First, there is the Private Notes section where you can leave notes and files for your personal use. No one but you can see this. The second feature is the Office Hours Section.
One of the great features of this forum is that you have a direct connection to ask PRIVATE questions. The questions you ask are only seen by the moderators running the course and the answers only go to you so you can ask questions that may be of a sensitive nature. You will get an answer back usually with 24 hours if not sooner.
Go to the Office Hours section in the sidebar and leave a note to the staff. You will get a response that will show up here and be sent to you by email.