Congratulations you decided to start your marketing agency but before you
start to take in a ton of revenue you need to do a couple of things first and
it's basically getting your business set up legally so let's talk about
everything that you're going to want to know about in this video palright welcome
back and thank you for joining me my name is Jordan Steen also known as
Cereal Entrepreneur and at this channel we talk all about starting a marketing
agency building a brand really just building any type of online business
which if you're interested in any of those topics make sure to hit that
subscribe button and the notification bell in the bottom right-hand corner of
this video so you get updated with all of our future updates trainings videos
free course giveaways everything that we do here at my channel now guys the cool
thing about starting any type of business is you don't have to get all of
the business operations and legal documentation and tax documentation set
up immediately but what I do recommend is as soon as you start to take in
revenue meaning as soon as you get that first check you're gonna want to go
ahead and take care of a couple of things that we're gonna go through in
this video so stay tuned and won't go through those really quickly oh and by
the way make sure to stay tuned to the end of the video and we'll give you the
a step-by-step guide to getting more clients for your SMMA as well now guys
the reason why it is so important to get a business license is really for your
own protection and your own benefit you see what happens is if you don't have a
business license and you're doing everything through yourself that means
all of your personal assets now have become potential liabilities meaning
that if something were to ever go wrong the government can end banks can
actually go after your personal assets to make up for the losses incurred by
another business another customer or any person that is potentially suing your
business so it's super important to have a business license and again it's mostly
for protection but it's also to help you get through all of the minutiae that's
involved with working inside of a government legal business so let's go
ahead and talk about some of the different business entities you're gonna
want to consider before you set yours up alright so there are five major types of
mrs. and though this is for the u.s. a lot of other countries pretty much
follow the same model as well so you have s corporations
Z corporations partnerships LLC's and sole proprietorships now S corporations
are for smaller business entities and really what you have to understand is
the profit is passed straight through to the owners instead of shareholders okay
so if you're a smaller business and you're looking to set up a corporation
you're gonna want to go with an S corporation more than likely now C
corporations or the other option and that's for larger corporations or larger
businesses that have actual shareholders to pass profit through so if you're
starting off just now you're probably not gonna need to worry about a C Corp
if you're gonna do a corporation at all you'll probably do an escort the next is
a partnership and this is usually a business owned by more than one person
now this kind of gets into a gray area because you can actually have C corpse s
corpse and LLC's that are partnerships the difference is really for tax
purposes and if you're really concerned about it you're gonna want to ask your
accountant the fourth option is an LLC and this is what most of you in my
opinion should be selecting when you're first starting out and this is because
it takes most if not all of the actual liability that could potentially harm
you as a business owner personally and it takes it and puts that liability on
the business instead so it protects you and your personal assets a lot more
effectively than any of the other options finally is the fifth option
which is a sole proprietorship now this doesn't actually require you to do a
business filing because you're running it through your own personal taxes now
again this means that all of the liability is actually going to come back
on you and your personal assets as well so if you're comfortable with that
that's totally fine but if you want to get started and all you want to do is
start collecting checks and running a business all you need to do is basically
just use your tax ID otherwise known as your social security number that's
linked back to your personal taxes so you'll use that instead of a tax ID and
a business filing number now if you guys are in the United States what I'm gonna
do is I'm gonna leave a link for you right below this video in the
description I recommend checking out inc file it is the cheapest platform to get
your at least your federal filing in or so if you're in the u.s. you do have to
do a federal which is with the the entire US government and then you have
to do a state filing as well so if you're looking to do your federal filing
I'd strongly recommend Inc violet is the cheapest option out there basically
don't have to select any of the extra add-ons you're just trying to pay for
the federal license they're gonna give you a registered agent for free for your
first year which that's an extra hundred dollars saved right there I definitely
recommend checking out ink file the cost is also it's like 125 to 160 depending
on your state compared to other platforms where it's like two hundred
three hundred dollars the next thing we're going to want to talk about is
taxes and guys taxes are super easy but I definitely recommend getting an
accountant to help you with this I'm not an accountant so I'm gonna give you
general information on what you're going to want to know as a business owner but
when it comes to actually filing your taxes and making sure that you're
getting the most out of your benefit because you will get a lot of that money
back at the end of the year you're going to want to hire an accountant trust me
spend the $300 at the end of the year to get them to do your taxes for you
because you'll actually save more than that by having an accountant do it so
for your taxes if you're in the u.s. you're going to want to go to the IRS
website and just find the tax identification number TI n number or ein
employee identification number you'll want to go to the IRS as website search
for that application and fill it out yourself it's free and they'll email it
to you within like ten to fifteen minutes otherwise you're gonna have to
go to a site like Inc file and they're gonna charge you $100 to do something
that takes literally 30 seconds yourself if you're in any other country for
example the UK I know you guys have the VAT ID you're gonna want to make sure
you go through the same process of going to whatever government tax website that
you guys have and search for the required tax identification number that
your government requires you to have okay guys so the next thing we want to
talk about really quickly as permits and licensing which we pretty much talked
about in the business license portion where we were talking about setting up
whether you were going to do a sole proprietorship an LLC a corporation just
know that if you're in the u.s. you need your federal license which is what
you're going to set up through Inc file and then you also need your local level
license which is going to be a city license you
to the city courthouse near you and you'll just submit your local license
there that covers you actually for the entire state as well since most of you
are going to be working from your home at the time that you actually start your
agency you're not going to go out and buy an office space I hope not at least
that would just be a huge waste of money but since you're gonna be starting it at
your home those are really the two licenses that you're going to need just
your federal license and your local license outside of that if you do set up
a business entity then you're going to want to get your tax identification
number or ein it's referred to as those two things again that's the one you're
gonna set up through the IRS website but as far as licensing is concerned that's
really all you need just make sure that each year you're paying the refiling
fees to keep that license active that you keep your registered agent active
that you're filing all of your annual reports and then you're pretty much good
to go but again the biggest thing that I can
suggest to you guys is getting some sort of counsel getting a legal business
attorney to actually help you through this process in the beginning and then
once you get a feel for it it's something that you can easily manage
yourself another thing that we're going to want to talk about is business
insurance now this isn't necessarily something you have to immediately go and
get but understand that if you don't have insurance you're not always
protected if someone Sue's your business for damage if you were to accidentally
somehow slander their name online they actually have the opportunity or really
the ability to sue your business and this is something where business
insurance actually comes into play because if you do go to court and have
to pay all these fees your insurance can actually help with some of this and
again I get it you're like what we're just creating marketing campaigns but
you're also taking business's payment information and actually storing it
somewhere within your business information so this could be you could
be sending it via email even though I suggest to not do that you could
actually do that and if your email account gets hacked that means that they
just have their information stolen but that leaves you liable for that so just
understand that at some point you will want to talk to an insurance agent about
getting business insurance for your agents now the last thing we want to
talk about is getting a bank account now if you're running the business through
your own personal you're running it through as a sole proprietorship you can
actually run everything through your own personal bank account you just need to
let your countin now at the end of the year what
personal expenses are adverse business expenses and what business revenue is
versus maybe some form of personal revenue or another stream of revenue
that you have coming in that's really all you have to do if you're running it
through a business entity if you created a business entity an LLC or a
corporation you actually need to set up a business account for that business
okay and what you really have to have is your tax identification number that's
why it's important to get that you have to have your business license number
which is not complicated and then you need to find a bank that you want to
work with and from here you have a couple of options you can go with a
local bank and local banks have their benefits right that you have that more
personal connection it's easier a lot of the times to get loans with personal
banks if that's something you want to do or you can go the online banking room
this is the route I prefer because you actually with most of the online banking
companies can get a free business checking account meaning you won't
actually have to pay the fees every single month associated with business
checking accounts a lot of these are business checking accounts if you go to
a local bank they're probably going to charge you a minimum fee if you don't
have a minimum balance in that account where these online banking companies
though they may not have local branches and they don't have ATMs the benefit is
you don't have to pay these these management fees are these basically
stocking fees every single month and even though you don't have an ATM you
can actually use other all of the other ATMs and they actually pay you those ATM
fees back to your account so I recommend looking at some online banking options
where it's business checking completely online okay so that would be my
suggestion again it's kind of up to you what you want to do but those are really
the two best routes for small local businesses now lastly there are the
large national or international banks one thing to know is yes you're gonna
get the best tech in the industry meaning their mobile apps are going to
be easier for you to use they're going to be really just more fleshed-out than
some of the smaller banks but know that they will probably charge all of those
fees they will have minimum balances and it's just a little more hectic if you're
a smaller business so I recommend looking at the other two options to
start and looking at a larger Bank later on now if you're wanting to know more
information about what bank to choose we've actually already put together a
video on some of the banks that we recommend check out this video in the
top right hand corner and you'll figure it out now the final thing that I want
to - you guys about really being ready to
go with your business legally and just financially is hire an accountant guys
it is not that much money and they are actually going to save you more money
than you think you're going to be able to save by not hiring one and the reason
why is because they understand the ins and outs of the tax system meaning they
know what you can deduct from your taxes and what you can't this also then goes
back to your bottom line meaning if you write off more taxes you save more money
on your profit margin so hire an accountant because you'll miss things
that you didn't even know we're possible or you won't claim certain things that
you were you know you just didn't know they were possible so you're missing out
on earned money but that's it for this video it's a quick and easy one there's
not a lot to it guys it's really super simple just make sure that wherever you
are in the world you're looking up and getting the right information about what
you need for your business but really every business no matter where you are
has pretty much the same structure that I just mentioned throughout this video
oh and since you stayed till the end make sure to check out this video in the
top right hand corner on how to get more clients for your agency in 2019 and
beyond that's it for this one and I will see you guys on the next one until then
Cereal Entrepreneur out bye guys ready to start living the six-figure work
where ever be your own boss lifestyle well at Cereal Entrepreneur Academy
we'll teach you how to use a laptop and internet to start your own social media
and digital marketing agency get started with our free Facebook Ads training
links in the description below guys see you in the course and Cereal
Entrepreneur out!