As women conquering the business world, Juliana Junqueira Panetta and Laura Walker, collaborated to share a few tips that may help new or aspiring business owners. With nearly a decade of legal experience and a current position as an Attorney, Juliana is an expert when it comes to the legal aspects of a business. On the other hand, Laura completed her Master of Business Taxation program, has been working in tax for over 9 years and is now the owner of Walker Tax Firm, provider of tax, bookkeeping, payroll and consulting services.
Don’t worry if you missed the workshop; we have what Juliana and Laura believe are the most important takeaways.
Choosing an entity type is not a “one size fits all” standard. Whether you’re planning on running an LLC, Partnership, S-Corp or C-corp, it is possible to perform a calculation to determine what entity type is best for your business. By doing so, you’ll know exactly what your business is legally labeled as rather than playing a guessing game that could come with long-term consequences.
Business expenses must be “ordinary and necessary.” Keep quality records of your expenses. The goal is to have your expenses be organized and separate. It will be much more apparent where you are sitting financially and consequently, planning for taxes will be easier. Try your best not to commingle your funds and ask your tax assistant if you’re not sure. That way you’ll avoid any possible mix ups.
Lastly, don’t be afraid to outsource! By outsourcing your accounting, you will have more time to focus on your business development and other goals you may have. Hiring employees is another way to free some of your time, but make sure your cash flow is sufficient to support an expense that will be about 30% of your revenue. It is also crucial to understand payroll laws and ensure that you have policies in place.
If you are someone who needs accounting or legal help, Juliana and Laura are both great resources. Connect with them through the links below!