The Right Step at the Right Time (Business Operations: What Comes First?)

In this episode of the Sunlight Tax podcast, I dive into the essentials of choosing the right business structure for anyone in self-employment, especially when it comes to forming an LLC or electing S-Corp status. I highlight why it's important to avoid unnecessary business formations and walk you through the proper order of business operations—reminding you that your business officially begins the moment you start advertising. I also share practical tax advice, including how different structures impact your taxes, and offer tips on bookkeeping and protecting yourself with liability insurance. Whether you’re a new entrepreneur or already deep into running your business, this episode will help you assess your needs and make confident decisions about your structure. Understanding your options as a self-employed business owner can save you time, money, and headaches down the road. Also mentioned in this episode: 00:00 Understanding Business Structures: LLCs and S-Corps 04:02 Order of Operations in Business 09:58 The Role of LLCs in Business 12:20 Understanding S Corporations 19:00 Final Thoughts on Business Structure and Operations   Takeaways A lot of people form LLCs and S corporations when they're not necessary. You want to be at the right level at the right time. Don't take business advice from random people on the internet. The moment you advertise is when your business starts. Bookkeeping is a requirement for tracking income and expenses. An LLC provides liability protection but is not always necessary. Business liability insurance can be a cost-effective alternative to an LLC. You do not need an S corporation until you reach a certain profit threshold. Forming an S corporation too early can lead to unnecessary expenses. Consult with professionals to understand local regulations regarding S-Corps.   If you enjoyed this episode, please rate, review and share it! Every review makes a difference by telling Apple or Spotify to show the Sunlight Tax podcast to new audiences.   Links: Link to pre-order my book, Taxes for Humans: Simplify Your Taxes and Change the World When You’re Self-Employed. Get your free visual guide to tax deductions Check out my program, Money Bootcamp