Starting a business involves making several important decisions, and one of the most significant is choosing the right business structure. The entity you select can affect how your business operates, how it is taxed, the paperwork you are required to file, and the level of personal liability protection you receive. One popular option among small business owners and entrepreneurs is the Limited Liability Company (LLC). An LLC offers a combination of liability protection and tax flexibility, making it an attractive choice for many business owners. However, like any business structure, it comes with advantages and disadvantages that should be considered before making a decision. What Is an LLC? An LLC, commonly known as a Limited Liability Company, is a business structure that provides owners with personal liability protection while offering flexibility in how the business is managed and taxed. The owners of an LLC are referred to as members, and an LLC can have one or multiple members. The business structure you choose influences several aspects of your company, including federal and state tax obligations, filing requirements, recordkeeping responsibilities, and regulatory compliance. Unlike a sole proprietorship or general partnership, an LLC generally separates the business owner’s personal assets from the
You started your business, money’s finally coming in, and now you’re wondering: How do I actually pay myself? Do I take a salary like an employee? Just transfer money from my business account? Or do I need something called a “distribution”? If this sounds familiar, you’re not alone. I get this question all the time from business owners—especially those who are moving from side hustle to full-time business. How you pay yourself depends on your business structure, and each setup comes with its own tax rules, forms, and reporting requirements. Start With Your Business Structure Before deciding how to pay yourself, you need to know how your business is classified with the IRS. That’s the foundation for everything else. If you’re a sole proprietor or a single-member LLC, you and your business are legally the same entity. That means there’s no separate payroll process—you simply take money out when you need it. This is called an owner’s draw, and you report your business income and expenses on Schedule C (Profit or Loss From Business) attached to your personal Form 1040. If you’re part of a partnership or a multi-member LLC, it’s a little different. The business itself doesn’t pay income
Cash is a normal part of doing business. Whether you’re a contractor, restaurant owner, retailer, or service provider, there’s nothing wrong with accepting cash from your customers. The problem isn’t the payment method, it’s what happens after you receive it. One of the most common questions we hear from business owners is: “If a customer pays me in cash, do I have to report it?” The short answer is yes. All business income must be reported, regardless of whether you’re paid by cash, check, credit card, Venmo, ACH transfer, or another payment method. Unfortunately, there are still plenty of misconceptions about cash transactions and “under-the-table” payments. Understanding the difference can help you avoid costly mistakes while building a healthier business. What Does “Under the Table” Mean? An under-the-table transaction occurs when business income or wages are intentionally left off the books. This might include accepting cash without recording the sale, paying employees in cash without reporting payroll, or keeping certain transactions out of your accounting records. It’s important to remember that accepting cash is legal. Failing to report that income is where problems begin. Common Misconceptions About Cash Payments “Cash income doesn’t have to be reported.” This is one of
What is MBE? Minority Business Enterprise is a certification intended for businesses to show their diversity. In order to qualify for this certification, you must have a for-profit business which has been running for at least a year in the United States. The main requirement is that at least 51% of the owners should have minority background such as African American, Hispanic, Native American, Asian, and more. The company’s day to day operations must also be controlled by a person of color. To ensure all this the business goes through the application process including a site visit from the organization. How can I get my MBE Certification? A lot of different organizations can provide the certification. To get started, you must fill out the related documents and take them to the organization you choose. After completing the application process, the business must also receive a visit from the organization to get an idea of how the business operates. This certification will be valid for 5 years before having to renew. Benefits of Being MBE Certified After obtaining the certification a whole new world is revealed! As part of the MBE community, you receive a lot of networking connections including events.
Starting a business will look different for everyone. Depending on your industry, location, and type of business, there may be specific requirements, licenses, and permits you need to obtain. While every business is unique, there are several important steps that apply to most new businesses. Here are some key areas to consider when getting started. CHOOSE A BUSINESS NAME One of the first steps in starting a business is choosing a name for your brand. Your business name should be memorable, easy to pronounce and spell, and representative of your brand. You also want to choose a name you will be comfortable using for years to come. Think about how the name will work with your logo, website, social media, and other marketing materials. Taking the time to choose the right name now can help you build a stronger brand later. Choose a Legal Structure There are several legal structures to choose from, including a sole proprietorship, partnership, LLC, and corporation. The structure you choose can have a significant impact on your business. Your legal structure can affect how your business is taxed, how much personal liability protection you have, and what administrative requirements you must follow. Because the right