In this webinar, recorded during Women’s History Month and created in partnership with Found/LA, business and career coach Elaine Lou Cartas shares her expertise on the unique challenges women entrepreneurs face as they navigate their way to business world success. Explore how cultural and societal expectations of women in the supporting role can impact your journey as a female business leader and learn strategies to overcome these obstacles. Discover how to create a healthy work-life balance by asking for help, setting boundaries, and taking care of yourself. Gain valuable insights into negotiating strategies and scripts specifically tailored to women, empowering you to effectively communicate your value and secure the best deals for your business.

 

Meet Elaine

Elaine Lou Cartas is the founder of the Color Your Dreams Movement™. Elaine is a business and career coach for women of color and allies around the globe. Elaine was just featured in Apple News as one of the top 5 business coaches, and featured in LA Weekly as the #1 Thought Leader to follow for 2023. With 10+ years of experience, Elaine specializes in inspiring and supporting business owners to create their dream business, a purposeful lifestyle, and their legacy.

 

Elaine’s Top Tips for Women Entrepreneurs:

Learn to Say No and hold your boundries

First, why do women feel obligated to say yes all the time? Women are often raised to play a supporting role as caregivers for family and friends. The societal acceptance of women earning money independent of a family-context is relatively new. The Equal Credit Opportunity Act, which allowed women to open their own bank accounts and apply for credit without their husbands co-signature, was only enacted in 1974. Five decades later, women have made huge strides in the workforce and entrepreneurial landscape, so why do so many women still feel like the world might stop if we don’t answer an email immediately or take on this last minute project? Elaine believes it’s because most unpaid tasks, like household chores and emotional labor, still fall on the shoulders of women, perpetuating the social expectation of a supportive woman who always says yes.

But saying no sometimes is important. Not only does it allow you maintain your hierarchy of priorities and improves your mental health, it also helps other to understand what they can reasonably expect from you. Part of saying no means setting and holding your boundaries, both in your professional and personal relationships. Once you set a boundary, don’t feel obligated to over-explain or give an excuse. Be polite and firm. One of Elaine’s favorite methods is the “thank you sandwich,” where you thank someone for the opportunity (or message or invitation), hold your boundary, and thank them again while reaffirming your continued and future interest in the topic.

Saying no is valuable to personal and professional achievements, but how do you determine what to say no to?

 

Balance Your Life

Determining your priorities can help you understand what you should keep saying yes to and what you should start saying no to. From formal SMART goals to a sticky note on your fridge, there are thousands of goal setting techniques for you and your business to help you determine your priorities and reach your goals. Elaine recommends the Life Balance Worksheet for her clients who, like so many women entrepreneurs, want to have it all and need to prioritize what is most important to them. Make time for what matters and let go of what doesn’t.

 

Check in With Yourself

Regularly make time to step back from your busy everyday task to check in with yourself and your family. Take a few minutes to look back on the past week, celebrate your wins, and acknowledge any challenges you faced. Then, look towards the coming week and make a plan. This could look like a conversation about logistics: “I have a late meeting on Thursday, can you make dinner?” or “I’ll pick the kids up on Monday so you can go to the gym.” Or the conversation could be about making a plan for improvement based on the past week. Be honest and realistic with yourself and your partner or family during these conversations. Communicate your needs clearly and honestly and don’t forget to schedule time for self-care. Taking just 15 minutes a day to reflect and plan can have a huge impact on your productivity and happiness.

 

Protect All of Your Identities

You are more than just your job. You are a hot yogi, a runner, a partner, an daughter, an aunt, or whatever else you identify with. You are allowed to be all of these things and more. Work with yourself and your family to make time for you to practice and express your identities. Sometimes life will be busy and you will have to choose between your identities and that’s ok. Tools like the Life Balance Worksheet can help you determine what’s most important for you.

 

Ask for Help

Ask for help when you need it. If you don’t know something yourself, who do you know who you can ask? If you need help around the house, ask your network for help. As Elaine reminds us, you don’t have to pay for all kinds of help, either. Sometimes a like-kind exchange, a batch of cookies, or other creative agreements, can get you the help you need.

Elaine also recommends getting a therapist. As she put it, “at every new level, there’s a new devil.” Seeing a therapist can help you to reconcile the challenges that come with owning your own small business, while celebrating your achievements and working towards your next goal.

 

Don’t be Afraid of Difficult Conversations

In your personal and professional life, don’t be afraid of difficult conversations. Whether you need to provide honest and constructive feedback to someone related to your business, you need to vulnerably communicate your needs to your partner, or someone is sharing constructive feedback with you, difficult conversations can be anxiety inducing. This is especially true for women entrepreneurs who might be used to playing a supporting role. It’s important to remember that difficult doesn’t mean bad. Difficult conversations can have productive results, like your needs being met or making a positive change in your business based on feedback. Embrace the challenge and use constructive conversations to help you reach your goals.

 

Remember, you Define Your Own Success and Happieness

You and you alone get to define what success means and only you can identify what makes you happy. Take time to reflect and use the tools available to you to reach your goals and become who you want to be.

 

Want to hear more from Elaine? Sign up for a one-on-one coaching session with Elaine as part of AOF’s coaching hub. Coaching sessions with all of our expert coaches are always free. Check out Elaine’s Color Your Dreams Podcast for more inspirational tips for women entrepreneurs.

 

External financing can be a great way to help you reach your business goals, but with so many different terms, rates, and fees, it can be difficult to compare financing options. So, how much does a line of credit cost, and how does that compare to the cost of a term loan?

Term Loan Vs Line of Credit:Typical Uses

While they are both types of debt capital, lines of credit and term loans have very different uses in small business finance. For a deep dive into the differences between term loans and lines of credit, check out our article: Term Loans and Lines of Credit: What’s the Difference?

In general, lines of credit and term loans are best used for the following small business expenses:

Line of Credit

• Inventory
• Payroll
• Seasonal working capital
• Short term costs

Term Loan

• Equipment
• Real estate
• Start-up capital
• Larger costs
• Longer time needed to repay

Term Loan and Lines of Credit Cost Comparison

Interest rates

, annual fees, principal, and credit scores can make for a confusing time when it comes to comparing term loan and line of credit cost. To help you determine the best financing option for your business, we’ve broken the costs down into a side-by-side comparison.

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What is the Prime Interest Rate?

Prime or the prime interest rate

is the prevailing interest rate that traditional banks charge to customers with excellent credit scores. The prime rate is usually the same as the interest rate set by the US Federal Reserve. If your credit score could use some improvement, you will likely be charged more than prime.

Merchant Cash Advance (MCA)

Merchant Cash Advances or MCA are another common type of business financing. When a small business owner takes out a merchant cash advance, they’re given cash up front, which they repay through a predetermined percentage of their daily debit and credit card sales. This can be a great lending option for businesses with fairly stable debit and credit card sales, but it is also a common vehicle for predatory lending practices. If you are considering a Merchant Cash Advance, make sure you read and understand the terms carefully before agreeing to the loan.

Cost vs Flexibility

All three of these popular loan options have pros and cons that you need to consider before choosing a loan for your business. The chart below helps you consider the total cost of a loan verses the flexibility of it’s repayment terms (i.e. how much and how often you will make payments).

Which is Right for Your Business?

Comparing the cost of term loans and lines of credit can feel a bit like comparing an apple and an orange. If you are considering an MCA as well, the decision can get even more confusing. The best way to decide what is right for your business is to start with what your business can afford in terms of monthly or weekly payments, what the loan will be used for, and what loan terms work best for your business’s financial situation. Once you have that list, you can start comparing it to different financing options to find the best fit for your business.

Financing with Accion Opportunity Fund

If you do decide that a term loan is right for you and your business, consider working with Accion Opportunity Fund. At Accion Opportunity Fund, our goal is not only to help you get the funding and support you need to launch your business, but to help you grow and thrive once you’ve got your foot in the door. Accion Opportunity Fund is a government-regulated, non-profit financial institution with a mission to help small business owners reach their goals. Find out more about our small business loan program and apply online today.

Disclaimer: Average interest rates and typical loan terms can change rapidly, so please thoroughly check with any provider to confirm rates and terms.

Learn More About Business Financing

When it comes to your finances, you want clear guidance and easy to implement tools based on your unique needs. Visit Accion Opportunity Fund. to get started strengthening your financial management and meeting your goals.

Experience a different kind of financial education. Learn with AOF has flexible, on-demand courses developed by small business owners, for small business owners. Learn on your schedule, with no time commitment or limit. Save your progress any time to fit courses into your busy schedule.

Schedule C is a tax form for small business owners who are sole proprietors or single-member LLC owners. Schedule C (Form 1040) is a form attached to your personal tax return that you use to report the income of your business as well as business expenses, which can qualify as tax deductions. As you will see by reading this article, Schedule C can be complicated, overwhelming, or confusing. We highly recommend you consult a tax professional for help, or at the very least, use tax software to complete the calculations in the form, rather than trying to fill it out by hand. Regardless of how you choose to do it, it’s helpful to familiarize yourself with the form so you can gather and prepare all of the information you will need. Here is how to fill out a Schedule C for a sole proprietor or single-member LLC.

How to Fill Out Schedule C

The beginning of the form is straightforward. At the top of the form, you will notice a section for the “name of proprietor” which will be your personal name. Your name will be the same whether your business is a sole proprietorship or an LLC since there is a different section where you will put your business name. To the right of your name, you will use the space labeled “social security number” to supply that information or your ITIN (Individual Taxpayer Identification Number).

Section A

Section A asks for your “principle business or profession, including product or service.” You would put your title here or describe what it is your business does to make money. For example, perhaps you are a writer, photographer, or a social media expert. Or perhaps you own a restaurant or sell widgets. You would write your business description or title in section A.

Section B

Section B is for your industry code. Page 18 of Schedule C’s instructions has a list of industries and their codes. You would use this list to look up the industry within which your business falls under and fill out the corresponding number in section B.

Section C

Here is where you will put your business name. If you didn’t formally register your business, then your business shares your personal name and you would leave “business name” blank. If you registered your business name with your state, then you would put your business name here.

Section D

In section D, you will put your employer ID number (EIN), which you would have gotten from the IRS if you applied for one. If you don’t have an EIN, then leave this blank.

Section E

Section E is for your business address, whether you have a separate address or you do business just in your home.

Section F

Section F is where you will specify the “accounting method” for your business, whether it’s cash or accrual. It’s highly likely you are a cash business, which is how most small businesses operate. This means you record your income as you receive it and you record your expenses as you pay them. If this is the case, then you would check the box labeled “cash.”

An accrual business, on the other hand, means you have accounts receivable and accounts payable. People buy your product on credit and you pay people back on credit. If you have accounts receivable, you count that as income even before you receive it. You could have an expense that’s not due for thirty days, but you count it as paid and it goes into your accounting as “accounts payable.”

Section G

This section asks, “Did you ‘materially participate’ in the operation of this business during [the last year]?” It’s likely the answer would be “yes.” This basically means you participated in regular and continuous actions with the intention of producing income, as most small business owners do.

Section H

This section is self-explanatory. Section H asks the simple question, “If you started or acquired this business during [the last year], check here.” If so, check the box. If not, then leave the box empty.

Section I

Section I asks, “Did you make any payments in [the last year] that would require you to file Form(s) 1099?” A 1099 is a form you would fill out if you paid an independent contractor $600 or more during the year. These are not employees of your business, but people who do paid work for you here and there. You must give them a 1099 with the total amount you paid them. If you click yes, then you must fill out section J.

Section J

If you did not pay anyone $600 or more for services rendered, then you would leave this section blank. If you did, then you had better click “yes” and then make sure you have done what this section is asking, which is, “If ‘Yes,’ did you or will you file required Forms 1099?”

Part I: Income

This part of Schedule C is going to help you to calculate your gross income, or the total amount of money you made before taxes or other deductions.

Section 1

“Gross receipts or sales” simply means the amount of money that someone paid you or how much cash you got in exchange for goods or services. This has nothing to do with expenses, but how much someone actually paid you. If you sold 10,000 sandwiches at $10 each, for example, then you would put $100,000 for this section, regardless of how much it cost to make the sandwiches.

Section 2

“Returns and allowances” means you should add up and include all cash or credit refunds you had to make throughout the year to customers. This could include rebates or other allowances or discounts that you paid back after collecting the actual sales price.

Section 3

For section 3, you will subtract line 2 (returns and allowances) from line 1 (gross receipts or sales.)

Section 4

Section 4 is where you will put the cost of goods sold. This is where you list the total expenses you paid in order provide your goods. For example, if your sandwich ingredients cost $30,000, then you would put that here. In other words, you put here what you spent in order to acquire what you later sold.

Section 5

To calculate gross profit, subtract line 4 (cost of goods) from line 3 (sales minus returns and allowances.)

Section 6

Here is where you will document other income, including interest income, and federal and state tax credits or refunds. This will generally be zero, unless you are earning interest from your business bank account, in which case you would enter that here.

Section 7

To calculate gross income, add lines 5 (gross profit) and 6 (other income.)

Part II: Expenses

This section will detail your business’s expenses.

Section 8

Section 8 is where you put the total amount spent on advertising for your business. This could include business cards, flyers, and social media advertising. You cannot list meals and entertainment under advertising costs; that will go in a different section.

Section 9

Section 9 is for car and truck expenses, including car insurance, repairs, and all other vehicle expenses paid, including mileage, but excluding loan interest and taxes. Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car or truck is 58 cents per mile driven for business use.

Section 10

If you had to pay anyone commissions and fees to help you drum up business and sales, you could list those fees here.

Section 11

Enter the total cost of contract labor for the tax year. Contract labor includes payments to persons you pay for business-related services who are not considered employees (for example, independent contractors). These would be people for whom you supplied 1099 forms.

Section 12

It’s likely you will leave this section blank. Depletion refers to the use of natural resources by mining, drilling, quarrying stone, or cutting timber. The depletion deduction allows an owner to account for the reduction of a product’s reserves.

Section 13

This section is about the depreciation of business assets. If you purchased assets for your business, such as equipment or furniture, you can’t expense it all at once when you buy it. You have to depreciate it over a set number of years, depending on the asset type. You also can depreciate improvements made to leased business property.

Section 14

If you have any employee benefit programs, these expenses would go here. You should deduct contributions to employee benefit programs that are not an incidental part of a pension or profit-sharing plan (see section 19). Examples are accident and health plans, group-term life insurance, and dependent care assistance programs.

Section 15

In section 15, you should add up all insurance you pay for your business other than health. For most small business owners, this will typically mean business liability insurance.

Section 16

In section 16, you will include all interest you pay to banks, such as mortgage interest paid on a building you use for your business, interest paid on your car loan, or other interest you paid on a business loan.

Section 17

This line will include legal and professional services, such as what you would pay a tax preparer or lawyer.

Section 18

Office expenses could include writing implements, stamps, printer paper, maybe even a printer.

Section 19

You probably won’t need to include anything for this section, as this refers to deductions for the contributions made for the benefit of employees to a pension, profit-sharing, or annuity plan (including SEP, SIMPLE, and SARSEP plans.)

Section 20

Section 20 includes money paid for rent or lease, including vehicles, machinery, and equipment, and other business property.

Section 21

Section 21 is where you will document money paid for repairs and maintenance. If your machinery or computer breaks, for example, you would have to pay someone to fix it. This section would not include improvements, such as property renovations, which would go under depreciations.

Section 22

Section 22 is where you put what you paid for supplies to run your business. You can deduct the cost of books, professional instruments, and equipment, for example.

Section 23

Section 23 includes all taxes you paid, such as sales tax, payroll tax, and property tax. You can also deduct all fees paid for business licenses.

Section 24

Section 24 is for travel and meals. Enter your expenses for lodging and transportation connected with overnight travel for business. You can write off flights, hotels, rental cars, taxis, and any other travel expenses. Incidental expenses include fees and tips given to porters, baggage carriers, bellhops, and hotel maids.

You should also enter your deductible business meal expenses. This includes expenses for meals while traveling away from home for business. According to the IRS, your deductible business meal expenses are a percentage of your actual business meal expenses. In most cases, the percentage is 50%. You can deduct a percentage of the actual cost of a meal if the following conditions are met.

• The meal expense was an ordinary and necessary expense in carrying on your trade or business;
• The expense was not lavish or extravagant under the circumstances;
• You or your employee was present at the meal;
• The meal was provided to a current or potential business customer, client, consultant, or similar business contact; and
• In the case of food or beverages provided during or at an entertainment event, the food and beverages were purchased separately from the entertainment, or the cost of the food and beverages was stated separately from the cost of the entertainment on one or more bills, invoices, or receipts.

Instead of deducting the actual cost of your meals while traveling away from home, you can use the standard meal allowance for your daily meals and incidental expenses. Under this method, you deduct a specified amount, depending on where you travel, instead of keeping records of your actual meal expenses. However, you must still keep records to prove the time, place, and business purpose of your travel.

Section 25

You can deduct utilities for a business, such as gas, electricity, and water.

Section 26

If you have employees, you can deduct the wages (fewer employment credits) you paid on this line. If you paid yourself from your LLC, you can put what wages you paid yourself here.

Section 27

Section 27 deals with other expenses. Anything you paid that doesn’t fall under all of the other sections we already covered under expenses will go here. This could be conference fees or education, for example.

Section 28

In section 28, you will total expenses except the expenses incurred for the business use of your home. This means you are going to add up lines 8 through 27 and put the total sum on this line.

Section 29

Section 29 will show your tentative profit or loss. Subtract line 28 from line 7, your gross income.

Section 30

Here is where you record expenses for the business use of your home. Enter the total square footage of: (a) your home, and (b) the part of your home used only for business. Use the Simplified Method Worksheet in the Schedule C instructions to figure the amount to enter on line 30.

Section 31

Finally, you come to your net profit or (loss) by subtracting line 30 from line 29. This is the amount of money you will have to pay taxes on if you made a profit.

Section 32

If you have a loss, check the box that describes your investment in this activity. You will have to see the instructions for Schedule C to determine your investment.

Part III: Cost of Goods Sold

if you engaged in a trade or business in which the production, purchase, or sale of merchandise was an income-producing factor, you must take inventories into account at the beginning and end of your tax year.

Section 33

Section 33 is about the methods used to value closing inventory. Your inventories can be valued at cost, the lower of cost, or market.

Section 34

Was there any change in determining quantities, costs, or valuations between opening and closing inventory?

Section 35

What was your inventory at beginning of the year?

Section 36

What is the total cost of purchases, minus the cost of items withdrawn for personal use?

Section 37

Section 37 is the cost of labor, not including any amounts paid to yourself.

Section 38

Section 38 details the cost of materials and supplies.

Section 39

In section 39, you should tally up any other costs of goods sold.

Section 40

On line 40, you will add lines 35 through 39.

Section 41

On line 41, put the inventory you have at end of year.

Section 42

Section 42 is where you figure out the cost of goods sold by subtracting line 41 from line 40.

Part IV: Information on Your Vehicle

Complete this part only if you are claiming car or truck expenses on line 9. In most cases, commuting is travel between your home and a work location. If you converted your vehicle during the year from personal to business use (or vice versa), enter your commuting miles only for the period you drove your vehicle for business. Travel that meets any of the following conditions isn’t commuting.

• You have at least one regular work location away from your home and the travel is to a temporary work location in the same trade or business, regardless of the distance. Generally, a temporary work location is one where your employment is expected to last 1 year or less.
• The travel is to a temporary work location outside the metropolitan area where you live and normally work.
• Your home is your principal place of business (for purposes of deducting expenses for business use of your home) and the travel is to another work location in the same trade or business, regardless of whether that location is regular or temporary and regardless of distance.

Section 43

When did you place your vehicle in service for business purposes (month, day, year)?

Section 44

Of the total number of miles you drove your vehicle during the last year, enter the number of miles you used your vehicle for business and commuting.

Section 45

Was your vehicle available for personal use during off-duty hours?

Section 46

Do you (or your spouse) have another vehicle available for personal use?

Section 47

Do you have evidence to support your deduction?

Part V: Other Expenses

In this section, you will detail business expenses not included on lines 8 through 26 or line 30.

Section 48

You will total up all other expenses.

Filling Out the Form

As a small business owner, your time is very valuable. As you can see, this form can be a long and confusing endeavor to fill out, and making mistakes on your tax return can be costly. If at all possible, we highly recommend using a professional tax preparer to fill out the form for you. A professional tax preparer can also assist you with maximizing your deductions safely and legally, as they are very familiar with tax law. If you can’t afford to hire a professional, then the next best thing will be to get good tax preparation software. Whatever you decide to do, be sure to keep detailed records of all of your expenses so you can back up your deductions for peace of mind in case of an audit.

As a solopreneur, you might be wondering about the most advantageous way to establish your business. As a solo business owner, your best options—at least in the early stages of establishing your business when you are operating alone—are likely between registering your business as a sole proprietorship or as a limited liability company (LLC). Which is more advantageous: a sole proprietorship vs. LLC? It will depend on your needs as a business owner. We will review the advantages and disadvantages of each. But first, let’s define the two and see what the main differences are for a Sole Proprietorship and LLC.

What are the main differences between an LLC and a sole proprietorship?

While it’s perfectly suitable for an LLC to have a single owner, it could also have multiple owners. An LLC is considered a separate legal entity from its owner or owners, which are referred to as “members” of the LLC. The LLC’s members are not held personally liable for business debts or other liabilities incurred by the business, such as lawsuits, accidents, or injuries. Instead, the LLC is responsible.

A sole proprietorship, on the other hand, is always owned and operated by only one person. The owner of the sole proprietorship is entitled to all the profits of the business but is also responsible for all of the business’s debts and liabilities.

LLC Advantages Over Sole Proprietorship

Whether you decide to register your business as a sole proprietorship or an LLC will vary depending on your personal business goals and concerns.

The single biggest advantage of an LLC over a sole proprietorship is personal liability protection. If you register your business as an LLC, your personal assets—such as your home, car, and personal financial accounts—are protected from business debt collection or, in the case that your business is sued, you are personally financially protected against legal claims against your LLC.

A sole proprietorship offers no such protection as there is no legal separation between you and the business. The debts and obligations of the business belong to your personally. If your business is sued or there are collections actions taken against your business, you personally will be on the hook to pay back the debt or to settle the legal claims against your business. You could also be held personally responsible for liabilities caused by your employees.

Sole Proprietorship Advantages Over an LLC

In a nutshell, starting a sole proprietorship is simpler, less expensive, and less complicated than starting an LLC. One simplification that sole proprietorship offers is that you don’t need to separate your business and personal finances by keeping separate bank accounts. If you plan on taking tax deductions based on business expenses, it might be easier to keep your finances separate for tracking purposes, but you are not required to do so by law. You do, however, need to keep accurate financial records for your business, including business income and expenses, in case you are audited by the IRS.

With an LLC on the other hand, by law you must keep separate accounts for business and personal in order to maintain LLC status and the personal liability protection that it affords you. If you mingle your business and personal accounts, then you could lose your limited liability protection. If debt collection or a lawsuit lands you in court, a judge could rule your LLC null and void if you mingle personal and business assets, in which case you lose all liability protection and your personal assets could be used to pay debts or settle legal claims.

Another advantage provided by the simplicity of the sole proprietorship is that you are not required to register your business name if it’s one and the same as your personal name. If you choose a business name other than your personal name, then you should register your Doing Business As (DBA) name with your state.

If you are starting an LLC on the other hand, you must register your LLC with your state no matter what business name you choose. LLC registration does give your business name protection within your state since there cannot be more than one LLC of the same type or industry with the same name. With an LLC, you must also file articles of organization and write an operating agreement to document the rights and duties of the members. A sole proprietorship does not require you to do any of this.

As an LLC, you will also have to pay a filing fee, which varies by state. You may have to pay to renew your LLC periodically, and some states may require annual or periodic reports. A sole proprietorship requires no such filings, which means another point scored by the simplicity of sole proprietorship.

Conclusion

Depending on your needs and comfort as a business owner, whether it’s liability protection or ease and simplicity that you are craving, the choice may be clear as to which type of business structure you should choose. Some business owners get peace of mind knowing they are legally protected from financial claims against the business, while other business owners prefer to keep things fast, easy and simple. It’s up to you to choose what is best for you and your business. You can always change your business structure later should your needs and desires as a business owner change.

Most businesses begin with just one person and an idea. As you start your business, it’s most likely that you are a solo entrepreneur, or a “solopreneur” for short, which is a single-person owned business. A sole proprietor, on the other hand, is a legal structure for a business that is owned and operated by a single individual. So what exactly is the difference between a solopreneur vs. sole proprietor? It’s the action steps you take to establish your business as a legal entity. Here is how you establish yourself as a sole proprietor.

According to SBA.gov, “You do not have to take any formal action to form a sole proprietorship. As long as you are the only owner, this status automatically comes from your business activities.” That said, there is a difference between working for yourself informally and doing the legwork to set up the business structure required to be a sole proprietor for legal and tax purposes, which is highly recommended.

How do I legally register my business as a sole proprietorship?

A sole proprietorship is a business owned and run by a single individual. First of all, it’s important to understand that if your business is a sole proprietorship in your own name, you legally do not have to register your business. For this reason, a sole proprietorship is considered to be the easiest type of structure to set up. That doesn’t mean there are no regulations to follow, however. Setting up your business as a sole proprietorship has implications as far as taxes, financing, and your personal liability. The procedure will vary from state to state, but the steps to acting as a sole proprietorship are very simple.

1. Choose a business name

Your business may be your own personal name or something more creative that describes the business. If you’re using a business name that differs from your name, most states will require it be different from any other business name currently in use in the state in which your business operates. If your business name differs from your personal name, then check your state requirements and do a search with the appropriate agency to make sure the name is available. To do this, perform an internet search for “business entity search” plus the name of your state to find the agency.

2. Register your business name

Many states require sole proprietors to register your Doing Business As (DBA) name—unless you are simply using your own personal name as your business name, in which case there is no need to register with your state.

Even if your town or state doesn’t require a DBA filing, you most likely won’t be able to open a bank account with a fictitious name unless you have proof that it’s been registered. Depending on where you’re based, registering your DBA is done with either your county clerk’s office or with your state government.

3.Get the appropriate licenses and permits for your business

No matter what type of business you are running, it’s important to make sure you are appropriately licensed in your state to offer your services, including when you are operating as a sole proprietor.

Most states will have a database of professions and occupations and the licenses required. Search online for your state and “professional licensing.” Also file any local paperwork required where you’re doing business, such as local safety or zoning permits.

4. Should a sole proprietor get an EIN?

An Employee Identification Number (EIN) is a 9-digit number issued by the Internal Revenue Service to keep track of businesses. According to IRS.gov, “A sole proprietor without employees and who doesn’t file any excise or pension plan tax returns doesn’t need an EIN (but can get one).”

While you can avoid getting an EIN as a sole proprietor and simply file your taxes using your social security number (or ITIN), there are some distinct advantages to getting an EIN, which is a simple and easy process. Using an EIN instead of your social security number on W9 forms and direct deposit forms you might have to fill out in order to receive payments from others you do business with can help prevent identity theft.

Having an EIN can also help you to open a business bank account and establish business credit. It’s important for tax purposes to keep your business and personal finances separate for easy distinction of business vs. personal expenses, so it is recommended you set up a business bank account and get a business credit card.

5. Pay business taxes

Like all types of businesses, a sole proprietor must pay taxes. Depending on what type of business you’re in, you may have to report sales or other taxes. Income taxes will be filed as personal income on your individual return with a Schedule C attached. You pay all the taxes an employer would otherwise pay for you, such as contributions to Social Security and Medicare, and you may have to pay estimated taxes throughout the year. Speak with an accountant and make sure you understand and follow through on the requirements.

6. Obtain business insurance

A sole proprietorship doesn’t offer you any personal protection from legal claims against the business, so it’s a good idea to get liability insurance. You will also be personally responsible for the business’s financial obligations, which is another reason to obtain a business liability insurance policy.

Conclusion

A sole proprietorship is the easiest business entity to establish. If you use your own name as your business name, there are very few steps you must take in order to establish your business. As long as you are appropriately licensed, you can essentially “hang out a shingle” with your name on it and accept business that comes your way. While this is the easiest solution, you might decide to take some extra steps such as getting an EIN or business insurance for the peace of mind and protections these afford you. If you are looking to save time and money as you start out in business, then establishing a sole proprietorship may be right for you.

When deciding whether to go into business for yourself as a sole proprietor or to partner with other business owners, you must consider the advantages and disadvantages of each. There are lots of benefits to working for yourself, but there are also challenges. It’s important to understand what it might be like to go into business for yourself alone without other business owners before making that decision. Let’s consider the pros and cons of sole proprietorship.

So how do you know whether you should go into business alone as a sole proprietor, or whether you should partner up with another person or a whole team? First of all, “sole proprietorship” by definition is a legal structure for a business, but it’s not the only business structure you could take on as a business owned by a single individual. For example, you could work for yourself as a solopreneur and structure the business as either a sole proprietorship or a limited liability company (LLC). For the purposes of this article, we are not focusing on the legal structure for your business, but rather: should you start a business alone, or in partnership with others?

Please note that there is no “one size fits all” answer for everyone. It’s not that sole proprietorship is better or worse than partnering up with other business owners. What will make someone successful as a business person is going to be very different for everyone based on their personality and knowledge base. That said, as you read this article, you might resonate with some points more than others. Take what applies to you and your business and set aside the rest.

Cons of a Sole Proprietorship

Let’s start with the cons of sole proprietorship. There are certain disadvantages of going into business by yourself that it’s important to know upfront before starting a business.

Lack of Delegation

When you’re sick or overwhelmed and you’re the only one running the show, there’s no one to delegate extra tasks to or to cover for you. When you are the only face of the business, unless you have developed a way to bring in a good amount of passive income—such as from on-demand information products—then you need to be working regularly in order to make money.

When you are in a partnership, the lights can stay on and the doors stay open when the going gets tough because you can tag team with each other and keep going. If it’s just you and you fall very ill or there is some other overwhelming situation, it could put a serious damper on your ability to make a profit.

Trickier Conflict Resolution

When it comes to running a business, you may have to cooperate with loads of other people, from customers and employees to suppliers and landlords. With all these different personalities you must interact with, there are bound to be some conflicts!

Some personalities work better together than others. If you have difficulties with someone and you are having a hard time resolving the problem, sometimes it’s best if you have a partner to perform a “good cop, bad cop” routine to smooth over any differences. Likewise, if you have a business partnership, one of you might decide you like working with others and the other would prefer to stay behind the scenes.

As a solopreneur, you do it all—like it or not—and there is no one there to handle difficult people but you. If hearing the words, “I need to speak to the manager,” make your skin crawl when you realize YOU are the only manager, then it’s possible being a sole proprietor isn’t for you.

Echo Chamber

You’ve heard of the saying, “Two heads are better than one.” When it comes to a sole proprietorship, you can miss out on the advantages that come from having a business partner, such as different ideas, perspectives, and solutions. Some business owners really thrive as a dynamic duo and are best not left to their own devices. If you feel like living in an echo chamber is your worst nightmare, then perhaps life as a solopreneur is not for you.

When you feel like you can’t solve a problem on your own, you might have to shell out the big bucks and hire a professional consultant to get you out of a jam that could possibly have been solved by having a savvy business partner.

Pros of a Sole Proprietorship

Now let’s focus on the pros of sole proprietorship, and why this type of business might be for you. Some people know what they want in business and they feel confident and savvy enough to pull this off without a business partnership. Is sole proprietorship for you? Let’s find out!

No Compromising Your Ideas

When you feel like you have the most genius idea of the century, the last thing you want to do is to have your inspiration and brilliance watered down by conflicting advice and ideas coming from a business partner. If you feel like, “I can create my own success, thank you very much,” then perhaps sole proprietorship is for you.

If you are a control freak and you know it, and you want everything executed “just so”—from your website design, to the interior of your store, then it’s highly possible that a business partnership would be more irritating than useful to you. You need to understand where you stand when it comes to collaborating with other people when it comes to business. If you are delighted to compromise your ideas to accommodate the ideas of others, then a partnership might be best. But if someone else pitching in their two cents sounds like fingernails on a chalkboard, then you might be better off as a sole proprietor.

Set Your Own Hours

When you partner with someone else, there is always going to be some sort of negotiation that happens around scheduling. As a sole proprietor, you create and set your own hours—no ifs, ands, or buts. If you are someone who has a strong desire to control your own hours without having to deal with someone else’s wants and needs, then you might be better off as a solopreneur. If you wake up in the middle of the night with a stroke of brilliance, and you want to get straight to work executing on your idea without having to ask permission or consult with a business partner, then a sole proprietorship might be right up your alley.

No Conflicts With Other Owners

Just like marriage, sometimes there are “irreconcilable differences” between business partners and people decide they cannot continue together in business. In that case, you might have to dissolve the business and divvy up all the assets. Consider what it might feel like to allow one person to walk away with some of your business assets so that you can go your separate ways. As a solopreneur, this heart-rending situation will never become a concern.

Even if a conflict never gets so far as to destroy the business, just know that going into business with other people will always bring chances for conflicts and differences. As a sole proprietor, the only conflicts you’ll have to iron out when it comes to business decisions are with yourself!

Profits Are All Yours

As a sole proprietor, you will often be the only one securing the capital necessary to start your business, which can be a con. But the major upside to this is that you will be the one reaping all the profits. If it skins your hide to share profits with other business owners, then perhaps being a sole proprietor is the right path for you. When the money comes in, it goes straight into your pocket and you can choose to spend it however you please. With business partners in the mix, you might need to compromise how you spend profits, whether you get paid or whether you reinvest in the business. If you hate to negotiate with others on what to do with profits, then you should strongly consider becoming a solopreneur.

Conclusion

As a solopreneur, you own both your success and your failures, and you alone are responsible for your business. For some business owners, this sounds refreshing; for others, it sounds daunting. Decide which kind of entrepreneur you are.

Many small business owners operate as the default business structure, sole proprietorship because it’s easy. Sole proprietorship is a default business structure. There is no paperwork to file. You simply declare yourself in business, and you are. The downside of sole proprietorship in a business structure is that, should your business be sued, your personal assets and business assets are legally considered one and the same. This could include your home, your car, and your bank accounts. It’s important to take the necessary steps to take advantage of legal protections for solopreneurs. So what’s a solopreneur to do in order to maximize legal protection of their personal assets? You should consider changing to a more advanced business structure than a sole proprietorship because easy isn’t always better.

Why Legal Business Structure Is Important

As a solopreneur, it’s most likely that a single-member Limited Liability Company (LLC) is the best and easiest business structure to set up that will legally protect your personal assets. The more advanced business structures, such as LLC, exist as their own entities to protect personal assets. In the eyes of the law, there is a corporate shield that exists with an LLC to protect you personally from business debts.

More advanced legal business structures require additional steps to set up, but it’s important not to be intimidated. Creating an LLC only takes a few more steps, and the legal protections an LLC offers are probably worth the peace of mind you get in return.

Why You Should Keep Personal Funds and Business Funds Separate

Not only should you set up an LLC, but it’s also vital to separate your personal information from that of your small business. Your small business should have a separate name that you register with your state, an Employer Identification Number (EIN) rather than your social security number (or potentially your ITIN), plus a business bank account and business credit cards to keep your personal and business assets clearly delineated and separate.

Your business funds and your personal funds should always be kept clearly distinct and separate from each other to avoid the appearance of co-mingling. Any co-mingling can open you up to legal and personal asset liability issues. The same goes for using business funds to pay for personal expenses. If by chance you are sued, a judge could nullify your LLC if your business and personal funds are co-mingled.

Your Small Business Should Maintain Comprehensive Insurance

Any business, regardless of size, should maintain adequate insurance to protect itself in the event of an accident, natural disaster, data breach, or any number of possible claims. Dealing with property and general liability claims can result in lost time, expense, and frustration. All small businesses should maintain adequate insurance to prevent such problems. Depending on the size and nature of the business, specialized insurance policies may be advisable to provide additional cover.

How to Change From Sole Proprietorship to LLC

When you want to change your business structure from a sole proprietorship to an LLC, the first step is to register with the state where you conduct business. Try a Google search for “[your state] LLC”.  You’ll need to choose a business name and fill out a couple of forms and send them in. After a few days or weeks, the paperwork will be approved and you’ll get a notice through the mail or online.

When changing your business structure to an LLC, you’ll also need to create a formal operating agreement. That’s a legal document that sets out the ownership, rights, and responsibilities of the LLC’s owner. You can find boilerplate agreements online but you should consult an attorney to make sure you have all your bases covered.

A business structure only works if you’ve handled all the details. To make sure your change is recognized, it’s recommended that you:

• Register your new business structure with your state.
• File a DBA (Doing Business As) form. You can do this online on your state’s website and with the IRS.
• Register with the IRS to apply for an updated Employer Identification Number (EIN), which you will use to file your taxes and pay your employees.
• Reapply for state licensure under your new business name and structure.
• Update your bank accounts and records to reflect your new business.
• Update your insurance records to reflect your changed business structure.
• Contact your vendors and suppliers to update them on the change.
• Double-check with your tax and legal professionals that all paperwork is filed and complete.

Conclusion

One very important thing to keep in mind is that you can change the organizational structure of your business if your situation changes. It’s possible to start off as a sole proprietorship and convert to an LLC or corporation for increased legal protections. As your needs grow and change, the structure of your business can change with them. As always, it’s best to consult with your attorney and accountant about what would be most suitable for you.

In recent years, we’ve become more and more conscious of the issue of “work/life balance.” In part, that’s an aspect of a general movement toward awareness of the importance of mental health. In part, it’s a result of the way our constant access to phones and email blurs the line between home and office.

To help create a better work/life balance, many companies are experimenting with flexible work schedules, telecommuting, and more generous vacation time. But even if you have a standard work schedule, there’s a lot you can do to level those scales. It’s all about taking advantage of your weekend!

Research indicates that how you spend your weekends can lay the groundwork for your work success during the week. Here are our pro tips for how to make the most of your weekends, so you can hit the ground running on Monday.

 

1. Rest and Recharge

Successful entrepreneurs are lauded for their unique ability to juggle many balls in order to keep their business running. Sometimes burning the candle at both ends is inevitable, especially if you’re heading up a startup or have a major deadline looming.

Sky Zone CEO Jeff Platt recounts his own experience starting up his trampoline park business. Platt recalls working “16-hour days, seven days a week, for two years.” One day, he realized that this level of mental and physical strain wasn’t sustainable in the long term, and he made the decision to hire employees.

Experts say that our mental energy is a finite resource. The ability to regulate discipline, stay attentive, and solve problems becomes more difficult as the day goes on. According to Allison Gabriel, assistant professor of management at VCU University, “When you are constantly draining your resources, you are not being as productive as you can be. If you get depleted, we see performance decline. You’re able to persist less and have trouble solving tasks.”

In other words, we actually need time off in order to work effectively. Working straight through without a break isn’t effective – you’re burnt out and not doing good work. So take those weekend days to let your mind rest; do something fun and completely non-work-related to recharge.

 

2. Family Time

Why do so many entrepreneurs start their own businesses? To provide for their families. It’s an unfortunate paradox that to make the money they need to sustain a certain quality of life, they need to spend time away from their loved ones. Even if you own a family business and work side by side with your spouse or extended family, “work time” is not “family time.”

What’s a busy entrepreneur to do to ensure that they’re connecting with their loved ones during time away from the office? Use that weekend time to reconnect and spend time together. If you’re married, uninterrupted time with your spouse is a must. If you have children, spend time with them, enjoying their activities and focusing on their needs. You’ll be able to face the challenges of the work week when you know you have a supportive network for you at home.

Your family is important to you and you’re not going to do your best work if you feel disconnected from them. Weekends are the perfect opportunity to get that quality time in.

 

3. Social Time and Community Involvement

Social interaction is vital for all of us. Social interaction can make you happier, healthier, and even lead to work connections which can boost your career in the future. Successful entrepreneurs know that interacting outside of work and interacting in their community is a key to business success.

Whether it’s running a charity race or attending the opening of a new local park, entrepreneurs know that giving back to their community on weekends can benefit them mentally and professionally. Find ways to grow your network and get out in your community for events.

And don’t forget personal social time! Have your friends over to watch the game or go out for dinner or drinks. Maintain that network of people you care about. They can help you unwind and think about things other than work. They’re also an important source of support and they miss you when you spend all day every day at the office.

 

4. Creative Hobbies

One of the biggest secrets of entrepreneurship is the intrinsic value of pursuing a creative hobby. Find something that lights your fire – writing your crime novel, learning to play an instrument, working in your wood shop, taking dance classes. Creative hobbies are healthy even if you’re not constantly crushed at work, but they’re even more important when you’re carrying the stress of running your own business.

And hobbies can actually be good for your work! Pros have found that by awakening your creative side outside of the office, you may be more able to bring new thinking and problem solving skills to the entrepreneurial table. A hobby that you love engages your mind and gives you something to focus on other than work during your free time.

 

5. Active Hobbies and Exercise

We all know that routine exercise is good for our bodies and our minds. But logging hours on a treadmill in a sweaty gym is the last thing most of us want to do on weekends. The good news is that there about a million options to turn your weekend active time into something fun. For example, if you like the outdoors, then finding new hiking spots to explore with the family is both a way to connect and get needed exercise.

If there was an activity you loved as a child but gave up once the pressures of adult life took over, consider revisiting that childhood love. Horseback riding, ice skating, and biking can be lifelong pursuits that can keep you mentally and physically active on weekends. If you liked team sports, adult softball and soccer leagues make it easy for you to work out with a crew.

The point is to get moving, however best fits your needs. Get that blood pumping, that heart rate up, and those endorphins flowing!

 

6. Plan Your Next Week

Pros say that successful people plan their week ahead on Sunday night. The more you can plan on Sunday night, the less you’ll have to think about on Monday morning. After a weekend recharge, you’ll have a clear head for what you need to get done, what your priorities for the week are, and how best to handle them. Set up a schedule for the week to make sure you don’t forget anything and to help keep yourself accountable for what needs to get done.

Lay out your clothes for the next day. Pack your lunch the night before. Organize your office materials and put them in your briefcase. Setting yourself up for success on Sunday night is simple and it takes just a few steps to make the morning go smoothly.

 

Thank Goodness It’s Monday!

How you spend your weekend down time can help you tackle your work week with purpose, energy, and drive. By making the effort to recharge, spend time with family, and pursue creative and active endeavors, you’ll be able to greet your Mondays with a spring in your step and positive energy for the week ahead.

Of course, sometimes you’ll have pressing issues that just can’t wait until Monday. And that’s ok – running your own business means you’re on call for all the important issues and those issues don’t necessarily respect your calendar. If you have to run in to the office on a Saturday or take a call on a Sunday, go ahead and do it! The key is to keep an eye on how often you’re doing that and make sure you’re getting enough R&R.

If you find that you’re working every weekend and can’t seem to catch a day off, then there are a couple of things you can do. First, take a look at your routine. Do those tasks really have to get done over the weekend? Is there something you can do during the week to help ensure that your weekends are free? If you’re simply swamped, it may be time to bring on an employee to help share the work. Sometimes, there’s just more to get done than one person can manage on their own.

Diving into your free time and taking the opportunity to recharge is both healthy and good for business. If you really enjoy your weekends, you won’t have to dread Mondays – you’ll be rested and ready to crush your work week!

 

Starting new businesses isn’t just for college kids from Silicon Valley – anyone with a passion and some elbow grease can do it. There’s no timeline or expiration date on becoming a successful entrepreneur. In fact, people starting businesses later in life may actually have some advantages over people that are still early in their careers.

It’s never too late to start your entrepreneurial journey. Don’t believe us? Consider these points.

 

It’s Never Too Late

It’s a little cliché, but you don’t want to look back on your life and feel regrets. So don’t let age define what you can and can’t do. It may be too late to become a professional skateboarder, but it’s never too late to pursue your dream of becoming an entrepreneur.

Lots of extremely successful businesses were started later in life. Colonel Sanders started his first KFC at the age of 62. Vera Wang didn’t start designing wedding gowns until the age of 40. Juila Child didn’t write her first cookbook until she was 50, which launched her career as a star chef.

Just imagine if the best times of your professional life haven’t even happened yet. How exciting!

 

Never Stop Learning

Jumping into a new venture

can be intimidating because you may feel like you won’t be well-versed on new technologies, models, or jargon. But you’ve been working for long enough to be able to pick up on new skills and put them to work. You can also bring your past experiences to new situations, giving you an edge over less experienced peers.

Today, there are online tutorials, webinars, and even free Ivy-League courses available to help you learn everything from Mandarin Chinese to computer programming. If you’re committed to learning a new skill set, then resources exist to help you do so. You just have to make the commitment to pursue that knowledge!

 

Find A Mentor

You’ve worked for long enough to know that there are a lot of things you don’t know. And you understand the value of expert advice. So, seek out some folks that are already in the business you want to be in. Make connections in your field with people that you trust and respect. Those relationships are a great source of advice and inspiration.

A trusted mentor will help you as you navigate the challenges of your new industry. Having an in-the-know sounding board and professional contact can help take some of the guesswork out of being a newbie. They can also share stories, tips, and how-to advice from the been-there, done-there trenches.

 

Becoming An Entrepreneur Is A Whole New Beginning

We get comfortable in our careers. We have a routine, we know what we’re doing, we know who we’re working with. But comfort doesn’t necessarily equal fulfillment. It doesn’t mean that you’re excited to get up and see what your work day has in store. Becoming an entrepreneur is a way to completely reset – you’re starting from the beginning and every day is going to be exciting!

 

Age Is Just A Number

Becoming an entrepreneur isn’t the sole province of youth. And with your experience and dedication, you have every opportunity to be successful in a job that you’re passionate about. It’s scary. It’s thrilling. All you have to do is take the leap.

Even if you love your job, probably think about being your own boss sometimes. You could run things the way you want and not take orders. Of course, taking on the responsibilities of running a business is scary – what happens if you fail? If you’re thinking of starting your own business, the perks of being your own boss may just convince you that it’s worth the risk.

 

1. Work That Makes You Smile

Life is what you make it, so why not make each aspect of your life as positive as you possibly can? If you don’t enjoy what you’re doing during your office hours, that’s going to seep over into your home life and take a toll.

When you’re your own boss, you have a unique chance to shape your days the way you want to. You can pick and choose the work that you like and focus on what makes you smile. Even if your day-to-day work life has some aspects you don’t enjoy, as the boss you can outsource the chores which make you cringe and focus on the tasks that make you happy. Plus you choose the overall direction of your business, which means you’re more likely to be happy with the work in the first place!

 

2. Flexible Work Locations

The beauty of modern technology is that if you have your laptop and smartphone, your office is wherever there’s wifi. If the idea of the daily cubicle grind gives you a case of claustrophobia, then this perk may be especially enticing.

Technology keeps us all so well-connected that no matter how remote your location, you can set up mobile offices virtually anywhere. Some of this freedom will depend on the type of business you run, of course, but even brick-and-mortar shops will give you room to work on the books, marketing campaigns, business planning, and other tasks from anywhere you want.

 

3. Ditch The Commute

Brutal commutes can challenge the patience of even the most dedicated road warrior. Studies show that long commutes have been correlated with higher levels of stress, anxiety, and depression.

When you’re the boss, you control the work, but you also control how long it takes you to get to work. Want to commute one minute to your second-floor home office? Or to your local coffee shop? And you can choose to locate your business wherever you want – maybe that’s right in your own neighborhood so you can walk to work! What will you do with all that new-found free time?

 

4. Ultimate Autonomy

Even if you have a fantastic working relationship with your current boss, they’re still the ultimate factor in calling the shots in your professional life. Being your own boss affords a level of complete autonomy that working for another person doesn’t. You get to decide how you do business – where to source your materials, how you treat your vendors and customers, how you manage your marketing, and every other aspect.

 

5. Hiring Others And Giving Back

One of the best perks about being your own boss is that you not only get to create an amazing job and work environment for yourself but for others, as well. By creating your own company and hiring staff, you’re giving back to others, as well as to the local and national economy.

You also have the opportunity to give back to the local community beyond creating jobs. That may mean offering internships or mentoring to local kids, sponsoring events for local charities, or anything else you can dream up. More businesses than ever are incorporating social change into their models and being your own boss means you can choose to do the same.

 

6. Learning A Ton – About Everything!

No matter which field you’re in or what kind of company you start, being your own boss requires a brand new skill set (or four). Learning to run a company will teach you about accounting, hiring, marketing, supply and demand, outsourcing, tech “¦ just to name a few. As a result, your skill set and expertise will practically explode as you learn the ropes of how to wear all the different boss hats.

 

7. You’ll Reap Financial Rewards

Part of being your own boss is that you get to decide how to spend the money. You also get to call the shots on how much you earn. If you want to take several weeks of vacation, you may earn less that month. If you want to put in longer hours and boost sales to save for holiday spending, then that’s your call, too.

You have the ability and power to make your financial decisions regarding your business. The business itself is valuable and you can set your own salary and those of your employees – no more waiting for a tiny annual raise!

 

8. A Schedule That’s Yours Alone

When you’re working for someone else, your work hours are at their discretion. When you work for yourself, you have the freedom to control your own hours and your own schedule.

It’s true that starting up a new business can require long hours while you get off the ground. However, once you get past that start-up hurdle, you’ll find that you ultimately have more freedom with your time and work schedule. This is especially great for people with families – you can start work early so you have time to get to your kid’s soccer game or take a weekday off to go on a field trip.

 

9. Broad Creative Expression

When you’re the boss, you can express your creativity in your day to day life. Even if you’re not in a creative field, being your own boss allows you to flex your creative muscles on a daily basis. You can try out new strategies across the board and find ways to make your business better – and you’re the one that will benefit from that creative thinking.

From marketing, branding, PR, problem solving, technology – all of these tasks allow you to innovate and think outside the box. When you’re the boss, you can literally reinvent the wheel.

 

10. A Deep Appreciation For What You Do

When you’re the boss, you know the hopes and dreams that go into building a business. You also know the blood, sweat, tears, and hard work that went into building your dream.

Since you know exactly what goes into starting up and growing your company, you won’t take a single day of work for granted. You’ll know that what you’re doing is meaningful, impactful, and fulfilling. Each day will reinvigorate your motivation and commitment to growing your company. You’re building something that’s truly yours.

 

The Bottom Line

Being your own comes with some risks, but it also offers some pretty terrific rewards. Many of us have dreamed about it, but few of us really take the leap. Isn’t it time you started your own company and controlled your own professional destiny?