iCoach Magazine – PURPOSE edition – October 2013
So often entrepreneurs start their businesses not sure where they are headed. We just start sending out newsletters, working with clients, and going with the flow. We aren’t even sure if we want to coach full-time. But, that makes legal business planning a wee bit difficult.
As a Legal Coach and Attorney, I often hear: “As a new coach, what do I need to do to set up my business as a sole proprietor?” or “I am an experienced coach. Is it the right time for me to form an LLC?”
The first step to answering these questions requires getting clear about the PURPOSE for your business.
Ask Yourself:
- Is my business going to be my full-time job for many years to come?
- Is the purpose of my business to be a part-time side gig?
- Is my business a hobby that I love dearly and share freely (without charging clients)?
The short answer is that:
– If you see yourself coaching full-time for many years then you may want to create an LLC or S-Corp to protect yourself from liability and separate your business and personal assets.
– If your sole desire is to operate a small side business, you may want to just set up your business properly as a Sole Proprietor.
– If your coaching is a beloved hobby, you may want to continue to share your light and love and not create a formal business entity at all.
When you use foresight in aligning your business with the purpose it currently (or will play) in your life, you can determine the right business structure for you.
Take a moment to visualize yourself and your business over the next few months, years, even decades, and determine with intention how you see it growing and evolving, and then take the right steps to protect it.
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