Curated guide
Starting a New Business
Most setup mistakes are sequencing mistakes: the right steps in the wrong order. This path runs from first dollar to a compliant, tax-efficient entity without the rework.
- 01
Day one: separate accounts, even as a sole proprietor
You do not need an entity to start; you need clean records from the first dollar. A dedicated account and a simple sweep system make every later step (entity, election, funding) a paperwork exercise instead of a forensic one.
- 02
Understand the tax you now owe quarterly
Self-employment income has no withholding. Before the first strong month becomes a next-April problem, compute the quarterly number and calendar the four dates.
- 03
Form the LLC when there is something to protect
The LLC is the liability layer and the container later elections attach to. Forming it early is cheap; retrofitting contracts, payouts, and accounts later is not.
- 04
Answer the S-corp question at the right profit level
Around $60,000 to $80,000 of consistent profit, the S-corp election starts paying for itself. See the modeled curve, run your own number, and if the answer is yes, follow the checklist so payroll and documentation land in the right order.
- 05
Set your salary like it will be examined
The owner-pay decision does triple duty: payroll tax, retirement contribution ceiling, and IRS defensibility. Start from a documented range, not a round number.
- 06
Run the first-year rhythm
A new business's first filing season sets the pattern for every one after it. The planning playbook gives you the quarter-by-quarter rhythm; the readiness checklist makes the first filing boring, which is the goal.
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