Unf*ck Your Biz C-Store Blog About GET FREEBIES! Login

Episode 035 - Disrupt, scale, lead. A framework to go from hustle hamster wheel to a scalable machine

podcast Oct 04, 2019

On this episode, Meghan, shares her framework to help you get off the hustle hamster wheel and strategically scale your business, so that it operates like a well oiled machine saving you time and making you money.

LISTEN HERE

Connect With Meghan

Click Here for More Info on the Disrupt, Scale, Lead Framework

Episode Transcript

Braden: (00:01)
Hello and welcome to today's episode of it, your legal gay best friend, a podcast for creatives. I am very excited because today I am talking with one of my new biz BFFs. I don't know if she knows that yet, but her name is Megan and I think she's a super pumped to be here. I dunno. I'll let you tell everyone if you're super excited. Okay, awesome. See is the best policy. Okay. So to intro Megan A. Little bit more properly, she is a positioning and a marketing strategist and creator of the disrupt scale leader framework. Megan is also the owner of the digital marketing agency. It may Dell media. She comes from a design...

YAAAS, I need to finish reading this one...

What's a DBA & Why Do You Need One?

business formation Aug 28, 2019
 

Alrighty, friend. When it comes to dbas, there’s a lot to unpack.

Let’s start with what a dba is not. DBA stands for “doing business as.” I, Braden Drake, am doing business as Your Legal Gay Best Friend. That’s my biz name.

What a dba is not is a type of legal entity.

I see the question in Facebook groups ALL. THE. TIME. “Should I get an LLC or a dba?”

When business owners ask this question, what they really mean to be asking is “Should I get an LLC or remain a sole proprietorship.”

Don’t worry. You’re not a dumb, dumb if all this shit is new to you. I didn’t even learn it until after law school when I started my biz.

When you go into business and don’t file any paperwork with the state to become an LLC or a corporation, you have a sole proprietorship (or a general partnership if you are not a solo). A dba is a different thing.

A dba, technically, is not a license or document...

YAAAS, I need to finish reading this one...

Forming an LLC in California at the End of the Year

business formation Jun 29, 2019

Many new business owners wish to launch their businesses in the new year. However, the legalities needed to get started can complicate the process. When forming an LLC in California, you must pay an annual minimum franchise tax to the state on an annual basis. That minimum tax is $800 in addition to standard income taxes. The first franchise tax is due on the 15th day of the fourth month after the LLC formation. For example, if you were to form your LLC in July, the fourth month of operation would by November. The $800 franchise tax would be due on November 15th.

This is why I talk to many clients who simply wish to open their LLC in the new year. Obviously this is a business decision. If you have people waiting for you to launch your biz, then you probably wouldn’t delay. Get that money, money, money.

The good news is that California offers some carve outs to those who file at the end of the year. If you form your LLC on, or after, December 17th, you are not required to pay...

YAAAS, I need to finish reading this one...

Operating and Partnership Agreements. What Are They, and Why Do You Need Them?

The birth of a new business is an exciting time. There’s no shortage of motivation, or enthusiasm and your creative juices must be flowing. Everything you’ve worked towards for the past few months has culminated into this moment... so congrats! But the legal aspect is often overlooked or worse, completely ignored. You may need a business agreement like an operating or partnership agreement. These concepts new to you? No worries! Keep reading to figure out what kind of agreement suits you best.

Partnership Agreement Basics

If you have two or more individuals coming together to form a partnership, you will need a Partnership Agreement. Since a general partnership doesn’t have a separate existence in the eyes of the law – the partners will be jointly and severally liable for any debts of liabilities of the business. Also, in California, and in many other states, state default rules apply in absence of a partnership agreement. In short, if you don’t have an...

YAAAS, I need to finish reading this one...

What’s the Difference Between a Hobby & a Business? The Tax & Legal Lowdown.

I frequently hear people say things like “I just do this as a hobby,” or “I was told that if I make less than x dollars this is just a hobby.”

“Hobby” has a different meaning in a tax context, a legal context, and in a non-tax/legal context. We all understand the colloquial and dictionary definition of a hobby, so we will skip that bit. You’re here for the fun part anyhow right? Taxes and law!

Let’s start with the “why.” Why does it matter if we call your endeavor a hobby or a business? Answer. They are taxed differently. Also, hobbies may require less business structure.

HOW IS A HOBBY TAXED DIFFERENTLY THAN A BUSINESS?

Business income is subject to both income tax and FICA taxes. FICA is the tax for Medicare and social security. Collectively, I call these self-employment taxes. Federal income taxes range from 10% to 37% based on all income. Self-employment tax is a 15.3% tax on self-employment income.

Let’s...

YAAAS, I need to finish reading this one...

All About EINs - The Why, When, & How

business formation Jun 09, 2019

What's an EIN?

EIN stands for Employer Identification Number. It's essentially your business's social security number. You use it to identify the business.

When Must You Have an EIN

According to the IRS website, you need to have an EIN if you operate as a corporation or if you have employees.

When Should You Have an EIN

I say always. Getting your EIN is super easy. It takes about 5-10 minutes, and it's free. You will need an EIN to open your bank account, and as a sole proprietor or single member LLC owner, you can use your EIN in place of your social security for important documents like W-9s. That means, in short, that you don't need to give your social to strangers.

What Not to Do

Don't pay someone to get your EIN for you unless it's bundled into a full service package. At Braden Drake Law, I do the EIN application for clients but if you came to me and just needed an EIN, I'd tell you to DIY it because it's super easy. Some online legal sites charge up to $80 to do your EIN...

YAAAS, I need to finish reading this one...

When and How to Send 1099s

tax/bookkeeping Jun 07, 2019

According to the IRS you must file a 1099-MISC “for each person in the course of your business to whom you have paid during the year . . . at least $600 in . . .services performed by someone who is not your employee.” This does not apply to employees. 

There is also an exception for payments made to s or c corporations and LLCs that have elected to be taxed as s corporations. Naturally, there are exceptions to this exception. Lawyers must get a 1099 even if they have corporations. There are a couple of other very rare exceptions, which you can find here

You are also not required to issue a 1099 if you paid the service provider by credit card, paypal, or other “third-party network providers.” Note that credit cards do not mean debit cards. Payments made by debit card are not exempt from 1099 rules as the payment comes straight from your bank and not through a third party.

Wondering why credit card payments are...

YAAAS, I need to finish reading this one...

The Basic Provisions Every Creative Needs in Their Client Contract

contracts Jun 06, 2019

Contracts Need to be Specific and Clear

You need a contract. I need a contract. We all need a contract. I won’t dwell on that bit. Here’s what I want you to know about a contract. While a contract is a legal document, it need not have legalese. A good contract is a simple contract.

If both parties to a contract don’t understand the terms then it’s a shitty contract. It doesn’t help clearly communicate your rolls. It might still help you in a lawsuit, but it won’t help prevent problems.

Contracts need to be specific and clear. Do me a favor. Have a friend read through your contract. Buy them lunch. Then grill them with questions. When would you pay me a client. What happens if you pay late, or I cancel, or your drunk uncle grabs my butt while I’m in the middle of photographing your wedding?

If you your friend can’t answer those questions. It’s time for a redraft..

Ok, we got the intro out of the way. Let’s talk...
YAAAS, I need to finish reading this one...

5 simple tips to upgrade your client contract

contracts Jun 04, 2019

5 simple tips to upgrade your client contract  

There are a few basic elements every contract needs. In this short post, I’m going to walk you through those, so whip out your contract, and a pen, and let’s get to work.

(1) STATE THE EFFECTIVE DATE OF THE CONTRACT

In your contract, you can state when the contract goes into effect. Without explicitly stating the “effective date” of the contract, it will typically be deemed to go into effect on the date of signature. Therefore, it’s good to call out when the contract will take effect. Include an effective date in the introduction.

(2) HAVE AN INTRODUCTION

Use an introduction to give context to the contract. The introduction should state the purpose of the contract, the parties, and the effective date. Use abbreviations for the parties for quicker reference through the contract.

Example: Braden Drake (“Consultant”) will provide tax consulting services and Amanda Montgomery...

YAAAS, I need to finish reading this one...
Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.