When running a business, finding the balance between paying yourself, managing cash flow, and growing the company can feel impossible. What happens when your resources are stretched thin, and you're questioning your next steps? This episode unpacks the struggles and solutions.

On this episode of Become Sensible, Fiona and her co-host dive into the nitty-gritty of early-stage business challenges. Together, they tackle a case study of a product-based entrepreneur facing inventory bottlenecks, funding hurdles, and personal financial strain. We explore essential topics like raising capital, understanding your breakeven point, building relationships, and making strategic moves to keep your business afloat while still managing personal obligations. It's a masterclass in prioritizing what truly matters.

"Running a business is hard, but with the right strategy and mindset, you can build something extraordinary." Tune in to discover how to focus your time and energy where it counts most and embrace the resilience it takes to succeed.

Connect

Follow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.

Timestamps:

• 0:00 - Introduction and the reality of juggling personal and business finances
• 2:30 - Exploring a case study: the entrepreneur's cash flow and funding challenges
• 5:00 - The importance of inventory management in a product-based business
• 7:00 - Strategies for raising capital: self-funding, angel investors, and venture capital
• 10:30 - Aligning your resources: capital, time, expertise, and relationships
• 15:00 - How to identify your breakeven point and prioritize efficiency
• 18:30 - Balancing quality, customer promises, and business growth
• 20:00 - The concept of balance in business: myth or reality?
• 25:00 - Building resilience: creating recovery moments and sustainable habits
• 30:00 - Practical advice for testing a business idea and knowing when to pivot
• 31:00 - Closing thoughts and listener questions: balancing passion and strategy

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Ever wondered if an S Corp structure could help reduce your tax burden? Many business owners are surprised to learn how shifting their LLC to an S Corp could save them thousands. But the journey isn't without its hurdles---phantom income, self-employment tax, and missed compliance deadlines are just the beginning.

On this episode of Become Sensible, Fiona and Anh dive into the world of S Corporations, discussing why and when it makes sense for a business to transition from an LLC. They examine a real-life client case involving a creative agency, tackling common pain points like self-employment tax concerns, phantom income issues, and challenges in keeping personal and business finances separate.

Connect

• Follow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.

Timestamps

• 0:00 - Introduction to the episode and today's case study
• 1:30 - Overview of the client's business: structure, revenue, and tax issues
• 3:00 - Understanding phantom income and its impact on LLC members
• 5:00 - S Corp advantages for reducing self-employment tax
• 7:15 - Step-by-step guide to filing for S Corp status
• 9:30 - Common administrative errors and tips for staying compliant
• 12:00 - The importance of separating personal and business expenses
• 15:30 - Strategies for effective quarterly tax planning
• 18:45 - Tips on reasonable salary and tax savings for S Corp owners
• 21:00 - Listener Q&A: Operating agreements, home office deductions, and more
• 25:30 - Wrap-up and final advice on navigating the LLC to S Corp transition

Hosted on Acast. See acast.com/privacy for more information.

Are you trying to decide if an S Corporation is the right choice for your business? I know it sounds appealing with all those potential tax savings, but making the wrong choice can lead to unnecessary complications. But how do you know if an S Corp is truly a smart move for your business?

On this episode of Become Sensible, I'll take you through everything you need to know about S Corporations---from what they actually are to how they differ from other structures, like C Corporations. I'll cover the unique tax benefits, the requirements and limitations, and how this entity type can impact your long-term growth strategy. Whether you're a new entrepreneur or have been in business for a while, this episode will help you understand if an S Corp is the right move for your situation.

Connect

Follow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.

Timestamps

• 0:00 - Introduction to S Corporations and common business questions
• 1:00 - Understanding what an S Corporation is and its unique tax treatment
• 3:00 - Pass-through benefits and how they differ from a C Corporation
• 5:00 - Key components and restrictions of an S Corporation
• 8:00 - Tax advantages and the role of self-employment tax
• 10:30 - Who should consider an S Corporation and the factors involved
• 12:00 - Calculating reasonable compensation and IRS expectations
• 15:00 - Weighing S Corp costs vs. benefits for small business owners
• 18:30 - Common misconceptions and mistakes with S Corporations
• 21:00 - Choosing between LLC and S Corporation based on business phases
• 24:00 - Planning ahead: S Corporation requirements and deadlines
• 26:00 - Key takeaways and final advice on choosing the right business structure

Hosted on Acast. See acast.com/privacy for more information.