Episode 77: Building Your Business Foundation: Entities, Banking & Legal Setup

Feb 26

In this episode, Katelyn walks through the foundational decisions every business owner needs to make when setting up or restructuring their business.

From choosing the right entity type to understanding when an S-Corp election makes sense, she breaks down what each option means and how it affects your taxes and long-term flexibility.

She also covers the difference between contractors and employees, how to properly register with the IRS and your state, what to consider when choosing a registered agent, and why opening the right business bank accounts matters for growth and organization.

The episode closes with key legal considerations, including contracts, intellectual property protection, and operating agreements, especially for multi-member businesses.

This episode is a comprehensive roadmap for anyone who wants to build their business on a solid financial and legal foundation.

Key Takeaways

Choose the right entity (sole proprietor, LLC, S-Corp) based on long-term goals.
Evaluate state costs before forming an LLC.
Consider an S-Corp election once profits reach $40–50K.
Know the difference between contractors and employees.
Register properly at the federal, state, and local levels.
Open dedicated business bank accounts and establish credit early.
Put contracts and legal protections in place from the start.
Use operating agreements for partnerships and multi-member entities.

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