April 2022 Message
April 4th, 2022
This Month’s Money Message: Assess
Welcome to April, the month when blooms are (finally!) appearing in my yard, my taxes are (finally!) complete, and my calendar is (finally!) opening up a bit. That bit of time is the perfect opportunity to reassess. How are things going this year? What new projects are in the works? And perhaps most relevant this year: Does my entity type still make sense?
Most of the individuals I work with are sole proprietors, although some have created single-member LLCs or S Corporations, depending on their income levels. And most of the individuals I work with never reconsider the entity type they have chosen after they start operating. After all, they have more important things to do!
Maybe your liability needs have changed, especially if your practice has grown. Maybe your income has changed, perhaps increasing enough to consider if an S Corporation starts to make financial sense. Maybe the people around you have changed, altering the number of stakeholders in the business. Maybe your business priorities have changed, making B corporation status something that has become more interesting to you.
The point is: Things change. Which is why periodically, we Reassess.
With that in mind, here are three things to know, do, and believe this month:
Know: What your entity type is.
Take a peek in your state’s database to see if you are registered (you may not have to be, depending on the state) and to see if any additional requirements have popped up since you last checked in.
Do: Review your income level, your liability needs, the others you have involved, and your overall business strategy.
Do your answers still align with your entity type choice? Great! You have nothing else to do. If not, you may want to convert your entity.
Believe: You are capable of navigating state business requirements.
I know the state websites aren’t always the easiest to navigate or the most informative. You can still navigate them and find the information you need. It might just take an extra minute.
Not too long ago, a lovely musician was surprised to learn she was required to register in her state… And she was even further surprised when she realized she should have been collecting sales tax on the merchandise she was casually selling to friends and family. Laws change, our practices change, and our ability to think formally about our creativity changes as well.
That’s why we reassess.
What We’re Doing
This month we’re (still) talking about taxes, although some of them have moved into broader financial wellness topics. We’re seeing musicians through Juilliard, Oberlin, and New England Conservatory, fashion designers through CCAD, and visual artists through Cleveland Institute of Art, Artists @ Work, YoungArts, and the Indiana Arts Commission. We’re also diving back into creative events full force with a spring performance by BalletMet and a gorgeous spring Gallery Hop weekend in the Short North.
What We’re Talking About
The springtime optimism is shining through client conversations, especially as we go into what many hope will be a lucrative spring/summer season. There is more certainty around events and more candor around boundaries – pandemic-related and otherwise.
CREATIVE COACHING (1 HOUR, $110) INCREASING TO $125 NEXT MONTH!
If you’d like to chat with me to answer your own questions, feel free to find a time that works with your schedule.
Entity types may not be your favorite topic of conversation, so if your assessment was a resounding “what I have is fine,” feel free to assess something else related to your business structure: Your bank account, your credit card rewards, your collaborations. Making a change in any of these areas may make sense… And longer daylight hours and the optimism of spring gives you an excuse to do just that.
Until next month…