Business Tips for Startups – Taxes, Website, DBA

 

Transcript
How is it going everyone, Shaun here from Raw Technique Studio. In this video, I am going to do something different. I am going to go over the business side of what I do here at Raw Technique Studios, How I built it up, How I got started, How I went through a couple of things that I had to do to get to this point. I usually do mixing tips and which I think the more favorite thing but if you guys are interested in this type of stuff, the business side of it then I am considering putting together like really large course that I will have on my website, where it just goes over everything that I went through, along the way, how I built up my following, my portfolio, how I use Youtube to really get going, how I filed my DBA, How I started up my website, what plugins I use, what things I used for the website to get it running as it is, I have used two different version so I have those things going. How I pay my taxes, when I pay my taxes. Just all the steps to go through it. I am going to put together a large tutorial if people are interested in it of course but let’s just touch on a couple of things here and how I got started with some of these key points with having a business and the first thing right here is a DBA.
So, a DBA is Doing Business As, it’s also known as a Fictitious Name Statement and I simply went through Legalzoom. So, I just went over the Legalzoom and you could purchase their way of filing for the DBA and it starts off with the preliminary name search and you need to make sure your business is not the same name as another business. So, before you go and purchase this, you don’t want to waste your money. So, make sure you are sure that you are the only business with that name; of course it could be in your field. There might be a Raw Technique something else, like for cars but for me Raw Technique Studios is the only music business that I have come across. So, when I filed this, they do the name search to make sure that you are the only business user for that name and then once you get through that, they help with filing your DBA application that you submit and then you have to do a publication of your business name so it’s in local newspaper, where they publicly state that you are a new business and you are in this county or city and they just let other people know that you are starting up a new business. So you do that for about, I think it’s like for four weeks, three or four weeks and then they also do the filing of your proof of publication if it’s required in the state. So I did this one, If you want, you can do a premium or you go through different service to do your DBA but the whole point of the DBA is to make it to where you are doing business as your business’ name. So, when I chose to do Raw Techniques Studios as my business name, I wanted to file it with the government as a DBA so I am recognized as that business. I could go to a bank right now and open a checking account and it will say Raw Technique Studios on it and that’s legally mine because of this. I could also have somebody write me a check instead of to me Shaun Kelly, they can write Raw Techniques Studios on the check. I go to my bank where it’s Raw Technique Studios checking account and deposit that. So, if you go to a bank right now and you don’t have a Doing Business As, you don’t have all that set up, then you might not be able to cash a check made out to your business name, it will have to be made out to your personal name. So, the benefits of DBA are those type of things.

Another thing is your website. You have to have a website to be able to get people to know the information about your service or what you are selling or whatever it is that you are doing. So, what I did, I went through WordPress.org, just download it. It’s free software that you use and then you just build up from there. So you could use free themes, you could use purchase themes, there was a theme, the music makers theme that I used to use which was a great theme if you are selling beats or any digital products, that was the great theme. I have videos on that as well. But now I am using a different theme and other plug ins, stuff like that to get my website running as it is now as a membership site.
So my whole thing is based on WordPress.org though. So, they have free templates that you could download and get going and start your website up but you will have to pay for domain name. So there are stuff like Godaddy, in motion hosting, all these different places that you could buy a domain name from. My domain name, I purchased from Godaddy.com and I just pay every year to keep it under my name and to keep it active. So that’s what I did and then my hosting, I used to have it under Godaddy but I switched over in October to Inmotion hosting. It just has little bit more control on the backend using Cpanel and everything which I like. So, that’s another thing that I use. But having a website is very important now a days because that’s how you get people to know what’s going on with your business. Social network is great but website where all your information is something that’s really important.
Now of course you are going to have to pay taxes when you have your own business. So go ahead over to EFTPS and this is where you make your quarterly tax payments. So, as a sole proprietor or self-employed person I have to pay my taxes every quarter and you can see here what the quarters are. So, whatever I make between January 1st and March 31st, I have to pay the taxes on it by April 15th.So you pay between April 1st and April 15th of what you made between January 1st and March 31st and so on and so on through here and this is on the IRS.gov website, so you can see when the payments are due. Now, typically what I do is put aside 25% of my income for taxes and that’s after deductions. So whatever you make, say you make $10,000 for the year and you deduct your expenses. So, you bought a new interface and it’s being used for business, if you are just buying an interface to play guitar at home then that doesn’t count as a deduction. You have to use it for business. So I use my interface strictly for business. I am not writing songs or anything like that. It’s all with an intention to make a profit for business. So, that’s how it’s a deduction, I write that off. So this Apollo Twin $900 say I make $10,000, then I subtract $900, now I make $9100 and that’s taxable. So, it’s based on your deductions being taken out then your taxed on the profit, that extra income. So that a really cool thing about having your own business is you don’t technically pay taxes on stuff that you deduct. I mean of course you are paying the tax when you buy it and everything but you are not paying at the end of the year, taxes like somebody who works a normal job. If you get paid, you are taxed. If you buy the product, you get taxed and there is no deduction. So having your own business, you buy the product and you get that taxed when you buy the product like everybody, the state tax. But you are not taxed beforehand. You are deducted then you are taxed. So that’s a really cool thing. But that’s how it works.
And typically 25% is good unless you are making a bunch of bunch of money. So those are the basics to couple of things that I had to go through to get to the point where I am. As far as taxes I file, I have a tax lady that’s like 20 minutes away from me that does all my tax stuff. I have to keep track of everything throughout the year, I save all my receipts, I have Excel sheets of all my deductions. I have it all organized which makes it really easy for her when I get there. So, I just bring all that and I show her my categories of my deductions and everything and she puts it in and there is like seven or eight different forms that she fills out and that’s it. File the taxes like that. I think it costs like $135 or something to have her file and do all that paperwork for me. So, I recommend a professional doing your taxes. You don’t want to miss anything. You don’t want to mess up. You don’t want the IRS coming after you, that’s not going to be good. You don’t want to get audited. So make sure you have somebody who knows what they are doing, doing your taxes. Don’t try to cheat the system, just pay your 25% and go on with it. So, it’s a lot easier than a headache of the IRS coming after you.
So, anyways, that’s the basics of a couple of the steps I took to get to this point of doing this as my normal full-time job and it’s just been growing ever since. So if you guys are interested in a full-on tutorial with step-by-step process of what I did to get to this point of working in my own studio full time, this is all I do and being able to pay your rent, eat, pay our car loan or your car bill or whatever. All your bills are covered and I really like it, I don’t have to work eight hours a day for somebody else. I could work two hours a day if I want. So, it’s just way more lenient as far as time. I make more money here than I have ever at any other job and I make my own schedule. So if you guys are interested in seeing that process of what I went through, all the steps to get there, then let me know and I will start putting the other tutorials on the business side of Raw Technique Studios, how I built it up and how you guys could take that knowledge and apply to building your own business. So, thank you guys for watching. Hopefully this stuff helped out and I will see you guys in the next video peace.