today marks a year since i left my job to become a full-time solopreneur (one-person business). i’m grateful because this has been the most successful year in my career despite the ongoing pandemic. my journey has been a testament to self-love, hard work and adopting an abundance mindset.
as rappers would say, i got it out the mud. while my family provided a strong foundation of love and emotional support, my business acumen is the result of my own will and dedication. i’m a trained attorney who worked in public policy for years, and then one day decided to answer my true calling as an anti-racism trainer and content creator. if i did it, then you can too sis.
the most significant lesson that i’ve embraced this year is that learning requires mistakes. i’ve released my commitment to perfection and consistently celebrated my wins — no matter how small.
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folks often ask me where to start with becoming a solopreneur, and i’ve spoken openly about my journey here and on youtube. read below for my checklist for starting your solopreneur journey in 2022. this list is meant to be a guide for folks who are starting their side hustles or preparing to launch their businesses full time.
Trademark Your Business Name and Get an LLC
folks often think getting registered as a limited liability corporation (llc) is related to taxes. nope, not true. an llc ensures that you can’t be personally held liable for business dealings. let’s say you sell cookies and someone attempts to sue you after having an allergic reaction. with an llc, only your business could be held liable and your personal assets would be protected.
the purpose of a trademark is to secure your business name from use by another entity. the last thing you would want is for your profitable business to become co-opted by a more powerful brand because your name hasn’t been protected. the trademark process can be a bit more involved than becoming an llc and there are plenty of attorneys who can help if you don’t have the time or interest to do it yourself.
you can certainly start your business before trademarking your name or becoming an llc. however, i would certainly make both a priority in 2022 especially if you’re earning an income.
Open a Business Bank Account
keep your business and personal money separate. it’s one of the most important pieces of financial advice that i received from keila hill-trawick of little fish accounting. we don’t need no smoke from the IRS.
do your research before opening a business account to make sure the account is the right one for you. you’ll want to consider things like payroll expenses, minimal balances, maximum monthly transactions and any associated fees. please do not assume that your business and personal bank accounts operate the same. remember to read the fine print and ask lots of questions.
Develop a Savings and Investing Plan
if you’re planning to leave your full-time job to pursue solopreneurship, then you’ll need a good savings and investing plan. a financial planner could be a great asset here, but i also highly recommend the multitude of resources by clever girl finance. her second book on investing is a tremendous resource.
as a solopreneur, you’ll be responsible for your own retirement savings. you’ll need to rollover an existing 401k into a roth or traditional IRA. the maximum contribution is $6,000 a year and is tax deductible. again, seek out financial advice from an expert to ensure you’re on track for retirement.
Sign-Up for Bookkeeping Software
i recommend quickbooks so often until they should cut me a commission check. i use the online version that connects seamlessly to my business bank account. this kind of software is vital to running your business because it allows you to categorize your expenses, invoice clients directly and automates your profit and loss statement. also, you can add your accountant to make tax time easier.
remember the irs requires all self-employed individuals to pay taxes on income greater than $400. bookkeeping software will help to track both your income and tax-deductible expenses.
i hope this post helps to remove some of the stress surrounding solopreneurship. be sure to follow my series over on youtube for more tips and drop any questions down below!