January 2021 Income At-A-Glance
Gross Income for January: $198,657
Total Expenses for January: $21,058
Total Net Profit for January: $177,599
Difference b/t Jan & Dec: -$1,012
% of net profit to overall gross revenue: 89%
Why We Publish An Income Report
This monthly income report is created for you, Fire Nation!
By documenting the struggles we encounter and the successes we celebrate as entrepreneurs every single month, we’re able to provide you with support – and a single resource – where we share what’s working, what’s not, and what’s possible.
There’s a lot of hard work that goes into learning and growing as an entrepreneur, especially when you’re just starting out. The most important part of the equation is that you’re able to pass on what you learn to others through teaching, which is what we aim to do here.
**We’ll receive a commission on the affiliate links below. If you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Josh Bauerle’s Monthly Tax Tip
What’s up Fire Nation, my name is Josh Bauerle. I’m a CPA and the Founder of CPA On Fire, where we specialize in working with entrepreneurs to minimize their tax liability while keeping them in line with the ever-changing tax laws.
I’ve been working with JLD & Kate at Entrepreneurs On Fire for years now, and they’ve included me in these monthly income reports with unlimited access to all their accounts so I can verify that what they report here is complete and accurate.
And because they believe in delivering an insane amount of value to you, my job doesn’t stop at the verification level; I also provide a new tax and accounting tip every month!
Josh’s January Tax Tip: Your Tax Questions – Answered!
2021 is officially here. New year, and a new opportunity to get your tax and accounting life straightened out! And there’s no better time to tackle this crucial aspect of your financial life than at the beginning of a new year.
So with that in mind, we are going to spend the first tax tip of 2021 answering some questions directly from Fire Nation! We are always looking for great questions to answers, so please don’t hesitate to ask yours in the future.
With further ado, let’s dive in!
1. Is there anything you can or should do if you have already formed a business in a less “tax favorable” state? For instance, I hear some states like Delaware, Nevada, and Texas are better than say, Pennsylvania.
This is a very common question we get all the time – and for good reason.
State taxes are just one more burden on an already high tax bill for most people.
Fortunately, it also has a very simple answer: you have to register your business in the state you do business from.
And even if your business is all online / virtual, that still means the state you live in and physically operate the business from.
Additionally, even if you could register in a more tax friendly state instead, it wouldn’t help you. The reason is that you pay taxes to the state you live in, not the state your business is registered in.
So all the way around, the best move is to register your business in the state you live in. Anything else will just cost you time and money with no tax benefit.
Kate here :) If you’re seriously considering moving as a result of the state taxes you pay, consult a tax professional before doing so to make sure you’re aware of everything involved and everything that will potentially be impacted by the move.
2. If PayPal and Stripe report my earnings and give me a 1099, why do I also have to give a W-9 to every client? Are they going to report and give me a 1099 on the same income?
It’s standard practice for most people who pay you money to request a W-9.
That doesn’t necessarily mean they will send you a 1099, it just means they want it on file in case they do need to send you one.
As for whether they will send you one if they paid you via PayPal or Stripe, the answer largely depends on whether they know what they are doing or not.
If they paid you via a third party like PayPal or Stripe, they should not issue you a 1099. However, even if they do mistakenly issue you a 1099 it won’t impact you. The IRS won’t force you to pay taxes on that income twice!
3. How do I find someone to help prepare taxes who is familiar with the “qualified performing artist” rules and codes.
I’m not entirely sure what this is referring to, but I’m guessing it’s the Los Angeles local taxes and the exemption for creative artists up to a certain income level.
Either way, the answer here is that you need to make sure your tax preparer knows all the rules and regulations for any tax return they are helping you file.
In most places that is the federal and state returns. But in some places, like LA, they also have local returns that take a special knowledge of the local laws in order to do them properly. Make sure the person you hire knows them!
Kate here :) I’d recommend simply doing a Google search in your area and also speaking with others in your industry / niche who you’re currently connected with to ask how they handle this. Recommendations are oftentimes the best route to go when it comes to hiring service-based businesses.
4. Do I need to collect a W-9 from my coaches or provide my credit card statement for my taxes?
As mentioned in the answer above, you should always collect a W-9. Your accountant can determine at year end whether to actually send them a 1099 or not, but you will want the W-9 on file just in case you do need to send one.
As for whether to provide the credit card statements for your taxes, they should only need that if they need to verify information or if they are doing your bookkeeping for you. Otherwise I don’t see any reason they would need to see your statements.
Hopefully these answers help many of you get 2021 started on the right foot. Put the time in now to make sure your accounting and taxes are running smoothly and efficiently this year. And if you have questions, be sure to send them to us so you can be featured on a future income report!
And as always, please feel free to contact me if you’d like to discuss what would be best for YOUR business. I LOVE chatting with Fire Nation!
David Lizerbram’s January Legal Tip
Disclaimers and Liability Waivers for Online Programs
If you’re checking out this income report, you probably know that online programs, content, and courses are huge business opportunities. Providing valuable content to your audience can be a way of building trust and goodwill for your other products or services, or that content may itself be the product that you’re selling.
As with any type of business, online programs come with legal pitfalls that you need to be aware of.
As an example, in the Podcasters’ Paradise Facebook Group, one member asked the following question: “Do I need to have a liability form for people who sign up for my online programs? It’s therapeutic (psychological) in nature.”
The short answer is “yes.”
Imagine you opened an old-school, storefront business offering information and advice about your topic of choice. It might be related to mental or physical health, nutrition, finance, business, or any other topic.
Most likely, you’d need to have your clients sign a waiver or form of some kind that limits your liability. The same policy applies to your online business.
What you don’t want to happen is for someone to come back and file a lawsuit against you when the results aren’t what they wanted.
So what do you need to do?
First of all, it’s important to know that this type of service may be regulated by the state or country where you live. So you should strongly consider hiring an attorney to provide advice and make sure that you have the proper documentation. You don’t want to accidentally provide a service that requires a license from the government. That kind of mistake can result in legal liability, fines, or even criminal charges.
Some general items that may be found in your liability waiver are:
- Explaining what professional licenses you do and do not have. For example, you might say “I am not a licensed psychologist or therapist; consult a medical doctor before starting a new therapeutic program.”
- Outside resources that may be helpful. So if your expertise is in helping people overcome mental barriers, you may want to direct your clients to sites that can help them find a licensed therapist in their area if they feel they need professional help.
- Confirming what type of advice you are giving and what type of advice you’re not giving. Providing general guidance about how to grow one’s wealth is not the same as making real-time stock recommendations.
- Making sure your audience has reasonable expectations in terms of results. If you have testimonials from enthusiastic clients, be sure to make it clear that those results may not be typical, and that those clients achieved those results because they put in the work.
Your documents should also include specific language to minimize your legal liability. This is where the advice of an experienced business lawyer will really come in handy.
For example, under some circumstances, you may want to include language that prevents multiple clients from bringing a class action lawsuit against you. Having those clauses drafted by a professional can make a huge difference should you be the target of a future legal claim.
The bottom line is that there isn’t an easy one-size-fits-all answer to this question. If you’re providing any kind of advice or guidance, you will need the right kind of documentation, and the best practice is to establish a relationship with an experienced attorney who can make sure that your exposure is minimized, so you can focus on delivering great value to your clients.
If you have questions about any of the items above, feel free to contact me.
What Went Down In January
The Common Path to Uncommon Success Pre-orders and Bulk Buy Packages Continue!
As many of you know by now our complete focus is on our upcoming book launch for The Common Path to Uncommon Success, which happens March 23, 2021!
With the exception of hosting some company here and there and spending time with John’s family, we’ve been pretty heads down making sure everything is in place for a successful launch.
- Regularly communication with our book launch director, Amber Vilhauer, and her team over at NGNG Enterprises
- Regularly communication with our HaperCollins team, led by Sicily
- Updates back and forth with our bulk buy fulfillment team over at Givingtons
- Followups and reminders about the book to our core influencers, past EOF guests, and YOU, Fire Nation!
- Overall just making sure we’re hitting deadlines and keeping things moving
As you can imagine, this project is not a small one, and we’re fully committed to making sure The Common Path to Uncommon Success gets into as many hands of entrepreneurs ready to accept the challenge and finally get on the path to financial freedom and fulfillment!
If that’s you, be sure to check out the incredible bonuses we’re offering for anyone who pre-orders at UncommonSuccessBook.com.
You’ll get access to 5 INCREDIBLE bonuses just for pre-ordering your own copy today!
- Bonus #1: The Journal Trio: The Freedom, Mastery & Podcast Journal shipped to your door! (access to digital packs for those outside the USA).
- Bonus #2: Live AMA (ask me anything)! Ask me any question you have about the book or your journey.
- Bonus #3: “Lost Content”: Access to a behind-the-scenes audio interview with JLD on the journey of launching The Common Path to Uncommon Success.
- Bonus #4: The Common Path to Uncommon Success downloadable PDF Workbook. A crucial companion guide to ensure your success! (Available March 23rd)
- Bonus #5: Video interviews where JLD and many of the 17 all-star entrepreneurs featured in The Common Path to Uncommon Success share bonus content not available in the book. (Available March 23rd)
Of course, thank you so much to those of you who have already jumped on this so quickly – your support means the world, and when it comes to launching a book, pre-orders are EVERYTHING!
And if you run a coaching business or mastermind – or you just want a little one-on-one time w/ JLD – consider checking out our bulk buy packages! We’ve spent a lot of time and put a lot of thought into the reward experiences that come with each of the bulk buy packages we offer.
So be sure to check out our bulk buy options and reward experiences today ’cause they won’t be around for long!
Product/Service Income: $181,741
TOTAL Journal sales: 170 Journal Trios (Bonus) + 496 Journals Sold for a total of 1,006 Journals: $17,764
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $7,103 (367 Freedom Journals sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $5,160 (326 Mastery Journals sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $5,501 (313 Podcast Journals sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $11,890 (140 recurring)
- New members: $5,346 (18 new members)
- Total: $18,031
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $300
Podcast Sponsorships: $82,897
Free Courses that contribute to the above revenue:
Your Big Idea: Discover your big idea in under an hour!
Free Podcast Course: Create and launch your own podcast!
Funnel On Fire: Create a funnel that converts!
Affiliate Income: $16,916
*Affiliate links below – if you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Resources for Entrepreneurs: $14,754
- Audible: $69
- Bluehost: $0
- Click Funnels: $13,520
- Coaching referrals: $899 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
- ConvertKit: $266
- AWeber: $0
- Fizzle: $0
- Virtual Staff Finder: $0
Courses for Entrepreneurs: $586
Resources for Podcasters: $1,454
- Pat Flynn’s Fusebox Podcast Player: $99
- Podcasting Press: $178
- Designrr: $0
- Music Radio Creative: $0
- Splasheo: $124
- Tim Paige’s Make My Intro: $0
- Interview Valet: $150
- Libsyn: $872 (Use promo code FIRE for the rest of this month & next free!)
- UDemy Podcasting Course: $31
- Streamlined Podcasts: $0 (Use promo code FIRE for a special discount!)
- RepurposeHouse: $0
Other Resources: $122
- Amazon Associates: $112
- Other: $10
Total Gross Income in January: $198,657
Business Expenses: $19,269
- Advertising: $0
- Affiliate Commissions (Paradise): $546
- Accounting: $0
- Cost of goods sold: $2,603
- Consulting: $182
- Fulfillment: $1,855
- Design & Branding: $150
- Dues & Subscriptions: $100
- Education: $25
- Legal & Professional: $0
- Meals & Entertainment: $685
- Merchant / bank fees: $648
- Amazon fees: $6,845
- PayPal fees: $305
- Shopify: $22
- Office expenses: $665
- Community Refunds: $0
- Promotional: $0
- Travel: $0
- Virtual Assistant Fees: $4,500
- Website Fees: $138
Recurring, Subscription-based Expenses: $1,789
- Adobe Creative Cloud: $100
- Boomerang: $50 (team package)
- Authorize.net: $70
- Bonjoro: $45
- Cell Phone: $197
- Google Suite: $40
- Internet: $40
- Loom: $96 (annual subscription)
- eVoice: $10
- Infusionsoft CRM: $241
- Insurance: $89
- Libsyn: $178
- Linktree: $6
- TaxJar: $19
- Taxes & Licenses: $523
- Zoom: $55
- Xero: $30
Total Expenses in January: $21,058
Payroll to John & Kate: $15,900
Wondering what we do with all of our net revenue? We share all in our April 2017 Income Report :)
Total Net Profit for January 2021: $177,599
Biggest Lesson Learned
Your Health is Everything
Ever feel like you’ve committed to too much or are trying to be in way too many places at once?
And when I overcommit or try to do the work of multiple people, without fail my body talks to me about how critical my own health and wellbeing is.
I know it. You know it, too.
But are you actually honoring it?
The more you can remind yourself of how important your health and wellbeing are, the better you’ll become at honoring that. Saying no to the things that suck your energy. Not overcommitting to the point where you’re exhausted and never have time for yourself.
Oftentimes that’s all it is: we have to remind ourselves of what’s most important to us. If we don’t – even though we know – it can be easily neglected.
Take 5 minutes today to write down 5 of the most important things in your life. If you’re an over-achiever, like we know you are, then up that 10 minutes and write down 10 of the most important things in your life.
Commit to reminding yourself of those 10 things every single morning – first thing – for the next 30 days.
You’ll be amazed at how big a difference it makes when it comes to making decisions and honoring what’s most important to you.
Alright Fire Nation, that’s a wrap!
Until next month, keep your FIRE burning!
~ Kate & John
Note: we report our income figures as accurately as possible, but in using reports from a combo of Infusionsoft & Xero to track our product and total income / expenses, they suggest the possibility of a 3 – 5% margin of error.