0 (2s):
Boom, shake the room, Fire Nation. JLD here and welcome to Entrepreneurs On Fire brought to you by the HubSpot Podcast Network with great shows like Success Story. Today we are breaking down November's Income Report for 2022. We have a lot of great things to talk about here today. Our CPA tip is about year-end tax planning. We're also gonna be talking about whether you should be an LLC or form a corporation. With our legal team, Mr. David Lizerbram, we got a little Airbnb action to talk about as well as the best podcast listening app and so much more. But first, a big thank you to ours sponsors.

0 (42s):
Is this your year? Visit Thrivetimeshow.com/eofire to see how Clay Clark's business coaching has helped thousands of entrepreneurs to dramatically increase profitability. It's month-to-month and less money than an average minimum wage employee. Schedule your free consultation today at Thrivetimeshow.com/eofire. The Goal Digger podcast hosted by Jenna Kutcher is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Tune in and discover your dream career with productivity tips, business hacks, and so much more. Jenna's recent episode on four questions. To qualify your digital product idea is a must. Listen, listen to Goal Digger wherever you get your podcast.

0 (1m 25s):
All right, Fire Nation, we are gonna kick things off in style. We've got our gross income from November at 129,000 8 62. Our expenses were 28 k for a net profit of 1 0 1 6 45. Our percent net profit. Overall gross revenue was a mere 78%, which is quite a bit lower than it's been in the past. We might be talking about that in a little bit. But first I wanna get to our monthly tax tip with none other than Mr. CPA on fire himself. Ron, Ron, take it away.

1 (1m 57s):
Hello John and hello Fire Nation. This is your tax and accounting tip brought to you by CPA on fire. Hello everybody, I'm Ron Parisi with CPA on Fire and today we're gonna be tackling our last minute tax planning checklist as we close out 2022, we only have a few weeks left. I just wanted to give you four possible planning tips, things to think about for you, the entrepreneur, the business owner that possibly you can do to minimize your tax liability. So again, you know, 2022, man, it was wild, wild ride, a lot of ups and downs in 2022.

1 (2m 44s):
Again, C P A on fire, most of our clients are online entrepreneurs and I would say for the most part 22 was a very good year for our clients. I think our guys had a lot of momentum from 21 going into 22. I would say the results are probably either on par or better than 21, but definitely had to work a little harder. Conversion rates, marketing results were a little more difficult. So, but in the most part, you know, I think 22 was a, was a very good year for our clients and hopefully it was for you.

1 (3m 24s):
So here, let's run down our quick list of tax planning tips for for 2022. First, I'd like to talk about cash and cash requirements. So I think it's a very good idea to have a handle on what your cash balance is and what your cash needs are because we need to prepare for what I call the double whammy. And that's come April 15th. You need to pay one, any remaining 2022 taxes that you didn't prepay or pay estimates on. So if you had a bigger year, most likely your tax liability increased in 22 and that's all gonna come April 15th.

1 (4m 11s):
And then where the double whammy comes in is your first quarter 2023 estimates due on April 15th. So usually there's usually a pretty big cash need come April 15th. So I think it's just very important to have that in mind because the one thing or the two things I think we sh you should look at as far as if you do have cash is looking at prepaying any expenses. So you're allowed to pay up to one year in advance. So rents any kind of subscriptions you may want to pay in December, get the tax right off in 22 and reduce your tax liability. And then second look around, is there any capital needs, meaning that, are there any computers, are there big purchases that you can make?

1 (5m 0s):
Most purchases qualify for what's called bonus, a hundred percent depreciation in the year of purchase. So it's still around from the tax change and can be utilized again to reduce your taxes. So one, you know, number one is, you know, looking at cash balances, can we prepay, can we potentially buy some needed assets? All keeping in mind of that double whammy come April 15th. So number two is the qbi. This is qualified business income credit. So you get a 20% haircut on your federal income taxes for your business income.

1 (5m 42s):
There's certain limitations to this, particularly for the high earners. So it's very important that you get together with your tax professional to determine whether those limitations apply to you and what you can do, particularly in the salary realm. So a lot of some clients come to us and they're limited on their QBI because they didn't pay enough salary during the year and this is something you cannot cure, you know, after the fact. So it's important again to talk to your tax professional about your QBI and potential limitations and what you can do about them.

1 (6m 22s):
So number two is looking at your QBI with your tax professional. Number three is just maximizing both your retirement and your HS HSA accounts. So retirement, there's certain things you can do next year to apply to 22, but some, particularly in the employee realm, maximizing your 4 0 1 contributions as an employee would be one. Your hsa if you're in a high deductible medical plan as an individual you can max out at 36 50 or as a family 7,300. So keep, I think those are always good things to reduce your tax liabilities and sort of pre set those, set that money aside in those accounts.

1 (7m 12s):
So number three is retirement and HSA contributions. And then the last is somewhat of a complex issue because, and it's, it's what I term harvesting losses. So because we've had so many ups and downs both in the equity market and the crypto market, you know those of you guys who have taken gains, you know, realized gains, sold stocks, sold crypto for gains and have a capital gain coming down to the end of the year, maybe there's some loss positions in your portfolio that you may want to sell and realize those losses to offset those gains. So again, this all needs to be done by December 31st.

1 (7m 55s):
So something you should work with maybe your financial planner or your broker on. And that's, you know, if you do have any type of capital gains coming down in 22, then maybe we look at harvesting some losses to offset those gains. So there you have it. Fire Nation, definitely look at cash expenses, assets, potential purchase, looking at a QBI and ensuring you don't experience those limitations on your QBI credits. Three, retirement or HSA contributions and four harvesting losses. Hey, this is Ron Parisi with c P on Fire.

1 (8m 36s):
Wishing you guys a very beautiful and blessed holiday season and all the prosperity for 22 and 23 and the upcoming 23. Take care now.

0 (8m 48s):
Ron, as always, thank you brother and Fire Nation for all of your tax and accounting issues. Please visit CPA on fire.com. Ron is standing by now. We're talking with David about whether we should form an LLC or corporation. So Mr. David Lizard. Bram, take it away brother.

2 (9m 5s):
Okay, so today's question is why should I form an LLC or corporation? People often ask why they should consider creating an LLC or corporation for their business. Of course every business is different, but here are some general factors that US based entrepreneurs should consider. The primary reason why businesses organize themselves as LLCs or corporations is to minimize liability. If you're operating a business and it's not a corporation or an llc, then you're either a sole proprietor if it's a one person business or a partnership. If more than one person is an owner, those are like the default modes. You're either a sole proprietor or a partnership. If you have informed an L L C or a corporation, sole proprietor or partnership status might be fined for your business.

2 (9m 50s):
But one disadvantage is that the owners of these types of companies have unlimited personal liability. Meaning if there's a lawsuit or a claim against the business, the other side can sue you personally and potentially go after anything you personally own. LLCs and corporations on the other side are limited liability entities. That means that in most cases, creditors of the company can sue the company itself, but the owners of the business can't be sued personally for claims against the company. So in this case, if someone had a reason to sue, they could attack the assets of the LLC or the corporation, but not your own personal assets or future earnings. Of course, I should say that forming an LLC or a corporation is not a get out of jail free card.

2 (10m 34s):
You could still be personally liable for fraud harassment, other bad acts, et cetera. And if the LLC or corporation isn't properly maintained and in compliance, the quote unquote corporate shield could be pierced and you could be personally liable for claims against the company. So forming a corporation or an LLC should be considered a first step in the process of protecting your company and your assets. There may also be tax advantages to structuring your business as an LLC or a corporation, but before forming that type of entity, you should always speak with an accountant CPA who advises business owners. Another benefit of forming a corporation or LLC is that it creates a structure for you to sell your business or to bring in investors.

2 (11m 17s):
If your business grows and evolves, these may be attractive options and you'll be better off having the structure set up beforehand with a history of properly created documents and data for anybody to review and see that you're in fact a legitimate business and your claims are in fact backed up. Of course, this just scratches the surfaces of some of the pros and cons of LLCs and corporations. It's important to know that LLCs and corporations are similar but not identical. So the choice of which form of business is right for you requires further discussion. As always, you should consult with an attorney before making a decision as to the right structure for your company. And if you have questions about forming an LLC or a corporation, you can always feel free to contact me. I'm happy to talk with members of John and Kate's audience.

2 (11m 59s):
I'm at Lizerbramm law.com. Easy to find and yeah, I look forward to speaking with you next time. Thanks

0 (12m 5s):
David. Thank you as always. Much, much appreciated and Fire Nation for any legal help, please check out David Liz Aand. He is the man and we have a lot more to talk about when we get back from thanking our sponsors. Are you ready to grow your business now? What if you could learn the proven systems and processes that have been used to grow thousands of multimillion dollar success stories at Thrivetimeshow.com/eofire. See how Clay Clark's proven business coaching has helped thousands of entrepreneurs to increase profitability dramatically. Clay's proven business coaching program is month to month and less money than hiring a minimum wage employee. Sound too good to be true? Go to Thrivetimeshow.com/eofire to see thousands of documented client testimonials.

0 (12m 51s):
Because Clay only takes on 160 clients, he personally designs your business plan for you. Then Clay's team of talented designers, videographers, web developers, workflow maps and accounting coaches will help you implement that proven plan. See thousands of verify success stories and schedule your free one-on-one 13 point assessment with Mr. Clay Clark himself today at Thrivetimeshow.com/eofire Knowledge will not attract money unless it is organized and directed through practical plans of action. Become the next success story. Schedule your free 13 point assessment today at Thrivetimeshow.com/eofire time. It's our most precious resource and something that I strive to maximize every day of the year.

0 (13m 34s):
And maximizing my time comes the form of using tools that can help me work smarter, not harder. The key is finding the right tools for your business. Ones that are easy to use, that give you access to the data that you need to make strategic business decisions and ones that make collaboration a breeze for your team. One tool that help you accomplish this is HubSpot. HubSpot helps empower teams to do their best work by eliminating friction with connected, easy to use tools. Imagine your team on the same page, working together towards a common goal. And with a centralized platform you spend less time managing software and more time serving your customers. A HubSpot CRM platform is easy to integrate, use and love, learn how HubSpot can help your business grow better at hubspot.com.

0 (14m 19s):
That's hubspot.com. Alright, we are back. Fire Nation and we're gonna be talking about the interview of the month. We're gonna be talking about diving into the Airbnb market. Of course we'll be giving an income breakdown. So let's bring Kate Lynn Dumas in the house. She's gonna talk about the interview of the month. Basically we're gonna tell you why. Probably the podcast app that you're listening to this very podcast on. It stinks or at least it leaves a lot to be desired. Believe me, we know it's true and here's why. So Kate, take it away.

3 (14m 53s):
I've been loving diving into Podopolo, which is a podcast listening app. So typically you're probably listening on Apple Podcasts. There's the built-in app on our iPhones. We also have Spotify, which is now diving big time into podcasts, Stitcher Radio, Google Play, Google, which is now Google Podcast. So there are so many different podcast listening apps out there. But John, as you mentioned, and I know this was certainly true for me, a lot of them, all of them leave a little bit to be desired. And the founder of Pod Podopolo, Melinda Woodstock is looking to change that.

3 (15m 34s):
And she is well on her way. I downloaded Podopolo a few months ago and I've been exploring it, loving it, connecting with people on it. I've gotten to comment on some of your podcast episodes, which has been cool to interact and engage with other users. And I'm just having fun being on a podcast app that is user friendly, intuitive. I've even found a couple of really great podcasts because their recommendation tool is very much next level from what I've seen on other podcast apps. So it's definitely an interview worth checking out. And PODOPOLO is definitely an app worth checking out. What do you think John?

0 (16m 13s):
I mean when it comes down to Fire Nation is this, you are entrepreneurs, you are at a different stage in the game. Maybe you're right at the beginning, the middle, maybe you're already crushing it. You're one of those stages entrepreneurs, support entrepreneurs, let's stop supporting Apple with their so-so to crappy podcast listening app. Let's stop supporting the Spotifys and the iHeartRadio of the world. There's no need for that. Let's support disruption. Let's support entrepreneurs. So I know it's easy to just keep doing what you're doing. I'm giving you a call to action. I'm asking you as soon as you are done listening to this episode, or maybe right now if you're actually an action taker, press the pause button, download Podopolo, listen to the rest of this episode in Podopolo.

0 (16m 58s):
Give this entrepreneur a chance. She's working so hard. She has a great team. She's looking to disrupt and improve an industry that you are in. Entrepreneurs, support entrepreneurs, be that person, support fellow entrepreneurs, Podopolo. It is not perfect. It is really good and it is getting better with my feedback with Kate's feedback and with your feedback Fire Nation because they will listen, they will improve, they will make the best podcast listening app out there period. Podopolo, p o d o p o l o. Podopolo, get on it. I'd love to see you there. Let's talk about the b and b market. What are we gonna say about this, Kate?

3 (17m 41s):
Well, we are going to be diving into it for the first time ever. We have been such avid Airbnb renters, but we've never taken on the host role. And you and I just did something pretty exciting. We purchased a condo here in Palmas Delmar from your parents, which was a very nice transition. And we're so excited to be trying out Airbnb. We're gonna be hosting by putting this condo up on Airbnb for rentals. We're also going to get to use it ourselves a bit when we have guests come and visit. And that's gonna be super nice. It's a beautiful condo, one single story.

3 (18m 22s):
It's on the ground level, it's got the pool and the beach right steps from the patio door and it just has so much to offer. So I'm really excited for us to be getting our toes wet so to speak. Ooh, literally and figuratively. You get your toes wet in the pool and in the beach. But I'm excited to be trying out Airbnb as a host again because I love the platform. We've used it so much as renters and I think it's gonna be pretty cool to experience it from the other side.

0 (18m 53s):
I'm looking forward to it. I mean, my parents purchased this property in late 2019, early 2020 and it was a great unit. It was fully furnished, fully finished as well. And it just is one of those ground floor units that just is right in front of the pool. Just steps from the beach. I actually measured it out a couple weeks ago when I was there because I wanted to add the exact steps into the Airbnb listing preview. And so it's 26 steps, you're in the pool, it's 87 steps, you're in the ocean. So pretty ideal location. It's a really cool community. It's a beautiful unit. Sweeping views from your own private patio, sweeping views from the master bedroom.

0 (19m 36s):
It's really cool. We just didn't wanna let it get outta the family because it's a special place. We're looking forward to letting people stay there. Hey, if it goes unrented, you know, for a, a little stretch from time to time, I mean maybe Kate and I will pack up with Gus and we'll go down there and just spend a, a little quick two or three days down there and just kind of experience a new part of Palm. Cuz I will say one cool thing is when my father stays down here for three or four weeks, like he's in the hot tub every day. Like he's walking the grounds and he's meeting so many people and it's just can be a great way to meet people cuz it's a condo. There's five condo buildings there and so a lot of cool people, lot of good opportunities right in the beach. It's a different little vibe than what we have kind of like up on a hill.

0 (20m 15s):
We're like about 150 feet above the ocean. This is literally ocean level. So a lot of cool things. It's up on the market completely, pretty much completely booked out through February 17th. And then we're gonna be renting it from that point going forward on Airbnb and we'll, we'll keep you updated and maybe we'll have to add a little separate section Kate on, cuz it's not a, an entrepreneur's on fire business revenue. But maybe we could have a little separate part about our Airbnb revenue to keep people up to date on how that's going. And of course, you know, I think we gotta include all the costs cause that's what a lot of people don't think about when they get into this stuff is like we've already had to outlay thousands and thousands of dollars, thousands of dollars for insurance for pha, which is the Palm Housing Authority.

0 (20m 60s):
That's a thousand bucks a year. The Marba HOA is like 600 bucks a month. So I mean there's all of these outlays that we've already given. So, you know, there's definitely money that we already are, are in the hole in that we need to recoup even before we turn a profit. But I think, you know, it could be pretty cool to kind of track that and I, I, I like to track these things so maybe we'll make a public on the Income Reports and have some fun. So Kate, before we dive into the income breakdown, anything you want to add to that?

3 (21m 26s):
Yeah, your dad definitely knows like more people in Palm miss than we do at this

0 (21m 30s):
Point.

3 (21m 32s):
We actually, we went to a Marba Christmas party and your dad was introducing us to people, which I thought was pretty cool.

0 (21m 38s):
He was a mayor. He was basically like getting voted into like the board of Representatives or something. It was pretty funny. He's definitely an extrovert. He, he was having a great time.

3 (21m 47s):
I wonder where you get it from.

0 (21m 51s):
So let's move on to November of 2020. Two's income breakdown. Our Freedom Journal. We did 58 sales. We did 20 mastery journals in 14 podcast journals. And I will say that that's, the podcast journals are almost completely sold out. That's just the reality. The digital version will of course always be available. But we had a total of 104 journals sold for $3,500. Paradise brought in 15 k podcast sponsorships brought in just over a hundred or just under $106,000. And our affiliate income brought in 51 55 with ClickFunnels per usual being our big one at $3,264.

0 (22m 34s):
Our expenses were 28,217. What, what was the, the high point of our expenses This, this month I notice we're down to 78% for our net profit percentage. I

3 (22m 46s):
Know, yeah, you know what? Because we gave bonuses to our virtual team. Oh. So that was a biggie.

0 (22m 52s):
Well that's a a well use of funds. Well worth it. Well worth it. Our team works really hard and we always reward them in December with a big bonus, which is essentially double their, whatever their monthly rate is. We double it for the month of December and typically talk about our raises at that point as well with them. So we have a long, long running team right now and we like to keep 'em happy cuz they're pretty amazing. So our total profit was $101,645 and Kate's gonna take it home with the biggest lesson learned.

3 (23m 28s):
Biggest lesson learned in November is about many check-ins. And I started thinking about this cause as I was preparing for my 100 days on Kate's take my 100 day goal challenge, I started really noticing and appreciating the daily check-ins that I've been promoting through that 100 day goal challenge that I've learned from the Freedom Journal. And so I thought, what would it look like if we not only did these daily check-ins, we also have our 10 day check-in. I thought, what about a monthly check-in? So I started trying it out. I call it mini for a reason because it hardly takes any time at all.

3 (24m 10s):
But the results have been really big for me. So super simple. Here's what my mini check-ins look like. I schedule a recurring time on my calendar the same day and time each month, and I like to do it on the first of the month or close by that. Number two, I review all my completed tasks in Asana because this gives me a strong sense of everything that I've accomplished. And I think that recognizing that is super important because a lot of times we get down about the things that we haven't completed without recognizing the things that we have. So that's number two. Number three, I review my upcoming task list in Asana, which gives me a look at what's ahead, helps me kind of prepare, able to see tasks that maybe I planned poorly for.

3 (24m 56s):
So meaning that I should have already completed them during the previous month, but I didn't. So that's kind of a good head heads up that I need to kind of reconsider what's reasonable and my expectations, making sure my expectations are reasonable. Number four, I think about what would make the next 30 days a win for me. And I write down at least three things that I can refer back to throughout the month so that I can remind myself, okay, at the start of this month, I said that if I could get these three things done, that the next 30 days would be a win for me. I always want the next 30 days to be a win for me.

3 (25m 36s):
So this is an awesome list to refer back to. And three things, right? This isn't meant to be overwhelming or make you feel like you have a bazillion things to do, it's only three. And then number five. So with all of that, I have my plan, my schedule, I've looked back at the tasks I've accomplished, I've looked at what's ahead. I know the three things that'll make the next 30 days a win for me. And then I also wanna extend this to my team. So I jump on a Skype call with JM and Jess, two of our VAs who I manage, and I ask them how their work is going, if they have any questions. And I like to get a feel for whether they have additional bandwidth for more assignments. And I also encourage them to do the steps that I just talked about.

3 (26m 20s):
So again, this doesn't take more than just one hour, one time per month. These check-ins have helped me immensely when it comes to planning and preparing for the month ahead. And again, I love being able to look back and show appreciation, give myself a pat on the back for what I've accomplished over the past 30 days. It really helps build that momentum. And with the new year right around the corner, it is a perfect time for you to try out these mini check-ins too.

0 (26m 46s):
Fire Nation, we love chatting with you about these things. I hope you enjoyed the tax tip, the legal tip, our little foray into Airbnb, and of course the biggest lesson learned of the month. Until next month, keep the fire burning. Is this your year? Visit Thrivetimeshow.com/eofire to see how Clay Clark's business coaching has helped thousands of entrepreneurs to dramatically increase profitability. It's month to month and less money than an average minimum wage employee. Schedule your free consultation today at Thrivetimeshow.com/eofire. The Goal Digger podcast hosted by Jenna Kutcher is brought to you by the HubSpot Podcast Network, the audio destination for business professionals.

0 (27m 32s):
Tune in and discover your dream career with productivity tips, business hacks, and so much more. Jenna's recent episode on four questions. To qualify your digital product idea is a must. Listen, listen to Goal Digger wherever you get your podcasts.