So You're Starting a Business in 2025…

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So you've decided 2025 is your year to start a business. Maybe you're tired of living paycheck to paycheck and want to build something on the side. Maybe you've got a side hustle that's starting to show real potential, and you're thinking it could become your full-time gig. Or maybe you're just ready to turn your skills into extra income.

Whatever your reason, if you're serious about making money from your own business in 2025, we need to talk about something that might not be the most exciting part of entrepreneurship, but will absolutely make or break your success: setting up your business finances the RIGHT way from day one.

I've seen too many passionate people with great business ideas struggle because they didn't set up their finances properly at the start. Let's make sure that's not you. 💸

The Essential Steps to Setting Up Your Business Finances

1. Choose Your Business Structure

This is a biggie! Your business structure affects everything from taxes to legal liability. For most service-based businesses, you'll choose between:

• Sole Proprietorship: The simplest structure, perfect when you're just starting. You don't need to file with the Secretary of State unless you're using a DBA (doing business as) name.

• LLC (Limited Liability Company): Offers personal asset protection and flexibility in tax treatment. You'll need to file formation documents with your state's Secretary of State.

While I can’t advise you on this (That’s for a lawyer to do!) I will say lots of people like the protection that an LLC provides! That being said, depending on your state it may require extra filing and payments to maintain an LLC.

2. Get Your EIN

Think of your EIN (Employer Identification Number) as your business's social security number. Even if you're a sole proprietor and technically could use your SSN, here's why you want an EIN:

• Protect your personal identity (no more sending your SSN through email!)

• Makes you look more professional

• Prepares you for future growth

• Required for some business bank accounts

Getting one is FREE through the IRS website and takes about 15 minutes. Do this before you move on to step 3!

3. Open Your Business Bank Account (and potentially credit card)

This is non-negotiable, friends! Here's are some things you may need:

• Your EIN

• Business formation documents (if you're an LLC)

• Personal identification

• Initial deposit (varies by bank)

Pro tip: Shop around! Some banks offer:

• High-interest business checking (like Bluevine)

• Cash back on debit purchases

• No minimum balance requirements

• Free incoming wire transfers

4. Set Up Your Accounting System

Here's where a lot of business owners get stuck. You have options depending on where you are in your business journey:

Just Starting Out? Check out my ProfitWay Dashboard - it's a DIY solution that helps you visually track your business finances without the learning curve of traditional accounting software.

Ready for More? As your business grows, you might want to explore options like QuickBooks, Xero, or Wave.

5. Create Your Payment Systems

You need two things here:

• A way to send invoices

• A way to get paid

I love Dubsado or Stripe for this because they can handle both AND connect to your accounting system. Whatever you choose, make sure it:

• Creates professional invoices

• Accepts multiple payment methods

• Integrates with your accounting system

• Sends automatic payment reminders

6. Plan for Taxes

This is the step most new business owners miss - and it can cost you big time! You need a system to:

• Track your income

• Set aside money for taxes

• Make quarterly estimated tax payments

• Keep records of all expenses

Want to Start Your Business Off RIGHT?

I've created something special just for you! The Financial Foundations Starter Kit includes everything you need to set up your business finances like a pro:

• ProfitWay Dashboard for easy financial tracking

• Financial Focus Templates to keep you organized

• Service-Based Business Guide (the complete roadmap!)

• Estimated Tax Calculator (no more tax surprises!)

Think of it as your business financial setup in a box - everything you need to start your business off right and build real wealth from day one!

Next Steps

Ready to set up your business the right way? Here's what to do:

1. Get your hands on the Financial Foundations Starter Kit

2. Follow the step-by-step guide to set up your business structure

3. Use the included templates to organize your finances from day one

4. Start tracking your income and expenses like a pro with the ProfitWay Dashboard

Remember: You can make ANY decision as long as it's an informed decision. (That's one of our core values at CBFS, and it's especially true when you're starting a business!)

Need More Help?

If you want personalized guidance on setting up your business finances, apply to work with me here. Let's make sure your business starts off on the right financial foot!

Disclaimer: While this guide provides valuable insights, it's important to note that every business has unique circumstances. For personalized advice tailored to your specific situation, please consult with a qualified tax professional. Our goal at CBFS is to empower you to make informed decisions that support your business growth and personal wealth-building objectives.

Disclaimer: Some of the links in this post may contain affiliate links that will provide compensation.

Disclaimer: AI may have been used to help create, enhance, or review this content. All relevant financial information has been reviewed by a licensed financial professional.

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Get A Financial Headstart

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Disclaimer: While this guide provides valuable insights, it's important to note that every business has unique circumstances. For personalized advice tailored to your specific situation, please consult with a qualified tax professional. Our goal at CBFS is to empower you to make informed decisions that support your business growth and personal wealth-building objectives.

Disclaimer: Some of the links in this post may contain affiliate links that will provide compensation. 

Disclaimer: AI may have been used to help create, enhance, or review this content. All relevant financial information has been reviewed by a licensed financial professional.

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