Vision written, now what-Steps to building your music studio
You have finally decided to create your part time or maybe even full time job out of teaching independently. It's a huge step and I am here to help you get started.
You have the tools already within you to get started. But let's talk about the business side of what is really about to happen. Grab your notebook and pen.
Let's get busy with the first 3 steps to get started.
What in the world is an EIN? Employer Identification Number in the long form. The good ole IRS (internal revenue service) issues out this important number. It is the social security number for your business. It is painless and super easy to receive. Best believe, the IRS did not endorse this message but here is the link to get started>>https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
2. Business Bank Account-
You already have a personal account and now the time is needed for your new baby. A business account is a must. Never, ever, Never, ever co-mingle business and personal accounts. At the time of writing this blog we are currently in the midst of a global pandemic COVID- 19. The federal and even local governments are offering grants and loans to small business owners for economic relief. But check this out. If you don't have an EIN or business bank account, your business really isn't that legit. You always want to be able to provide an accounting of your business finances. Plus let's face it. You truly need these numbers to understand the growth of your business and predict where you want to be financially based on trends. Comparatively shop all the banks and do not forget the credit unions for the best rates. Business accounts work differently from personal accounts and you want to get the account that best matches where your business currently is.
3. LLC, S-Corp, C-Corp or what?
The final step in legitimizing your business is deciding how to structure your business. My guidance (never advice) is to seek an attorney and accountant for your best option. Go to your state's department of revenue and complete the application and pay the fees. Understand each state has their own rules and fees. Pay attention to deadlines and filing obligations. I always budget for my LLC fees and place the money in a savings account. When the time comes in April (this is North Carolina) I am ready to pay.
Now that your business has taken care of the initial set up. Sit back and celebrate yourself for taking the steps to legitimize your business. Never fret, there is more work to be done but this is the first step.
Author: Jeanetta Hopkins
Jeanetta Hopkins is a lifelong learner of music and is especially passionate about music education and providing an accessible arts education to the community. She is the owner of Bull City Music School, an accompanist and multi-instrumentalist (piano, violin and viola). Be sure to like, share and subscribe to the blog.