Empowerment Issue January 2018 | Page 46

MADEINC

# CreativeCurrency

FINANCIAL ESSENTIALS FOR creative

ENTREPRENEURS

MADE BY ASHLEY WHITE
SET YOUR BUSINESS UP PROPERLY One of the biggest mistakes I see is not setting up the business properly . Not paying attention to the taxation part of it , about how you have to set aside some of your income because Uncle Sam is coming knocking . Make sure you ’ re setting aside that money for taxes because if you ’ re bringing in 1099 income or you ’ re a consultant or insurance agent or real estate agent — pretty much every entrepreneur who gets it for themselves is probably not having taxes taken out of their money . So when we ’ re filing taxes and that ’ s the kind of season that we ’ re in , you have to realize that you have to set aside at least a 20 percent of your income to pay back the government .”
Consider This : “ Do you have an LLC ? How have you set the business up so you ’ re not personally liable for everything that ’ s occurring and all of the income that ’ s coming in ?”
ESTABLISH PAYROLL “ You have entrepreneurs who are mixing their personal and business finances when they really should be establishing a payroll to pay themselves from their business . You don ’ t want to take in all the profit and spend it on your mortgage payment , your rent , car note and pay all those things out of what you ’ re making . You want to set up different bank accounts for different things . For example , I have a bank account for my direct deposit from my check goes into and I use
There ’ s no better time to be a creative than right now . However , while we live an unconventional life , we have to be very mindful about the way we spend and manage our money . MADE caught up with entrepreneur Ashley Maltbia for practical financial tips for business and other advice that will help set you up for success on your entrepreneurial journey .
Photo Courtesy of Ashley Maltbia
that to pay my bills . Establish some type of divide between the personal money and the business fund .”
DETERMINE HOW MUCH TO PAY YOUR- SELF “ I derive my salary from living expenses but I also derive it
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