Updated: Apr 25
Are you passionate about helping people overcome challenges and reach their full potential? Do you have a special interest in executive function skills and want to turn that passion into a thriving business?
You're not alone!
Many aspiring coaches, like the members of the Executive Function Coaching Academy, are eager to make a difference in the lives of those struggling with executive function deficits.
In this article, we'll walk you through the essential steps to set up a successful executive function coaching business, answering key questions for one of our dedicated EF Coaching Academy members.
Read on to discover how you can turn your dream of empowering others into a rewarding and sustainable career.
I recently received these questions from a member of the Executive Function Coaching Academy:
How to go about starting a new business. Do I need an LLC? Keep my money in seperate accounts? Basic intro to business lol:) ...I want to do it right.
While it is best to consult with an attorney or accountant to understand the tax implications and legal requirements for each business structure, here are some high-level considerations for these questions.
What business structure should I use?
Each business structure has advantages and disadvantages. Here are the pros and cons of a sole proprietorship, limited liability company (LLC), and corporation:
Simple and inexpensive to establish and maintain
Complete control over the business
No separate business tax returns; business income and losses are reported on the owner's personal tax return
Fewer legal and regulatory requirements
Unlimited personal liability for business debts and legal issues
Limited financing options, as lenders may be more hesitant to lend to sole proprietors
Less credibility with clients or suppliers compared to other business structures
May be more challenging to sell or transfer the business
Limited Liability Company (LLC)
Limited personal liability for business debts and legal issues
Flexible management structure and profit distribution
Pass-through taxation, with business income and losses reported on the owners' personal tax returns
Greater credibility with clients and suppliers compared to sole proprietorships and partnerships
More complex and expensive to establish and maintain than a sole proprietorship or partnership
May be subject to additional state-specific regulations and fees
Some states charge annual LLC taxes or franchise fees
Less attractive to investors compared to corporations
Limited personal liability for business debts and legal issues
Greater credibility with clients, suppliers, and investors
Perpetual existence, meaning the business continues even if the owners leave or pass away
More complex and expensive to establish and maintain than other business structures
More legal and regulatory requirements, including annual meetings, minutes, and filings
Less flexibility in management and profit distribution due to shareholder expectations and legal requirements
Should I keep my money in separate accounts?
Yes, it's generally a good idea to keep your personal and business finances separate, even when running a sole proprietorship. Here are some reasons why:
Simplified bookkeeping: Separating your personal and business finances makes it easier to track your income and expenses, allowing for more accurate bookkeeping and financial record-keeping.
Easier tax preparation: Keeping your personal and business expenses separate simplifies the process of preparing and filing your taxes, making it easier to identify and claim business deductions.
Professional image: Having a dedicated business bank account can help you present a more professional image to clients, suppliers, and financial institutions.
Better financial management: Separating your personal and business finances helps you monitor the financial health of your business and make more informed decisions about budgeting, cash flow, and growth opportunities.
Legal protection: While a sole proprietorship doesn't offer the same level of liability protection as an LLC or corporation, maintaining separate finances can help support the argument that your business is a separate entity in case of legal disputes.
To keep your finances separate, open a dedicated business bank account, use a separate credit card for business expenses, and maintain separate financial records for your personal and business transactions.
How can I learn more about how to start my executive function coaching business?
#1: Listen to the Earn More Tutoring Podcast
The Earn More Tutoring Podcast is an invaluable resource for aspiring executive function coaches and educators looking to launch and grow their businesses. By tuning in, you'll gain access to expert advice, industry insights, and real-life success stories that will help you navigate the ins and outs of starting your own coaching venture.
#2: Read "Profit First" by Mike Michalowicz
"Profit First" by Mike Michalowicz is an invaluable resource for aspiring business owners seeking to manage their finances more successfully. The book promotes a mindset shift that prioritizes profitability and offers a straightforward cash flow management system, encouraging financial discipline and strategic decision-making.
By focusing on cutting expenses and reducing financial stress, "Profit First" empowers entrepreneurs to establish a solid financial foundation for their businesses, paving the way for long-term success and sustainability.
Are you ready to transform lives by helping individuals improve their executive function skills? If you're passionate about making a difference and want to launch your own successful executive function coaching business, look no further! Visit the Executive Function Coaching Academy homepage today to gain access to valuable resources, expert guidance, and a supportive community. Don't miss this incredible opportunity to empower others while building a fulfilling and profitable career. Click here to explore the Executive Function Coaching Academy and kickstart your journey to success!
About the author
Sean G. McCormick is the founder of Executive Function Specialists, an online coaching business that guides middle, high school, and college students in overcoming procrastination, disorganization, and anxiety by teaching time management, prioritization, and communication skills so they feel motivated, prepared, and empowered.
He also founded the Executive Function Coaching Academy which trains special education teachers, school psychologists, and other professionals to support students with ADHD and executive function challenges.
Executive Functions, Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Some of the links in this post may be Amazon.com affiliate links, which means if you make a purchase, Executive Functions, Inc. will earn a commission.