Setting up and structuring your practice

Let's say you've landed your first project or secured that initial client. This is an exciting milestone, but it also means it's time to make things official. Setting up the legal, financial, and organizational structure of your practice is essential to running a professional, sustainable business. In this chapter, we'll walk through the foundational steps to help you build a strong structure, enabling you to focus on what matters most: your creative work. The first step in formalizing your business is choosing a legal structure, which determines everything from liability protection to tax obligations. Whether you decide to register as a sole proprietor, limited liability company, or LLC, or corporation, each option has its pros and cons. For instance, a sole proprietorship is simpler and has lower costs but doesn't provide liability protection, while an LLC offers limited liability but involves more paperwork and fees. Understanding these distinctions is crucial as it will impact how…