Aquila Wealth Newsletter #financialplanning #aquilawealth #feeonly
Here are 3 articles I found valuable in my reading this week, and I think you will too...
How to Establish a Sole Proprietorship in California
I often get questions about practical steps to take when setting up a new business venture or how to get a business license for "side income." I like this article because it simply lays out the steps for anyone to start the most basic type of business entity -- the Sole Proprietorship. Maybe this is pertinent for someone you know.
1. Choose a business name.
2. File a Fictitious Business Name Statement with the county recorder.
3. Obtain licenses (San Luis Obispo City example), permits, and zoning clearance.
4. Obtain an Employer Identification Number.
- Open a business bank account. Using your fictitious business name and EIN, you should set up a bank account to keep your business and personal finances separate.
- Obtain general liability insurance. Because sole proprietors are personally liable for all debts and obligations of the business, a business liability insurance policy may be the only form of financial protection against unforeseen events.
- Report and pay taxes.
How to deal with the Imposter Syndrome
Often times, professionals, experts, or creatives will second guess their value and "feel like a fraud" for getting paid to provide their product or their service. There's a name for that.
What is Fee-Only Financial Planning?
There are three basic ways in which financial advisors are compensated:
- Through a commission-based model
- Through a commission & fee model
- Through a Fee-Only model
I believe the Fee-Only method of compensation is the most transparent and objective method available. This model minimizes conflicts and ensures that your financial planner acts as a fiduciary. Fee-Only planners are compensated directly by their clients for advice, plan implementation and for the ongoing management of assets.
Have a great week!
Eric Maldonado, CFP®, MBA, CKA®
Owner, Aquila Wealth Advisors