Starting a Content Agency - Business Structure, Taxes, Write-Offs & Paying Yourself [Full Guide]

Yes sir EVERY DAY!

Keep it up!

2nd 😂 I would’ve been first if I didn’t have to catch up with the other videos this morning

It is a bit different in UK, isn’t it 😅

Cam, I have a question how do you personally keep costs low. Also how do you go about paying people, outsourcing work? I'm currently running a Website Design agency I want the guys and gals freelancing to earn well from the projects but also not kick my ass on costs. Because I still have to oversee the projects, take the discovery calls etc... How do you go about that?

Amazing content as usual man.

Congrats on 10K keep the vids up bro!

Bring the Vlogs back!

what is LLC guys

Super different in Sweden though. But got some useful tips in the future when i open up a company!

Cam, thanks so much. Not enough people are talking about this side of the business.

Screech the goat!

🐐

Congrats on 10k🎉. This series is very helpful! Earlier this year, I bought a drone and camera, but I haven't started my llc yet. How would I go about writing them off (I have all the receipts)?

The first question 🤣✋🏼

Thanks for this insight brother! Very insightful information and learned a lot to incorporate into my business structure. Keep doing the Lord's work!

Let’s go 10k sub bro congrats brother 🎉

What is a good way to record gas? esp. if you use your personal car. Also what about gear that you end up selling?

Can you please add chapter markers so I can come back later to revisit specific ones.

Tremendous value yet again.
That dude was goated

Epic Video getting a tax professional on the video with you. So cool never seen that before. Great mix up of the content too from shooting and behind the scenes of all that to an interview.

I was only 5 minutes into this video and its already a great video. answers all those little thoughts and questions i have but can never find the direct answer to it. Well done!

SOMEONE FINALLY LAID OUT THE WHOLE BLUEPRINT!!!
OMFG!!!!

Hey Cam, dope videos man- started my agency and then ran into your videos not long after I made it official. I've got 2 clients right now, one is a roofing company and one is as loan officer. Both people I know through friends and or family. I am wondering though where can I find a decent Accountant for $300 a month?

Find an account who won’t talk over your head. Who has the heart of a teacher.

This was a great conversation 👍👍

A simple suggestion - If you don't want to keep paper receipts, snap a pic or scan them into a Google Folder (or online folder of choice) that you can share with your bookkeeper/accountant. Change the file name to what the item/vendor it was for. I do this right when I get the receipt and then throw it away which feels great!

Damn, that guy is legit. Great video

I'm just gonna dump a bunch of value in the comments until Cam throws me $100

Why is called an Agency (I didn't know this myself):


Principal and Agent Wilma works for me at my pet grooming business, Barks and Bubbles.

I'm the owner and in the process of restocking my inventory in my pet supply department, so I send Wilma to order some products for my store.

This means Wilma is an agent, or a party who is legally authorized to act on behalf of another party in business transactions.

I, on the other hand, am a principal.

A principal is a party who gives legal authority to another to act on his or her behalf in business transactions.

Both principals and agents can be individuals or can be business entities.

Wilma and I have an agency relationship.

This is a business relationship where a principal gives legal authority to an agent to act on the principal's behalf when dealing with a third party.

(ohhhhhhhhh)

When Wilma places orders for my store, I am the principal and Wilma is working as my agent.

All agency relationships are fiduciary relationships.

This means the relationship involves a certain level of trust and confidence.

The agent is obligated to act in the best interests of the principal because the agent's actions will create legal obligations for the principal.

The agency relationship allows the agent to work on behalf of the principal as if the principal was present and acting alone.

For example, let's say Wilma contracts with Rusty's Rawhide to buy 500 rawhide bones.

Rusty's delivers the bones, but Barks and Bubbles fails to pay the bill.

As the principal, I'm legally responsible for Rusty's bill even though I never personally made this business deal.

If Rusty's decides to sue for collection of the bill, they'll likely sue Barks and Bubbles and me, rather than Wilma.

As long as Wilma was properly acting as my agent when she made this deal, she's not legally responsible.

Wilma and I have an express agreement, which means that both the principal and agent agreed to the agency relationship through a written or oral agreement.

I asked Wilma to purchase supplies on my behalf, and Wilma agreed to do so.

All agency agreements are created through the intent of the parties, and we clearly intend to act in an agency relationship.

However, not all agency agreements are express agreements.

Agency can also be created through an implied agreement.

This means that the conduct of both parties expresses an intent to create an agency relationship.

The agent works on the principal's behalf through implied authority, rather than a stated agreement.

For example, let's say that I always do the inventory buying for Barks and Bubbles.

However, I'm out of the country when our supply of rawhide bones runs out.

I left Wilma in charge of the store but never told her to purchase inventory.

Wilma places an order for more bones through Rusty's Rawhide even though I didn't specifically tell her to do so.

This is an implied agency because Wilma is acting with my implied authority as the person in charge of the store.

Estoppel and Ratification Agency relationships can also be based on apparent authority.

This type of agency is neither express nor implied.

Instead, apparent authority is when a third party reasonably assumes that the principal granted authority to the agent.

Apparent authority is assumed to exist by the third party through observing the principal's conduct.

If the principal acts as though he or she has an agency relationship with the agent, then the principal will be legally bound by the agent's actions.

For example, let's say that I'm in town and in charge of my store.

While at work one day, Wilma orders 500 rawhide bones from Rusty's Rawhide.

I haven't authorized Wilma to make orders.

Rusty's produces and delivers the bones, and I accept them.

I can't refuse to pay for the order since I've acted as if Wilma had the authority to place the order for me.

Apparent authority protects Rusty's from losing money on the business deal as long as Rusty's has good reason to believe that Wilma is my agent.

In this particular scenario, I've ratified Wilma's act of agency.

This means that the principal accepted and recognized an invalid act of agency.

An act of ratification by the principal makes the invalid act of agency become legally valid.

Invalid acts of agency can also become valid through the doctrine of estoppel.

This means that there was an invalid act of agency, but the principal didn't take proper action to deny the agency relationship.

For example, let's say that Rusty stopped by my store to give a sales pitch for his rawhide bones.

I didn't have time to listen to him, so I had Wilma take care of it.

Wilma's not authorized to place orders for my store, but Rusty doesn't know this, and I didn't tell him.

Wilma has apparent authority, and I'll be 'estopped' from denying the legality of any deal she makes with Rusty.

These two legal doctrines are similar, and both are dependent on the principal's conduct.

Note that the main difference between ratification and estoppel is this:

Ratification occurs after the agent's invalid act, and estoppel arises before the agent's act.

Sole Proprietorship:

Meet Monica.

Monica's opening her own business!

She's starting Monica's Monograms.

Her monogramming business will be a sole proprietorship because it's an unincorporated business owned and run by only one person.

Monica will be the only employee and will have complete control over the business.

Sole proprietorships are the most common and the most straightforward type of business structure.

They aren't really considered to be business entities because there's no legal set-up.

There's also no legal distinction between the owner and the business.

Monica and Monica's Monograms are treated as the same entity.

This means Monica can keep all of Monica's Monograms' profits.

However, Monica is also personally responsible for her business' debts and losses.

The business' income counts as Monica's income so she'll be personally responsible for paying those income taxes.

The business won't be taxed separately like it is in other business structures.

Forming a Sole Proprietorship:

This all sounds good to Monica, but first she needs to know what to do in order to structure her business.

Monica doesn't need to do anything at all in order to form a sole proprietorship.

Monica's Monograms is assumed to be a sole proprietorship the moment Monica starts doing business.

There's just one item Monica will want to look into.

Since Monica's business name is different than her name, she'll need to file the business name with the government.

This is usually done through her Secretary of State's office, though the procedure varies from state to state.

To register her business name, Monica first needs to make sure 'Monica's Monograms' isn't already taken.

Then she'll file the proper paperwork claiming the name.

The forms are known as assumed name, trade name, doing business as, or DBA forms.

Monica will also need to obtain any required licenses or permits in order to legally run her business.

For example, let's say Monica plans to run her business out of her home.

She'll need to check with her city to be sure zoning laws don't prohibit home-based businesses.

Advantages of Sole Proprietorship Businesses like Monica's are popular because sole proprietorships are easy and inexpensive to start.

This popular business structure provides many advantages for the business owner.

Remember that there are no formal or legal requirements when starting a sole proprietorship.

There are also very few legal requirements when running this type of business.

This means there's typically minimal administrative expense when starting and running a sole proprietorship.

Like Monica, many business owners favor sole proprietorships because they have complete control over the business and business decisions.

This allows the owner flexibility.

The owner can even close the business or transfer the business to another person without obtaining permission.

Also notable, recall that the business isn't separately taxed.

The business' profits belong to Monica.

This is Monica's income, and she'll pay income taxes.

However, there are no additional taxes involved with the running of a sole proprietorship.

Disadvantages of Sole Proprietorship:

Monica thinks it will be easy to accomplish the few tasks necessary to get her sole proprietorship started.

But, what are some of the disadvantages she should consider?

Let's look at a few items Monica might want to think about before diving in.

First, remember that Monica and her business are legally considered to be the same entity.

This means Monica can be held personally accountable for business debts and other business liabilities.

For example, let's say Monica borrows $5,000 to buy equipment and supplies for Monica's Monograms.

Unfortunately, the business doesn't do well, and Monica finds that she can't make her loan payments.

Even though the loan was used for Monica's Monograms, Monica will be personally responsible for repaying the loan regardless of the business' success.

Next, Monica will want to consider the difficulty involved in raising money for a sole proprietorship.

These businesses are unincorporated and don't have stock.

Therefore, investors often aren't attracted to sole proprietorships.

Banks are also sometimes hesitant to support sole proprietorships.

Banks often won't lend to sole proprietorships unless the business owner can put up enough personal collateral to properly secure the business loan.

Also keep in mind that, should Monica's business expand, she'll have to file taxes and administration for any employees she hires.

For this reason, many sole proprietorships eventually organize as corporations or use only independent contractors.

Others purposely stay small enough to not necessitate employees.

Monica's planning to use her own money to start her business, so she's not concerned about these possible disadvantages yet.

Instead, she's eager to get started!