5 Things That Really Made Me a Legit Small Business Owner

This idea was revolutionary for me.

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Honestly, before I implemented any of the following elements, I was technically running a small business. You're in the business game the moment you have clients or sales.

But you know what? Despite having freelancing clients under my belt, I couldn't shake off the feeling that something wasn’t quite right.

There was a sense of playing pretend in my own entrepreneurial adventure. I didn’t feel like a legit business owner because, in many ways, I wasn't set up like one.

When I talk about being 'set up,' I mean having a solid foundation that makes others - as well as myself - take me seriously.

When I heard this line from another online business owner: "Treat your business as the business it’s going to become", it struck a chord. I realized I needed a proper foundation because, at the end of the day, I am building a business, not just a hobby. 

So, here are the top 5 things I put in place that really transformed how I viewed my small business, and made me feel legit.

1. Philosophy of Treating Your Business as a Business

Adopting a Business Mindset

At the beginning of my adventure, I struggled with imposter syndrome, feeling like a small-time freelancer rather than a savvy business owner.

I remember sitting at my makeshift desk - a piece of plywood on two metal stands - when it dawned on me that if I kept thinking of my work as just a 'side gig,' that's all it would ever be. But that wasn't what I wanted. I aspired for more.

So I started to consciously shift my thinking. I began each day telling myself, "I'm not just freelancing. I'm building a business here."

It felt pretentious at first, saying that out loud with nothing but my laptop and a two-person client list to show for it - one of which was my brother.

Yet, it sparked something within me—a commitment to see this "business" not just as a fleeting career phase but as a long-term venture that would grow and evolve.

Attraction of Desired Clients

As I leaned into this new role, I noticed the clientele I attracted started to change.

They weren't just looking for a quick fix; they sought someone who understood their business and could grow with them.

They were attracted to the energy I projected—the energy of a "business person" who treated their work seriously and had a clear vision.

It surprised me at first, seeing how my internal shift was having such a tangible impact on my business's external realities.

I'd catch myself reflecting on this change during my evening walks around the neighborhood. I could finally say it out loud, and it felt real: "I am a business owner."

And that's when things started to click into place, molding the idea I held onto into a reality I was living.

2. Establishing My Business and Legal Framework

Learning from Someone With Experience: Attorney-turned-entrepreneur for small online business owners

I stumbled upon Sam Vander Weilen on Instagram, the force behind the transformation of numerous fretful freelancers into legally legit business owners.

Sam—a quick-witted, detail-oriented former attorney-turned-entrepreneur—understood the gaping needs of small online business owners like myself. Without a solid legal framework, any endeavor can feel a bit like building a castle on sand.

Sam's comprehensive resources introduced me to the essentials of setting up an LLC, crucial since each state has its specific legal nuances.

Her guidance on setting up an LLC became manageable, especially with New York's stringent requirements. Her advice clarified how to protect personal assets and take advantage of tax benefits, laying a solid foundation for my business.

Legal Preparation for Potential Challenges

‘You just don't know where things are going to backfire,’ I would always think, ‘I would much rather be covered so that I have that air of confidence to go out there and expand.’

Sam made it crystal clear that unforeseen challenges weren’t a matter of "if" but "when," and preparation became my new best friend.

From potential client disputes to regulatory compliance, she showed me how sturdy legal footing could not just protect, but also propel my business forward beyond my familiar havens of secured platforms like Upwork.

Investing in Sam Vander Weilen's The Ultimate Bundle®

What ultimately nudged me off the fence and into a full-blown commitment to fortify my legal setup was attending Sam’s Free Workshop: ‘5 Steps to Legally Protect and Grow Your Online Business’.

It was as if she was speaking directly to me. She mentioned, “It will shift your perspective. It will make you walk taller, knowing you're backed by something solid in your corner.”

After that, it was a no-brainer. I purchased The Ultimate Bundle® and it was like equipping myself with an arsenal. The arsenal:

Business Series Course

This course inside the Ultimate Bundle® covered everything from forming a business to scaling it up.

In seven straightforward modules and over 35 videos, I learned how to set up my LLC, protect my ideas with trademarks and copyrights, and choose the right business insurance.

Sam breaks down complex processes into clear, actionable steps.

Contracts: Legal Templates

Operating mostly within the safety nets of structured platforms or through personal networks, I had never ventured out due to a gnawing fear of the “what ifs.” Having access to legal templates was a key to unlocking a door I had hesitated to even approach.

The Ultimate Bundle® includes 13 Core legal templates tailored to all my online business needs complemented by their how-to video tutorials with step-by-step guidance on how to fill them out.

Having these documents in place isn’t just about legality; it is about professionalism. It's hard to claim you're a business if your digital presence doesn't echo that in every clickable link.

Protecting Intellectual Property

Another blind spot that Sam illuminated was the realm of digital legalities. I didn't know that you needed to have website policies, disclaimers, and terms and conditions.

My creative outputs, my written words—they could easily be copied or, worst, tangled in litigations if not securely pinned down by intellectual property laws. 

Could someone try and sue you one day because you were not clear on your scope of work? Maybe. Will your intellectual property be stolen? “It's more probable than you'd hope," Sam cautions.

With each contract drafted with these provisions, I was not just protecting my work but also fencing the garden I was hoping to flourish.

Access to the Facebook Community: A Wealth of Shared Experiences

The Facebook community that comes with the bundle is a treasure trove of collective wisdom. Here, I found fellow online business owners grappling with the same questions and challenges I faced.

This community provided not merely answers but a sense of camaraderie. The shared experiences and solutions within this group have often been as valuable as formal advice, offering real-world insights and collective wisdom.

A Library of Material: Your Go-To Source for Business Queries

Sam's bundle serves as a library of material, covering an extensive range of business scenarios.

From how to sign your first contract, which contract to use to navigating legal landscapes like not getting paid by a client, it’s been my go-to place whenever I have a question about the “business stuff”.

What enhances its value is the way the content is structured—intuitive, accessible, and always relevant.

Legal ‘Guidance’ from an Entrepreneurial Perspective

While Sam is not my attorney, the perspective she brings—legal acumen blended with entrepreneurial experience—is unique. She guides how to be legally covered in business affairs without losing sight of the entrepreneurial journey.

It’s this blend of legal expertise and understanding of the entrepreneur's path that’s particularly enlightening.

Sam addresses the legal nuances of starting and running a business not just theoretically but from a place of having lived through it, which makes her advice all the more practical and actionable.

3. Registering my LLC via a Registered Agent

Sam's course was an eye-opener! It gave me a beautifully structured roadmap on how to set up my LLC all by myself. Every detail was in there, a legal checklist meticulously laid out. 

But let's be honest, as much as I love to learn, doing all that legwork was a bit daunting.

So, I did the next best thing—I hired a registered agent to take care of all that for me.

Who did I go for? I chose Northwest Registered Agent. They’re well-known, reliable, and operate nationwide in the US, exactly what I needed since I’m not in the US myself, but I want my company registered in my US state.

One big sigh of relief with having Northwest as my registered agent: they took care of all the details.

Now that I’m an official LLC I'm not personally liable for business debts or legal actions.

Registered Agent and LLC Publication: What's All That About?

In New York, where my business is registered, the law plays it a tad stricter. Every LLC needs a registered agent—someone officially appointed to receive legal papers and official mail on behalf of your business.

Why is this crucial? Well, you need someone reliable and always available so you never miss important legal notices. 

Plus, my agent handles those quirky New York publication requirements too. Yep, you heard that right—New York wants your LLC formation to be published in a weekly and daily newspaper (for a certain amount of weeks).

Sounds old-school, but it's the law and I certainly wasn’t going to start calling publications in NYC or on Long Island where it is costly to run ‘ads’ for my LLC formation.  

Northwest Registered Agent allows me to use their address in Albany, NY as my business address. I paid for their services to handle the publication aspect in Albany where the cost was significantly lower than what I would have paid in downstate NY.

*NOTE: If you do not use a registered agent office and do not have a business office address, YOUR HOME ADDRESS is your LLC address and will be plastered in the weekly and daily publications to announce your LLC formation. 

LLC Benefits and Operations: Let's Delve Deeper

Operating as an LLC, for me, is chiefly about one thing: protection. Not being personally liable means I don't have to lose sleep over business threats affecting my personal assets. 

Let me share a little more about how I've set things up.

Seeing as I live outside the US, yet my primary audience is within the US, it makes my life and my accountant's life easier when my business is registered on US soil because I'm an American citizen paying my estimated taxes to the US. 

Thanks to some nifty services like Greenback Tax Services and a Tax treaty between the United States and Greece, I can avoid double taxation (more on this later).

I use Northwest as my registered business address and have a business phone number through Skype with a NY area code.

This does more than just comply with legal standards—it gives me a psychological boost, a constant small reminder that I'm not just pretending; I'm truly legit.

Some More Perks Of Using A Registered Agent:

• Respecting Privacy: My home address stays private! Registering an LLC flips your info into public records, and using a registered agent keeps my personal space out of the public eye.

• Handling Legal Matters: If there's ever a legal issue (touch wood it never comes to that), all documentation goes to the agent. I don’t want any unexpected interruptions at home, as in my parent's house in NY, do I?

• Mail Management: Every piece of mail is neatly scanned and uploaded to my online interface by the agent. I love this because it shaves off yet another errand from my list. I only receive the important mail.

And On The Cost?

It cost me $39 through Northwest to handle my LLC registration plus additional fees for meeting all publication requirements as per state laws if you have them handle that.

The first year with my registered agent costs nothing. After that, there's a $125 annual renewal fee.

One tip—beware of additional services. They offered to handle the biennial LLC renewal for $100, yet it's a task that only costs $9 and a bit of online navigation. I opted out of this service option.

Now, it's not just about being an LLC on paper, it's about fulfilling those responsibilities and stepping up to the plate.

I must act like an LLC.

4. Business Banking and Finance

Running a business while living in Greece but having my business registered in New York because of my clients has its own set of unique challenges. The biggest one? Banking and finance.

Because here's the thing—I need a business bank account that makes sense for someone straddling the business worlds of the US and Greece. Payments are in USD, while my owner’s draw money is in Euros.

Opening a Business Bank Account 

Wise became my go-to because, quite frankly, the thought of jetting across the Atlantic just to open a business bank account in person seemed ludicrous.

With my laptop as my command center, sitting in my Greek workspace, I navigated through the setup with ease, armed with my LLC paperwork and EIN. And just like that, my business banking was set to go and I didn't have to leave my house to do it.

This setup means I can work with clients on Upwork, use Honeybook for contracts and payments, and everything runs smoothly through my Effie Stamos LLC business bank account.

It's separate from my personal life, which is exactly how it should be. 

Separation of Personal and Business Finance

Gone are the days when my personal and business expenses were tangled.

Effie the person and Effie Stamos LLC are not the same—financially speaking.

Introducing a business credit card into the mix has been nothing short of a revelation. Every swipe or online payment is a testament to the independent entity that is Effie Stamos LLC, keeping my personal finances out of the business equation. 

It's a small but constant reminder that I'm not just freelancing on a whim; I'm running a bona fide business. It’s about keeping things professional and tidy.

Customized Business Setup:

Having a business setup like mine is part of the virtual business renaissance.

Being overseas but having a business registered in New York, and navigating the US-Greece tax treaty, well…it's the new normal.

Choosing Wise for my business banking needs wasn’t just a random choice—it caters to my global setup, ensuring a smooth sailing across the financial seas of my international operations.

My clients in the US can work with me without any hassle while keeping my accounts and taxes straightforward. I can charge in US dollars, collect in US dollars, and

convert my US dollars into Euros for a great rate, seamlessly and effortlessly.

Managing a business bank account across borders is a key part of my broader quest for legal legitimacy.

To complete the picture, tackling the ever-twisting world of US taxes is crucial, especially from my outpost in Greece.

That's where my secret weapon comes into play—an expert expat tax services provider, ensuring that Uncle Sam and I stay on the best of terms, no matter where my business or I plant our feet.

5. Navigating US Taxes & Ensuring Compliance from Abroad

Living abroad has its perks, but dealing with US taxes isn't one of them. And I don't mess around with it because the US tax system is a beast, especially living abroad. 

* If you didn't know this already: You must still file your US taxes! As long as you hold a US passport, the United States expects its 'rent' in the form of taxes, regardless of where in the world you earn your income.

Tax Compliance Across Borders: US and Greece

Tackling this tax beast head-on means juggling the tax laws of not just the US but Greece too, thanks to my love affair with living abroad.

Now, here's where it gets a tad less nightmarish - the US and Greece have this tax treaty aimed squarely at dodging the double taxation bullet.

It's like they finally got something right, letting me deduct or exclude bits of my income so Uncle Sam and Greece aren't both dipping their hands into my wallet.

But let's be real, the fine print in these treaties would make anyone's head spin.

That's why I've got a Greek accountant keeping things legit on the Mediterranean front, and I file with both countries to keep everything above board.

Expat Taxes: Paying Uncle Sam from Afar

On the US front, I rely on Greenback Tax Services. They're the masters at dealing with the IRS, making sure I'm all squared away without having to stress over it.

From filing back taxes to sorting through unique situations, they've got my back. And for any US citizen living abroad, believe me, having a team like that in your corner is worth its weight in gold.

Keeping My Own Books: A Labor of Love

The Joy of DIY Bookkeeping

I'm one of those people who actually enjoys bookkeeping. Weird, right?

But seriously, keeping a close eye on where my money's going, splitting it between personal and business expenses, and figuring out the estimated taxes I owe gives me a real sense of control.

And control is key when you're trying to run a successful online business from wherever in the world your wanderlust has taken you.

My Makeshift Spreadsheet

So, I've put together a simple spreadsheet that's become my financial nerve center. It's nothing fancy, but it does the trick.

It's where I track everything - from daily expenses to the big-ticket items that keep my business ticking.

I've got a section dedicated to my home office. Yep, it breaks down how much of my utilities, internet, and phone bills are actually business expenses.

And let me tell you, figuring out those percentages has been a game-changer for staying on top of my quarterly estimated taxes.

Drawing the Line: When to Call in the Pros

The Leap to Professional Help

As much as I love my spreadsheet, I know its days are numbered. My business is growing (which is awesome), but that also means things are getting more complicated.

Eventually, I'll have to hand over the reins to a bookkeeper who gets the online business world.

But until that day comes, I'm sticking to my DIY guns, making sure I've got a solid grasp on where every penny is going.

Final Thoughts

Reflecting on my quest from solo freelancer to legit business owner, these five steps were game-changers.

Adopting the mindset to "treat your business for the business it's going to become" was eye-opening. 

By laying a solid foundation—setting up the legal framework, registering my LLC, organizing my business banking, and getting serious about my taxes—I transformed how I saw my own business.

It wasn't just about looking legitimate to the outside world but feeling it deep down. 

Each step, from the legalities to financial management, was about taking myself and my business seriously.

Now, I'm not just playing business; I am running one with confidence and planning for the future. This shift wasn’t overnight, but the impact was immediate.