Hey everybody. Welcome to the $100 R&A show. I'm Omar

in home and today is a bonus episode. We call these Q&A weekends where we answer

your questions. If you want to send us a question, you can email us at contact at 100MBA.

Or you could speak your question where you record it and will play it on the

air. Use our speakpipe feature at 100 NBA.net slash show. Today's question comes from

Pam and Pam says I'm a photographer and I'm looking to go pro and start selling my photography services.

Do I need to get a business license or incorporate myself?

Thanks for the question Pam and before I answer it, I want to make sure everybody knows that we will have a full episode on the Honorable B show talking about incorporating yourself and getting a business license or should you do it? How do you do it? All that stuff.

But to answer your question directly, Pam, you do not need to form an LLC or an

S-Corps, and I'm assuming this is what you mean by a business license, registering your business

as a corporation. Now with a lot of service-based businesses or personal brand businesses like speakers,

authors, coaches, things like this, they operate as a sole proprietor and the paperwork

involved in being a sole proprietor is very very

simple so what's the difference becoming a sole proprietor and incorporating

yourself now when you become an a corporation an LLC or an S corp whatever it is

you're actually creating a whole new identity,

a whole new person, so to speak, in the eyes of taxes or in the eyes of the IRS.

Now obviously what I'm saying today is applicable to US listeners. I do not know the laws in other countries

the difference between being a sole proprietor and a corporation like an LLC or a S-corp is that when you file an LLC paper or an

S-corp you will get something called an E-I-N number which is an employer

identification number and this basically identifies this business as an individual

really is what it is because it's the equivalent of your social security

...