Boom! Shake the room, Fire Nation! JLD here and welcome to Entrepreneurs on Fire. Brought to you by the HubSpot podcast network with great shows like My First Million.

Today, Fire Nation, we're talking about the Income Report for September, 2022. We have a lot of great things to chat about.

A quick, ad-a-glance snapshot is $182,899 for the gross income. Total expenses 23,393. Net profit was 159.506 for an 87% net profit overall gross revenue.

In today's Fire Nation, we're talking about owner's distributions versus owner's salary. Really important things to know.

Also, the four keys to choosing the right lawyer for your business. Also, we'll be talking about entrepreneurs on Fire turning 10 years old, that is a decade old double digits.

And so much more when we get back from thank-in-our sponsors. One thing is certain given the rollercoaster economy we're in, it's a dangerous time to not know your numbers.

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All right, Fire Nation. It is time to kick into the monthly tax tip for entrepreneurs on Fire September income report with Mr. CPA himself, Ron Perisi. Ron, take it away.

Oh, John and hello Fire Nation. This is Ron Perisi with CPA on Fire for your September, 2022 tax and accounting tip. Hey everybody, hey Fire Nation.

We have an interesting question for this month's tax tip. I guess it is an accounting tip as well. And it has to do with, hey Ron, can you clarify?

Owners draw owners distributions owners dividends comparatively to owner salary.

This isn't as simple as it may be. We're going to have to move, we're going to have to move through the different entities, but I think it's a really good baseline to start for all you entrepreneurs out there really kind of thinking through entity types.

So hold on to your hats. We're going to go relatively fast, but depending on the feedback, maybe we'll maybe we'll dive into some of these particular areas in future tips.

But again, CPA on Fire, right? We help online entrepreneurs who grow rapidly, you know, just manage the complexity that comes with growth.

So we see these issues pop up all the time. So today, you know, we're going to talk about essentially distributions, right?

You're never really going to hear anybody talk about dividends unless you're in a C-Corp environment. So let's just talk about the four different entity types.

I'm going to talk a little very high level about how they're taxed and then really hone in on owners salary versus owners distributions.

So the four types of entities essentially are what's called schedule C entities, which essentially are disregarded entities for IRS purposes.

But these are, you know, single member LLCs, these are side hustles, things you're doing in your own social security number, those get filed on what's called schedule C on your own personal tax return.

So that's entity type number one entity. Now, number two is partnerships, right? When you have two or more owners of the company decided they're going to get into a relationship, they can be taxes, a partnership or default will be a partnership.

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