November 2024 Income At-A-Glance
Gross Income for November: $96,482
Total Expenses for November: $12,399
Total Net Profit for November: $84,083
Difference b/t November & October: -$45,520
% of net profit to overall gross revenue: 87%
Why We Publish An Income Report
This monthly income report is created for you, Fire Nation!
By documenting the struggles we encounter and the successes we celebrate as entrepreneurs every single month, we’re able to provide you with support – and a single resource – where we share what’s working, what’s not, and what’s possible.
There’s a lot of hard work that goes into learning and growing as an entrepreneur, especially when you’re just starting out. The most important part of the equation is that you’re able to pass on what you learn to others through teaching, which is what we aim to do here.
Check out all of our monthly income reports – from the very beginning!
Let’s IGNITE!
**We’ll receive a commission on the affiliate links below. If you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Ron Parisi’s Monthly Tax Tip
Hey there, Fire Nation, this is Ron Parisi with CPA on Fire sharing with you some actionable insights that can help reduce your tax burdens and set your business up for success in 2025 and beyond!
As we wrap up another year, it’s time to talk about one of the most impactful areas for your business: the Year-End Tax Strategy Guide Every Business Owner Needs.
Ron’s November Tax Tip: Navigating Uncertainty: Why Tax Planning Is Critical
The tax landscape is shifting, and as a business owner, you need to stay ahead of the curve. With the 2017 tax cuts set to expire after 2025, tax rates are poised to rise. Add to this the uncertainty of a new administration’s policies, and it’s clear that proactive tax planning isn’t optional—it’s essential.
Here’s my advice: keep your financials up-to-date and work closely with your tax advisor to adapt to changes as they unfold. Being prepared will help you seize opportunities and minimize potential setbacks.
Key Strategies to Consider Before Year-End
- Maximize Your Qualified Business Income Deduction (QBI) The QBI deduction offers a 20% federal tax reduction for eligible businesses. Schedule a meeting with your tax professional to ensure you’re leveraging this benefit to its fullest before December 31.
- Review Your Accountable Plan If you operate as an S-Corp, confirm that your business is reimbursing personal expenses appropriately. From home office costs to vehicle usage, these deductions can add up significantly.
- Implement or Optimize Retirement Plans Retirement plans can be a powerful tax-saving tool, but changes need to be in place before year-end. If you’re considering a new plan, act quickly to meet deadlines and start saving.
- Prepay Expenses Evaluate your vendor list to identify opportunities to prepay expenses for next year. This strategy can lower your taxable income for 2024.
- Capitalize on the Augusta Rule Renting your personal residence to your business for events or meetings can provide a tax-free income opportunity. Ensure all payments are processed before year-end to maximize this benefit.
Plan for Long-Term Success
With anticipated 2026 changes to deductions like the standard deduction, business meals, and real estate taxes, it’s vital to think beyond this tax season. Start considering how your entity structure and tax strategy align with future regulations.
Don’t Wait Until April
The time to act is now. Year-end tax planning is your best opportunity to reduce your tax liability and position your business for success.
At CPA on Fire, we’re here to guide you every step of the way.
Wishing you all a happy holiday season and a prosperous New Year, till next time, Fire Nation!
CPA on Fire offers vCFO and fractional financial operation services. We have vast experience working with high-growth entrepreneurs. If you recognize the need to level up your financial operations to improve growth, profitability and free your time, let’s connect! We can show you how we help our amazing clients and what we can do for you and your business. Learn more at CPAOnFire.com.
David Lizerbram’s Legal Tip: How to Leave an LLC
What’s up Fire Nation! David Lizerbram here and I’m excited to be back with another legal tip for you! I’ve been practicing law for 22 years and have loads of free content over at LizerbramLaw.com. This month’s legal tip is all about how to leave an LLC.
Leaving an LLC as a member can be a complex process, influenced by the provisions in your LLC Operating Agreement and the relevant state laws. In this guide, we break down the key steps to help you navigate the process effectively, highlighting how state regulations may differ and what to watch out for to avoid complications.
1. Review the Operating Agreement
The first step in leaving an LLC is to carefully review the LLC Operating Agreement. This document typically outlines the procedures for leaving, such as providing written notice or obtaining consent from other members. Ideally, a well-drafted Operating Agreement will specify the steps, including buyout provisions or valuation methods for determining the value of the departing member’s interest. It may also include timelines for notification, restrictions on selling your interest, and penalties for early withdrawal.
If your LLC does not have an Operating Agreement, state default rules will apply, which may be unpredictable and potentially disadvantageous. Working with strategic legal counsel can be an important part of this process.
Without a clear Operating Agreement, legal ambiguities may arise that could lead to disputes with the remaining members. For instance, some states require departing members to provide a minimum notice period, while others may require unanimous approval from the remaining members.
The absence of a detailed agreement can also complicate the valuation of your interest, potentially delaying your departure and increasing legal costs.
2. State Laws Matter: Uniformity and Minor Variations
Most states in the U.S. follow versions of the Revised Uniform Limited Liability Company Act (RULLCA), which provides a consistent framework for LLC operations, including procedures for member withdrawal. Generally, under RULLCA, members can leave by providing formal notice, and the process for determining the value of their interest is clearly defined. However, there are some minor variations worth noting.
For example, New York’s procedures for leaving an LLC can be complex if the Operating Agreement lacks specific guidelines. In some cases, a court proceeding may be required to resolve disputes over valuation or other aspects, as per New York Limited Liability Company Law § 606. To avoid complications, it is advisable to include explicit language in your Operating Agreement.
If your LLC is in a state that follows RULLCA with minimal modifications, the process of leaving is typically straightforward: provide formal notice and follow valuation procedures. However, where state-specific deviations exist, additional planning may be required.
Understanding these differences is crucial for ensuring a smooth exit and avoiding legal complications.
3. Valuation and Buyout
A critical aspect of leaving an LLC is determining the value of your membership interest. If your Operating Agreement includes a buyout formula or valuation method, follow those guidelines. These could include using a predetermined earnings multiplier, an independent appraisal, or a book value calculation.
If no method is outlined, state law often requires a “fair market value” approach, which may necessitate an independent appraisal. This can lead to disagreements, particularly if other members believe the valuation is too high or too low.
The valuation process can have significant tax implications, so it is advisable to involve an accountant early on. You need to understand how your capital account will be treated and whether any built-in gains might create tax liabilities.
Additionally, if the LLC has outstanding debts or financial obligations, those will affect the final payout you receive. Proper valuation is not just about determining a fair price; it is also about ensuring that all financial obligations are settled, and that you leave without future liabilities tied to the business.
4. Legal, Tax, and Liability Implications
Once you decide to leave, it is important to formally notify other members and ensure that state filings are updated to reflect the change.
You must also consider ongoing liabilities and obligations. Depending on state law and the LLC Operating Agreement, you may continue to have liability for obligations that arose while you were a member. Some states provide for partial or full indemnification of departing members, such as requiring the LLC to cover liabilities that arose during the member’s tenure. Strategic legal counsel can provide guidance.
For example, in California, indemnification may be provided under certain conditions as outlined in California Corporations Code § 17704.08, whereas in New York, the Limited Liability Company Law § 420 provides similar protections, but with specific exceptions for bad faith, dishonesty, or certain types of personal financial gain.
It is critical to ensure that all liabilities are addressed before departure to avoid future legal exposure.
For example, if your LLC has outstanding loans or contractual obligations incurred during your tenure, you could still be held liable even after leaving. Negotiating an indemnification agreement with the remaining members is crucial. Such an agreement can help protect you from future claims, provided the LLC has sufficient assets to honor its commitments.
Additionally, reviewing any personal guarantees you signed on behalf of the LLC is essential; you may need to negotiate a release from these guarantees before you exit.
From a tax perspective, your share of any income or losses from the LLC will need to be settled when you leave. This may involve filing a final K-1 form to report your share of the LLC’s income, deductions, and credits up to the point of your exit. If there are significant profits, you could face a tax bill that needs to be addressed promptly. Ensuring a clean exit helps avoid surprises for you and the remaining members at tax time and maintains goodwill among all parties involved.
Key Takeaways
Leaving an LLC is not simply a matter of walking away. It requires following the proper steps outlined in your Operating Agreement and understanding state-specific nuances. If your Operating Agreement is comprehensive, the process can be smooth. If not, state law will determine the rules, which may lead to complications or delays.
Understanding state-specific requirements, ensuring a fair and clear valuation, and addressing any liabilities are all critical elements of a successful exit. Being proactive and thorough during this process can save you from unexpected legal or financial burdens down the road.
Be sure to review and amend your Operating Agreement periodically to ensure it reflects the needs of all members and minimizes disputes when members decide to leave. This includes adding provisions to address member exits, valuation procedures, and indemnification requirements. A well-prepared Operating Agreement is your best tool for avoiding conflicts and ensuring that each member’s rights and responsibilities are clearly defined, both during their involvement and upon their departure.
If you have questions about leaving a business, please feel free to contact me. I’m always happy to talk with members of Fire Nation.
What Went Down In November
Interview of the Month
Low-Ticket to High-Ticket Sales Funnels with Tom Morkes
3 Value Bombs
- Success is a trap and a snare for many people. Its what you become at the end when the dust settles but it is not a measuring stick and should not be use to determine your value.
- The pricing depends on the over aching strategy or business model. Understand first your business model and what you want to.
- The mistake both on doing high ticket and low ticket offer is when they abandon or ghost the customer after their low ticket sale and also not producing enough content in between the low ticket and the high ticket offers.
Tom Morkes’ Website – Go to Tom’s website and sign up for his newsletter and get a free book “Launch Hacks”!
MicroStrategy Today
Fire Nation, I’m so excited to share my newest project with you!
In November I launched a new YouTube show that I’m calling MicroStrategy Today, a daily video show about all things MicroStrategy.
If you’ve never heard of the company before, it was co-founded by Michael J. Sayler and more recently has focused in on becoming a sort of Bitcoin treasury company.
While MicroStrategy Today is like EOFire in that it’s a daily show, it’s differs pretty significantly because I’m sharing real-time news and updates on the company. That means no batching recordings, and I also plan to continue MicroStrategy Today as a solo show (meaning, no guests).
If you’re interested in Cryptocurrency, and especially Bitcoin, then I’d love your feedback on the show. You can check it out under the channel MicroStrategy Today on YouTube!
My biggest lesson learned in launching this show is something I’ve been sharing on Entrepreneurs On Fire for years. It’s so incredibly important to be the number one solution to a real problem. I knew I could be that for Fire Nation when I launched EOFire, and now, I know I can be that for those who tune in to MicroStrategy Today: for those who want real-time updates on all things MicroStrategy without having to sift through hundreds of news articles and social media posts.
Plus, MicroStrategy Today is the only daily video show that is delivering these real-time news and updates on MicroStrategy. It’s niche, it’s unique, and I’m dedicated to being the number one solution in this space.
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November 2024 Income Breakdown*
Product/Service Income: $93,382
TOTAL Journal Sales: $1,395 | Total Journals Sold: 36
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $620 (16 Freedom Journals + 0 Digital Packs sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $615 (15 Mastery Journals + 1 Digital Packs sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $160 (4 Digital Packs sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Total: $1,285
Podcast Sponsorships: $90,670
Podcast Launch: Audiobook: $20 | eBook: $12
Free Courses that contribute to the above revenue:
Your Big Idea: Discover your big idea in under an hour!
Free Podcast Course: Create and launch your own podcast!
Funnel On Fire: Create a funnel that converts!
Affiliate Income: $3,100
*Affiliate links below – if you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Resources for Entrepreneurs: $2,191
- Audible: $13
- Click Funnels: $2,178
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Resources for Podcasters: $587
- Libsyn: $122 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $366
- UDemy Podcasting Course: $0
- Capsho: $99
Other Resources: $322
- Amazon Associates: $18
- Other: $304
Total Gross Income in November: $96,482
Business Expenses: $9,674
- Advertising: $50
- Affiliate Commissions (Paradise): $348
- Cost of goods sold (Journals): $198
- Fulfillment: $0
- Consulting: $267
- Design & Branding: $0
- Dues & Subscriptions: $69
- Legal & Professional: $0
- Meals & Entertainment: $161
- Merchant / bank fees: $1,142
- Amazon fees: $1,187
- PayPal fees: $19
- Office expenses: $250
- Community Refunds: $0
- Promotional: $853
- Travel: $0
- Virtual Assistant Fees: $5,130
- Website Fees: $0
Recurring, Subscription-based Expenses: $2,725
- Adobe Creative Cloud: $36
- Accounting: $515
- Boomerang: $90 (team package)
- Authorize.net: $25
- Google: $90
- Cell Phone: $154
- CookieYes: $10
- Internet: $68
- Analytics: $70
- eVoice: $15
- Keap CRM: $256
- Insurance: $494
- Libsyn: $209
- Linktree: $9
- Spotify: $19
- OpenAI: $20
- Taxes & Licenses: $505
- Patreon: $45
- Zoom: $15
- Xero: $80
Total Expenses in November: $12,399
Payroll to John & Kate: $15,900
In our May 2014 Income Report and our June 2016 Income Report, Josh focuses on how to pay yourself as an entrepreneur. Check them out!
Wondering what we do with all of our net revenue? We share all in our April 2017 Income Report :)
Total Net Profit for November 2024: $84,083
Biggest Lesson Learned
A Year in Review
As the year comes to a close I’m always reminded of how important it is to take timeout to review your year. And the great news is, it can be done in five super simple steps.
Doing a review of your year not only allows you to see how far you’ve come – so you can celebrate your wins – it also allows you to acknowledge the lessons you’ve learned and how you can leverage them moving forward. In this way, a year in review can be very helpful when it comes to creating goals and milestones you’d like to hit in the coming months.
Here are the five simple steps to doing a year in review:
- Take note of the bigger projects you’ve worked on this year
- What worked, and why?
- What didn’t work, and why?
- Lessons learned
- Looking ahead
Remember: knowledge is power.
Once you’ve taken the time to review the above steps and have your review written down, you can ask yourself the following questions to help with upcoming goals…
- How can you leverage this knowledge to help you WIN in your business moving forward?
- How will you double down on what’s working, and avoid the things that didn’t work so well for you?
Now you have a complete system for how to complete your own business review!
Until next month, keep your FIRE burning!
~ Kate & John
Note: we report our income figures as accurately as possible, but in using reports from a combo of Infusionsoft & Xero to track our product and total income / expenses, they suggest the possibility of a 3 – 5% margin of error.
