So, you’re taking this writing thing seriously. You want to develop it into a business and a career.

What are the pieces to operating a writing business? How are you going to do so?

Here are the sections in my operations plan:

• Maintenance and Review
• Business Operations
  • Financial Operations
  • Record-keeping
• Online Operations
  • Website
  • Social Media
  • Newsletters and Campaigns
• Offline Operations

Maintenance and Review

During July and late December a review will be conducted of progress to-date, including not only works in progress, but also this document, operations, and social media presence.

Business Operations

• Operate as a sole proprietorship until income exceeds $100k a year, then consider a LLC or other form of business.
• File a Fictitious Business Name statement (DBA) with local country for “Cindy Rae Writes”
• Obtain a Federal Employer Identification Number (EIN) for the business from IRS.gov
• Apply for a resale certificate from the state in the name of the company and use the EIN (see above)
• TBD: Do I need a business license from the city or county?  Small Business Administration may have helpful links

Financial Operations

Net income is defined as gross revenues less deductions.

After Phase 4, above, income earned from writing will be divided according to the following allocations: 10% — church, 10% — savings, 30% — professional services in support of the writing (i.e., editing, illustrating, marketing), 30% — in support of family operations and household expenses, 20% — fun!

Financial Plan in Phases

Phase 1	I will begin my writing career with my finances as-is.  I will track any expenses or income in a budget line-item in YNAB.  Income and expenses will flow in and out of my personal checking account.
Net Income <= $400
Phase 2	I will obtain a DBA and EIN.  I will report business expenses and income on Schedule C.  I will pay self-employment income tax on earnings more than $400.
$400 < Net Income <= $800
Phase 3	I will open a separate business checking account and a separate YNAB file.  I will move the expenses of the CindyRaeWrites.com domain name to the new account and budget.
$800 < Net Income <= $1000
Phase 4	After making more than $1000 in net income, I will hire a tax professional to handle the possible quarterly estimated taxes.If I pay more than $599 for contracted services or $10 or more in royalties, I need to ask the contractor for a W-9 and report the payments on a 1099-MISC (does not apply to payments made to a corporation)
Net Income > $1000
Phase 5	I will switch to a business accounting program
Net Income > $10,000

Copyright secured by Digiprove © 2019 Cindy Rae Johnson