I know most people are reading the blog to personal get alongside of us, which is seriously amazing and people have asked me a lot in the last couple of days “Why do you want to open a business?” I think they’re expecting me to say that I wanna be my own boss, or I want to earn all of the dollars and live the relaxing life (and all the small business owners scoffed and eye-rolled) but amongst a couple of others, the main reason business ownership has always appealed to be is that it requires the perfect combination of creative and intellectual work; ever since I’ve finished school, I’ve never been able to answer the dreaded, “what do you want to do when you grow up?” (no, I won’t admit 26 is too old to still be asked that) because I could never commit to pursuing either a creative or academic-based career (which probably explains while you’ll see a fashion diploma and a half finished law degree on my resume).
So, while I love posting here about aesthetics, market trends and ‘vibe’ details, I am equally excited to simplify the daily lessons I’ve learned about the nerdy, nitty-gritty backend of running a business! Fear not, I’ll keep it short and simple.
We got our first Wildflower mail today, which was a bit of a ‘yay’ moment .. but also a bit of an annoying reminder that we are total rookies right now! We applied for an ABN as a partnership ’cause that seemed instinctive; you know, there’s two of us, we’re partners and we really liked the idea of officially being ‘in this together’ (insert fist pump here).
But, it turns out that fist pumps and sentiments aside, if Jack is keeping his full-time job (which he is), it’s actually way worse for us to opt for a partnership over being a sole trader (which means … you guessed it, one person!). All the money we earn, gets split 50/50 and because Jack already has an income, it gets added to his gross total which means each year he’ll get taxed a whollllle lot of that 50% that we would otherwise get to pocket.
Also, if we go bankrupt (we’re being cautious here, not just pessimistic .. promise!) and it’s just me in the business, Jack doesn’t go down with me. Okay, that sounds dramatic – but he just won’t be individually liable for my debt and he won’t have to absorb my bankruptcy (phew – our $500 car will be safe!).
There’s a couple of other benefits, but pretty much – it is safer to operate as a sole trader. And while Jack won’t be legally required to support me when I fall, we all know he will have the relational obligation to carry and drag this gal through every challenge of life – bankrupt or not! That’s in the ‘partnership’ structure of life, sucker!
So yep, it’s exciting to get our first mail .. but it will be even more exciting when it’s the real deal – not just our fist-pumping, feel-good partnership ABN!!!