Posts in category: Firm News

Recently, IRS Commissioner Danny Werfel spoke of changes within the IRS, announcing several initiatives focusing on high-income earners and partnerships, as well as integrating the use of AI within the agency’s work. According to the commissioner, the initiatives were made possible by additional IRS funding provided by the Inflation Reduction Act. Without the funding from this bill, the agency would not have the budget to implement these ramp-ups in enforcement.

Millionaires with Tax Debt

The new initiative on millionaires is not just because they are high-earning taxpayers; it will focus on those with open tax debt. Currently, the IRS has identified approximately 1,600 millionaires who are in debt to the IRS for $250,000 or more. The agency plans to designate agents to focus on these high-impact collection cases. A prior campaign resulted in a collection of more than $38 million in tax debt.

High-Income Earners with Foreign Bank Accounts

Another new initiative focusing on high-earning taxpayers includes ramped-up inspection for those who have foreign bank accounts and use them to evade taxes.

By law, every U.S. resident who has a financial interest in or control over a foreign financial account must disclose this information if he or she had $10,000 or more at any point in the year by filing an FBAR.

The IRS conducted an analysis and identified potentially hundreds of taxpayers who should be filing an FBAR and are not, with average balances of more than $1 million. The most egregious cases are planned to be audited in fiscal year 2024.

Partnerships and Corporations

Starting in 2021, the IRS began the initial stages of a new compliance program focusing on complex partnership tax returns. Now, the IRS is set to expand this initiative over more partnerships.

In total, the IRS has plans to open examinations on the 75 biggest U.S. partnerships. “Biggest” means these businesses have on average more than $10 billion in assets; so it’s safe to say small and medium-sized businesses won’t be affected.

Additionally, the IRS will be looking into smaller (but still large) partnerships with more than $10 million in total assets that have balance sheet mismatches. The focus is on partnerships with balance sheet discrepancies where the prior year’s ending balance sheet is not equal to the next year’s opening balance sheet without any explanation. The IRS uses this as a red flag because they have found through full inspections that balance sheet issues are often the proverbial canary in the coal mine for other areas of non-compliance.

Once again, the focus will be on larger partnerships with balance sheet mismatches. The agency plans to send notices to approximately 500 partnerships. Depending on the initial follow-up, an audit may result.

Digital Assets, Including Crypto

The IRS plans to continue its virtual currency compliance campaign, educating taxpayers on the rules, regulations, and reporting obligations surrounding cryptocurrencies. The rules around the taxation of digital assets have evolved in recent years, and more and more taxpayers are invested in these types of assets.

The IRS subpoenaed transaction information from centralized exchanges and found that potentially an estimated 75 percent of taxpayers involved in crypto are non-compliant; some as a form of tax evasion and others simply from ignorance. In any case, the IRS plans to ramp-up digital asset enforcement this coming year.

Artificial Intelligence

Lastly, the IRS is looking to utilize artificial intelligence to help agents do their job more effectively. The IRS is particularly interested in how AI can help flag tax returns for audit in important areas.

The agency plans to invest in the latest analytic solutions that can detect patterns, trends, and activities that are typically linked to tax evasion, thereby freeing up employees to focus on other matters.

Conclusion

Overall, the IRS’s focus is on high-income, tax debt burdened individuals, the largest partnerships, and sizable crypto players. This means that these enforcement campaigns shouldn’t have much of an impact on the average taxpayer. However, the growing use of AI will impact everyone from top to bottom.

With accounting fraud and financial reporting mistakes creating a lack of confidence, understanding how financial reporting mistakes occur and are detected is an important topic. According to the Association for Federal Enterprise Risk Management and the U.S. Securities and Exchange Commission, the first nine months of 2018 saw 8.8 percent more accounting fraud enforcement action cases versus 2017.

Controls are procedures implemented to lower the chance of financial reporting issues. While these mechanisms are meant to prevent an overload of problems, they are not always foolproof. Corporations also are required to show that sufficient financial oversight is in place for financial records and assets by the Sarbanes-Oxley Act of 2002. There are two types of controls: preventive and detective.

As the name implies, preventive controls are devised to avert mistakes before they happen. Methods include on-going training, worker evaluations, and mandating different layers of authorization for transactions.

Detective methods look at the granular accounting steps. Having internal and external audits performed, and comparing real world activity against what’s been budgeted or forecast are two ways to implement this approach. However, performing account reconciliation where the business’ financial data is compared against third-party documentation can provide near real-time insight into what is actually occurring. This includes analyzing checks and cash the business has collected and documented on their books but that may not be reflected on bank statements. Another factor in the reconciliation process are checks the company has sent out that have not been processed by the business’ vendors, etc.

Since detective controls alert companies to errors after the fact, it is important that they are conducted in a timely manner – daily, monthly, quarterly or annually. If there’s a discrepancy between the company’s ending cash balance and the bank’s monthly statement, there might be differing balances. This can be due to the financial institution’s service fees and checks taken into account by the business that aren’t yet reflected on the financial institution’s statement.  However, other cases of discrepancies could point to signs of fraud. 

According to the University of California Los Angeles, there are many ways to split tasks. Doing this is integral to successful mitigation of errors and unauthorized behavior because it deters the likelihood of multiple workers collaborating. Specifically, when it comes to authorizations, reconciliations and responsibility for the assets, it is a high priority for businesses to break tasks up among multiple workers.

Examples include dividing the duties between opening the mail/preparing a list of checks to review and the individual who deposits the checks. The individual who oversees accounts receivables should be separate from the person who creates a list of checks received. It’s not advisable for a sole employee to initiate, approve, and record a transaction. Similarly, reconciling balances, handling assets, and reviewing reports should not be done by a single employee. A minimum of two individuals should be available to handle any transaction.

While the most diligent accounting professional has made a mistake from time to time, learning how to identify financial reporting mistakes can reduce the likelihood of even rare mistakes being unknowingly shared with others.

Lauren joined RBG in 2020, specializing in offering tax compliance services that encompass pass-through entities, corporate and consolidated tax returns, as well as multi-state and individual returns. Her expertise extends to providing thorough tax planning and consulting services to a wide-ranging clientele. The focal point of her work predominantly revolves around real estate, private equity, state taxation, corporations, and closely held businesses.

Lauren was born and raised as a Memphian. She has one older and two younger sisters. Her husband, Cameron, is also from Memphis and is a General Contractor for TruVine Home Improvements. The two met in 2014 and have been married for almost 6 years. Her husband is big into hunting and fishing – go check him out on his YouTube channel @SunnySideUpFishing. The two have a 4-year-old son named Waylon who loves being outside, fishing, and swimming. In addition, the family has two rescue beagle mixes – Levi, 14, and Annabelle, 9. Lauren and her family can often be found traveling to Horseshoe Lake or to her family farm in Sledge, Mississippi.

Fun Questions

If you didn’t have to sleep, what would you do with the extra time?   

After polling my family, the unanimous answer is people think I would clean and organize things with extra time. My answer would be to travel the world with my family. In reality, you’d probably find me cleaning something.

What fictional place would you most like to visit?

This is an easy one…Hogwarts!

What is a new skill that you would like to master?

Going to Disney/Universal annually. Is that a skill? I think so…

What do you wish you knew more about?

How to get my husband to go to Disney/Universal annually.

What’s the farthest you’ve ever been from home? 

Costa Rica – where my husband and I got engaged.

What question would you most like to know the answer to?

Who killed JonBenét Ramsey?

What is the most impressive thing you know how to do? 

Either make homemade pies (chocolate and coconut cream) or Wakeboard/snowboard. Anything active that doesn’t break my body at this point seems impressive to me.

What was the best compliment you’ve ever received?

I don’t know if it is the best, but people compliment my eyes often.   

What accomplishment are you most proud of? 

The most common but true answer – being a mom…and keeping a tiny human alive 😊  

What is your favorite smell? 

Pine-Sol

If you had a clock that would countdown to any one event of your choosing, what event would you want it to countdown to?

 Christmas – 137 days, 14 hours, 10 minutes.

When was the last time you climbed a tree?

I climbed a palm tree in Punta Cana for a picture in 2019. I needed assistance…my tree climbing skills have declined over the years.

What’s the most unusual thing you’ve ever eaten? 

I don’t know what constitutes strange, but I have eaten Jamaican goat, whole octopus, jellyfish, monkfish, Goose, Alligator, turtle soup, escargot, and rabbit.

What was your first job? 

Dexter’s Cleaners

If you could have any superpower, what would it be? 

Probably time travel

Are you involved in a hobby that you not only enjoy but that produces income? If so, you may have wondered whether the income is taxable, how the tax law treats hobby-related expenses, and if a net loss is tax deductible. Also to consider is if there’s a net profit, has your hobby now become a business?

Most individuals don’t get involved in a hobby intending to make money from it. But if they do, the tax law says that the hobby income must be reported on their tax return. The IRS has depended on the honesty of hobbyists to include the income on their income tax returns. However, it was relatively easy for individuals to avoid including miscellaneous income from hobbies when their only sources of sales of their products were word-of-mouth sales, flea market sales and such – generally cash transactions with no paper trail.

Nowadays, many individuals sell the merchandise they make as a hobby through online e-commerce sites such as Etsy, eBay, Amazon and others. Congress decided that to rein in unreported income, these sites and third-party payers such as credit and debit card issuers, PayPal, and similar companies should report to the IRS the income received by the selling individuals each year. After a delay in implementation of the new rules, IRS has said that starting with tax year 2023, Form 1099-K is to be used to report sales of $600 or more, regardless of the number of transactions. Hobbyists will need to be sure the income shown on the 1099-K is included on Schedule 1 of Form 1040, or otherwise explain why the income isn’t taxable.

Expenses related to a hobby are considered personal expenses, which aren’t tax deductible. (Prior to changes included in the Tax Cuts and Jobs Act of 2017, hobbyists were able to deduct expenses up to the amount of their hobby income as a miscellaneous itemized deduction on Schedule A, but this deduction isn’t allowed through 2025.) Thus, hobby income is reported on Schedule 1 of the hobbyist’s 1040 and no expenses are deductible.

Some hobbyists try to get a tax deduction for their hobby expenses by treating their hobby as a trade or a business. By disguising hobbies as a trade or business, and if the hobby expenses exceed the hobby income, they think they can report a deductible business loss. But the tax code includes rules that do not permit losses for not-for-profit activities such as hobbies.

So, what distinguishes a business from a hobby? The IRS considers a number of factors when making the judgment. No single factor is decisive, but all must be considered together in determining whether an activity is for profit. These factors are: 

(1) Is the activity carried out in a businesslike manner? Maintaining complete and accurate records for the activity is a definite plus for a taxpayer, as is a business plan that formally lays out the taxpayer’s goals and describes how the taxpayer realistically expects to meet those expectations.

(2) How much time and effort does the taxpayer spend on the activity? The IRS looks favorably at substantial amounts of time spent on the activity, especially if the activity has no great recreational aspects. Full-time work in another activity is not always a detriment if a taxpayer can show that the activity is regular; time spent by a qualified person hired by the taxpayer can also count in the taxpayer’s favor.

(3) Does the taxpayer depend on the activity as a source of income? This test is easiest to meet when a taxpayer has little income or capital from other sources (i.e., the taxpayer could not afford to have this operation fail).

(4) Are losses from the activity the result of sources beyond the taxpayer’s control? Losses from unforeseen circumstances like drought, disease, and fire are legitimate reasons for not making a profit. The extent of the losses during the start-up phase of a business also needs to be looked at in the context of the kind of activity involved.

(5) Has the taxpayer changed business methods in an attempt to improve profitability? The taxpayer’s efforts to turn the activity into a profit-making venture should be documented.

(6) What is the taxpayer’s expertise in the field? Extensive study of this field’s accepted business, economic, and scientific practices by the taxpayer before entering into the activity is a good sign that profit intent exists.

(7) What success has the taxpayer had in similar operations? Documentation on how the taxpayer turned a similar operation into a profit-making venture in the past is helpful.

(8) What is the possibility of profit? Even though losses might be shown for several years, the taxpayer should try to show that there is realistic hope of a good profit.

(9) Will there be a possibility of profit from asset appreciation? Although profit may not be derived from an activity’s current operations, asset appreciation could mean that the activity will realize a large profit when the assets are disposed of in the future. However, the appreciation argument may mean nothing without the taxpayer’s positive action to make the activity profitable in the present. 

Because making a determination using these factors is so subjective, the IRS regulations provide that the taxpayer has a presumption of profit motive if an activity shows a profit for any three or more years during a period of five consecutive years. However, if the activity involves breeding, training, showing or racing horses, then the period is two out of seven consecutive years.

Making the proper determination is important because of the differences in tax treatment for hobbies versus trades or businesses. If an activity is determined to be a trade or business in which the owner materially participates, then the owner can deduct a loss on his or her tax return, and it is not uncommon for a business to show a loss in the startup years.

Those with a profit who are truly operating a trade or business will usually be eligible for the Qualified Business Income (QBI) deduction (through 2025), which is generally 20% of the net profit of the business and is deductible in addition to the expenses claimed when figuring the net profit. This deduction, which is allowed without having to itemize deductions, is not permitted if the income is from a hobby.

Another concern for hobbyists who are reporting income from their hobby on their 1040 is whether that income is subject to self-employment (SE) tax. The SE tax is the Social Security and Medicare tax paid by those with a trade or business operated as a sole proprietor. Partners in some types of partnerships also pay SE tax. Luckily, there is an exception for sporadic or one-shot deals and hobbies, which are not subject to self-employment tax.

If you have tax questions related to your hobby activity and how the not-for-profit rules may apply, please give this office a call.

Summer is upon us, which signals the need for seasonal employees to fill in for workers who are on vacation during the busy months ahead and even for some gearing up for the upcoming hectic holiday season. However, given the current labor shortage, many businesses are facing a tight jobs market. So, it may be time to become creative.

One solution might be hiring family members. Financially, it makes more sense to keep the family employed rather than hiring strangers, provided, of course, that the family member is suitable for the job.

You might even consider hiring your children to work in your business. Rather than helping to support your children with your after-tax dollars, you can instead hire them in your business and pay them with tax-deductible dollars. Of course, the employment must be legitimate and the pay commensurate with the hours and the job worked. Click here for information related to hiring your children in your business and the associated tax breaks.

Another solution might be hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment. Doing so may allow you to benefit from the Work Opportunity Tax Credit (WOTC).

The Work Opportunity Tax Credit (WOTC) is a general business tax credit that is jointly administered by the Internal Revenue Service (IRS) and the Department of Labor (DOL). The WOTC is available for wages paid to certain individuals who begin work on or before December 31, 2025.

The WOTC may be claimed by any employer that hires and pays or incurs wages to certain individuals who are certified by a designated local agency (sometimes referred to as a state workforce agency) as being a member of one of 10 targeted groups.

In general, the WOTC is equal to 40% of up to $6,000 of wages paid to, or incurred on behalf of, an individual who:

• Is in their first year of employment with the business;
• Is certified as being a member of a targeted group; and
• Performs at least 400 hours of services for that employer.

However, an employer cannot claim the WOTC for employees who are rehired.

Maximum Credit – Thus, the maximum tax credit is generally $2,400. A 25% rate applies to wages for individuals who perform fewer than 400 but at least 120 hours of service for the employer. Up to $24,000 in wages may be considered in determining the WOTC for certain qualified veterans.

Who Can Claim the Credit – Employers of all sizes are eligible to claim the WOTC. This includes both taxable and certain tax-exempt employers located in the United States and in certain U.S. territories. Taxable employers claim the WOTC against income taxes, and in general, may carry the current year’s unused WOTC back one year and then forward 20 years. “Carrying back” the credit means that the tax return filed for the prior year will need to be amended to claim the credit on that return. The procedure is different for eligible tax-exempt employers; please contact this office for details.

Qualified Employees – An employer may claim the WOTC for an individual who is certified as a member of any of the following targeted groups:

• Qualified IV-A Recipient (relates to Temporary Assistance for Needy Families (TANF))
• Qualified Veteran
• Qualified Ex-Felon
• Qualified Designated Community Resident (DCR)
• Qualified Vocational Rehabilitation Referral
• Qualified Summer Youth Employee
• Qualified Supplemental Nutrition Assistance Program (SNAP) Recipient
• Qualified Supplemental Security Income (SSI) Recipient
• Qualified Long-Term Family Assistance Recipient
• Qualified Long-Term Unemployment Recipient 

Pre-screening and Certification – An employer must obtain certification that an individual is a member of the targeted group before the employer may claim the credit. An eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their respective state workforce agency within 28 days after the eligible worker begins work. Employers should contact their individual state workforce agency with any specific processing questions for Forms 8850. The instructions to Form 8850 provide details about the targeted groups.

Please contact this office for additional information and assistance to determine if hiring family members or hiring individuals who qualify for the WOTC is appropriate for your business.

Taxpayers are frequently blindsided when their filing status changes because of a life event such as marriage, divorce, separation or the death of a spouse. These occasions can be stressful or ecstatic times, and the last thing most people will be thinking about are the tax ramifications. But the ramifications are real and need to be considered to avoid unpleasant surprises. The following are some of the major tax complications for each situation.

Separated – Separating from a spouse is probably the most complicated life event and is certainly stressful for the family involved. For taxes, a separated couple can file jointly because they are still married or file separately.

• Filing Status – If the couple has lived apart from each other for the last 6 months of the year, either or both of them can file as head of household (HH) provided that the spouse(s) claiming HH status paid over half the cost of maintaining a household for a dependent child, stepchild or foster child. A spouse not qualifying for HH status must file as a married person filing separately if the couple chooses not to file a joint return. The married filing separately status is subject to a host of restrictions to keep married couples from filing separately to take unintended advantage of the tax laws.
  
  In most cases, a joint return results in less tax than two returns filed as married separately. However, when married taxpayers file joint returns, both spouses are responsible for the tax on that return (referred to as joint and several liability). What this means is that one spouse may be held liable for all of the tax due on a return, even if the other spouse earned all of the income on that return. This holds true even if the couple later divorces, so when deciding whether to file a joint return or separate returns, taxpayers who are separated and possibly on the path to a divorce should consider the risk of potential future tax liability on any joint returns they file.
• Children – Who claims the children can be a contentious issue between separated spouses. If they cannot agree, the one with custody for the greater part of the year is entitled to claim the child as a dependent along with all of the associated tax benefits. When determining who had custody for the greater part of the year, the IRS goes by the number of nights the child spent at each parent’s home and ignores the actual hours spent there in a day.
• Alimony – Alimony is the term for payments made by one spouse to the other spouse for the support of the latter spouse. Under tax law prior to tax reform, the recipient of the alimony includes it as income, and the payer deducts it as an above-the-line expense on their respective separate returns. The tax reform rule is that alimony is non-taxable to the recipient if it is received from divorce agreements entered into after December 31, 2018, or pre-existing agreements that are modified after that date to treat alimony as non-taxable. Therefore, post-2018 agreement alimony cannot be treated by the recipient as earned income for purposes of an IRA contribution and can’t be deducted by the payer.
  
  A payment for the support of children is not alimony. To be treated as alimony by separated spouses, the payments must be designated and required in a written separation agreement. Voluntary payments do not count as alimony.
• Community Property – Nine U.S. states – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin – are community property states. Generally, community income must be split 50–50 between spouses according to their resident state’s community property law. This often complicates the allocation of income between spouses, and they generally cannot file based on just their own income.

Divorced – Once a couple is legally divorced, tax issues become clearer because each former spouse will file based upon their own income and the terms of the divorce decree related to spousal support, custody of children and division of property.

• Filing Status – An individual’s marital status as of the last day of the year is used to determine the filing status for that year. So, if a couple is divorced during the year, they can no longer file together on a joint return for that year or future years. They must, unless remarried, either file as single or head of household (HH). To file as HH, an unmarried individual must have paid over half the cost of maintaining a household for a dependent child or dependent relative who also lived in the home for more than half the year (exception: a dependent parent need not live in their child’s home for the child to qualify for HH status). If both ex-spouses meet the requirements, then both can file as head of household.
• Children – Normally, the divorce agreement will specify which parent is the custodial parent. Tax law specifies that the custodial parent is the one entitled to claim the child’s dependency and associated tax benefits unless the custodial parent releases the dependency to the other parent in writing. The IRS provides Form 8332 for this purpose. The release can be made for one year or multiple years and can be revoked, with the revocation becoming effective in the tax year after the year the revocation is made.
  
  Family courts often award joint custody to the parents. In that case, if the parents cannot agree on which of them will claim a child as a tax dependent, then the IRS’s tie-breaker rule will apply. This rule specifies that the one with custody for the greater part of the year, measured by the number of nights spent in each parent’s home, is entitled to claim the child as a dependent. The parent claiming the dependency is also eligible to take advantage of other tax benefits, such as childcare and higher education tuition credits.
  
  Alimony – See alimony under “separated”.

Recently Married – When a couple marries, their incomes and deductions are combined, and they must file as married individuals.

• Filing Status – If a couple is married on the last day of the year, they can either file a joint return combining their incomes, deductions and credits or file as married separately. Generally, filing jointly will provide the best overall tax outcome. But there may be extenuating circumstances requiring them to file as married separately. As mentioned earlier, married filing separately status is riddled with restrictions to keep married couples from taking undue advantage of the tax laws by filing separate returns. Best look before you leap.
• Combining Income – The tax laws include numerous provisions to restrict or limit tax benefits to higher-income taxpayers. The couple’s combined incomes may well be enough that they’ll encounter some of the higher income restrictions, with unpleasant tax results.
• Affordable Care Act – If one or both spouses acquired their health insurance through a government marketplace and were receiving a premium supplement, their combined incomes may exceed the eligibility level to qualify for the supplement, which may have to be repaid.

Widowed – When one spouse of a married couple passes away, a joint return is still allowed for the year of the spouse’s death. Furthermore, the widow or widower continues to use the joint tax rates for up to two additional years, provided the surviving spouse hasn’t remarried and has a dependent child living at home. This provides some relief for the survivor, who would otherwise be straddled with an unexpected tax increase while also facing the potential loss of some income, such as the deceased spouse’s pension and Social Security benefits.

If any of these situations are relevant to you or a family member, please call for additional details that may also apply with respect to your specific set of circumstances.

Ask any experienced entrepreneur and they will tell you that the difference between running a business and running a successful business is massive. To truly give yourself the best chance of success, and to help achieve your overall goals in the most effective ways possible, there are a number of key best practices you’ll want to keep in mind along the way.

The Importance of a Well-Laid Plan

By far, the number one best practice that all successful entrepreneurs lean into has to do with developing not just a business idea but a thorough, actionable business plan.

Anybody can come up with a business idea – countless people do it on a daily basis. Let’s say you have an idea for a great new product and there’s nothing really like it in the marketplace right now. Great – what next?

How are you going to procure the materials needed to bring that product to life? What design challenges are you going to need to overcome? How big is your market, who are your current competitors, and what does your ideal potential customer look like? These are all the types of questions that you need to answer before you even think about saying that you “run a business.”

In five years, if your goal is to open a brick-and-mortar retail location, how do you connect where you want to be with where you currently are? How many employees will you need to make that happen? Where will your initial capital investment come from? Forget five years from now – what does the next fiscal quarter look like?

An actionable business plan breaks the entire process down into a series of smaller, more manageable steps and helps you accomplish your goals more organically.

Listen to Your Customers Another key thing that early-stage entrepreneurs need to understand, in particular, has to do with the idea that you should always listen to your customers and your marketplace whenever possible.

If you’re trying to bring a great new product or service into the world, at a certain point, the genesis of that idea is out of your hands. It could be an objectively great product, but if the market isn’t there, it isn’t going to be a success. But if the market is telling you in unison that “this would be better if you changed X, Y, or Z elements” or that they would buy it if “it had A, B, or C features,” it is absolutely in your best interest to at least take that all into consideration.

Even though you’re an entrepreneur, you are not the ultimate authority on what your business does and how it does it. Your customers have opinions that they are more than willing to share. Being willing to listen to them is often what propels successful entrepreneurs ahead of the pack.

You Are Not the Smartest Person in the Room… Or at Least, You Shouldn’t Be

Finally, know that just because you’re a passionate start-up entrepreneur doesn’t mean you’ll be able to “go it alone” forever. Yes, your “can-do attitude” has already gotten you far. There will come a time when you need to give that up and surround yourself with others.

When that time comes, resist the urge to hire people who will simply tell you what you want to hear. In your effort to become a “Jack of All Trades,” there will be certain skills that you need that you don’t personally have. Surround yourself with smart individuals – preferably those who are smarter than you are – who have those skills.

Likewise, always be proactive about seeking out advice. Participate in networking events and other opportunities to speak to entrepreneurs who have been where you are now. The type of advice they have to offer can be invaluable to understanding what it will take to sustain your vision for the long haul.

Overall, one of the most important things to understand about being an entrepreneur is that everybody’s journey is different. There is no “one size fits all” approach to starting a successful business and what works incredibly well for one person may be woefully inadequate for the next.

That is to say, the advice in this list is intended to be exactly that – advice. Find the best practices that generate the results you’re after and lean into them as much as possible. When you encounter a technique that doesn’t work, move on to the next. Part of being an entrepreneur involves a willingness to try just about anything if it can help them get closer to that goal.