SMALL BUSINESS & ENTREPRENEURSHIP FINANCE

Business ownership creates both wealth-building opportunities and financial complexities. These topics
cover the financial aspects of starting and running a business.

TOPIC 155
Business Entity Selection: LLC, S-Corp, C-Corp, and More
Selecting the proper business entity is one of the most consequential decisions an entrepreneur makes, affecting
taxes, liability, and long-term growth. This topic guides business owners through each structure’s legal and tax
implications so they can align their choice with their goals.

Sole proprietorship pros and cons
LLC formation, flexibility, and pass-through taxation
S-Corporation election and payroll requirements
C-Corporation structure and double taxation
Partnership structures (general and limited)
Choosing the right entity based on income level
State-specific filing requirements and fees
Converting entity types as the business grows

TOPIC 156
Business Tax Planning and Deduction Strategies
Proactive tax planning can dramatically reduce a small business owner’s tax burden while keeping them fully
compliant with IRS rules. This topic covers the key deductions, credits, and strategies every entrepreneur and CPA
should understand.

Section 199A qualified business income deduction
Business meal and entertainment deductions post-TCJA
Home office deduction rules and calculations
Vehicle and mileage deductions for businesses
Depreciation and Section 179 expensing
Estimated quarterly tax payments
Year-end tax planning strategies
State and local business tax obligations

TOPIC 157
Payroll Taxes and Employer Obligations
Payroll tax compliance is a critical and often misunderstood obligation for small business owners, with significant
penalties for noncompliance. This topic demystifies employer payroll responsibilities from withholding to filing and
depositing taxes on time.

Federal income tax withholding requirements
FICA taxes: Social Security and Medicare
FUTA and SUTA unemployment taxes
Payroll tax deposit schedules and deadlines
Form 941 quarterly payroll tax returns
W-2 and W-3 year-end filing requirements
Payroll tax penalties and how to avoid them
Outsourcing payroll vs. in-house processing

TOPIC 158
Accounting Systems: QuickBooks and Beyond
A well-implemented accounting system is the financial backbone of any successful small business, enabling
accurate reporting and informed decision-making. This topic covers the setup, maintenance, and use of popular
accounting software tools for entrepreneurs.

Cash vs. accrual accounting methods
Setting up a chart of accounts
QuickBooks Online vs. QuickBooks Desktop
Invoicing, accounts receivable, and collections
Accounts payable and expense tracking
Bank reconciliation best practices
Generating financial reports (P&L, balance sheet)
Alternative platforms: Xero, FreshBooks, Wave

TOPIC 159
Cash Flow Management for Small Businesses
Cash flow — not profit — is the lifeblood of a small business, and even profitable companies can fail from poor cash
management. This topic teaches entrepreneurs to forecast, monitor, and optimize cash flow to sustain and grow
their operations.

Understanding the cash flow cycle
Building a cash flow forecast
Managing accounts receivable to accelerate collections
Negotiating accounts payable terms with vendors
Identifying and plugging cash flow leaks
Building a business cash reserve
Lines of credit as a cash flow buffer
Seasonal cash flow planning strategies

TOPIC 160
Business Credit: Building and Leveraging It
Strong business credit unlocks favorable financing terms and protects a business owner’s personal credit profile.
This topic walks entrepreneurs through the steps to establish, build, and strategically use business credit.

Separating personal and business credit
Establishing a business credit profile (DUNS, EIN)
Business credit reporting agencies (Dun & Bradstreet, Experian, Equifax)
Secured business credit cards as a starting point
Net-30 vendor accounts to build trade credit
Business credit scores and how they are calculated
Leveraging business credit for financing
Avoiding common business credit mistakes

TOPIC 161
SBA Loans and Small Business Financing
Access to capital is one of the greatest challenges for small business owners, and understanding available
financing options is essential to growth. This topic covers SBA loan programs and a broad range of alternative
funding sources available to entrepreneurs.

Overview of SBA loan programs (7(a), 504, microloans)
Eligibility requirements for SBA loans
The SBA loan application process
Traditional bank loans vs. SBA-backed loans
CDFI and community development lending
Equipment financing and leasing
Invoice factoring and merchant cash advances
Crowdfunding and alternative lending platforms

TOPIC 162
Business Insurance Essentials
Adequate business insurance protects entrepreneurs from catastrophic financial losses that could destroy years of
hard work. This topic outlines the essential insurance coverages every small business should consider and how to
evaluate policies cost-effectively.

General liability insurance
Professional liability (E&O) insurance
Business owner’s policy (BOP)
Workers’ compensation insurance requirements
Commercial property and equipment coverage
Cyber liability insurance for small businesses
Key person life insurance
Business interruption insurance

TOPIC 163
Buy-Sell Agreements: Protecting Business Partnerships
A buy-sell agreement is a legally binding exit plan for business partners that prevents ownership disputes and
ensures business continuity during major life events. This topic equips business owners and their advisors to
structure and fund these critical agreements properly.

What is a buy-sell agreement and why it matters
Triggering events: death, disability, divorce, retirement
Cross-purchase vs. entity redemption agreements
Funding buy-sell agreements with life insurance
Disability buyout insurance
Valuation methods in buy-sell agreements
Deadlock and dispute resolution provisions
Reviewing and updating buy-sell agreements

TOPIC 164
Business Succession Planning
Business succession planning ensures a company survives and thrives beyond its founder, protecting jobs, legacy,
and family wealth. This topic guides owners through the strategic, legal, and emotional dimensions of passing a
business to the next generation or a new owner.

Why succession planning is often neglected
Identifying and grooming a successor
Family business succession challenges
Management buyouts and employee stock ownership plans (ESOPs)
Third-party sale preparation
Tax planning for business transfers
Transition timeline and ownership transfer mechanics
Succession planning in ministry and faith-based businesses

TOPIC 165
Business Valuation Methods and Principles
Understanding what a business is worth is essential for owners planning a sale, estate transfer, divorce settlement,
or litigation. This topic explains the primary valuation methodologies and how they apply in different contexts.

Why business valuation matters (sale, estate, divorce, litigation)
Income-based approaches (capitalization of earnings, DCF)
Market-based approaches (comparable transactions)
Asset-based approaches (book value, liquidation value)
Goodwill and intangible asset valuation
Discounts for lack of control and marketability
Who performs a business valuation
Using valuation to improve business value over time

TOPIC 166
Independent Contractor vs. Employee Classification
Misclassifying employees as independent contractors is one of the most common and costly mistakes small
business owners make, triggering back taxes, penalties, and legal liability. This topic provides clarity on the rules
governing worker classification and the steps to stay compliant.

IRS common law rules for worker classification
Behavioral, financial, and type-of-relationship tests
The DOL’s economic reality test
State-specific classification rules (e.g., California AB5)
Form 1099-NEC vs. W-2 reporting
Penalties for worker misclassification
Voluntary Classification Settlement Program (VCSP)
Best practices for managing contractors compliantly

TOPIC 167
Startup Funding: From Idea to Capital
Securing startup funding requires entrepreneurs to understand the full landscape of options — from personal
savings to institutional investors — and choose sources aligned with their vision and values. This topic provides a
comprehensive overview of startup capital strategies and how to pursue them.

Bootstrapping and personal savings as startup capital
Friends and family funding considerations
Angel investors and how to approach them
Venture capital: stages, terms, and equity implications
Startup business grants (government and private)
Accelerators and incubators
Pitch deck essentials and investor expectations
Faith-based and minority entrepreneur funding resources

TOPIC 168
Business Retirement Plans for Entrepreneurs
Business owners have access to powerful retirement savings vehicles that far exceed what employees can
contribute through workplace plans. This topic explores the various business retirement plan options and how to
select and maximize the right plan for each situation.

SEP-IRA: contribution limits and eligibility
SIMPLE IRA: employer matching and employee participation
Solo 401(k): maximizing contributions as a sole proprietor
Defined benefit plans for high-income business owners
Profit-sharing plan structures
Comparing plans by contribution limits and complexity
Administrative requirements and plan documents
Retirement plan tax deductions for employers

TOPIC 169
Ministry as a Business: Financial Management for Faith-Based Enterprises
Many ministry leaders operate businesses alongside or within their faith organizations, creating unique tax, legal,
and ethical considerations. This topic helps pastor-entrepreneurs and ministry leaders manage faith-based
enterprises with financial integrity and compliance.