Paul Contris discusses key considerations for business owners when choosing an entity structure such as sole proprietorship, LLC, or corporation. He recommends consulting with a CPA or attorney and notes an LLC provides liability protections like a corporation but avoids double taxation. Paul also emphasizes the importance of an entrepreneur having a determined mindset to persevere through challenges and not give up too early in the face of setbacks. He advises entrepreneurs to regularly evaluate their priorities and focus on completing critical tasks to achieve their goals.

1. Katherine: Hello,we have Paul Contrisof WelcovHealthcare joiningusagainthismonth.He'sbeen
so graciousto allowme to askhimsome businessquestions.Manyof you have had
some reallygreatquestions,sowe're goingtogetintothose,butI want to welcome
Paul back to ThisNeedstobe Said.Welcome back,Paul,how are you?
Paul: I'm good,thankyou Katherine,nice totalktoyouagain.
Katherine: All right.Actually,Iknow Isentyou overa listof questions.Iwantto start withthe last
one first.Whena businessownerdecidestocategorize theirbusinessassole proprietor,
or LLC, or evenINC,whatis somethingyouthinkthattheyshouldtake into
considerationtochoose the categorythat'srightfor them?
Paul: Well,Iguess,the firstthingI wouldsayisthat theyshouldconsultwiththeirCPA or
attorney,or whoevertheiradvisoris.Iusedtobe a CPA,I'm not an attorney,andthisis
not reallymyareaof expertise,butIprobablyknow more aboutitthan the average
person.My companyisset upas an LLC, limitedliabilitycompany.Yougetcertain
protectionsif yousetupa companyas eitheraCorporationor an LLC that you don't
reallyhave if you're a sole proprietor.Ithasto do withlegal liabilityprotections.That's
probablyone of the primarythingsthat youget isif somebodywantstosue youfor
something,they're suingthe company,the entity,notyoupersonally.
I reallythinkmostnewbusinessesare beingsetupas LLCs as opposedtoCorporations,
C CorporationsorevenS Corporations,because yougetthe same protectionsasfaras
legal liabilityasyoudowitha C Corp, withan LLC, butyou don'thave the,one of the big
disadvantagesof the CCorp isthe double taxation.You're taxedatthe Corporate level,
your Corporate earningsare taxed,andthenany income thatyou getfromthat
Corporation,whetherinthe formof salariesor dividends,isthentaxedatyourpersonal
rate.
A C Corp can make sense for;it'stypicallylike largercompanies,obviously,publiclyheld
companies.If youhave a boardof directorsand all that, C Corpscan definitelymake
sense.Forsmall businessowners,Ithinkthe mostcommonentitythattheyformnowis
the LLC, because youget the same protectionsasyoudo ina C Corp,but it'slike a pass
throughas far as the taxesgo, and it'sveryflexible withtaxes,sothere'snotax onthe
earningsof the LLC itself.Those earningsdofloatthroughdirectlytoyouas an
individual, andthenyou're taxedonthose earningsatyourindividual rate getting
double taxed.
Katherine: Okay,I see that.Hey,Paul,isthere a mindseta personhasto have inorder to be
successful asan entrepreneur?
Paul: Yes,I thinkyoureallyhave tohave a verydeterminedmindset.Ithinkthat'sthe key.
We've talkedaboutthisinpast interviews,Ibelieve,thatyouhave tobe preparedfor
setbacks.It'skindof a rollercoasterride.Youcan be upfor a while,andthenthere'sa
majorproblem,andyouget kindof knockeddown.Youneedtokindof acceptthat as
kindof the nature of beinginbusinesswithyourself.Thathappensobviouslywhen

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you're workingfora company,and you're not inbusinessforyourself,youcanhave
goodtimesand badtimes.
I've beeninbothsituations,andIguessthe difference withbeinginbusinessfor
yourself,whenyou're workingforsomebodyelse,youcanalwaysthinkwell,worstcase
scenario,Iquitor I get firedandI go getanotherjob.Withyour ownbusiness, it
dependsonwhatyouhave intoit.If youhave a lotof moneyinvestedintoit,if youhave
personal guarantees,itjustseemslike there'salotmore at stake.I thinkthe stresslevel
ishigherwhenitlookslike thingsmightgosouth.Itseemslike youhave alotmore risk.
Then,on the otherhand,the rewardsare a lot higher,too.It'sthe oldrisk rewardthing,
youknow?I reallythinkyouhave tohave that mindsetthatyou're goingto be
committedtoyourventure throughthe highsandthe lows.You've gotto be persistent,
and notgive up.That's kindof the key.You've got to justkeeppoundingaway,and
ultimately,Ithinkyou'll be happyyoudid.
Katherine: All right.I have to agree withyou,definitelybe preparedtogetknockeddown.What's
one thingyoubelieve everyentrepreneurshoulddoeachday?
Paul: Well,Iguesstry to keeplookingatthe bigpicture,inthe sense thatitcan be sometimes
easyto getkindof - theysaynot see the horse inthe trees.You getkindof lostin the
details,getlostinthe weeds.If you're notkindof continuallylookingat,evaluating,and
reassessingwhereyou're ultimatelytryingtogo,andtryingto relate thatback to okay,
whatam I doingtoday?Are youspinningyourwheels,are youspendingtoomuchtime
on somethingthatmaybe,maybe if you're doingsomethingthatyou're comfortable
doing,andit's somethingyoucangetdone and youknow it,but really,there's
somethingelseyoushouldbe doingthat'swaymore important,butit'ssomethingthat's
uncomfortable,like maybeit'shavingaconversationwithavendor,ora bank or
somebody.
You knowyouneedto getit done,butyoukeepputtingitoff anddoingotherthings
that are inyour comfortzone.Iguesskindof continuallylookingatwhatare the most
importantthingsIneedto getdone,andam I reallydealingwiththattoday?AmI doing
somethingthatgetsme closerto where Ineedtobe as opposedtojustkindof spinning
my wheelsdoingsomethingthat'seasytodo.That wouldbe one thingIwouldsayto
kindof keeponthe topof yourmindeach day.
Katherine: Okay.My lastquestionforyoutoday,Paul,iswhatare commonmistakesyousee new
businessownersmake?
Paul: Right.I thinkI'll justkindof revertback to the lasttwo questions.What'sthe mindsetfor
an entrepreneur?Ithinkthat,perseverance,notgivinguptooquickly,andIthinkthat's
one of the commonmistakesthatI've heardaboutand seen,youknow,talkingto
people thattheygettheirfirstdisappointmentorsetback,andtheygetfrustratedand
say,oh thisis notfor me.I thinkthat's one of the most commonmistakesisjustgiving
up tooearlyand not beingdeterminedenoughtogetitdone.
The other thingtoo,ispeople whoaren'table toreallykindof see the bigpicture,and

3. Paul Contris July 2016 Business1 Page 3 of 3
see whatare the stepsI have to do to getto where Iwant to be,andprioritizingthe real
critical steps,andreallyfocusingongettingthose thingsdone.The commonmistake is
somebodywhoisn'table toprioritize,andspendstoomuchtime onstuff thatdoesn't
reallygetthemto where theyneedtobe,whetherthatit'smore comfortable forthem,
or theyjustdon't realize itorwhatever.Ithinkthat'sanothercommonmistake people
mightmake.
Katherine: Yeah,and I'd like toadd to that,I've seenpeople say,youknow,thiswasa doorthat
was openedforthem,orthisis what they're supposedtodo.Theywill see asign,and
the path will be clearkindof thing.That's notnecessarilythe case,it'snotthat you
made the right choice,andthere isnothingthat'sgoingto hinderyoufromgoingthat
way.There are temptationsanddistractions,andthingsthatwill pullyou,bright,shiny
objectskindof things,youwantto try somethingnew everyotherday.
You wantto have a grandopening.Ilike the feelingof agrand openingbecause people
are rushingthroughyourdoors to see whatyou have new.Twoweekslater,they're not
doingthat,so nowyou wantto close downand have anothergrandopening.Iactually
had a peerwhowoulddothat. Theywouldcuttheirradioshow off after a periodof
time,andthenthey'dcome back, andthey'dsay, "Oh,no,I'm doingsomethingnew,"
and thenthey'll have abunchof attention,andthentheywon'tagain.Iwas like you
have to stopthat.
Paul: That is funny.
Katherine: Yeah,thishas beenreallygood.Forthose whoare in business,we've hadsome
encouragingwordsfromPaul Contris,aswell asthose that are new inbusiness,for
more encouragingwords,juststaythe course,be patient,andsometimes,there'sgoing
to be some highpoints,andsometimesthere'sgoingtobe some reallylow points.If
you're passionate aboutit,there'ssome workinittoo. Don'tthinkthat justbecause
you're passionate aboutit,there'snoworkinvolved.Paul,Iwantto saythank youonce
againfor comingon ThisNeedstobe Said,and sharing withusyour wordsof wisdom.
Tell people howtogetintouch withyououtside of ThisNeedstobe Said.
Paul: Our website iswww.welcov.com.ThankyouKatherine,it'salwaysapleasure.
Katherine: Awesome.Until nexttime,have agoodday.
Paul: You too,bye.