Knowing Your Micro-Identity
In October 2020, the Office of Advocacy for the U.S. Small Business Administration released a document stating this:
"There are 31.7 million small businesses in the U.S…81 percent, or 25.7 million, have no employees (termed non-employers)."
This astonishing reality has led to the definition of a new term for identifying business owners:
Meet the SOLOPRENEUR.
Solopreneurs have micro-identities, and they are the tiniest form of business in regards to structure.
Solopreneurs come in various forms. For example, freelancers, independent contractors, side-hustlers, artist entrepreneurs, bloggers, mompreneurs, and womenpreneurs could all be solopreneurs if operating a business alone.
If you have ever felt alone in your entrepreneurial journey, this might encourage you that you are a part of 25.7 million others forging this “solopreneurial” journey! YAY You!!
You should never feel ashamed or embarrassed to define yourself as a solopreneur because 81% of small businesses don’t have employees either.
Being a solopreneur doesn’t mean you have to fly solo.
Solopreneurs often hire other solopreneurs (independent contractors) to help them complete any services needed to operate their business.
Hiring independent contractors (1099 or W9 status), helps contribute to 81 percent of small businesses having no employees.
The important thing to note, however, is that solopreneurs don't specifically hire employees (W2 or W4 status).
Here's another significant realization.
Small businesses have sub-categories: sole proprietors (a.k.a. solopreneurs) and micro-businesses.
Sole proprietors have no employees.
It's common for sole proprietors to incorporate as single-member LLCs or sole proprietorship LLCs.
Micro-businesses have 1-9 employees (according to the U.S. Small Business Administration.)
Anything over nine employees is considered a small business. Additionally, small businesses are categorized by making $250,000+ per year, whereas micro businesses make -$250,000 per year.
Solopreneurs can simultaneously be micro business owners.
Meet the MICRO BUSINESS OWNER.
Just because you are the one and only employee in your business doesn't mean you can't run a micro-business!
Solopreneurs often run micro-businesses. However, this isn’t a default status.
Your business’s final identity all depends on the intention of its design, its operating agreement, and the legalities behind the incorporation status you choose for your business.
Because the statutes regarding business identity vary from state to state:
It's always best to confirm your business identity with your local governance FIRST.
Please do not engage in business activity before receiving professional law advice. So many dancepreneurs do this and it only end ups in hardship. (If you don’t know me yet, I am not a lawyer.)
Once you figure out which micro-identity best suits you, own it!
Learn how to capitalize on it and how to embrace it.
Continue…
