logo
episode-header-image
Apr 2025
41m 13s

The Legal + Financial Stuff No One Warns...

MakingChips LLC
About this episode

Most people who dream of launching a manufacturing business obsess over machines, processes, and parts. But here’s the thing: that dream can die before a single spindle turns—if you miss a few less-glamorous (but absolutely critical) steps on the front end. Legal structure? Tax setup? Insurance? Naming your shop? These early decisions carry more weight than most first-timers realize.

In this episode of MakingChips, we pick up where part one left off and get granular with the real-life process of starting your shop the right way. Guests Brad Boettcher and Nick Vargosko of CLA return to walk us through the practical decisions you’ll face—how to choose (and register) your business entity, why the wrong name could haunt you, what documents you actually need before making parts, and how to build a business that’s ready for growth, not just survival.

If you’ve ever thought “I’ll figure that stuff out later,” you’ll want to hear the cautionary tales in this episode—plus the steps that will keep you out of trouble, off your state’s audit list, and firmly in control of your own success. We also unpack how to structure ownership if you’ve got a business partner (especially if it’s family), and why your garage may not cut it forever, even if you love the rent.

This one’s for the aspiring owners, the side hustlers-turned-founders, and anyone helping someone else start a shop from scratch. Whether you’re building your dream or advising someone else on theirs, it’s time to get real about what it takes to launch smart—and stay that way.

Segments

  • (0:10) Intro to Part 2 with CLA and why they had to split the conversation
  • (0:48) Take The Modern Machine Shop Top Shops Survey
  • (02:22) Recap of Part 1: entity types, startup missteps, and choosing the wrong structure
  • (4:21) Choose a business name that doesn’t pigeonhole you (so you don’t have to rebrand)
  • (12:09) State registration: what paperwork and filings are really needed
  • (12:12) Legal structure & governance: operating agreements and partnership dos and don'ts
  • (15:33) Getting your EIN and opening a bank account
  • (18:04) State tax registration, permits, and the overlooked W-9
  • (19:16) Grow your top and bottom-line with CliftonLarsonAllen
  • (21:15) Opening a business bank account and choosing financial software
  • (23:04) Go beyond “budget”: When to spend the money
  • (26:11) Business insurance: what’s essential at launch, what can wait
  • (28:11) Facility considerations: licenses, permits, and where you’ll actually make parts
  • (30:27) Leasing vs. buying your shop space (with a cautionary tale)
  • (33:04) Why many owners keep their real estate separate from the business
  • (33:58) Tax differences between leasing and buying your facility
  • (35:37) Labor market considerations: where you build affects who you can hire
  • (36:43) Wrap-up: who this episode is for, and why it’s worth sharing
  • (39:56) Why you need to check out the MakingSparks podcast

Resources mentioned on this episode

Connect With MakingChips

Up next
Oct 6
Winning the Talent War: Recruitment, Retention, and Culture with Mike Tamasi, 487
Recruiting and retaining great people is one of the biggest challenges in manufacturing today—but what if the solution isn’t just about wages or benefits, but about building a culture where people thrive? In this episode of the Machine Shop MBA series, we are joined by guest co-h ... Show More
58m 45s
Sep 29
Leadership at the Core: Building Trust, Systems, and People with Kyra Tillman, 486
Leadership is more than a buzzword—it’s the backbone of every successful machine shop. In this episode of MakingChips—Machine Shop MBA, hosts Paul Van Metre and Jen Dubose sit down with Kyra Tillman, owner of BTM Industries, to explore what real leadership looks like on the shop ... Show More
46m 24s
Sep 22
Strategic Growth & Vision: Building a High-Performing Machine Shop with Peter Doyle, 485
In this special MakingChips Machine Shop MBA episode, we sit down with Peter Doyle—CEO of Hirsh Precision—to unpack what it takes to grow and transform a machine shop with purpose. From his roots as an Air Force officer to leading a former Top Shops award winner, Peter has blende ... Show More
51m 18s
Recommended Episodes
Oct 2024
Money Bootcamp: Investing for retirement
Welcome to the Santam Insure your Future money boot camp with Maya Fisher-French and Mapalo Makhu.  In the last two episodes we looked at saving and investing for those goals we want to achieve during our working years. But at some point, we want to kick back and retire, or at le ... Show More
33m 13s
Sep 2024
How to Retire: Understand the Role of Working Longer
Christine Benz, Morningstar’s director of personal finance and retirement planning, interviews financial experts about different aspects of retirement in ‘How to Retire,’ the companion podcast to her book of the same name. In this episode, Christine sits down with Yahoo Finance c ... Show More
17m 32s
Feb 2024
Roger Young: Visualizing Retirement Is So Important
Our guest on the podcast today is Roger Young. Roger is thought leadership director at T. Rowe Price, where he and his team conduct research on retirement planning and financial planning matters. Roger has been with T. Rowe Price since 2017. Prior to that, he was a financial advi ... Show More
49m 44s
Sep 2024
How to Retire: Stay Flexible with Your Retirement Spending
Christine Benz, Morningstar’s director of personal finance and retirement planning, interviews financial experts about different aspects of retirement in ‘How to Retire,’ the companion podcast to her book of the same name. In this episode, Christine sits down with senior nerd at ... Show More
19m 6s
Aug 8
The Magic Number Needed to Retire Comfortably?
💸 Learn to invest in what matters most. Check out our free investing and retirement resources. How much do you actually need to retire? In this episode, find out what the experts say is themagic number and how to plan today for the retirement of your dreams. Next Steps: • 🎥 Wat ... Show More
14m 13s
Oct 2024
How to Retire: Know What ‘Enough’ Means in Retirement
Christine Benz, Morningstar’s director of personal finance and retirement planning, interviews financial experts about different aspects of retirement in ‘How to Retire,’ the companion podcast to her book of the same name. In this episode, Christine sits down with personal financ ... Show More
22m 14s
Aug 2024
Q&A: The Unintended Consequences of Early Retirement
#529: Anonymous, 60, recently lost her job and is worried about retirement. She owns a paid-off triplex, living in one unit and renting the others for $30,000 a year. She used her 401(k) funds to buy the triplex and now has $50,000 in retirement savings and $150,000 in cash. She ... Show More
1h 16m
Apr 2024
Rather Than Retire, Buy a Business
Get $200 off your ticket to the M&A Launchpad Conference in Houston on May 11th:https://www.malaunchpad.com & enter code ACQUIRINGMINDS At age 63, Maurice Thomas wasn't ready to retire, so he bought an electrical contractor with $1m in earnings instead.Topics in Maurice’s intervi ... Show More
1h 20m
Nov 2024
If You're Not Taking Retirement Seriously, It's Time To Start
💵 Start your free budget today. Download the EveryDollar app!  You don’t want to wake up in retirement and realize you spent all your money without ever taking that trip to Sandals, do you? Find out if your retirement savings are on target, plus how to make sure you have enough ... Show More
8m 2s
Jul 2024
Game-Changing Career Tips (ft. Ari Murray)
Listen up kiddos, because the elder millennials are here to tell you a tale about the dos and don’ts of career growth.Grandpa Daniel and Grandma Ari have learned a lot about moving up a rung or two on the career ladder. And we’re here to teach a lesson or two to you young’uns on ... Show More
8m 42s