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
Aug 18
Inventory Management Strategies Every Machine Shop Should Steal, 479
Inventory and materials management may not sound glamorous, but for us—and for any thriving shop—it’s the difference between healthy cashflow and a financial chokehold. In this Machine Shop MBA conversation, we break down how smart inventory practices—both physical and digital—ca ... Show More
59m 54s
Aug 11
Audit-Ready Always: Building a World-Class QMS That Actually Works (Part II), 478
In Part 2 of our conversation with certified lead auditor Jess Teasdake, we dig deeper into what it really takes to build an efficient, audit-ready quality management system (QMS). If you caught Part 1, you heard us talk through the big picture: certifications, audits, and what s ... Show More
39m 8s
Aug 4
Audit-Ready Always: Building a World-Class QMS That Actually Works, 477
If you think quality management is just about passing audits, think again. In this episode of MakingChips, we’re joined by Jess Teasdale—a true QMS expert and certified lead auditor in both AS9100 and ISO 13485—to break down what it really takes to build a world-class quality sys ... Show More
48m 28s
Recommended Episodes
Aug 2024
How To Build A Data Driven Culture In HR
Join us in this HR Leaders episode as we explore the transformative power of integrated data in enhancing skills development and employee engagement. Top experts delve into how leveraging people data is essential for boosting ROI, from improving talent acquisition to strengthenin ... Show More
45m 5s
Oct 2024
How to Retain Your Top Talent in 2025
In today's episode of the HR Leaders Podcast, we welcome Paaras Parker, Chief Human Resources Officer at Paycor, a leader in human capital management.She explores the evolving role of HR in business, sharing how companies can navigate retention challenges and better support emplo ... Show More
47m 54s
Mar 2025
Episode 454: Tracking productivity? and my CTO is ChatGPT
In this episode, Dave and Jamison answer these questions: I’m a manager on a Product team. I’ve been asked by upper management to measure “story points completed per developer per sprint” and display the results publicly each sprint to motivate lower-performing employees. I expla ... Show More
28m 11s
Sep 2021
How One Agency Increased Revenue By 4X in Under One Year
Are you willing to start saying no to wrong customers to see real change for your agency? Kerrie Luginbill is a partner and Chief Strategy Officer at Old Town Media, a Colorado-based agency that since its beginnings offered a unique and agile approach to web design, development, ... Show More
17m 47s
Sep 2024
The Personal Sales System That Will Boost Your Numbers Fast! | Moustafa Moursy - 1825
You may be working at a company that doesn't have a good CRM, which can easily make your job stressful. How can you overcome this challenge to boost your sales? Listen to this episode and hear my conversation with a ten year veteran sales professional. I chatted with Moustafa Mou ... Show More
23m 27s
Nov 2018
Top 3 Employee Retention Mistakes
On today’s show we’re talking about the top 3 employee retention mistakes that I see employers make. It’s been said that people are the key to your business. That’s true of any business and Real estate is a business just like any other business. Employee turnover is incredibly ex ... Show More
4m 47s
Oct 2024
Turn Employee Feedback into Real Results
We live in an age of data. But having powerful tools to gather employee feedback doesn't mean you’ll get powerful results. It’s challenging for executives to turn that feedback into substantive action. New research from Ethan Burris, professor of management at the McCombs School ... Show More
27m 49s
Aug 2021
Why Underpricing (and Overdelivering) Is Creating Business Burnout
Send us a textWe women entrepreneurs keep underpricing ourselves when offering the same service or product as our male counterparts. On average, we price up to 20% less. When I first heard that, I was blown away! Pricing is one of the quickest and most powerful ways to adjust you ... Show More
31m 19s
Mar 2024
When Scaling Your Start-Up, Don’t Lose What Makes It Special
So, you’ve successfully scaled your start-up and you’re growing into a mature company. What, if anything, should you retain from those early days? Harvard Business School professor Ranjay Gulati says the most successful organizations have one thing in common: a soul. “Soul” goes ... Show More
26m 57s