The e-learning market is projected to grow to $325 billion by the year 2025. If you are currently selling or thinking about selling online courses, you are entering a potentially lucrative market. Teachable is an online course business software backed by years of experience in the e-learning industry that may give you the tools you need to build your business.
Using Teachable to Build an Online Courses Company
Teachable is a simple tool created to help you sell your online course. It is one of the biggest players in online class platforms.
Teachable has several payment plans, ranging from a free plan that offers unlimited courses and unlimited students but charges you one dollar per student plus a 10 percent transaction fee for every course you sell to a comprehensive $299 a month plan that has no transaction fees.
When doing your online courses company tax planning, remember that subscriptions, like your subscription to Teachable, should be deductible as a business expense. If you prepay your subscription for over one year, your online course business’s CPA should prorate the cost for each year.
Building Your Brand Online Using Teachable
As an online course business software, Teachable provides options for configuring and branding your site. These include:
- Custom domain
- Navigation pages
- The ability to customize CSS in the code
Teachable offers a powerful enough marketing apparatus that, for a while, you could use Teachable’s website as your main website. However, as you attract more students, you may want to design your own website, start a search engine optimization marketing campaign, use a paid social media campaign to attract students, and hire graphic designers and copywriters to help promote your brand.
Here again, you will want to keep track of your expenses for your online courses company accounting. Your online course company CPA may write off the cost of things like:
- Web design
- Domain name
- Search engine optimization
- Paid social media marketing
- Print advertising
You will also want to give your online courses company accountant receipts you have for meals, travel, and expenses for your home office. Your CPA will also need to differentiate between advertising and selling expenses. Both should be deductible, but they end up in different places on your tax return.
For example, your online courses company accountant may deduct website maintenance as an advertising expense if you use your site to primarily advertise. However, if you use it for selling, like if it has a shopping cart, then the cost of selling would be considered separately.
Marketing and Selling Courses Using Teachable
Teachable really shines in marketing and selling courses. You can set multiple prices for the courses you sell and determine if you want to offer free courses, a subscription plan, or one-time purchases. You can create coupons, offer discounts to customers, and bundle multiple courses together, selling them in a single transaction.
When selling your courses, you will need to know where your sales tax liabilities sit as part of your online course company tax planning. Determining your sales tax obligation nexus may get complicated with Internet transactions, especially when offering digital goods. Our team of online course company accountants here at Fusion CPA offer to help you track changing rules, boundaries, and rates that may impact your sales tax liability.
Take Steps to Help Your Online Course Company Grow
Teachable is an amazing tool for helping you get your company off the ground. However, if you want to give your company the best chance for possible continued success, online course company CFO advisory may be what you need. At Fusion CPA, our team of certified accountants offers financial services to small to medium-size businesses to help identify key marketing, operating, and financial indicators with the goal of improving profits and cash flow. Our goal is to work with you to reduce operating costs, optimize working capital, create financial and management reports, and identify tax strategies that will minimize your tax liability while maximizing deductions. We are here to help. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.