SHS016: How To Go From A Part Time Business To Full Time With Charles Read From GetPayroll!
Intro
Starting a side hustle is one thing.
Turning it into a real business that can support you full-time is a completely different game.
One of the biggest questions that comes up early is:
👉 What’s the best business structure to choose?
Should you stay a sole proprietor?
Start an LLC?
Or go the S-Corp route?
In this episode of The Side Hustler’s Society, Elijah Bilel sits down with payroll expert Charles J. Reed to break down exactly how freelancers, tradesmen, and service providers should think about structuring their business as they grow.
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Intro to Charles J. Reed
Founder of GetPayroll and payroll industry expert
Certified Public Accountant (CPA) and U.S. tax practitioner
Vietnam veteran
50+ years of financial leadership experience across multiple industries
Built and scaled a payroll company serving small businesses since 1991
Author of multiple books including The Payroll Book: A Guide for Small Businesses and Startups
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Episode Overview
This episode is all about helping side hustlers and freelancers make smarter long-term decisions when it comes to:
Choosing the right business structure
Protecting their income and assets
Transitioning from part-time to full-time
Understanding payroll, taxes, and scaling
Charles brings a unique perspective from decades in both corporate leadership and entrepreneurship, showing what actually works—not just in theory, but in real businesses.
Listen to the Episode
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Quick Takeaways
Elijah Bilel highlights the growing number of people turning skills into side hustles
Charles explains why business structure matters more as income grows
S-Corps can offer strong tax advantages compared to sole proprietorships
LLCs provide flexibility but may come with higher setup costs
Liability protection is one of the biggest reasons to incorporate
Entrepreneurs should think beyond income and focus on protection
Scaling a business eventually requires hiring and delegation
Corporate culture matters—even in small businesses
Many people underestimate legal and financial risks early on
Entrepreneurship offers wealth-building opportunities not found in traditional jobs
What Is the Best Business Structure?
1. Starting as a Sole Proprietor
Most people begin here by default.
If you:
Start freelancing
Pick up clients
Or offer a service
👉 You’re automatically a sole proprietor
Charles explains that this is fine for testing the waters.
It allows you to:
Start quickly
Keep costs low
Validate your business idea
2. When to Upgrade Your Structure
The key turning point:
👉 When you start making consistent money
At that stage, it becomes important to think about:
Taxes
Liability
Long-term growth
Charles recommends considering a transition once you’ve decided:
👉 “This is something I’m taking seriously.”
3. Why S-Corporations Stand Out
According to Charles, one of the most powerful options is:
👉 The S-Corporation
Key benefits include:
Pass-through taxation
Potential tax savings compared to sole proprietorships
More structured legal framework
This can help you:
Keep more of what you earn
Operate like a real business
4. LLC vs Corporation
An LLC is another popular option.
Charles explains:
LLCs offer liability protection
They are flexible in structure
They can elect to be taxed as an S-Corp
However:
They may cost more to set up
They are not always as “structured” as corporations
5. The Importance of Liability Protection
One of the biggest takeaways from this episode:
👉 Protecting your assets is just as important as making money
Without proper structure:
Your personal assets (home, car, savings) could be at risk
Lawsuits can impact everything you own
Even in low-risk businesses:
Mistakes happen
Clients can sue
Situations can escalate quickly
The Transition From Side Hustle to Full-Time
1. Start Small, Then Scale
Charles emphasizes:
👉 You don’t have to go all-in immediately
Instead:
Start part-time
Build income
Learn the business
Then scale when:
Revenue becomes consistent
Demand increases
2. Entrepreneurship Requires Effort Early
One honest truth from the episode:
👉 The early years are heavy work
Charles shares that his first decade in business required:
Long hours
Consistency
Patience
But over time:
Systems improve
Income stabilizes
Workload becomes more manageable
3. Hiring and Delegation
As you grow, doing everything yourself becomes impossible.
Key shift:
👉 From doing the work → to managing the work
Building a team allows you to:
Scale faster
Take on more clients
Create leverage
Mindset Shift: Employee vs Entrepreneur
A major theme in this episode is control.
Working a job:
You follow someone else’s structure
You inherit their work culture
You trade time for money
Building a business:
You control your environment
You build assets
You create long-term wealth
Charles highlights that most wealth is built through:
👉 Ownership, not employment
Key Lessons from the Episode
1. Don’t Just Focus on Making Money
👉 Focus on keeping and protecting it
2. Structure Matters More as You Grow
What works at $500/month:
May not work at $5,000/month
3. Entrepreneurship Is a Long-Term Game
It may take years to:
Build systems
Gain traction
Create stability
But the payoff can be:
👉 Freedom and ownership
Who This Episode Is For
Freelancers (video editors, designers, consultants)
Tradesmen and service providers
Side hustlers planning to go full-time
Anyone unsure about LLC vs S-Corp vs sole proprietor
Key Topics Covered
Business structures explained by Charles J. Reed
How Elijah Bilel approaches building a business
Liability protection and why it matters
Transitioning from side hustle to full-time
Hiring and scaling a service-based business