Many academics dream about turning their expertise into something more, whether that means consulting, coaching, writing, speaking, creating courses, tutoring, or building a private practice. But moving from professor to business owner comes with a lot of financial questions: Do I actually have a business? Do I need an LLC? How do taxes work? What retirement accounts are available?

In this episode of Academics and Their Money, Neeka Miremadi and Inga Timmerman break down the financial basics academics need to know when starting a business on the side or transitioning into entrepreneurship.

They discuss the difference between a hobby and a business, why you do not need an LLC to be considered self employed, and what an LLC actually does (and does not do) for you. They also explain self employment taxes, quarterly estimated payments, business deductions, and the different ways businesses can be structured, including sole proprietorships, LLCs, and S Corps.

The conversation also covers overlooked opportunities for self employed academics, including SEP IRAs and solo 401(k)s, how to keep university employment and business activities separate, basic bookkeeping practices, and when it is worth bringing in outside experts like CPAs, attorneys, or financial planners.

Whether you are thinking about starting a side business, monetizing your expertise, or leaving academia altogether, this episode provides a practical roadmap for building a strong financial foundation as an academic entrepreneur.