If you have an LLC consider watching this next "Single Member LLC: What You Need to Know" ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-iHy1xLYqS6Q.html
Right Sean, I rarely see any videos about the disadvantages. I have experienced rushing to get an LLC before I knew what I didn't know. Now I know whats up on different levels and from different views.
Great video! I'm learning a lot from you all. I do know someone who told me she's been running her business as a sole proprietorship for many years, and she's quite successfully. One thing I found out in my business journey was that when I decided to get my LLC, I had to to open a different bank acct to reflect the LLC...I couldn't just add 'LLC' to my business name on the acct . I'm working to establish business credit and was advised that my business needed to be registered with the State. Plus the nature of my business could open me to liability. It was pretty painless where I banked, and they were very helpful.
@@LYFEAccounting A Notary Services business that consists of general Notary, Loan signings and Remote Online Notarization. BZD Notary Services in Texas
Thank you for this video, I have my savings and it needs to be protected.I recently started my Mental health consulting business and it doesn't make much money and it is liable business.
I’m gonna start a Shopify store so I’m gonna start an LLC. Also I do have assets (savings, stocks) and I also want to open a business checking account which needs an EIN so it makes sense for me to get an LLC
Video is missing a bit of nuance 1 You can be an s-corp with an llc. And you can convert an llc to a c-Corp. 2. Dissolve your LLC don’t just let it lapse 3 . Talk to a lawyer there are very affordable business attorneys who offer consults it will save you money long term.
Thanks for the information we need to make a wise & less expensive decision for starting a business now.!!!! Blessings & happy New Year's to yours & you have n this big new 2022 !!!! 😁 😎
There are many advantages. For most, you don't need an LLC. It's just a clout thing. Sole proprietorship here as a full-time Lyft driver and soon will have a turo biz.
If you don't have LLC for your side business and also work full time job, can you still deduct expenses of your side business from your personal income to take tax benefits?
I aprreciate this video I still have time to cancel my LLC, or I can change to sole? I have a checking account and EIN number under the that LLC number tho thanks!
Hey James, I reached out to you earlier today. I’m not a licensed CPA, but I work with clients all over the U.S. and there are CPAs on our team. Did you want to reschedule our consultation?
Okay i wanna build (Business Credit) i understand creating an LLC & EIN # You can start but , I personally won’t be ready to actually start receiving business for a few months. How should go about this. I wanna build ( BUSINESS CREDIT ) In the meantime to have a good back when actually ready. What would you guys recommend
I run a mobile car detailing business called Lamar's Detailing out in Virginia Beach Va. My question to you right now I'm a sole proprietor should I switch over to a LLC because I work with vehicles and sometimes expensive vehicles??
In 2019, I tried to get into the "fix and flip" RE business and got an LLC and business account. Needless to say, nothing came of it. Should I dissolve the LLC since I have NO income from a business or side hustle right now?
see if u qualify for business credit or loans, since youve legit at least had an LLC for over 2 years but also google and higher a legal business adviser in your state for some solid advice.
Great wealth of Information. How about a person interested in putting a crypto coin that earns income from the coins currently staked in an crypto exchange. Would it an LLC/S-Corp be more efficient? Thanks
LLC Laws are different from state to state. In Arizona, there are NO annual filing fees; zero, zip, $-0-. & the one-time cost to set-up can be as low as $50. I see an LLC as cheap "insurance" to protect assets you might acquire, earn, build, etc in the future, like future earnings.
Beautiful information, I treat my business like an LLC insomuch I keep meticulous records, but as a sole proprietor, I'm really liking my position. but ultimately I'll have to LLC, the growth demands it.
Yikes!!😬😬😬 This video contains very dangerous and incomplete information. 😳 Please consult with an attorney, CPA, or other legal professionals before acting on advice from RU-vid videos like this one. Good luck everyone!!
@@LYFEAccounting @LYFE Accounting At 2:08 "If you don't have a lot of personal assets then an LLC does nothing for you" That is quite incorrect! Scenario: one of your viewers has no assets but runs a small business. They are suddenly sued over a business misstep/accident and lose in court. Now they have a judgment against them that an LLC could have shielded them from. Said judgment will appear on their credit report and other public consumer reports for up to 7 years. Three years down the road they try to buy a house and that court judgment is making it difficult. And if they do buy the house, they will surely have a lien attached to said house from the previous court judgment because their personal assets are fair game. Limited liability protection shields your current assets if you have any, as well as your future personal assets if you have the goals of acquiring them which most people do. Unfortunately you can't predict when a legitimate lawsuit might be filed against your business that you may actually lose. If you get caught with your pants down because you have no legal protection for your personal assets, this could prove costly. Hence my comment about dangerous advice. That is not the only thing wrong with your video BTW. Good luck with your business going forward! May you have continued success! and please post sensibly on these platforms.
Thank you for this video! When it comes to starting a business, it's very important to hear the pros AND the cons. Of course we all want to dream big and hit the ground running but you also need to have a realistic plan for the type of business you are starting up. Someone who is selling custom keychains or t-shirts from home won't need the same liability protection as someone opening a bakery.
Wow…I have both! PT tshirt business that I intend to grow into an apparel brand soon and I have been baking cakes from home for 22 years as sole proprietor, No LLC!! I have been contemplating lately which do I get an LLC for?? Reading your comment looks like I need one for my bakery.
@@tashabrown8301 Wow, I make T-shirts and once started an apparel line; however, I stopped to rethink my brand image. Anyway, I also cook, and so far have only stuck mainly to late spring to early/mid-autumn (depending on the weather). Last year was my best year yet since I've moved to an entirely new neighborhood that just happens to be especially supportive of the small business person. I mean, the only big corporation businesses within at least a quarter-mile radius are franchises that are personally owned except for possibly one pharmacy. And due to this blessing of such an area, I would really love to make this an official company. I was already advised over ten years ago to LLC my clothing lines; however, I've been wondering if I should do the same for the food business. I honestly thought that I had a weird mixture of interests and talents nice to know I'm not alone.🥰🤗💪🏽
@@deeliciousArrangemen right!! I’m still deciding…. My goal is to make tomorrow my decision day!! Thinking about incorporating the two passions into one, tshirts & cakes. Blessings to you & likewise, it is good to see someone is like myself!! Tons of great ideas!! Blessings to you!
My ex and I had a commercial kitchen and we had an LLC and full business insurance.. I just started my cake business. I have my LLC along with business insurance. All it takes in the food industry is someone to present you with a hospital bill. I used to work in insurance liability. You may be broke today but your future income can be used against you and taken down the road through wage garnishment. Your LLC makes it so that can't happen. It's not expensive to have an LLC ... about $15 a month. Having worked in insurance the one thing I tell people is don't look at what you necessarily have today. Look at what you could have tomorrow and that's what someone can sue for .... Your future potential earnings. I also have a paid off residence, make a little over 60k, and a state pension plan. All of that can be sued for now and in the future without an LLC. It's not hard to file as a sole proprietorship on your 1040 ., Doing your profit and loss form. Your future is worth more than where you are now. And any good attorney will use it.
Great info! It's so true. I have a catering business as a Sole Proprietorship but I have $2,000,000 in business insurance and trying to get an investor for my new product and I have already been asked that question several times." Am I an LLC?" So its no need to jump to an LLC because if something happens I'm covered and may lose an investor. Thanks to you both for all the great videos!!
The issue is you can’t. Because you need to form some sort of entity to get a FEIN number, and then a business bank account. Taxation in and of itself will be better as well if you decided to go under an SCorp taxation. But again, if your business is small and you have no assets, this may not apply to you.
I'm exploring my first real estate investment in a single family. LLC is a good idea for me, right? I do have assets. I own my own home and have some money for retirement and so forth
I buy and repair computers at board level. But in order for me to have more purchasing power to acquire more to repair and resell I have to have a business account, and therefor need to have a registered business to do this. I'm seriously thinking of an LLC. So even if I do or don't have assets I would still need to do this I think. Correct me if I'm wrong please. By the way, love your videos and am grateful for the info.
Dude, keep your day job. LLCs do not have Articles of Incorporation...they are not corporations. They have Articles of Organization. Quit trying to explain that LLCs are not S-Corporations. This is just stupid. Form 2553 allows you to file for an S-election for both LLCs and corporations. LLCs can be taxed as an S-corp. Distributions from an S-Corp does not change you income tax liability in any way, form or fashion. Stop giving bad advice....Please!!!!
Correction: FTC stands for "Federal Trade Commission" which is the government agency/regulatory body for "Fair Trade" and related policy in the United States. It is not called the "Fair Trade Commission". 😁
As I have started considering taking my side hustle, web development, more seriously I have been watching your videos. Thank you for all the insight. I did just apply for my LLC last week because I want to protect my almost paid off home and paid off other assets. I have a couple of low cost customers so not making a ton of side hustle money but thought it would be safest to protect those assets and being in Florida the cost for a LLC isn’t bad.
I think it would also be good to mention with a corp you need a board. Not everyone has access to people who would be good at governance. Also, cant a LLC be taxed like an S-corp after a few forms?
A single person can hold all c corporation officer positions unless your going public. A s Corp is still a LLC. The major difference is how it is taxed. A s-corp is taxed under sub chapter s of the tax code.
Bro watching your videos for the first time and I am truly impressed and want to thank you as I am already a business owner and plan to expand in the near future and will be using your videos to guide me
As an accountant, you should not be giving legal advice, which despite your disclaimer is what you are doing. There is a lot of value and protection when you use a 3 member LLC, so if anything happens to the business, your personal assets are protected. Even though I am a licensed attorney, I am not providing legal advice to anyone on your channel or my own. But I do provide legal facts, to educate people, so they know what to discuss with a licensed attorney in their state. In fact to provide two layers of corporate protection between an individuals personal assets and any liability for whatever happens in the business, they ideally should have a "C" Corporation, which owns each 3 member LLC. Any LLC should never have more than one asset in it. The two types of corporate entities, if set up properly by an attorney licensed in the appropriate state, can avoid double taxation. What do I know about taxes? Well I am admitted to practice before the U.S. Tax Court, so taxes are not foreign to me. This is legal information and not legal advice, which can only be provided by a licensed attorney in your state. Accountants are for book keeping and accounting, and if properly qualified and trained, for taxes. Not for legal advice.
wow, could you make a video explaining this is more detail? I didn't know it was so much in starting a business but I don't want to procrastinate but I also don't want to be a fool
@@aoyamiuriko5059 I did make a video about it. Here is the URL link to it. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Ci6mV-MyK_I.html I hope this helps you.
Hello Shawn I actually have a clothing brand and the business structure I have is an LLC. I've also went on to get my Business name and logo registered with USPTO. I have my serial number and it did cost me as the materials I've produced cost as well. I'm not making money like that but I do small sales here and there. My question is what step should I take from this point as I intend to keep pushing my merch? Really like how you break things down and I hope you reply to this so I can ask you more questions. Thank you kindly
Hi Sean. Thanks for all the great videos. Confused on your last point of not needing an llc to have an S-Corp. Isn’t S-Corp just an election, you need to have an llc to accomplish that? Please elaborate. Thanks a lot.
