LLC vs Sole Proprietor: Which is Better for Your Business?

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LLC vs Sole Proprietor!
Become a Tax Client: mycpacoach.com/tax-planning-s...
Outline:
Intro: (0:00)
What is a Sole Proprietor?: (0:46)
Sole Proprietor Taxes: (1:35)
What is an LLC?: (3:59)
LLC Taxes: (5:56)
Pros and Cons Sole Proprietorship: (7:35)
Pros and Cons LLC: (8:03)
Have you ever wondered the difference between sole proprietor and LLC? Like, what are the tax benefits of each?
In today's video, I go over the similarities and differences of the two and what you need to know to decide which one is best for your business.
Watch to learn more.
Subscribe: bit.ly/2HJlq46
Please be sure to give this video a like and subscribe to our channel so you don't miss out on future videos!
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

Опубликовано:

8 авг 2024

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Комментарии : 123

@DiqaunColeman 2 года назад

This was eloquently broken down. Keep up the great work guys.

@LYFEAccounting 2 года назад

Thanks! Will do!

@sicariusleif1992 8 месяцев назад

Damn, I was going to click another video first, but I think this is the best video on the subject ever made. You are so good at organizing the knowledge so it makes sense!

@dflosounds 6 месяцев назад

So from what I'm understanding, it seems like it boils down to how likely you are to get sued. If you're working alone and doing something that's pretty low-stakes (web development, graphic design, illustration, interior decorator, etc), then it probably makes the most sense to be a sole proprietor. If you're doing something with a higher risk of legal repercussions (construction, architecture, lawyer, physical therapist, etc), then you'd probably want to consider an LLC or S Corp. Does that sound about right?

@martialag 10 дней назад

@dflosounds You make a lot of sense. I'm a chef and plan to launch a cafe and catering company. I plan to start with the sole proprietorship and upgrade to an LLC. As long as I document everything, I pretty protected against possible lawsuits.

@luluedw 2 года назад

Love to see it & share it! Yall answer so many FAQs

@GreenandGrain 9 месяцев назад

Excellent video. Thank you! I have watched several similar videos in the past but this made everything “click”! Really appreciate this clear, well organized presentation and the graphics showing the ACTUAL forms (for us visual learners!) thanks again!

@shantejones7118 Год назад

Excellent!!! Excellent!!! Job Krystal. You explained the difference between the two entities in such a way that a minor can glean from the benefits of your knowledge and wisdom. I also love the way you recapped the structure of LLC vs S Corporations in the side panel captions. Very professional and likewise ELOQUENT. This has been the best break downs of the pros and cons between the two entities of corporations I have ever seen. Excellent Job!!!!!

@user-pp5sz6zp3t 11 месяцев назад

This video was really well done, easy to understand and not overwhelming. Thank you!!

@consumerdebtchitchat Год назад

This channel is outstanding!! New sub. Thank you for keeping it simple language for those of us that are so new to this. Just got my LLC.

@ronaldshaw8948 Год назад

Thank you. Finally a video that just keeps it simple and straightforward.

@mer197 Год назад

Omggg I love the structure of the material and the fact that the information is given straight up 👌

@sharisefaniel2871 2 года назад

Wow! Great video🤗 I'm so glad it popped up Thanks Darling 💯

@oscarconde2516 Год назад

Thanks for the valuable information!

@Tennis-3582 2 года назад

You just earned my subscription, lots of appreciation

@franklynthree Год назад

great video simple and to the point

@dricana7 4 месяца назад

Awesome presentation! You did an excellent job explaining the the pros and cons of each business type. You spoke eloquently and clearly to your audience. Great work!!

@ftw305mdc5 Месяц назад

When starting a daycare is it better to be a sole proprietor or llc

@godivaodonata 2 года назад

Thank you sooooo much! 🥰 Currently an SP, but pretty sure need to change to LLC. 🤷‍♀

@interstatebullly3nyg551 8 месяцев назад

Outstanding very well presented and explanation.. so many content creators need to take notes

@GEN2WIG 2 года назад

I needed this!!! Thank you 👍🏾

@LYFEAccounting 2 года назад

You're so welcome! :)

@faithfullyyours1684 9 месяцев назад

This is phenomenal. Thank you

@Empire4Liberty 6 дней назад

This is a prime example of why I choose to conduct all my activities in full view of the customer. I possess a high level of assurance when it comes to them witnessing my efforts. This aspect holds significance for both the clientele and myself. Establishing a sole proprietorship aligns with my chosen path.

@Autumn_Forest_ 2 дня назад

What do you do?

@aumoega7991 2 года назад

Excellent breaking it down 👍🏾

@anwarwright54 Год назад

Nice breakdown. Thank you.

@tatianaquintero4355 10 месяцев назад

Thank you! I watched at least 30 videos and until I got here I could not figure out where to start or what I wanted to do.

@travisthompson5379 2 года назад

Nicely Done! Great Presentation

@LYFEAccounting 2 года назад

Glad you liked it!

@Nhmauto 2 года назад

Great info! 💪

@rhondaprice227 6 месяцев назад

Thank you. This was on point!

@scruge100 6 месяцев назад

That was well explained!

@FlawlessFinishSolutions 2 года назад

Starting a new business and wasn’t sure which way to go. Honestly still not but definitely have something to think about after this video. Thank you!

@BIGNOSEPOPPA Год назад

Did you start and your business? And if so what did you choose in terms of LLC vs the latter?

@FlawlessFinishSolutions Год назад

@@BIGNOSEPOPPA yes I ended up starting it with a sole proprietor ship. Will switch to an LLC after making 75,000 right now it’s still so new not sure if it was worth the income in the beginning.

@BIGNOSEPOPPA Год назад

@@FlawlessFinishSolutions I really appreciate you. I'm believe im going to put in my two weeks notice very soon. I have a brand new van so I want to start being a courier. Wish me luck.

@FlawlessFinishSolutions Год назад

@@BIGNOSEPOPPA get out there and get it. Keep your head up in the tough moments.

@BIGNOSEPOPPA Год назад

@@FlawlessFinishSolutions thank you so much. I'm so close. I will definitely update you as well since you helped me.

@robertlperkins4729 2 года назад

Great job Krystal A! This was very informative. The whole team is doing a great job of informing. Do you guys support startup businesses in Texas from a CPA perspective? Thanks!

@bodified5838 6 месяцев назад

Great video! Thank you!

@tonyhouston9473 Год назад

Thanks, this was very informative... Aint nothing like brains and beauty!!

@PhillipDavisMarketingSolutions 3 месяца назад

Very clear and concise. I’m currently an LLC, filing as C-Corp. Starting another business and was undecided if I want to go LLC first or sole proprietor. I think I’m going sole proprietor for this one because it’s not going to make any money for a while. Thanks.

@FinancialFreedomMadeSimple 2 года назад

Great job Krystal!

@LYFEAccounting 2 года назад

Thanks for watching :)

@mariasalmeron532 2 года назад

Can you do a video about the benefits between creating a single member LLC vs the multi member LLC for a husband and wife buying real estate for short term rentals?

@jamalymall 8 месяцев назад

Great job explaining

@mtchief3537 2 года назад

Excellent work in explaining the differences. Enjoying your content. Any contacts in Orlando, Fl who I can speak to about about using their CPA, bookkeeping services?

@ricardocarbajall6519 Год назад

great video , thank you.

@derekdd5229 Год назад

Well done. Thanks.

@ericagrant3197 Год назад

Awesome Job! :)

@juliusw7895 8 месяцев назад

You are a good teacher

@alloutpossible4372 Месяц назад

Great video

@thesrobinson848 2 года назад

Very helpful

@CheriFresh 7 месяцев назад

Thanks, probably going to start off as SP and than LLC

@allenschneider1847 Год назад

Excellent summary. For tax purposes, start up costs or annual costs, are their significant differences between an LLC and a PLLC?

@Victoria3Victoria 2 года назад

Very informal

@MsIndependent-rb8bw 3 месяца назад

Great job

@InstantlyMotivated365 11 месяцев назад

Thank you!!!

@wcalixte 2 года назад

Thank you for that. I learned a lot. Question, if I invest in an investment club with a sole prop EIN, are gains considered income?

@ojpine7607 3 месяца назад

Thank you

@Aqueenlee 2 года назад

Great video with critical gems to keep in mind. Question: if an LLC was setup in 2021 but no revenue was generated, do u suggest opting for the S corp tax election or should one wait until the LLC makes some money? There were several expenses related to the LLC setup.

@LYFEAccounting 2 года назад

I'd wait until the LLC started generating some revenue. General rule of thumb is at least $50k in revenue before filing an S Corp election.

@MariaS-mj5ey Год назад

My head hurts all i want is to open an online selling website 🤣😞 still got a lot to learn

@adrianamedrano6773 Год назад

Sole proprietor is what you need. That’s what I filed for

@mkayla7 Год назад

Me too

@tra2118 Год назад

Thank you, sweetheart.

@nadiaconseillant8616 4 месяца назад

Wonderful ty

@ninaviola5229 10 месяцев назад

Very informative information thank you 🙏🏽 however how or what site would I get an LLC form to file??

@drichardson6757 Год назад

Please explain the difference between sole proprietorship and (individual with a DBA)

@s.b.p5219 2 года назад

Can a LLC be started by a trust or should the LLC be started first and later placed within the trust?

@kat4animals004 2 года назад

For a fictitious business name statement, /DBA... Does the owner, the individual that is doing the business have to be listed as the registrant? Can a sole proprietor , hire a registered agent, I don't want to be my own RA. Thanks for your helpful videos!

@Bormanb23 Год назад

Awesome video, Im an sole owner LLC, profit is over 450K through consulting, so should I change to S CORP?

@zinnymg1 2 года назад

Hi, which is better? Sole proprietor or dba for online tshirt business?

@reginaldjordan8118 2 года назад

Sole proprietor running a small one person painting company

@ishalljr 2 года назад

LLC here. Do I need to file taxes if I didn't generate any income in the LLC? There were expenses. Texas.

@darkairussachihiro5814 2 года назад

Do you recommend a new RU-vidr to be Sole proprietor or form an LLC in the very beginning stage?

@broaj1453 11 месяцев назад

Currently I am a sole proprietor but I am established my LLC.

@wisdombteah3680 Месяц назад

Great

@seanpaulcurran Месяц назад

So, I am working with a travel agent hosting agency who recommends the same things that you've overviewed here. The only thing now, is that I am very intimidated by going sole proprietorship - in the event that a client goes on a travel, and then tries to sue or stop payment. Right now though, I cannot afford the fees associated with my state to file for an LLC. So I am really at an "intimidation stop" right now, not knowing what route to choose. My business is not open yet, and another aspect that is holding me up, is not knowing if I "have" to go LLC route, if I am the sole proprietor but my business name is not my own name.

@mayalune1973 Год назад

So If I don't make much with my business ..I shouldn't make an EIN yet? I have an LLC but no EIN yet

@user-xm2kc9zu7z 4 месяца назад

Thanks for the vid! How does it work if I’m trading stocks?

@NestorHVAC 2 года назад

My business is a LLC but I filed my taxes as a sole proprietor based on my accountant advise. That’s that make sense? I’m a one member business Thanks

@jimmieroberts1972 2 года назад

Cant you do a video on Co-ops cooperatives?

@FourCornersCustomProducts-4CCP 2 года назад

Sole Proprietor and think about changing it to a LLC

@diniecehowell910 Год назад

So if I used my Ecommerce LLC for things outside of e-commerce is that a problem?

@martialag 10 дней назад

I plan to form a sole proprietorship and form a LLC later.

@monosh1 8 месяцев назад

LLCS that are single owned do they get 10099s NEC? I’m confused ? Should I ask them how they are filing (S corp or C corp) ? Trying to do 1099s and it gets tricky with them

@ninaviola5229 10 месяцев назад

Hello again I currently have a business, not operating, since I relocated to another state, the business I currently have I’m the sole proprietor and would like to operate as LLC instead, could you guide me?

@christophermoore1776 21 день назад

If operating as a sole proprietorship would it be necessary to have a bussiness name?

@mikeperez1116 Год назад

Question if I do junk removal and collect cash from all my jobs how do I report that just putting it in the business account as a sole proprietor and i get taxed on all that money besides my expenses ?

@jameswarfield1206 Год назад

Hi, I’m a Sole proprietor and I won’t to be a single LLC how do I do it?

@thomasnguyen354 Год назад

This is my first business. Went to the county to set up a DBA. Haven't made money yet. But should I open up a LLC instead? or can I open a LLC with my fictious name?

@espianmashias9565 Год назад

It’s been 8 months can you tell us the answer to your good question?

@reenasaeed1735 13 дней назад

Hi which state do you practice in?

@gedavis6482 10 месяцев назад

Awesome Professor! Thank you for helping to keep us on the same page.

@MikahWonders 2 года назад

S corp! And I actually am going to stay S corp after watching this hahah thank you!

@willowriverranch7965 11 месяцев назад

Under a sole proprietorship, does the business get a name or is it just the name of that person?

@chase7767 Месяц назад

"Or you might be confused on the entire idea and why you should actually care." LOL this

@notme751 4 месяца назад

So if a LLC makes no money it still pays taxes?

@esexavo 11 месяцев назад

I just want to save money on taxes if I profit 100k a year , what should I do I live in california they tax us into poverty

@butterflyj685 6 месяцев назад

What if you had $0 income for a sole properitorship?

@lukastemberger 8 месяцев назад

But wait. If a single member LLC has the liability split between all the members, then the single member has 100% of liability. So liability is not limited and is the same as sole proprietorship? In that case, the only difference between sole proprietor and single member LLC is having to pay the $800/year fee for having the LLC?

@wenderful1577 4 месяца назад

That's a good Q... Somewhere else I read something similar to your Q

@lukastemberger 4 месяца назад

@@wenderful1577 Yeah, and no one wants to answer it lol

@wenderful1577 4 месяца назад

@@lukastemberger I did find a short clip that answered it on RU-vid look up. The lawyer mentioned , "flow through taxation"

@lukastemberger 4 месяца назад

@@wenderful1577 I'll have to ask questions to find out what that means next...

@wenderful1577 4 месяца назад

@@lukastemberger 🤣 there's a pretty good flow chart you can find through google

@adkins316 8 месяцев назад

LLC

@elgs1980 Год назад

What if a sole proprietor is also an employee of another company? In this case, how will the tax of the salary from the company the sole proprietor works for be calculated?

@shays_creations 4 месяца назад

I need to change from Sole to LLc I don't want to be sued

@hellobby1993 10 месяцев назад

Are we able to schedule a call with you ? :)

@Jordan-dx2ej 8 месяцев назад

Sole only guy

@tankleo4897 Год назад

You didn't answer the bigger question which one is more beneficial if you're profit 50 or 100k annually. 😢

@m3gaman00 Месяц назад

You can STILL! Take out a fictitious name and get a business loan and account with a sole proprietorship

@Fake.duramax 6 месяцев назад

Mama

@mjrinfl 2 года назад

Really great Info. Question i hope can get answered. I feel like sole proprietor is better for me at least for now. But there is one thing. I want to run multiple brands for my photography business for different types of photography. But doing a Sole proprietor, you can only have one DBA. So should I file an LLC for that reason and than file a DBA under that llc for the second brand? I don't see any way to do two brands with just sole proprietor