Can I go from sole proprietorship to LLC? Yes, you can! Ready to finally take the leap and start running your business as a limited liability company? In this episode, I'm giving you the step-by-step process on how to switch from sole proprietorship to LLC, how to start an LLC, and how to transfer a sole proprietorship to an LLC.
I currently have a EIN# as a sole proprietorship, and recently incorporated my business as a LLC (same name, just add LLC at the end). Do I need to create a new EIN# or file a 8822-B form with the IRS of the change?
@@cassandrawhitfield3185but legally she should have been able to have her LLC purchase her sole prop assets as a business acquisition and gain start business date of the sole prop which is more favorable for lending. That's what I'm trying to figure out how to do but nobody seems to know
I am a sole proprietor but I have a prospective new client that wants me to be an LLC. I have existing contracts with clients as a sole proprietor that might be difficult to change. Is it possible to bill some clients as a sole proprietor and some as an LLC? I don't have any DBAs currently.
Thank you so much for sharing so much awesome info. For clarification, I just wanted to see if I need to apply for a new EIN in the following scenario. I currently have a sole prop in Maryland with a dba of XYZ. I want to change from a sole prop to a single member LLC using the same tradename and going with xyz, llc. Also with the change, will I need to get a new DUNS number as well?
Hi this video was very helpful! I have a sole proprietor business and would like to make the switch over to llc. Dad has always been the owner and manages everything. However, the sole proprietor of the business has been me. Now I’m trying to turn into an llc and switch the name business to him so that I’m no longer involved, would that be possible ?
this is so confusing. I have llc but FEDERALLY its being taxed as Sole Prop. I just want to be taxed as LLC but don't want to lose all the years of history by starting a whole new llc seem as tho this is something completely different but sounds similar IM CONFUSED
Hey Aiden, I currently have a DBA with it's own EIN. I also have an LLC with it's own EIN. I want to slide the DBA name under the LLC, so the LLC will manage that DBA. Is there a way to make this happen without converting the DBA to it's own LLC?
@Texas Backyard Gardener A DBA is an alias for a business entity, whether that business entity is a sole proprietorship, a single-member LLC (that is disregarded for tax purposes), an LLC taxed as a C Corp, an LLC taxed as a S Corp, etc. DBAs don't have EINs - the underlying business does. So what kind of business entity is your DBA under?
@@jalabi99I'm in this same boat. It's his SSN that was an EIN. I have the same opportunity I'm trying to use my LLC to purchase my Sole Prop so I can get better finding options because I've been in business since 2017 but there's little age on the LLC.
@@MrArtVein of course I am not a lawyer and therefore I can't give you or anyone else legal advice, but if I get what you're saying correctly: you have a sole proprietorship that you created in 2017, and you used your SSN as its EIN. And you created an LLC more recently (with its own, separate EIN) that you want to get "business funding" for, correct? If that is so, then you don't need to jump through any hoops trying to piggyback off of your sole prop's longer existence to try and prop up your younger LLC's "funding options", by "trying to use my LLC to purchase my sole prop". There are two more straight-forward options, neither of which is a get-rich-quick proposition, but either of which is a better long-term solution to your issue. And neither involves trying to "buy my sole prop with my LLC". 1) You need to start doing active business in your LLC, and make actual revenue. Then you can tap into any of the numerous business funding options out there (from companies like PayPal, Bluevine, Shopify, etc. etc.) that will give you funding based upon your business revenue that you can use to purchase goods and inventory. Then when you sell the products, you pay them back weekly, bi-weekly, or monthly. 2) Get your personal credit file in order. Get all derogatory marks (collections, repossessions, late payments, etc.) off of your reports. Bring your personal credit utilization down to 5% of your total credit limits across all of your cards. Get your FICO score up to at least 680 or even better above 700. Then you can apply for almost any business credit cards you want for your sole prop *and* for your LLC, using your personal guarantee. That will get you tens of thousands of dollars at once which you can then use to "fund" your business. It doesn't take more than 30-60 days to get your personal credit file sorted out once and for all. And you don't have to waste time getting no-PG "business credit" lines from ULINE or Grainger or Quill either. You can fix your credit yourself, which is preferred, or if you want to pay for a credit restoration specialist to do that on your behalf, you can do that too. But you need to get your personal credit file fixed up, the sooner you do that, the quicker you can get all the "business funding" you want.
When doing taxes as an LLC after being a sole proprietorship for several years... would I answer YES that it is a new business? And have a new business start up date, the date the LLC started?
If I already had an EIN for a sole prop but did not file taxes on that yet because it did not really make any revenue in the past year. Do i Still need a new EIN?
Hi, Congratulations for this awesome channel, I’m extremely worried about something… I just registered my business and got the EIN#… I also searched about the name.. no one is using it even on Social medias, So, I bought the Domain, i created the Logo, it’s going to be about clothing and merchandise, and in the next few days I’ll start posting some videos showing about it, the videos will be seen by hundreds of thousands of people… My biggest worry: since it’s just the beginning, I want to start the registration of the logo and its name more towards the end of the year.. Is there a possibility if someone seeing it, likes the idea, “steal” the name and starts the registration before me ? Does it happen often? Should I really worry even if 1 of my videos go viral ? In case if such thing happens, I’d have to take the person to court and prove that it was me who first started the propagation of the brand, correct ?
Please make intros SHORTER. Condense it. I like your videos and hope you will continue to make them. But they are TOO wordy. I am a woman. I am talkative too. I understand it is not easy. But it will make your videos more valuable.
Can I go from sole proprietorship to LLC? Yes, you can! Ready to finally take the leap and start running your business as a limited liability company? In this episode, I'm giving you the step-by-step process on how to switch from sole proprietorship to LLC, how to start an LLC, and how to transfer a sole proprietorship to an LLC.
I currently have a EIN# as a sole proprietorship, and recently incorporated my business as a LLC (same name, just add LLC at the end). Do I need to create a new EIN# or file a 8822-B form with the IRS of the change?
@@colettedubose I’m in the same situation as you, we’re you able to get an answer to your question?
@@rgvpettransport No answer, I just created a new Ein# and proceeded.
@@colettedubose you can't use the same EIN# its like a ss# it can't be shared
@@cassandrawhitfield3185but legally she should have been able to have her LLC purchase her sole prop assets as a business acquisition and gain start business date of the sole prop which is more favorable for lending. That's what I'm trying to figure out how to do but nobody seems to know
Your explanations are so clear
Thank you. Im in Colorado Im sure ill be needing you soon. For my new Handyman business
Thank for the video, it was amazing. I have a question, But at what point is my Sole Propietorship is officially closed?
Do you have to close out your EIN for sole proprietorship after getting an LLC? If so, how would I go about doing that?
Thank you very informative video.
Thank you, that was very helpful.
Awesome information, very informative. I appreciate you!!!
Very great and thorough information.
This is very helpful.
Thank you.
Can you have a sole proprietorship under one EIN and create an LLC under another EIN?
I am a sole proprietor but I have a prospective new client that wants me to be an LLC. I have existing contracts with clients as a sole proprietor that might be difficult to change. Is it possible to bill some clients as a sole proprietor and some as an LLC? I don't have any DBAs currently.
Thank you so much for sharing so much awesome info. For clarification, I just wanted to see if I need to apply for a new EIN in the following scenario. I currently have a sole prop in Maryland with a dba of XYZ. I want to change from a sole prop to a single member LLC using the same tradename and going with xyz, llc. Also with the change, will I need to get a new DUNS number as well?
Yes I need help with virtual address and registered agent….thank you
How do I talk more in depth with you about something very similar to this? I have some more questions I need ask.
Hi this video was very helpful! I have a sole proprietor business and would like to make the switch over to llc. Dad has always been the owner and manages everything. However, the sole proprietor of the business has been me. Now I’m trying to turn into an llc and switch the name business to him so that I’m no longer involved, would that be possible ?
Great Info. Thanks
this is so confusing. I have llc but FEDERALLY its being taxed as Sole Prop. I just want to be taxed as LLC but don't want to lose all the years of history by starting a whole new llc seem as tho this is something completely different but sounds similar IM CONFUSED
Hey Aiden, I currently have a DBA with it's own EIN. I also have an LLC with it's own EIN. I want to slide the DBA name under the LLC, so the LLC will manage that DBA. Is there a way to make this happen without converting the DBA to it's own LLC?
@Texas Backyard Gardener A DBA is an alias for a business entity, whether that business entity is a sole proprietorship, a single-member LLC (that is disregarded for tax purposes), an LLC taxed as a C Corp, an LLC taxed as a S Corp, etc. DBAs don't have EINs - the underlying business does. So what kind of business entity is your DBA under?
@@jalabi99I'm in this same boat. It's his SSN that was an EIN. I have the same opportunity I'm trying to use my LLC to purchase my Sole Prop so I can get better finding options because I've been in business since 2017 but there's little age on the LLC.
@@MrArtVein of course I am not a lawyer and therefore I can't give you or anyone else legal advice, but if I get what you're saying correctly: you have a sole proprietorship that you created in 2017, and you used your SSN as its EIN. And you created an LLC more recently (with its own, separate EIN) that you want to get "business funding" for, correct?
If that is so, then you don't need to jump through any hoops trying to piggyback off of your sole prop's longer existence to try and prop up your younger LLC's "funding options", by "trying to use my LLC to purchase my sole prop".
There are two more straight-forward options, neither of which is a get-rich-quick proposition, but either of which is a better long-term solution to your issue. And neither involves trying to "buy my sole prop with my LLC".
1) You need to start doing active business in your LLC, and make actual revenue. Then you can tap into any of the numerous business funding options out there (from companies like PayPal, Bluevine, Shopify, etc. etc.) that will give you funding based upon your business revenue that you can use to purchase goods and inventory. Then when you sell the products, you pay them back weekly, bi-weekly, or monthly.
2) Get your personal credit file in order. Get all derogatory marks (collections, repossessions, late payments, etc.) off of your reports. Bring your personal credit utilization down to 5% of your total credit limits across all of your cards. Get your FICO score up to at least 680 or even better above 700. Then you can apply for almost any business credit cards you want for your sole prop *and* for your LLC, using your personal guarantee. That will get you tens of thousands of dollars at once which you can then use to "fund" your business.
It doesn't take more than 30-60 days to get your personal credit file sorted out once and for all. And you don't have to waste time getting no-PG "business credit" lines from ULINE or Grainger or Quill either.
You can fix your credit yourself, which is preferred, or if you want to pay for a credit restoration specialist to do that on your behalf, you can do that too. But you need to get your personal credit file fixed up, the sooner you do that, the quicker you can get all the "business funding" you want.
Informative info, thanks
Thank you for watching!
When doing taxes as an LLC after being a sole proprietorship for several years... would I answer YES that it is a new business? And have a new business start up date, the date the LLC started?
Thats what's so confusing...
If I already had an EIN for a sole prop but did not file taxes on that yet because it did not really make any revenue in the past year. Do i Still need a new EIN?
I want to know about it too
@@dongjooryoo9941did you ever figure this out
Can you be under 18 to register a LLC
Hi, Congratulations for this awesome channel, I’m extremely worried about something… I just registered my business and got the EIN#… I also searched about the name.. no one is using it even on Social medias,
So, I bought the Domain, i created the Logo, it’s going to be about clothing and merchandise,
and in the next few days I’ll start posting some videos showing about it, the videos will be seen by hundreds of thousands of people…
My biggest worry: since it’s just the beginning, I want to start the registration of the logo and its name more towards the end of the year..
Is there a possibility if someone seeing it, likes the idea, “steal” the name and starts the registration before me ?
Does it happen often? Should I really worry even if 1 of my videos go viral ?
In case if such thing happens, I’d have to take the person to court and prove that it was me who first started the propagation of the brand, correct ?
💝💝💝💝💝
Please make intros SHORTER. Condense it. I like your videos and hope you will continue to make them. But they are TOO wordy. I am a woman. I am talkative too. I understand it is not easy. But it will make your videos more valuable.