LLC or Sole Proprietor? Which business form is right for you?

If you are starting a new business, you may wonder whether it is okay to just be a sole proprietorship, or if you need to go through the hassle and expense of setting up a Limited Liability Company (LLC). In this video I explain 5 factors to consider.
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Legal Disclosure: I am licensed to practice in the state of California and before the United States Patent and Trademark Office. Information contained in this video is not legal advice - please seek advice of counsel. This video and description may contain attorney advertising.
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#LLC #soleproprietorship

[@alisasullivan1017]

Loved this information! Thank you

[@ElizabethPW]

You are so welcome!

[@karenlang3030]

Thank you!!

[@salpremiers]

Great video, thank you!

[@ElizabethPW]

welcome!

[@bad_anima]

Great video. Thank you!

[@ElizabethPW]

You are welcome!

[@Endlesslovenails]

Could you please do a video on how to do an LLC business the right way please

[@ElizabethPW]

Here's a playlist th-cam.com/play/PLd0wcIHXfOTcVityweD4Odrkwiq3fjboX.html

[@mine5m]

We chose LLC single member, this works good for hiring our son. But now the single member wants to be an employee. Which we know it will not work with current LLC and needs to be an s-corp. Do you have a video of how to do both, separately. Where the owner can be an employee and still hire their kids with no tax charge.

[@ElizabethPW]

You can have an LLC that is taxed like an S Corp (th-cam.com/video/Q4BzSbcfYqE/w-d-xo.html ). You'd need to ask a tax person about the hiring your kid with no taxes question

[@violalewis6652]

Good morning it's ok to buy a Domain know and keep it until I'm ready to use the name

[@ElizabethPW]

Sure as long as you are not violating someone's trademark etc

[@AllBrightColors]

Can a sole proprietorship have its own EIN number?

[@ElizabethPW]

Yep!

[@TobyCostaRica]

Can a single LLC function as “parent company” for multiple businesses?

[@ElizabethPW]

Sure

[@josephchao5899]

If I don't want to own a store, but only rent a room out for my business. Maybe have a partner/manager to help with appointment making.. Would Sole Proprietor be better? or LLC?

[@ElizabethPW]

Sole prop is cheaper, but LLC is better for liability. Really depends on your budget

[@josephchao5899]

okay thank you@@ElizabethPW

[@filippocasadei3247]

Is it true that an LLC in California has to pay $800/year flat tax ? Is there a way to avoid that for very small entities?

[@ElizabethPW]

Yes, there's a $800 flat (minimum) tax. No there's no exception for small businesses. The only way around it in CA is to just have an sole proprietorship instead

[@AllBrightColors]

@@ElizabethPW and do you get fewer tax write offs and deductions and higher taxes on your income as a sole proprietor? It seems to me that if one wants to apply for business grants you need an LLC. California makes it cost prohibitive for people starting from the bottom. Not very business friendly at all. 🙄😬

[@Kimmylu7]

How to change business name on Secretary of State site and IRS site?

[@ElizabethPW]

Here’s a vid on that How to Change Your CA Business Address || how to change llc/corp business address in California
th-cam.com/video/Cpkom0zVA38/w-d-xo.html

[@Kimmylu7]

Thank you! I was able to change my address and name through the secretary of state. I'm unsure how to change my biz name through the IRS. The video didn't mention that :)@@ElizabethPW

[@devonmccarthy7802]

Hey I am a writer. I write scripts for clients. Should I form an LLC or sole proprietor. And could I put a stipulation in the contract that says I’m not responsible if you stole the story from someone or if a person claim you took the idea from them.

[@ElizabethPW]

It is a good idea to have a waiver/disclosure, yes. LLC vs sole prop really depends on your exact situation

[@thesexyselfblog9407]

I love this. Thanks

[@ElizabethPW]

welcome!