Before You Start Your Business | what to do, think about, strategize, before you start an LLC
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- เผยแพร่เมื่อ 1 ก.ค. 2024
- Are you in the planning stages of a new business? While it is easy to get caught up in the details of forming an LLC, creating a full-function website, or filing a trademark application, there are initial areas you need to explore so you create the right business for you.
00:00 Intro
01:37 Your resources & needs
05:37 Your business funding / budget
08:55 Your end goals & purpose
17:10 Your initial product/service
19:54 Your initial target market & branding
24:44 Your address & location & contact info
30:25 Your legal entity
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Legal Disclosure: Elizabeth is 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.
Disclosure: My videos may contain reviews, recommendations, testimonials, or endorsements of other businesses, individuals, events, materials (such as books), products, services, or websites. I may receive affiliate percentages on sales; if so, it will say “affiliate link” after the link. I will clearly disclose if I have received a free product, free service, discount, or any other compensation related to a review.
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And once you're ready to get started on your new business, check out this playlist: th-cam.com/play/PLd0wcIHXfOTfiG7a2XMsBbRwGW7hVmdUF.html
Hi! I looked through your playlists, but I might have missed it - any tips for buying an already established small business?
I need more this type of videos that focuses on the foundation of decision for launching a business.
Thanks for that feedback!
This is such an undervalued channel. Thank you for offering honest opinions and tips!
You are so welcome!
Nice video! Thank you!!
You explain everything so well, thank you 🙏🏽
You are so welcome
Thank you very much! Learned a lot from your videos! Thanks!
Welcome!
Love your videos, so informative. Thank you.
You are so welcome!
Thank you so much for such an in-depth, informative video.
You are so welcome!
Thank you for this overall indepth view of business considerations.
You're welcome!
Great video, the truth, I love it!
Glad you enjoyed it!
Thanks for this!
Welcome!
Thank you for a really informative video.
Welcome!
Loving this info and your videos have been a wealth of knowledge. Funny thing...when you talked about not wanting people to call you at 9am on Sunday...it was precisely 9am on Sunday when I was watching the video and you said that 😆
haha!
Thank you!
Welcome!
Hello there! Thank you very much for this. It is very helpful. I’m planning to start my own software consulting and hiring firm. I’m super excited and equally nervous about the idea. Watching your videos makes me feel close to reality. Thank you again. I have subscribed to your channel and I keep watching many of your videos!!
So great to hear! Best of luck with your new firm
@@ElizabethPW so kind of you, thank you very much. Since I’m also in California, your advice is really appreciated and helpful. Thank you!
I really enjoy your videos and its lessons… any chance there is one in the future designed specifically for in house corporate tech attorneys who want to do a major pivot to solo private practice in a non-tech role??
Hm I don't know if I'd do something that specific but I may do a video about starting a solo private practice, because I have a lot of thoughts on that!
Meeeee!
Hi there, thank you so much for your amazing videos. You have been extremely helpful! I do have a question. When changing an LLC legal entity name, is that complicated? Eg; Current LLC is "Shutter Creative Studio LLC" to "Shutter Media LLC" ?
I would not say it is complicated. It is more tedious -- there's just a bunch of places you need to change it. Here's a vid: th-cam.com/video/6Z_X1dTTdU4/w-d-xo.html
Great video! I'm about to start a single-member LLC selling and installing recreational vehicle air conditioning systems. Question I have, and could be a good subject for a future video, is how to fund (capitalize) it. I have enough cash available to buy all the tools and inventory needed to start, but I'd like to hear the benefits and pitfalls of capital contribution (cash equity investment) vs a loan (debt investment); either would come from my personal funds. The loan scenario seems best, as that way it's assumed that the loan will be repaid to me eventually, and doing this as a sole proprietorship (tax filing-wise) means the interest is taxable to me but at the same time a business expense for the LLC, so that's a wash. If I do an equity contribution, how do I eventually pull that money out (once the business is making money) without having to pay tax on a "distribution"? Or is that scenario not considered a distribution? And is a loan repayment also considered a distribution?
That is a great topic for a future video! Yeah it really does depend on your exact circumstances / tax situation. But to answer your last questions, if you did equity, when you pull out equity it is not taxable (its just returning your own money) - it updates your "capital contribution" amount. For the loan repayment, it's not a distribution - typically the payment part that's repaying principal is not taxable but the interests part is taxable.
@@ElizabethPW Awesome, thanks! So at the end of the day, it doesn't really matter which method I choose in my situation. The capital contribution method would be cleaner as it avoids the loan interest.
True. Sometimes people do creative stuff with loan interest or license royalties because it makes sense in their tax situation, but for most people that's overly complicated.
I want to start a single member llc. I currently live in AZ. I plan to move in 1 to 2 years to take care of parents in TX and stay. I am retiring from my job and want a simple llc and set it up once. I want to start llc now. Should I set up in AZ or TX?
question: what about holding companies for real estate investors??...vid? lol thx
hm I haven't done one just about real estate but here's one about holding companies th-cam.com/video/zUIvIMw7a_Y/w-d-xo.html
Im a sol proprietor, I filed a fictitious business name with my county here in California. Do I also have to file a name with the Secretary of State, And what is my business name if I filed a FBN with my county? Thank you I love your content.
If you're a sole prop with a fbn, you don't need to register with the secretary of state. For the county FBN papers, the legal name of your business is your own legal name.
If I have an existing business (LLC) and want to add other money making opportunities to the existing business, do I have to set up as "Doing Business As" under the existing business? Thank you.
Yes that is a common way to do it
I have a question! If I wish to change the business activity that I initially filed for with my LLC. Do I need to apply for a new LLC or can I just amend it? Or does the activity of my business that I applied for not really matter, and I can change my mind without having to change that at all? The name and address will stay the same, just the actual business activity would be different. The business isn't "established" yet, I'm still waiting for my filing to be processed, but I wanted to know what to do once processed
You can keep the same LLC. The business activity mostly matters for zoning laws (local permits) and the calculation of fees for a business license, so look to update your permits and licenses.
@@ElizabethPW thank you so much!
So you said I would need to register my buisness in all 50 states to sell online or if my manufacturers are in china or mexico I would need to register there as well??? I'm confused..... online clothing brand using Italian made shoe supplier sometimes, register in Italy?
You don't need to register in all 50 states unless you have physical contacts there (or are making a bunch of $ in each state -- typically high five or six figures per state). Typically an online business needs to register because they have inventory in a warehouse or they have employees in a state. Having a supplier or manufacturer would not usually be enough. I don't know about other countries, sorry!
Wait so I can launch without getting any business licensing, permits, or legal stuff etc. just to test the waters and see if it’ll do any good?
Well it really depends on the state/city whether they have a rule where you can have 1-2 sales before you are a "business" (some have a rule that if just 1-2 sales then not yet a business), and also some have a rule that you don't need to file all the stuff until 15, 30, or 45 days after the business starts. It really depends on the local rules
How to start a work agency / handyman llc at New Orleans as a itin holder?
You may want a service to help you out to create that, you can check out incfile or doola or northwest
thanks
I have a random question ?? My friend has a small construction or Maintenance business not sure how he has a classified he has a business lol. So I want to barrow some money from him at 10% for 3 months to help get capital for a house I am selling. Can he claim the interest I pay him and claim it as income on taxes 🤔 I guess it a hard money loan maybe 👀 he is a friend
If someone loans you money for interest, technically the interest is taxable to them as income (even if a personal friend loan).
Thoughts on medical providers whom are providing Telehealth and companies want them to form a corp? What location would be best to use? Btw thanks for you content!!
Do you mean which state to file in or the address to use, since you are virtual?
@@ElizabethPW i think it would be best to file in the state one is licensed in- in this case CA, but if a virtual business Address was used for the corporate formation then do you need to get a city license where the virtual address is located?
Yes I agree to file in the state where licensed and where the clients/patients are located. Generally if you are not actually doing business in that place (it is just a virtual office address) then you would not need a business license, but there are a few cities who pull the CA business database and send business license/tax bills to those businesses.
@@ElizabethPW is there a database of cities that do this? I wondered if I obtained a business address that also acted as the registered agent if I would need the license in the city that service is provided in.
Hm I have not found a database like that. When it comes up I just check the city/town involved