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.
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.
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.
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!!
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!
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
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.
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
What if your insurance doesn't cover all the damages. Look I don't know let's say you have a small truck and you want to have a moving company and you decide to drive and some little kid rather than the street their family sues you for wrongful death your insurance drops you doesn't cover shit and they see you for 5 million dollars. Guess what they have sued you and not your LLC and that debt will stick with you for the rest of your life.
So how is it going now? I opened mine back in 2019 and haven’t made any profit because of the assets I did not have such as a vehicle, a property, employees and now I have acquired penalty fees and annual fees and have not even paid those
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
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.
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
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'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
Okay, a few questions--1: Why can't that LLC owner simply register their company as a C corp & move forward with the investors? 2. Can a sole proprietorship open a bank account and get credit? 3. Can a sole proprietorship get the same benefits an LLC owner can? 4. Why would anyone (right out the gate) jump into the C corp pool if they're new to business? Isn't that an (even bigger) financial risk? Who would you suggest anyone looking to form a compliant business turn to?
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.
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 !!!! 😁 😎
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.
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.
Thank you for this video. I'm in the beginning stage of starting a medical clinic and a safe house for women. What is the best way to go about finding an inexpensive office for your business? I would prefer two houses close to each other that I could renovate.
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!
I have a towing and hauling company, my state changed the law that I would have to get a towing license which I couldn’t leave my job to take and also I did not have the proper vehicle for it smh
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.
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If you have an LLC consider watching this next "Single Member LLC: What You Need to Know" th-cam.com/video/iHy1xLYqS6Q/w-d-xo.html
I will watch this also
Is there by any chance I can get an answer for my question please??
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.
How do you not have a Million subscribers?! Your videos are so good. I love the way you break down this concept into smaller parts. Thank you!
Wow that means so much, thank you 😊
Agreed!
I'm on the verge of starting my own business after working for other people for 8 years. These videos have helped so much.
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.
Exactly! Well said!
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.
You are absolutely right. Individual state grants you the license to operate hence state laws come into play.
Nice
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!!
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!
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.
Thanks and it sounds like you’re off to a great start 👏🏽 do you mind me asking what kind of business you have?
@@LYFEAccounting A Notary Services business that consists of general Notary, Loan signings and Remote Online Notarization.
BZD Notary Services in Texas
I wish I saw your videos sooner. I got an LLC in college and I was definitely not ready, and didn’t understand what that would do to my taxes.
Thanks, I have been watching so many videos to gain insight into when it's best to get an LLC. You have been the most to the point!
Glad to hear that!
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.
Great moves, smart moves
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
Thanks, Eric! What kind of business do you own?
great video. good info. thank you. will look for the S corp vid that I dont see linked anywhere :)
I was almost about to jump the gun and form my LLC. Currently not making any money with it right now and will definitely need investor support.
Ohh yeah, glad you saw this video forreal
Thank you Sean for taking time to share valuable information with us. We appreciate you.
My pleasure! I appreciate you for watching.
Kudos for providing such valuable information, even if it’s “against popular opinion”. I learned a lot!
Thank you for sharing your feedback Sean!
Appreciate the content. Starting a small business and was overly focused on the protection of an LLC, yet I don’t have assets at risk.
Me too!!!
Um this horrible advice because they can sue you or business. Even if you dont have assets you can still be charged and owe a who debt
an llc is only $150 and $50 annual renewal. it just makes sense and to do it.
@@ursilaminor6447 Care to elaborate? - Wouldn't having the appropriate business insurances provide protection?
What if your insurance doesn't cover all the damages. Look I don't know let's say you have a small truck and you want to have a moving company and you decide to drive and some little kid rather than the street their family sues you for wrongful death your insurance drops you doesn't cover shit and they see you for 5 million dollars. Guess what they have sued you and not your LLC and that debt will stick with you for the rest of your life.
I never thought about this part. I did, but didn't know how to word the question. Good shit bro
You look like a young Robert Townsend. Very impressive information. Thank you.
I get this allll the time, but I take it as a compliment. Thanks!
@@LYFEAccounting Awesome. I pray you all do well in your company. All of your team are super impressive. Keep up the good work guys.
Thank you for the post neighbor. Many blessings in return. Very informative.
Excellent info. Thank you for sharing this. I wish I knew all these things before starting my LLC. Keep up the great work.
Thanks as always Ryan! LLCs are still incredible
So how is it going now? I opened mine back in 2019 and haven’t made any profit because of the assets I did not have such as a vehicle, a property, employees and now I have acquired penalty fees and annual fees and have not even paid those
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
You make a good point with the LLC, if you don't have assets, what are you protecting.
One of the best videos out here..definitely needed this appreciate it b I’m tuned in to your channel
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.
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
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.
How much risk do web developers have. Do you guys get suid?
@@jeff31345 I think with any business there is always some risk. It is good to keep business and personal assets separated just in case.
Any web3 experience?
@@jeff31345 You have a typing error. Clearly stated in the comment-- personal assets.
Thanks for the information. Alot of us really needed to hear this.
Glad it was helpful!
The plus side of the LLC is it enables you to attain business credit and funding
True!
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
Informative video as always 👍🏾. Also appreciate the short investor/busines owner sketches you all do too!
Thanks! That motivates me to do more!
Easy understanding format. Thank you!
So glad you think so! Do you have an LLC?
Thank you for the time stamps!!!!
Very thorough and understandable presentation. Thank you.
I really like your videos. I'm sure you get a hell of a lot of customers talking to people like this.
So much great information, thank you for doing this for free
Our pleasure!
I want to apply for government contracts and I also did not want to use my personal name. So having a business name is helpful.
Liked and subscribed with notifications ✊🏾🙏🏿💯🎉
Thanks for posting this video. I needed this help
I got 2 LLCs because I am in the beauty industry service. For profit, not investing. Also, can you do a video explaining the other business licenses.
I am glad I found you thanks so much.
Is an LLC good for beauty services? Lash extensions, eye brow microblading, nail art?
Okay, a few questions--1: Why can't that LLC owner simply register their company as a C corp & move forward with the investors? 2. Can a sole proprietorship open a bank account and get credit? 3. Can a sole proprietorship get the same benefits an LLC owner can? 4. Why would anyone (right out the gate) jump into the C corp pool if they're new to business? Isn't that an (even bigger) financial risk? Who would you suggest anyone looking to form a compliant business turn to?
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.
In order to build business credit you need a registered business. We have an excellent video on our channel all about it.
@@LYFEAccounting ok thanks again
Thank You Sir.....You have just kept me from making a huge mistake! Yes, I am subscribing!
I wish I had these tools before creating an LLC although I’m going to benefit from it later but with way more knowledge now thank you .
this man is great. Thanks Shaun
Very contradictory. 🤔
Do you have any videos that tell you how to start a sole proprietorship? With the advantages and disadvantages?
Have you seen my video on how to start a business?
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 !!!! 😁 😎
Thanks for the information
So how do you open up a business account or build business credit if you don't have an LLC?
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.
Great information
Now comes the decision between LLC & S Corp…hummm
I'm soooo glad you did this
Thank you so much for the content. Very helpful. But can you please do a video for Taxi drivers/Independent contractors? Thanks.
Thank you for all your videos
Thank you for breaking it down
Wow so informative- some of this I did know but some I did not know
Great information!
Thanks for this video.
Excellent advice on LLC. Appreciate your honesty.
Thank you for all that you do. I really appreciate it.
I appreciate that
Great info!!! Thank you!
Great information! Thank you!
Glad it was helpful!
GAH! I watched this too late. :( Great information!
Awww, Well still, Thanks for watching!
Keep up the good work all of you!
Thank you! Will do!
this is informative as hell thank you
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.
It’s video like these that made me subscribe!
Seon, every business formation has its advantages and disadvantages. How about converting?
Thanks so much.I always wondered why someone would need an LLC if they have nothing to protect outside of the business
Thank you for this video. I'm in the beginning stage of starting a medical clinic and a safe house for women. What is the best way to go about finding an inexpensive office for your business? I would prefer two houses close to each other that I could renovate.
Some people rent storage units for their business office, but they don't let the storage employee's know that they are using it as an office.
I don't know, but good luck to you! What a beautiful thing you are doing for those in need. 🙏❤️
Love it!! Now I understand 💕
You broke it down so well thank you
Perfect, glad you understood everything!
I love your videos very informative and educational ❤️
But cash is an asset too as well as at stock
I'm subscribing just learned alot
I want 2 start a business and have a business plan...if not an llc then what? How do we get investors? What book u read to learn these concepts?
Soooo, would a notary be liable for certain things and more likely to be sued? 🤔
I would think so. Imagine missing a fraudulent document and you OKed it. You might get sued by someone.
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!
can you please make a video explaining depreciation and how to record it? thanks!
Good idea, noted!
Do you have a video explaining which entity a small business should use?
Well the answer depends, but check out our videos on like LLC vs S Corp
Great information, thank you
Thank you for sharing this!
@@LYFEAccounting would you recommend and LLC for a bookkeeping business?
Having a LLC will help you get money for commercial property
But how if I can’t even get a loan from a bank to acquire property?
This is great! Glad I got a LLC
sooooooooooooooo too late - I just thumbs up your other video 😊, but this information is still helpful. Thanks for sharing.
Hey LLCs are still a very good option. What type of business do you have?
I have a towing and hauling company, my state changed the law that I would have to get a towing license which I couldn’t leave my job to take and also I did not have the proper vehicle for it smh
So say I have to put in my taxes for my business that doesn't have an LLC. Should I do a sole proprietorship or just not do anything?
Great! Thank you! 😊
Hey 👋 can you make a video of multi member LLC? I’m kinda lost in how you pay your selves and how they do their tax.
Noted! I will :) Thanks for the suggestion!
@@LYFEAccounting ayeeeee thanks man highly appreciate it 🙏
Profits and losses pass through to each member’s personal taxes
I wish I had known this 10 months ago, can I dissolve it and change it to sole proprietorship?
Sound advice. Can I change to C Corp as an entrepreneur working as a business coach when I renew or are there more steps?
Thank you
Question so if I have a LLC and I am a online coach I shouldn’t have any liabilities so how would I change it to a sole proprietor
Very helpful, thank you
You're welcome, hope you subscribe :)
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.
How do you build businss credit without an llc? How do you get business credit cards?
This is good information
Hello Sean it is nice to meet you
Great information. Can i build business credit operating as a sole proprietor?
Not unless you use DBA. It is best to incorporate if you want to build business credit.
That was my question as well.
as a sole proprietor can they go after your back money??