Hi Elizabeth - I'm wondering if you'd consider doing a video about the various yearly or quarterly filings - not just tax filings - required by having a single member LLC with S Corp tax status. Thanks, your videos are very helpful.
Hi Elizabeth, how does one get started learning all these formalities? (I know I don't need to know all of them but the ones I'll do 80 to 90% of the time.) I'm renting real estate. I'm a single member. There's lot of stuff about forming an LLC DIY, using some company, using a lawyer, someone or some company did not do it right. How do you do all of this WITHOUT OVER SPENDING? Biggest Question for me: IS THERE A BOOK or CLASS that I can take to get the basics down? Am I constantly going to have to pay someone to help me? Is this something I can do myself after I've done it a few years? How do you FIND THE PEOPLE you need to build relationships with to help with small questions as you go along? I don't want to be living hand to mouth with a lawyer for the rest of my life wondering WHY AM I DOING THIS? Getting fed crumbs.
I recommend checking out the books from Nolo Publishing -- they are usually good and understandable. Here's one about single member LLCs: www.amazon.com/Nolos-Guide-Single-Member-LLCs-Liability/dp/1413330134/
Great info here!! I got a question though. I set up an LLC for my rideshare and deliveries apps. It's only small operation, like a part-time for now, do I still need all these formalities?
Yes every LLC needs the basic formalities of a separate bank account and separate accounting, at least. Otherwise there's really no point in having the LLC because it is not being treated as a separate/real legal entity
Thank you for your great content. Have a question: Do you need also to have formalities /agreement when you put the initial capital from your own money in your llc? And can you use this capital for company use?
It's great to have some kind of formality for your capital contribution. Like it could be listed in the Operating Agreement, how much you have contributed, and you'd also track it in your bookkeeping. Yes, the company would use the capital to start up the business and such.
Hi Elizabeth!! Do I need to file the written resolution/operating agreement somewhere? Or is this just something to keep for my records? I’m a new solo esthetician and want to make sure I’m doing everything correctly. Thank you for your time!
what IF you had a separate bank account for your sole prop and keep that when starting an LLC? is the liability now lost forever? or just until you get things set up correct?
Hi Elizabeth, love your content and thorough explanations! You have been so helpful 💗. I wanted to ask, If I created an LLC for my business, would I be able to do business with that name with just the removal of the “LLC” part or would I have to still apply for a DBA? For example if I named my LLC “Domingo Market LLC”, and then I named my online business “Domingo Market” is that okay to remove the LLC part for my business name? Or would my business name always have to include the LLC part?
You'd need to get a DBA for the LLC if you want to sometimes drop the LLC, here's a link to the Minn rules: www.sos.state.mn.us/business-liens/business-forms-fees/assumed-namedba/
I see getting a credit card for your business as a problem because every credit card application wants to know about income. If you’re just starting, your income will be either zero or far below the threshold necessary to qualify and get approved. Also, I see co-signing as a secret door through the corporate veil to your personal assets. With all that being said, would it be just as good to get a debit card for the business?
Yes, getting a debit card makes sense. But yes in the beginning, someone will need to co-sign for a credit card, lease, etc. One way of dealing with this is to start out with someone co-signing, and run it that way for a few years, until the business gets its own credit. Then you sign up for a loan or credit card with just the business being liable, no co-signer.
Hello Elizabeth, I will really appreciate if you answer my question. I incorporated on 11/29/2022 in California and I dont really know if I have to file taxes for IRS or State for tax year 2022 due to I did not conduct any business and received any income. Do I still have to file? my corporation entity type is an Stock Corporation -ca-general. I appreciate your help in advance.
You'd still need to file but you may not owe any taxes (depending on your tax status) -- you'd file a return with a bunch of zeros. If your corporation is an S Corp, then you don't pay the minimum franchise fee of $800 for the first year, under the current rule
Accountant sent invoice for form 2553 preparation fee. It is billed to my personal name. Is that okay? Shouldn't it be billed to LLC or does it not matter? They are saying it does not matter..and that I can still charge it to the biz card.
Ah well it is common to have the first expenses of the biz to be paid by the owners since the biz bank accounts are not set up yet (can't really send an invoice to something that doesn't exist). But yes keep a paper trail record of how it is a business expense and it was paid by the business
How often are these written resolutions needed to be created? Do we have to submit them anywhere or just keep them as proof? Also, how much would you charge for the operating agreement of my new LLC? 😀
You usually don't submit the written resolutions anywhere but sometimes you need to show them to someone -- like if the bank needs them to approve a loan. I don't draft operating agreements or declarations anymore, sorry!
Thank you for this information! I've been looking all over the place for it.
Welcome!
Great advice! Your videos are really helpful !!!
Great to hear!
Hi Elizabeth - I'm wondering if you'd consider doing a video about the various yearly or quarterly filings - not just tax filings - required by having a single member LLC with S Corp tax status. Thanks, your videos are very helpful.
Good idea -- I'll add that to the list!
@@ElizabethPW Yes, I want this too. Its been so hard finding WHAT YOU REALLY NEED TO DO AFTER forming your LLC. NO one talks about these formalities.
Hi Elizabeth, how does one get started learning all these formalities? (I know I don't need to know all of them but the ones I'll do 80 to 90% of the time.) I'm renting real estate. I'm a single member. There's lot of stuff about forming an LLC DIY, using some company, using a lawyer, someone or some company did not do it right. How do you do all of this WITHOUT OVER SPENDING? Biggest Question for me: IS THERE A BOOK or CLASS that I can take to get the basics down? Am I constantly going to have to pay someone to help me? Is this something I can do myself after I've done it a few years? How do you FIND THE PEOPLE you need to build relationships with to help with small questions as you go along? I don't want to be living hand to mouth with a lawyer for the rest of my life wondering WHY AM I DOING THIS? Getting fed crumbs.
I recommend checking out the books from Nolo Publishing -- they are usually good and understandable. Here's one about single member LLCs: www.amazon.com/Nolos-Guide-Single-Member-LLCs-Liability/dp/1413330134/
Great info here!!
I got a question though.
I set up an LLC for my rideshare and deliveries apps.
It's only small operation, like a part-time for now, do I still need all these formalities?
Yes every LLC needs the basic formalities of a separate bank account and separate accounting, at least. Otherwise there's really no point in having the LLC because it is not being treated as a separate/real legal entity
@@ElizabethPW Thanks!
I did set up my business bank account and everything is separate. 👍
Thank you for your great content. Have a question: Do you need also to have formalities /agreement when you put the initial capital from your own money in your llc? And can you use this capital for company use?
It's great to have some kind of formality for your capital contribution. Like it could be listed in the Operating Agreement, how much you have contributed, and you'd also track it in your bookkeeping. Yes, the company would use the capital to start up the business and such.
Hi Elizabeth!!
Do I need to file the written resolution/operating agreement somewhere? Or is this just something to keep for my records? I’m a new solo esthetician and want to make sure I’m doing everything correctly. Thank you for your time!
No you don't file them -- you just keep them for your records. Occasionally you may need to show them to a bank etc
what IF you had a separate bank account for your sole prop and keep that when starting an LLC? is the liability now lost forever? or just until you get things set up correct?
No you can fix it if you set it all up correct, but it only fixes it as of the time you corrected everything
Hi Elizabeth, love your content and thorough explanations! You have been so helpful 💗. I wanted to ask, If I created an LLC for my business, would I be able to do business with that name with just the removal of the “LLC” part or would I have to still apply for a DBA? For example if I named my LLC “Domingo Market LLC”, and then I named my online business “Domingo Market” is that okay to remove the LLC part for my business name? Or would my business name always have to include the LLC part?
I am located in Minnesota :)
You'd need to get a DBA for the LLC if you want to sometimes drop the LLC, here's a link to the Minn rules: www.sos.state.mn.us/business-liens/business-forms-fees/assumed-namedba/
Thank you for your reply and helpful information! I appreciate your help on this :)
I see getting a credit card for your business as a problem because every credit card application wants to know about income. If you’re just starting, your income will be either zero or far below the threshold necessary to qualify and get approved. Also, I see co-signing as a secret door through the corporate veil to your personal assets. With all that being said, would it be just as good to get a debit card for the business?
Yes, getting a debit card makes sense. But yes in the beginning, someone will need to co-sign for a credit card, lease, etc. One way of dealing with this is to start out with someone co-signing, and run it that way for a few years, until the business gets its own credit. Then you sign up for a loan or credit card with just the business being liable, no co-signer.
Hello Elizabeth, I will really appreciate if you answer my question. I incorporated on 11/29/2022 in California and I dont really know if I have to file taxes for IRS or State for tax year 2022 due to I did not conduct any business and received any income. Do I still have to file? my corporation entity type is an Stock Corporation -ca-general. I appreciate your help in advance.
You'd still need to file but you may not owe any taxes (depending on your tax status) -- you'd file a return with a bunch of zeros. If your corporation is an S Corp, then you don't pay the minimum franchise fee of $800 for the first year, under the current rule
Accountant sent invoice for form 2553 preparation fee. It is billed to my personal name. Is that okay? Shouldn't it be billed to LLC or does it not matter? They are saying it does not matter..and that I can still charge it to the biz card.
Ah well it is common to have the first expenses of the biz to be paid by the owners since the biz bank accounts are not set up yet (can't really send an invoice to something that doesn't exist). But yes keep a paper trail record of how it is a business expense and it was paid by the business
How often are these written resolutions needed to be created? Do we have to submit them anywhere or just keep them as proof?
Also, how much would you charge for the operating agreement of my new LLC? 😀
You usually don't submit the written resolutions anywhere but sometimes you need to show them to someone -- like if the bank needs them to approve a loan. I don't draft operating agreements or declarations anymore, sorry!
@Elizabeth Potts Weinstein thanks for the information Elizabeth 👍
Hello I am a landscaper do I need a cslb license number? To get llc I am in California.
Sorry I don't know about the CSLB rules