LLC vs Sole Proprietor: Which is best for YOUR business?
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- เผยแพร่เมื่อ 20 ส.ค. 2018
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One of the biggest questions I get as a business coach is “Should I run my business as a Sole Proprietor or setup an LLC?”
Maybe you’ve asked that question yourself. Perhaps you’ve been confused about which one makes sense from a tax perspective for your business.
Or maybe you actually thinking: “I don’t even know what either of those are and why should I care?!”
Today I want to simply explain the differences between the two and give you a simple and easy framework to know which is the right entity for your business.
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](/img/n.gif)
This is probably the clearest explanation of the concept, great job keeping it simple.
Totally
Agreed!
ok hmm
hey wwwhat a great time w
Facts cuz I been confused as hell
Be careful, there's some information that isn't accurate in this video.
Excellent video. Tax matters aside, I formed an LLC to protect my personal assets if my business gets sued. Your personal assets are at risk if you are a sole proprietor and your business gets sued. That's something to consider.
@RedEyeOf Jupiter it can impact your personal credit and affect you for years to come. Depending on if/what you get sued for and how much they are demanding.
What if at thr moment I have no assets
What if you have liability insurance
I’m in CA
Aren’t you unable to sue someone when their assets don’t exceed $500,000?
@@OutdoorsyVibe If that is true in California, the old saying about Cal being the land of fruits and nuts is accurate. No offense to you Nick. To my knowledge, anyone can be sued by anyone else, anywhere in the good old USA.
This is something schools need to teach, literally 4 years just for the experience and a piece of paper..
Okoook b no lo oookkinnkononoknok koo noon looking
Okoook b no lo oookkinnkononoknok koo noon looking m
school is not about education. It's about indoctrination.
@@eruston exactly.
Indoctrination and enslavement (being indebted so u always have yo work and working all your life, but having nothing to show for it)
Schools dont want people to work for themselves and make money. Schools are designed to dumb people down and send them off to the factories because factories need people who dont have options. If everyone was taught how to set themselves up for success with their own business there wouldnt be employees anywhere.
I formed an LLC for 1 big reason - to separate my personal finances from my business's finances, because it the event of my business being sued I want to save my savings. The way you wrote down where exactly the savings may come from for an LLC was very helpful, and I am even more convinced now that it was the right decision to have an LLC. I don't mind doing my own accounting and my own taxes, it's actually fun for me, so I will be saving a lot of money in taxes (looks like).
I am a sole proprietor and this video really cleared up my current confusion on if I should pay for the LLC. I’m not making nearly as much as you recommended so I feel comfortable in waiting. Thank you for sharing! God bless.
Are u doing better now ?
Haveing a LLC is to protect your assets, a sole Proprietor does not protect your assets if you get sued.
@@idbountyhunter what if you don't have any assets?
@@Chrichna_D Doesn't matter,Your personal credit score will hurt badly and banks are less likely to give you a loan.
Hello! What do you mean? By being Sole proprietor or LLC?
Thank you
Thank you I’m I think I’m best with the sole proprietorship the LLC tax thing is too confusing for me right now lol
One of the more helpful videos i have ever seen on TH-cam. Thank you for being so clear and straightforward.
Thank you so much for this video! It has helped me make my decision I was so stressed out about this before I watched this video
Very insightful. It answered a lot of my questions about selection of legal structure and tax benefits of sole proprietor vs. an LLC.
Wow this was extremely helpful. I have been killing myself with all this search and you have make it clear. Thank you for this video. I will definitely hold off on the LLC until I get the business up and working.
I have been looking all over TH-cam and THIS is exactly what I was hoping to find. Thanks! The graphic/breakdown is so helpful.
Glad to help!
I have been so confused between Sole Proprietor vs LLC. This is the best Video that I have seen that explained things clearly! Thank you!
OMG thank you for this! I just opened a DBA in California for my wedding and event planning and decorating services. I have been feeling like what if its the wrong move? I don't have a lot of money I just started gaining momentum and I'm totally ok with moving every day and growing slowly. This video makes me feel a lot better about not rushing into an LLC.
Same. I'm a wedding videographer and was wondering if I should've done a LLC. How is business for you so far?
Thanks so much for this video! Cleared up so much confusion I had with all the tax jargon. Definitely don’t need to be stressing about an LLC right now. Sole Proprietor sounds like the way to go.
WOW, you're great at explaining things!!!! So clear and to the point and filled with actual information!!! Thank you so much sir!!!!!
This was extremely helpful. I am in the process of starting a business and don't want to take on more than I need to. Especially in the beginning stages. Thank you so much for this information.
Seriously SOOOO helpful. Starting a business has been stressing me out, and I didn’t hardly know what a sole proprietor was. I’m subscribing and adding your other videos to my watch later list 😊😊
Thanks for watching!
This video has helped me immensely!!! I am a notary and I didn't understand about LLc's or what it meant to be a sole proprietor. I understand a whole lot better now. Thank you for this video.
This video by far is the most informative and easy to follow presentation on LLC vs. Sole proprietor
Thank you for the clarity!!!! This video was SO helpful 🙏. My husband is a sole proprietor for 3 1/2 years now. Our tax person advised us to look into a LLC since his business is growing, this past February! We thought we had to rely on him but realized we could apply online so we are researching to make the best options. Again, Thanks 👍.
The clarity on this video was AMAZINGLY helpful. Thank You.
Starting a small clothing, I think I’ll go with a sole proprietorship until I start making “real” money.
this clarified everything i was searching on ! thank you so much , im opening my own business but i was so confused on what exactly i needed to do . now i now i think with the type of work my company will do a LLC will be the best way to go since its more on construction and i know how much roughly it brings in yearly .
I just watched like 5 tax/LLC/Sole Proprietor and my head was spinning. Man am I glad that I saw this video. Easy to understand, to the point, mad informative! Thank you
Just starting a new business and I was on the fence about switching to an LLC. Watching this video I think I'll keep the sole proprietor for now. Very helpful, thanks.
Out of all the videos, this was the simplest one to understand! Thanks so much.
You're welcome!
The most concise and clearest explanation on the subject I've come across. Thank you so much Graham
I’m currently getting ready to start a business soon. I was confused about sole practitioner and LLC before I sign the paperwork. Thank you for sharing this important information.
I am starting the process of making my home bakery legal and this video was extremely helpful. I definitely don’t make enough money with it yet to worry about forming an LLC. I am saving this video for future reference. You’re a great teacher!
Wow you literally answer the questions I had 💕😭 thank you so much for being super clear with the information
This has been by far the best explanation on figuring out whether to start as a sole proprietor or an LLC, and what each one means, Thank you Graham for this awesome video! you helped me answer many questions I had.
I just found your video's, I'm a super fan now, your videos are so clear!! 4 videos just answered all my questions to help me get started with my business. Thanks so much!!
Thanks for watching!
I was just about to start LLC process, but I thank God I came across this video. Very helpful . Thank you so much for sharing this.
I started an LLC 2 years ago not realizing a sole proprietorship would be better for me. It's good to know this early.
@@astralblue You might feel better after watching this. I always watch multiple videos on a single topic to try+get the most info on a single topic. th-cam.com/video/3J7HG6IuV_c/w-d-xo.html
I've watched 8 videos by different people on this topic, so far.
astralblue same
astralblue what’s the paper work and where did u turn it in plzz answer
I cannot thank you enough for creating this video. I have watched upwards of 20 different videos on LLCs vs S Corp and sole proprietorship and this time...it clicked! Great work! In January I broke off from my "cushy" full time job with benefits to pursue what I love and what makes me excited to get up in the morning for: Voice Over work/audio production. Sounds like that might be in your wheelhouse as well. Cheers!Anywho...I've been trying to figure out what my best course of action would be administratively/legally and you have left me feeling fully equipped with the thoroughness of this video. Thank you again!
So glad it was helpful! My dad does Voice Over work part time and loves it.
Now this is quality content and helpful information. Clear and understandable and defines a clear line to whether you should pick one or the other.
I was about to start the process for an lox so glad I watched this video
Thanks! I've been reading on this for the last 2 days (tax sites), and you were the only one who completely explained it. Kuddos!
Glad to help!
I've been pulling my hair out trying to understand the difference. Found your video and theyre awesome!!!! Thank you!!!!
Best video I have found yet on the topic. Thank you!
Really well done, and well thought out video! Thanks for sharing. Feel much more educated on LLC and SP concepts now. Thanks again! 🙏
This video is a few years old but explain things so well, I'm a sole proprietor
I just started my online business and I’m still learning English by the way, but to be honest I understand you clearly and this video answer my questions, thank you 🙏
Great to hear!
Thank you I’m doing my research to start my business and wasn’t sure which option to go with. I will be applying for the sole proprietor.
Very help and easy to understand video I appreciate it 🙏🏽
This video is much appreciated! Thanks for providing such high level of clarity.
I like the lighting setup in your videos. Very professional and slick!
Fantastic. Super clear. Now I understand the difference in tax savings. Thank you, Graham!
Thanks for this video! I’m set up as a sole proprietor because I was starting a second business but was already self employed in one business. So for getting launched, and not making a ton, I just kept it as a sole proprietor and filed it all under one return. I just completed year 2 of my second business which is outpacing my first so I’m working on trying to transition to one business only, and going to restructure as an LLC this year. This video just confirmed that I’m at the point where I’m ready and it makes sense going forward with my current sales and my sales goals for the year to become an LLC and separate things out.
Congrats!
Just want to thank you for these videos brother. Great stuff and amazing explanation.
Thank you for the very basic and informative discussion.
Wow. Love this video. You explained this so simply. I get it.
This was great, definitely guided me on the direction I should go in with my fashion business. I’m starting as a sole proprietor since I’m doing this alone an starting small.
This video was perfect for me with all the questions in my head that needed to be answered , and some that I didn’t know about. I am starting a Sole Proprietor but hope one day to get into an LLC. Thank you for this knowledge in this video. HIGHLY RECCOMMEND TO WATCH !! I am a beginner and new to all this it really helped out.
The clearest and most easy to understand information I have come across! Saving this video! Good job! Thank you!!!
Oh, and I own a photography business and I am a sole proprietor!
Well done. Super helpful and concise. Thank you
This was SO helpful. Thanks Graham.
One of the best,, practical and simple explanations I have found. Thanks!
Thank you so much for that distilled breakdown!
You’re welcome!
Very helpful. Clear speaking, to the point and at a good pace. Thank you.
You're welcome!
This was so helpful!! Thank you for explaining it so well. It was so simple & easy to follow.
VERY CLEAR, EASY TO UNDERSTAND. I HAVE JUST FILLED OUT ALL THE PAPER WORK FOR AN LLC, PROBABLY A BIT PREMATURE ACCORDING TO YOUR ADVISE CAUSE I HAVEN'T MADE DIME ONE YET. THANK YOU VERY MUCH!!
This was super helpful!!! I really needed this breakdown. It got right to the point and very informative. Thanks so much!!
Wow thank you!! Very informative!
Thank you SO MUCH for making this video! This helped me a ton.
So glad to here!
So Helpful, Graham! Thank you!! Moving from being a sole proprietor to LLC
You... are extremely helpful, my friend. Thank you!
And you are extremely beautiful. I'd like to be your sole proprietor. ;)
briana lowe looking forward to watching your weight loss video
@@trollingisasport 🤣🤣🤣🤣🤣🤣
I love your format. Nice lighting and upbeat music. Thanks for the information.
Thank you for this video it truly helped me to understand which is best for me.
Thank you for making this video! You’ve explained it so well and so simple! It helps a lot!
4:38 = this is the crux right here. Thank you Graham for explaining this is amazing clarity :) 8:29 also
So good Graham. You're always so clear when it comes to explaining these things. I'm going to start my own business soon its probably going to be LLC or S Corp.
This video gets an UNDENIABLE standing ovation!! Bravo!
Much appreciated. Best and most clear info on this matter by far. Sole proprietor so far but next step turning llc!
Excellent parsing out of this very confusing topic!
Thank you so much!! Super helpful!
This is the most effecient clear explanation and advice to new entrepeneurs out of all the vidz on youtube.....thank you
Very simple and straightforward. Thank you!
Excellent information! Thank you :)
Solid video. Thanks!
Best explanation ever... just started a rental property and your video really helped me alot.. You got a subscriber here
Thanks for laying this information out in a clean and clear way. This was BEYOND helpful.
Nice! That's why I put it together.
This is the clearest example if the differences I've seen and I'm glad I found it before starting as an LLC. Thanks for the video, going to subscribe now!
Well explained🙂 🙏🏽Thank you.
5:25, my man delivers. Thank you for clearing that up. I am just starting out and while I do want to do things right, I am not making enough to warrant an LLC.
Great video. Saw tons of videos on this subject and this was the best and clearest video yet.
This was very straight forward and very helpful thanks!
I second that!
Third that!
Thank you so much for this. I can’t believe TH-cam is free soemtimes. Also for us visual leanrers would you mind putting graphics and the words next to what youre saying? It would help everything make more sense and add tangiblity to the information. Thanks again
best explanation I have seen on youtube on this topic - great work!
Thank you so much Graham for this informative video. You answer so many of my questions.
I'm currently 16 but in the future I want to start my own business someday. I'm thinking of the LLC option because that seems like a better fit for me.
Come back to my reply when you do . Perhaps you can hire me young man .👍
@@INDREAMSBEGINSRESPONSIBILITIES XD I still have a lot to learn though lol
Why not start your business now? I encourage you to do so.
@@cdmanor777 Okay, I will start early, thanks for the advice :D
You gave me a peace in my mind. First time, I subscribed immediately
Can you change from an LLC to a sole proprietor?
You are an awesome teacher. This ambiguous subject just made sooooo much sense
Man you broke it down so easily man man all I can say is man man I don't know how else can you break it down for anybody else to understand it but you did a very good job you got to the point my man ☺️
Best explanation on TH-cam
I liked your video! I have used SP for about 25 years. I do have two DBA's with checking accounts. Since I have seven dependents I've always got a tax refund because my regular write offs from overhead cost don't outweigh what the Fed gives me in standard deductions with the big family. For us ,the idea of an LLC would make sense if we decide to hire people. I'd have to spend lots of money of marketing to create enough business to employ a technician. So far this has never happened. I use sub contractors to assist me with their own business license and insurance. The interesting thing is you can train a person and bring them "up to speed" and that person may realize they can start their own business and make more money on their own..that is how the ball bounces in the real world. If the perks aren't good enough, people just move on anyway.
What’s dba
Thank you for giving the clearest explanation and for the advice!
Wow, this was a really good video. Thanks for breaking down the difference very specific and detailed. I just started my small business hustle; but I know now to stay sole proprietor until I start generating really good income....
Great video Graham! Thanks for sharing! I'm neither yet. I appreciate the advice of waiting til making $50k to incorporate. Thanks for the great content!
Thank you, Graham. I just started a business last year as a sole proprietor and I'm just now learning about both LLC and it from a course I am taking regarding my business (Wedding and Events). I didn't know about either one and just picked sole proprietor because a friend said to. This video was very helpful as we will be discussing this topic on next week's Module. Not sure exactly what all your topics are about, however, I would like to know more about business names. I Just found out that I have chosen a name that already exist although the other name has llc at the end of it. Thank you for sharing in layman's terms.
Thank you for this! Currently sole proprietor looking to switch
Thank you so much your video was very helpful! I was confused before your video, but now it is very clear to me what I need to do.
Thank you this was very helpful! Im still having a very hard time choosing which one to go with..I have started my own Auto repair and performance company and I have a fair amount of clients but I know the income is going to be very sparatic so I dont know how I would judge a salary amount for myself..I would like to just do a sole proprioter but people im fixing peoples vehicles unlike cutting grass or hair there is a potential very alof of severe liability issues even though I am very good at what I do...any thoughts or advice would be most welcome!!