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Hi. Thanks for watching and for your question. I can't give legal advice without being retained or tax advice ever, so the following is for information purposes only: 1. For the reasons set forth in this video: ua-cam.com/video/vPc2bt0lCkI/v-deo.html, I generally prefer an LLC that elects to be taxed as an S Corp (except for real estate LLCs, which yours is not of course). 2. That way you get the lack of formalities of an LLC (which are required in corporations) and the tax savings of an S Corp election. 3. Note that in the standard and premium packages, Bizee will help you elect S Corp tax status for your LLC. For more on the benefits, drawbacks and deadlines of S Corp elections, here is a video I just made on the topic: ua-cam.com/video/q34kHeLPGQg/v-deo.html. Let me know if you have other questions, and I wish you and your business all the best! Best regards, Chris

Wow, thank you so much! I'm glad you find my videos helpful. Best regards, Chris

Thank you for the kind words and for your question. I cannot give legal advice without being retained (or tax advice, ever), so the following is for general information purposes and should be verified by your legal and tax advisors. 1. You should look into the tax implications of putting your primary residence into an LLC for rental purposes (depending upon your plans). I say this because, for example, if you decide to sell it during a period where you had lived there 2 out of the last 5 years (e.g., within 3 years after you move out), owning it as an individual entitles you to a primary residence exclusion on capital gains tax of up to $250,000 if you are single or $500,000 if you are married. 2. I believe (please confirm this) that transferring your primary residence into an LLC will disqualify you for this tax break, even if you do sell it after having lived there 2 of the last 5 years. However, please check with your tax advisor (or reach out to me at www.chrisjacksonlaw.com and I'll refer you to my CPA, who is both smart and relatively inexpensive in my view). 3. However, if you are positive you are going to turn your primary residence into a rental property and not sell it within the qualifying period referenced above, then you can certainly consider putting it into either a CA LLC or WY LLC (if WY LLC, it would need to qualify in CA). An LLC should provide you extra protection for your personal assets (beyond the rental house, which is now an asset of the LLC). 4. For the reasons I set forth in this video: (ua-cam.com/video/Qag9vlnp348/v-deo.html), I prefer WY LLCs (or WY LLC Holding Companies owning CA or other State LLCs which own the property), as it is harder for a plaintiff to pierce the veil of protection to get to your personal assets than with a stand-alone CA LLC (in my view). At the very minimum, again assuming you will not sell it in time to take advantage of the tax break referenced above, you should have it in a CA LLC. You can always set up a Holding Company LLC later if you so choose ... especially if you will have multiple rental properties. 5. For tips (not legal advice) to reduce the chances of veil piercing, and LLC operations in general, a related company of mine is selling a Next Steps Guide here if you are interested: bit.ly/Legal-Templates. I hope that helps, but let me know if you have other questions! Best regards, Chris

Hi. Thanks for watching and for your question. Yes, in North Carolina you can use the name "Company" as part of your LLC's name, as long as you also include the LLC designator at the end (e.g., "LLC"). So, names like ABC Company LLC (or Tom & Jerry Company LLC) are fine. I hope that helps. Best regards, Chris

Thank you for the kind words and for your question. I cannot give legal advice without being retained, so the following is for general information purposes only. That is a good question, and it really comes down to your tolerance for risk versus the expense and complexity of having multiple entities. The following are some options in general (from least protective/expensive to more protective/expensive): 1. Assuming your rental properties are in CA, have 1 CA LLC own all rental properties. However, if there is a liability as to one rental property, and the plaintiff sues the LLC, you are subjecting the other two rental properties to potential risk since all 3 properties are assets of the same LLC. 2. Have a WY LLC own all 3 rental properties and qualify to do business in CA. 3. Have each rental property owned by its own LLC (which silos off liability). 4. For reasons set forth in my Holding Company Structure video (see here: ua-cam.com/video/_IogAZ1xJoU/v-deo.html), set up a WY Holding Company LLC (see this video if you want to do it on your own: ua-cam.com/video/NUezXXe7nwI/v-deo.html) that you own. Then set up each CA LLC and list your WY Holding Company LLC as the member of each such CA LLC. 5. Or, you can do some combination of the above. If you want more details on how best to transfer the properties into an LLC, feel free to reach out to me at www.chrisjacksonlaw.com. I hope this helps (or at least points you in the right direction)! Best regards, Chris

Hi. Thanks for watching and for your question. Yes, if your subsidiary LLC is owned by a WY LLC, then the WY LLC would be listed as the member. For the member address, you should use the business address of the WY LLC (not the registered agent's address). If you are concerned with using a home address as the WY LLC member address, don't worry too much as this is an internal document used to provide the rules for operating the LLC and is not a public document. I hope this helps, but if not, please let me know. Best regards, Chris

@@cjlawvideos Thank you so much for your reply. Prior to your reply, I was considering opening an account with a Registered Agt in the state of WY and using that as the business address for the WY Holding LLC. But it looks like you are advising against that. When you say use the business address of the WY LLC, what address is that? My 2 LLCs that I plan to link to the WY Holding address are in FL & TN, and my home is in PA. Thanks so much, Chris!!!

@@steveerwin3980 Hi. Thanks for your follow-up question. Yes, if you have an LLC in WY (WY Holding Company), you will need a Registered Agent there. The Registered Agent generally is just the person or entity which agrees to receive service of process by personal delivery (if your LLC gets sued) in the applicable state (WY in this example). Now, if the Registered Agent is also giving you a business address as part of their package, then you can use that if you like. Normally the business address of the LLC is separate from the Registered Agent's address, and it can be your home address (does not need to be in WY), a UPS Mail Store Box address (in your home state so you can pick up the mail), an actual office address (that the LLC leases), etc. Or, you can have a virtual office as the business address for your LLC. I use a virtual office address in WY for the business address of my WY LLC, and they receive, scan and send me all my mail (for $29 per month). If you are interested, here is a link to that one: bit.ly/LLC-Office. I also have a more professional office address for another entity, where I have the option of meeting people by renting an office or conference room at an hourly rate. However, I have to go pick up my mail at that one. If you're interested, here is a link to that service: bit.ly/AllianceVirtualOffices. I hope I answered your questions, but if not please let me know! Best regards, Chris

​@@cjlawvideosthank you Chris!!

Hi. Thanks for watching and for your question. I cannot give legal advice without being retained (and cannot give tax advice, period). So, the following is for general information purposes only: 1. For the reasons set forth in my video on S Corp Taxation (see here: ua-cam.com/video/q34kHeLPGQg/v-deo.html), I generally recommend that an LLC elect S Corp tax status to avoid Self Employment Tax (which is 15.3% on 100% of your LLC's net income if taxed as a sole proprietorship, which is the default tax status for single-member LLCs). 2. An LLC elects to be taxed as an S Corp, this will result in 15.3% taxes on your wages only, but everything else you distribute to yourself as a member of your LLC will be exempt from the 15.3% self employment tax. So, when your LLC is profitable, S Corp tax status will save you money on taxes. 3. In terms of when to elect to have your LLC taxed as an S Corp, see my video. Many LLCs wait until they are profitable. If you wait, just make sure you don't miss the deadline to file (2 months + 15 days after formation of LLC or, if you miss that window, within 2 months and 15 days after the end of your tax year - which is a March 15 deadline if you have a calendar year tax year end like most entities). I hope this helps, but please see my video to get more information. Let me know if you have any follow-ups. Thank you. Best regards, Chris

Thank you for the kind words. The main differences are that, when you set up the Holding Company, you will be the member(s). And, when you set up the Subsidiary, you will list the Holding Company LLC as the member of the subsidiary LLC. You want to set up the Holding Company first for this reason. Please let me know if I didn't answer your question ... thanks! Best regards, Chris

Thank you for your kind words. I cannot give legal advice without being retained, so the following is for general information purposes only: 1. If you are a non-resident, just be sure to select that you are a foreigner when you get to the EIN section of the set up process (in the Standard or Premium packages). They will help your LLC obtain its EIN. 2. As for sales tax questions for an e-commerce business, I cannot give tax advice, but this article (and firm) may be helpful in addressing sales tax and other tax issues for non-residents: oandgaccounting.com/foreign-owned-us-llc/tax-compliance-for-non-resident-amazon-fba-sellers-operating-under/. 3. Another challenge is opening a bank account. Here is some general information about that (and note that Bizee recently established a relationship with Relay Bank, so check with them as well): ChatGPT: Opening a U.S. bank account for a non-resident-owned LLC can be challenging, especially when attempting to do so remotely. However, several financial institutions and fintech companies have streamlined this process to accommodate international entrepreneurs. Here are some options to consider: 1. Wise Business Account Wise (formerly TransferWise) offers business accounts that allow non-residents to hold and manage funds in multiple currencies, including USD. While not a traditional bank, Wise provides account details for various currencies, facilitating international business operations. 2. Mercury Mercury is a fintech platform tailored for startups, offering business banking services without requiring a physical presence in the U.S. Non-resident LLC owners can apply for an account online. However, eligibility may depend on specific criteria, so it’s advisable to review their requirements before applying. 3. Relay Relay is another fintech company that provides business banking solutions suitable for non-U.S. residents. Their online application process is straightforward, and they offer features like multiple checking accounts and user permissions, which can be beneficial for managing business finances. 4. Bank of America Bank of America allows non-residents to open business bank accounts; however, the process typically requires an in-person visit to a branch. They require both a foreign and U.S. address, two forms of identification, and a tax identification number. It’s recommended to contact the bank directly to understand their current policies and any potential for remote account opening. Considerations When Opening a U.S. Business Bank Account Remotely: • Documentation: You’ll generally need to provide your LLC formation documents, Employer Identification Number (EIN), and valid identification (such as a passport). Some institutions may also require proof of address and additional verification materials. • Compliance: Be prepared to comply with U.S. regulations, including the Beneficial Ownership Rule, which requires banks to verify the identities of individuals who own or control the LLC. • Fees and Services: Review the fee structures and services offered by each institution to ensure they align with your business needs. It’s important to note that policies and services can change over time. Therefore, it’s advisable to contact these institutions directly or visit their official websites for the most current information and to confirm their account opening procedures for non-resident LLC owners. I hope this helps! Best regards, Chris

Thank you for the kind words, and I'm glad you found the video helpful! I wish you and your business all the best! Best regards, Chris

Hi. Thank you for watching, for your kind words, and for your questions. Yes, I have received a lot of follow-up questions similar to yours, so I will definitely make a video that covers this in more detail! In the meantime, please note for general information purposes only (and this should NOT be construed as legal or tax advice), here is a general outline of one way to put an existing LLC into a new Holding Company: 1. Set up a WY (or other) LLC as the Holding Company. Note that I have videos on how to form LLCs in WY and many other states. 2. Have the Holding Company LLC owned exactly the same way as your existing original LLC. For example, if you are the sole member of the original LLC, you would be the sole member of the new Holding Company LLC. If there are two members that own the original LLC 50/50, then those same two members should own the Holding Company LLC 50/50. Same goes for a trust, etc. 3. To transfer the original existing LLC into the Holding Company LLC after forming the Holding Company LLC, you would need to "contribute" the membership interests the members own in the original LLC to the Holding Company LLC. The Holding Company LLC will then become the sole member of the original LLC. Note that a related company of mine has legal templates which include a "Contribution Agreement" designed for this purpose, which you can find here: bit.ly/Legal-Templates 4. Regarding changes to the Operating Agreement of the original (now subsidiary LLC), that language is covered in the template Contribution Agreement referenced above. Essentially, you need to amend your original LLC's Operating Agreement to show that the Holding Company LLC is the new member of the existing LLC. 5. Depending upon the state in which your original LLC (now subsidiary LLC of the Holding Company LLC) is located, you may have to (i) amend the Articles of Organization if that document lists the member (i.e., change it from the original member to the Holding Company LLC), or (ii) file an amended annual report if the annual report lists the member (especially if that's required within a certain time period), or (iii) simply wait until the next annual report is due to update who is the member (i.e., the Holding Company LLC) of the original (now subsidiary) LLC. I hope that helps, but I will certainly make a video to cover it in more detail! Best regards, Chris

@ Thank you so much!

@@SlowNOTSteady You're welcome! Best regards, Chris

@@cjlawvideos Hey Chris, Which one is it that we purchase for this?

Thank you Chris for writing out this process. My wife and I set up a holding company to manage our individual llc’s, her’s is a sole proprietorship and mine was set up as a partnership with the holding llc. After talking with our CPA, he’s advising us to go through this process to make our taxes easier. After reading your comment is seems straightforward to transfer ownership, however is there anything that has to be filled with the IRS or will the subsidiary llc’s show all profit flows to the holding company on their tax forms?

Hi. Thank you for your question. There is not too much difference when you are a single-member LLC and the individual (you) rather than a company is the member. However, in a member-managed LLC you may have to demonstrate that you are the only member when signing documents, as there is a presumption that all members must sign documents. I personally prefer appointing myself as the manager so it is clear to the public that I can act on behalf of the LLC (e.g., like a CEO in a corporation). For more information, here is my video on the topic: ua-cam.com/video/EKN-InxE2QQ/v-deo.html. Hope this helps! Best regards, Chris

Yes, he is. He's 2 and a half, but he still acts exactly like a giant puppy as you said! He makes us laugh, and he's definitely the best part of all my videos. Thanks for watching! Best regards, Chris

Thank you so much, and I'm glad you found it helpful! I wish you and your business all the best! Best regards, Chris

Thank you for your kind words! I'm glad you were able to set up your business account, and best of luck to you and your business! Best regards, Chris

Hi. Thanks for watching and for your question. Yes, you can form an LLC in WY following the steps in this video. Note that, when you get to the EIN section (in Standard or Premium packages), you simply select that you are a foreigner. They will then obtain the EIN for your LLC (which you need to open an LLC bank account) for you. Let me know if you have any questions or issues along the way, thanks. However, note that their customer service is very good. Best regards, Chris.

Thank you so much ... I'm glad to hear it helped! Best regards, Chris

Hi. Thank you for watching the video and for your questions. The following is not legal advice, but it is rather for general informational purposes only: 1. I'm not sure if you formed an LLC yet, but here is my video (my first video, so try not to laugh) on sole proprietorships vs LLCs vs corporations: ua-cam.com/video/vPc2bt0lCkI/v-deo.html. 2. If your question is whether to form an LLC, you are correct that an LLC will cost you some money. It is really a cost-benefit-risk analysis, as to whether or when to form an LLC for your business to help protect your personal assets (and/or for tax savings purposes). It depends upon how risky your business is, and from what you said it may not be very risky. 3. An LLC also has potential tax savings benefits (e.g., if taxed as an S Corp for the reasons set forth in this video: ua-cam.com/video/q34kHeLPGQg/v-deo.html), but many people wait until the business has sufficient profit before electing S Corp tax status. 4. If you already have an LLC and are wondering whether you need to take all those steps, that is of course up to you. I recommend the steps in the video to (i) help preserve separate entity status of the LLC for asset protection purposes, and (ii) to elect S Corp tax status to save on self employment taxes. 5. If you would like to take some steps but don't want to incur any extra costs, the following are free: (1) Obtaining an EIN (see this video on how to obtain one for free here: ua-cam.com/video/sEJnB0nfHrA/v-deo.html); (2) Opening an LLC bank account to keep LLC and personal funds separate; and (3) Creating an Operating Agreement, which you can do for free per this video: ua-cam.com/video/-7NH95aM2YQ/v-deo.html. This will support the main purpose of the LLC, which is to reduce the chances that your business might negatively impact your personal assets. Then, when you are profitable, you may want to consider S Corp tax status. I hope that helps, but if you have any other questions, please let me know! Best of luck to you and your business! Best regards, Chris

Thank you! Yes, my dog Jax is the best part of my UA-cam channel. Best of luck to you and your business, and please let me know if you have any questions! Best regards, Chris

Thank you for the kind words, and glad you found it helpful! Best regards, Chris

Yeah, me too! Hoping to find one with a trust involved

@@HavenInTheWood Thank you. I don't have a video yet regarding a trust (other than my videos on how to insert the trust name as a member when you form your LLC). Thanks for the idea, and please let me know specifically what you're looking for. I will then see if it's in my wheelhouse. Best regards, Chris

Hi. Thank you for watching and for your question. I cannot give tax advice, but I found the following non-resident FBA article by an accounting firm that specializes in helping non-residents on US tax issues: oandgaccounting.com/foreign-owned-us-llc/tax-compliance-for-non-resident-amazon-fba-sellers-operating-under/. In terms of least expensive and most common states in which a non-resident can form an LLC, I recommend Wyoming for the reasons set forth in the video. If you are interested in forming an LLC in WY, here is my video on how you can do it yourself: ua-cam.com/video/NUezXXe7nwI/v-deo.html. I hope that helps, and best of luck to you and your FBA business! Best regards, Chris

@@cjlawvideos Thank you for taking your time out and replying to my comment. I am so confused and exhausted and feel like giving up about LLC . Would you mind speaking to me without charge for 5 minutes? I know i am asking for too much.

@@farhancpa Hi. I'm not taking on non-resident clients at this time, but if you have some questions feel free to ask them here or by contacting me through my website (www.chrisjacksonlaw.com), and I'll at least try to point you in the right direction. For tax questions, however, I recommend you reach out to the firm that wrote the article. Or, I can refer you to my CPA (assuming he represents non-residents, which I can check on if you'd like). Thanks. Best regards, Chris

Hi. Thank you for your kind words and for watching my videos! I am presently using QuickBooks online as my payroll service. I have been very happy with them, especially because they have an option of integrating a 401k provider named Guideline (with a company match) into the payroll. As for business licenses, not every business needs one. I would start with your city. See if your city requires one for your type of business. Then, check with your county. I hope this helps, and best of luck to you and your business! Best regards, Chris

I agree that California is more onerous to do business in than many states. My favorite state in which to set up an LLC is Wyoming for the reasons I discuss in another video. However, some people who live in CA or who do business in CA or have a rental property in CA prefer a CA LLC (either as their primary LLC to save on the fees they would incur with a WY or other state's LLC or as the subsidiary LLC to an out-of-state holding company). Best regards, Chris

Hi. You can open an LLC in Wyoming as a non-resident of the US by following the instructions in the video. When you get to the section on having Bizee obtain your LLC's EIN, simply check the box that you are a foreigner. Here is some other general information for your reference (not legal advice) which addresses many questions I get from non-residents: 1. To determine which state may be best for your LLC, here is my UA-cam video on that topic: ua-cam.com/video/Qag9vlnp348/v-deo.html 2. If you choose to form an LLC in WY on your own, here is my tutorial: ua-cam.com/video/NUezXXe7nwI/v-deo.html 3. Since you are not a legal resident of the U.S., note that the entity-services company I recommend in my video will help you obtain an EIN (Tax ID) for your LLC, which will enable you to open a bank account for your LLC. When you get to the EIN section, just select that you are a foreigner, and they will take it from there. 4. For what steps to take after you form your LLC, here is my video on that topic: ua-cam.com/video/QvFuTI3CdbQ/v-deo.html 5. If you want a detailed and comprehensive “Next Steps Guide” for your LLC (including next steps, options to consider & how to prevent piercing of the LLC veil and protect your assets), I recommend this one (from a related company of mine): bit.ly/Legal-Templates
 6. If you want a free Operating Agreement (note that the free version is not editable), here is my video on that topic: ua-cam.com/video/-7NH95aM2YQ/v-deo.html
 7. If you want an attorney-quality Operating Agreement that is in Word and fully editable (or other legal templates and guides) at a fraction of what it would cost if you hired an attorney (because it doesn’t come with legal advice), a related company of mine is selling them here: bit.ly/Legal-Templates. 8. Regarding opening a bank account for the LLC, check with Bizee on their preferred banker. For some general information, please note the following: Opening a U.S. bank account for a non-resident-owned LLC can be challenging, especially when attempting to do so remotely. However, several financial institutions and fintech companies have streamlined this process to accommodate international entrepreneurs. Here are some options to consider: 1. Wise Business Account Wise (formerly TransferWise) offers business accounts that allow non-residents to hold and manage funds in multiple currencies, including USD. While not a traditional bank, Wise provides account details for various currencies, facilitating international business operations. 2. Mercury Mercury is a fintech platform tailored for startups, offering business banking services without requiring a physical presence in the U.S. Non-resident LLC owners can apply for an account online. However, eligibility may depend on specific criteria, so it’s advisable to review their requirements before applying. 3. Relay Relay is another fintech company that provides business banking solutions suitable for non-U.S. residents. Their online application process is straightforward, and they offer features like multiple checking accounts and user permissions, which can be beneficial for managing business finances. 4. Bank of America Bank of America allows non-residents to open business bank accounts; however, the process typically requires an in-person visit to a branch. They require both a foreign and U.S. address, two forms of identification, and a tax identification number. It’s recommended to contact the bank directly to understand their current policies and any potential for remote account opening. Considerations When Opening a U.S. Business Bank Account Remotely: • Documentation: You’ll generally need to provide your LLC formation documents, Employer Identification Number (EIN), and valid identification (such as a passport). Some institutions may also require proof of address and additional verification materials. • Compliance: Be prepared to comply with U.S. regulations, including the Beneficial Ownership Rule, which requires banks to verify the identities of individuals who own or control the LLC. • Fees and Services: Review the fee structures and services offered by each institution to ensure they align with your business needs. It’s important to note that policies and services can change over time. Therefore, it’s advisable to contact these institutions directly or visit their official websites for the most current information and to confirm their account opening procedures for non-resident LLC owners. I hope this helps. Best of luck to you and your business! Best regards, Chris

@ I read some reviews about bizzee and they were mostly negative And I’m also wondering how long it’ll take as not a non us citizen?

​@@azinwineba3397 Hi. Although in my experience Bizee is the best entity service company (and have not heard any negative feedback from my clients or UA-cam followers that used Bizee), you can of course use whatever service with which you are most comfortable. Maybe there are better services for non-residents? If so, please let me know. In any event, I recommend WY as the best state for non-residents (and residents) to form LLCs. Please keep me informed as to your experience, and feel free to reach out to me about it here: www.chrisjacksonlaw.com. Best regards, Chris

Hi. Thank you for watching and for your question. I cannot give legal advice without being retained, so the following is for informational purposes only. 1. Unfortunately, the IRS no longer allows an entity (e.g., the holding company) to be the "responsible party." They now require an "individual" to be the responsible party. So, you will need to enter your name and your SSN. 2. Fortunately, the EIN statement you will receive is not a public document. You will have to provide it to banks to open a bank account, and perhaps the occasional vendor/customer. However, most banks or other recipients understand that, because of this IRS requirement that an individual must be the responsible party, even though you are listed as "MBR" on the EIN document you might not actually be the member. 3. You being listed as member on this document does not impact the holding company structure or necessarily indicate the member of the LLC. And, the members of an LLC are usually set forth in the Operating Agreement (and some public filings in certain states). 4. Regarding which box to check in the online form, I would check the other box (member, owner, managing member, etc.), as the box referencing the third party is usually reserved for an entity's attorney, CPA, entity formation company, or other third party obtaining the EIN for the entity (their client). Hope this helps! Best regards, Chris

@ This is very informational! Thank you ☺️

@@pamelaraejean You're welcome!

Hi. Yes, our form Operating Agreement template available to purchase covers everything in this video and many other items. Thank you for your interest. Best regards, Chris

Hi. Thanks for watching and for your question. I cannot give legal advice without being retained, so the following is for informational purposes only. If you are asking about "where is the business physically located," then you would put in the LLC's business address. If you have a business address in WY (e.g., a virtual office), you can use that. If your LLC business address is in another state (e.g., it is your home address), then you can use that address. On a later screen (around 5:18), you enter Wyoming as the state in which the articles were filed (assuming you are talking about a WY LLC). I hope this helps, but if I misunderstood your question, please let me know. Best regards, Chris

Thank you for your kind words. I cannot give legal advice without being retained, so the following is for general information purposes only. Unfortunately, whether you have to register your WY LLC in CA is not black and white and is on a case-by-case basis. Here is a good article which addresses this issue: sdcorporatelaw.com/business-newsletter/when-to-register-a-foreign-business-in-california/. Yes, you can set up the bank account in WY if you like. However, if you are in CA and need to go in person to the bank, you can use a bank in CA for your WY LLC if that is your only practical option. I cannot give tax advice, but this is an article that I believe does a pretty good job explaining tax obligations of a foreign owner of a US LLC: oandgaccounting.com/foreign-owned-us-llc/7-common-questions-about-foreign-owned-u-s-llcs-answered-by-a-cpa/. I hope that helps, and best of luck to you and your business! Best regards, Chris

Thank you for watching and for your question. Unfortunately, entities which wish to be taxed as an S Corp cannot have a non-resident alien as a member. The rules on who can be a member (LLC) or shareholder (Corp) of an entity taxed as an S Corp are as follows: 1. Can be individuals, certain trusts, and estates. 2. Cannot be partnerships or corporations 3. Cannot be a non-resident alien shareholders/members.
 4. Only entity that can be S Corp member/shareholder is: a Single-Member LLC treated as a disregarded entity for federal income tax purposes 5. Cannot have more than 100 shareholders/members.
 6. Can only have one class of stock/membership interest. I'm sorry that the S Corp election is not available to you, but your options are to be taxed as a partnership (default) or C Corp. Best regards, Chris

Thank you for watching and for your kind words ... much appreciated! For details as to why I prefer manager-managed LLCs over member-managed, here is my video on that topic: ua-cam.com/video/EKN-InxE2QQ/v-deo.html. The bottom line is that member-managed LLCs require the signatures/approvals of all members, and sometimes this is a hassle when signing documents or making decisions (as the other party may require proof that all members have approved the transaction). A Manager is much like a CEO in a corporation, and can make decisions and sign documents within certain parameters. It is administratively more convenient in my view. There may be exceptions, but that is my general preference. Let me know if you have other questions, thanks. Best regards, Chris

Thank you for watching and for your comment. Yes, it is always a good idea to use an attorney when you can. With that said, setting up the LLC can be done without an attorney in my view. I give my clients the option of paying me extra to form the LLC or letting them do it on their own. That's one of the reasons I made these videos ... so they wouldn't need my help with the formation process. An attorney is most important for the drafting of an Operating Agreement, especially if there are multiple members in the LLC. Happy New Year! Best regards, Chris

Yes, if you have a trust, you can have the trust be the member. If you don't have one yet, you can always transfer your membership interest that you own in the holding company into the trust later. I hope I answered your question, but if not let me know! Best regards, Chris

Glad you found it helpful, thanks! Best regards, Chris

Hi. I cannot give legal advice without being retained, so the following is for general information purposes only. And, I'm not a TX attorney, so you should confirm with an attorney or other expert in the state of TX. Although property managers generally need to be licensed in TX, there are some exceptions. Here are the exceptions that I could find, but please confirm this with the TX real estate commission: txrules.elaws.us/rule/title22_chapter535_sec.535.5. I wish you and your property business all the best! Best regards, Chris

Hi. I cannot give legal advice without being retained, so the following is for general information purposes only. Although property managers generally need to be licensed, there is an exception in many states when the owner of the property is serving as the property manager. Also, in many states, an employee of the owner (e.g., a Manager of an LLC owner) does not need a license. So, it may not make a difference if the LLC is member-managed or manager-managed. However, you should to confirm this with the real estate commission in the relevant state. Best regards, Chris

Yes, general liability insurance is the most common type of business insurance. Other types, which are often not necessary (depending upon your business) include property insurance, workers comp, cyber insurance, errors and omissions, business income, product liability, etc. However, general liability insurance is the core insurance and most common. Best regards, Chris

Hi. Thank you for watching and for your questions. I can't give legal advice without being retained, so the following is for general information purposes only. 1. First, having a WY LLC registered to do business in your home state is good start. Depending upon the type of business you have (and whether it is prone to potential lawsuits), that may be enough. I personally also have a WY LLC which I registered to do business in my home state for one of my business types. 2. However, if you want to set up a holding company structure, then you have a couple of options. Here is my video on holding companies for your reference: ua-cam.com/video/_IogAZ1xJoU/v-deo.html 3. The easiest holding company option is to set up a TN LLC and have your WY LLC as the sole member of the TN LLC. For my video on how to set up a TN LLC, go here: ua-cam.com/video/Xvos_GQoZOA/v-deo.html. Now, this would mean that whatever business you are currently doing in TN with your current WY LLC would have to transfer to the new TN LLC. I'm not sure if this is practical for you? 4. The option I believe you were considering is domesticating your WY LLC to TN, and then have a new WY LLC as the holding company. Speak to a TN attorney about this, but I don't believe TN allows domestication. 5. If you really want a holding company structure, and #3 above is not practical for you, then another option to consider (per my holding company video) is to set up a new WY LLC as the holding company. Have it be owned in the same way that you own your current WY LLC (e.g., if you are the single member of your current WY LLC, you would be the single member of the new WY LLC). Then, "contribute" your membership interest in your current WY LLC to the new WY LLC. In the end, you would own the new WY LLC holding company, the current WY LLC would be the subsidiary owned by the new WY LLC, and you continue to have your current WY LLC registered to do business in TN. 6. If you choose #5 above, you can have an attorney draft the Contribution Agreement. Also, my related company is selling legal templates, which include a Contribution Agreement. Here is the link: bit.ly/Legal-Templates. Also, if you do set up a new WY LLC, here is my video on how to do that: ua-cam.com/video/NUezXXe7nwI/v-deo.html With the above said, you may be fine in your current structure unless you believe you need additional layers of asset protection. Hope that helps ... Best regards, Chris

Thank you for your comment… I appreciate it! Best regards, Chris

Thanks… he’s a great dog! Best regards, Chris

Hi. Thanks for watching and for your questions. You don’t need an ID to create an LLC, but generally you will need one to open (or become a signatory on) a bank account. Best regards, Chris

Hi. Thanks for watching and for your question. If you are asking whether you need an operating agreement to open a bank account, the answer is not usually. Normally banks will request a copy of your LLC’s Articles of Organization and the LLC EIN (tax ID). However, some banks may request to see the Operating Agreement to confirm who the members are and/or who can sign bank paperwork on behalf of the LLC. I hope this helps, but let me know if I misunderstood your question. Best regards, Chris

Thanks for watching and for your question. Yes, they will help file the BOI Report if you prefer to have a third-party do it. If you would rather do it on your own, please note that I have a video on how to submit the BOIR here: ua-cam.com/video/IxfSmVARHp8/v-deo.html. Best regards, Chris

Thanks for your kind words and your question. I can't give legal advice without being retained, so the following is for general information purposes only. Since you already submitted the BOIR, you should not need the FinCEN ID unless you have to file another BOIR (e.g., for another entity) or possibly if you have to amend your existing BOIR. It's good to have one for future possible use so you can save time on resubmitting the same information, but you should be good to go on your current BOIR. I hope I answered your question, but if not please let me know. Best regards, Chris

You're welcome ...glad it was helpful. Best regards, Chris

Hi: Thank you for watching, and I'm glad you like the channel! I can't give legal advice without being retained, and I cannot give tax advice. So, the following comments are for general information purposes only: 1. Yes, generally speaking, you can deduct business expenses from the income of an LLC irrespective of the LLC's state of formation or the state in which you are located. 2. For example, you should be able to write off part of your rent to the extent there is dedicated space within your CA home for business purposes (e.g., 20% of rent if 20% of your house is used for your business). Certain utilities may apply as well. 3. For a car, if it is a lease it is easier to write off. For example, if your lease payment is $500 per month and you use your vehicle for 80% business purposes, you should be able to expense up $400 (80%) of your lease payment. For other vehicles (owned/financed), it gets more complicated as to what you can expense (mileage, gas, etc.) unless it is a vehicle over a certain weight (which you can depreciate). 4. Again, I am not a CPA or tax advisor, so please seek the advice of a professional tax advisor. If you need one who is reasonably priced and smart, I can refer you to my own CPA if you like. If interested, feel free to reach out to me at: www.chrisjacksonlaw.com. Best regards, Chris

@@cjlawvideos Wow, this was great info. Thank you very much. Can't wait to set up my LLC. I'll be watching more of your vidoes, as well.🙂

@@cjlawvideos Oh, and just to be clear, would Wyoming be a good state for a TikTok Shop business, or is there a better option. Living out of California.

@@kingTrindz Thank you, and I wish you and your LLC all the best! Best regards, Chris

@@kingTrindz I cannot give legal advice without being retained, so the following is for general information purposes only. For the reasons I set forth in my video on Best State for Your LLC (ua-cam.com/video/Qag9vlnp348/v-deo.html), I prefer WY. However, if you are based in CA you may have to register/qualify your WY LLC in CA. This means there may be some extra expenses to be incurred versus just forming a CA LLC. They are as follows: (i) fee to register a WY LLC in CA (one-time fee), (ii) registered agent fee in WY (free for first year with Bizee, $119 per year thereafter), and (iii) $60 annual report fee in WY. I personally have a WY LLC registered in CA, as it is worth it to me to incur the extra fees. I hope this helps! Best regards, Chris