Sole Proprietor? LLC? Corporation? Which Should You Choose?
Вставка
- Опубліковано 5 вер 2024
- If you are starting an online business and trying to figure out which business entity to form, this video is right up your alley.
For all intensive purposes, there are three main entities you should consider:
1. Sole Proprietorships
2. Limited Liability Companies (i.e. LLC)
3. Corporations
There are many pros and cons to each which are discussed in the video.
Some of the links below are affiliate links. If you purchase through these links, it won’t cost you any additional cash, but it will help to support my channel. Thanks!
To start your own LLC, click here: hawthornlaw.net...
Click here for an operating agreement template that you can use for your LLC: www.hawthornlaw...
If you need to get a hold of me, you can schedule a call using this link: www.hawthornla...
*Unless you are a legal or private coaching client, I do NOT respond to emails or contact form submissions.*
To sign up with a payroll service I use and love, click here: hawthornlaw.net...
Need more information on starting a business? Download our cheatsheet here: www.hawthornla...
Want the Ultimate Business Building Checklist? Click here: www.hawthornla...
I use Vidiq to optimize my videos, here is an affiliate link if you would like to support me and sign up for their free plugin:
This video is for entertainment and informational purposes ONLY and should NOT be considered legal advice. By watching a video or commenting on a video, we are not forming an attorney-client relationship. If you need specific legal advice, please ask an attorney in your state.
#hawthornlaw #LLC #onlinebusiness
yes please turn mic volume up. makes us have to turn our headphones up and then when the music comes on at the end, it blasts and is loud!
Thank you. Keep doing what you are doing, it’s very helpful. Your 1 year away from being the doctor Phil of law. Your building a vey much needed virtual persona 👍🏾
I like that! Turn this into Dr. Phil where I sit people down to discuss what they have done to mess up their businesses legally and talk them off the edge... ;)
Run with it!! That’s a lane nobody has driven down.
An attorney giving free advice🤗. Thank you. Really appreciate your help.
"catch you on the flip side, that sounded stupid" sips coffee.. hahaha I was cracking up! Good stuff sir!
I wasn't expecting that "catch ya on the flip side" at the end, but it was funny.
Super helpful videos - thank you for creating these and breaking down complicated terms for the average Joe (or Jill) !
Great video. As a web developer I have a single owner llc and next year I’m looking at online sales of over $100k alone. One of your videos mentioned if you make between $35k to $50k that someone may consider an s Corp election. Do you have any videos talking about this?
Blessings,
Chris
I'll add your question to my list Chris - stay tuned!
can you change your company structures later down the line?
Jim I stumbled upon your channel today. I watched a video linking this one. I am very jazzed about your intro music. Look forward to learning from you Sensei Jim. Thank you.
Hooray! Welcome back!
Thank you! Happy to be back!
7:04
LLC
Thanks very informative. Thank you for the free information
Glad it was helpful!
Thanks Jim for your informative video. I need to mention that your voice on this video is low and hard to understand. Please fix this issue on the next videos. Thanks
Is there any benefit to starting an LLC and then electing "S-Corp" later? Or, should an LLC simply file the S-Corp and get the paperwork over with with the initial setup of the company?
Check with your accountant to confirm this, but many people do that. You just have to be careful about the timing. There are strict deadlines each year as to when you can make your S-election. If you miss the deadline, you will be taxed as an LLC until the following tax year.
@@jimhart do you have a podcast cause I could listen alł day
Volume was kinda low but I love the detail and attention he offers. I gotta do some more homework on those terms/alphabet soups. This is a whole new world to me urghhh I'm discouraged but also tired of working for others. I'd love to work for myself; 1st step is to learn I guess! Thanks man
just gotta start, once you start it will all start to come together as you go. Just keep doing research and taking action while doing so
I want to have a LLC company physical address in my Rented home for time being. My lease is on my name and wife's. How to get this lease added to Company .I heard to better separate personal and company assets . Please advice
Thanks for the info sir! currently setting up my online business before the end of this year!
That ending was pure gold 😂👌
I’m in NJ and currently being a 1099 and hopefully not for too long but all 2019 I was 1099 Misc. is it worth it to go LLC for me even if I don’t plan to stay 1099 for another 2 years or less since it’s just desk paperwork type of job? I write off my mileage, food if it’s more than 35 miles away and basic home office supplies like desk, printer, chair only. If LLC is better way to go I will creat ASAP before year ends, please advise! I love your channel
I love your info and presentation. Can you recommend a business of info for those of us who are not an
“online” business? Thank you
Thank you for the information sir. You don’t have to give out this gold, but you do so thank you very much🙏
sir can you please clarify about the problem regarding all this types of entity.
from Siyabonga Mchunu from SA study at WALTER SISULU UNIVERSITY
Good info. Thanks for speaking in plain English, too!
You're welcome Paloma - glad I could help!
Here is a question I have NEVER seen you answer yet, what if I am a veteran owning the LLC, and a woman business owner to boot. Its called the Boots to business here in my state, and under house bill 367, it would mean I don't pay for annual reports for the first 4 years, and won't pay the fee for the "articles of organization" whatever that means. Is that like your template? What category does a woodcraft shop fall under? Is that sales? online? what?
Wow, great information and the differences were very well stated.
Thank you!
Jim Hart for SBA president!!
Hi Jim, Greg from Oregon. I’m going to take over a plumbing business from a family member. I’m in the process of getting my CCB and business license. I’m going to be sol proprietor. No employees for now. What direction can you push me towards. Can I do my own book keeping? Do I need a business attorney? Do I need pay myself?
Thanks Greg
Thank you so much for these videos. trying to get my duck in order post first 6 months for profit but not making it yet given 14,000 in ed costs to get going. tying to get an accountant to talk to me. so hard been looking since jan.
Thank you!! This is the info I have been looking for and wondering about!
Considering an LLC for property maintenance and rental properties. LLC seems to be the right way to protect my other partner as well as myself. I would be interested in speaking with you (one on one about this. Operating in the state of PA. Starting out with this venture.
Turns up sound to hear, deafened by outro music.
Great video. Is starting an online drop shipping jewelry business a high liability business? Can can one go sole proprietor to start with until a decent income comes in? Or should it take the LLC route?
Hello, which one did u get? I’m trying to sell online
Question: I am a licensed contractor for NY and got a job at PA. How does that work when it comes to taxes?
Check with your accountant, but typically you will pay taxes where you work. That's why professional sports players have to file state income tax in every state where they compete.
As someone that will just start an LLC, i won't be making much profit and it will be just expenses for a while. Does that impact the LLC negatively? Because I would be declaring losses at tax time.
That's a great question.
Loving your videos, thank you so much
Do businesses still use their Dunn & Bradstreet number to operate their business? And if so, what are the pro’s and con’s of only using this 9 digit number?
The sound is low I can barely hear
good information, but i think your camera focus and framing could use a little work
great video explaning the various types of business legal incorporations. so if I plan on growing nationally can I start out as an LLC then later change it to a C-Corp if it grows substantially? Also, if I plan to possibly make the business into franchises does anything change in regards to the incorporation type?
I live in Louisiana and would like to start a business making and selling candles. I will be the only one making these candles. Should I go straight as an llc or should I start off as sole proprietor and then later llc? Also what would be the causes of being sued in a candle-making business?
Someone’s house burns down? 😂
@@jimhart Thanks for responding back so quickly. Even if I put warning labels that comes at the bottom of each candle and even if I sell them with instructions?
Lol @ catch ya on the flip side. Good video though. Thanks for the info.
Thank you for information, Question what better for bars, clubs or just alcohol licence LLC with 2 people inside or S Corp (INC) 2 people inside? Thank you.
If I'm opening up a business that is not an online business like let's say cleaning and sanitizing air vent systems in houses would you recommend me being an LLC or Sole Propieter. I think LLC but you are way more knowledgeable than I am so what do you think. I saw what happened to Omi In A Hellcat and I don't want that to happen to me so that's why I ask.
What way should I start my llc in starting a vending machine business funded by me
Don't understand the question, but if you would like to chat you can schedule a call here: clarity.fm/jameshart
That is excellent Will. Have you started it yet because I was trying to get into that years ago
Which is the better option for authors of books, vlogs, and blogs?
This is sooo helpful!! Thank you!!
You're so welcome!
I live in Pennsylvania and would like to start a business flipping
houses and being a landlord, Right now I'm the only one starting the
business. So should I just go head straight for the LLC instead of later
down the road having to change it?
If I start a sole proprietorship while also working a 9 to 5 job, would I have to pay a self employment tax on my entire income or just the money made through the SP?
I’m thinking of having online business to sell clothing etc..should I file for soleP or LLC?
Hello, which one did you get?
How do I contact you? I'm looking to start a business. Everything I sell will be online. I'm not sure if I need to find a local business lawyer or where to start to make sure I'm covering all aspects legally
Thanks
Thanks Jim
Hey there, you kept mentioning that we need to file for the specific state in which we live, i am in the military and am stationed in another state than my home state however, I have been told that I am still a resident of my state. Is there a caveat that I need to be worried about while in the military? I am planning to do a sole proprietorship to start out with, but I just want to make sure I’m doing things right.
What if my billing address is in the other states than my actual physical address , and i can not yet change it because i need that address in that state for paper purposes , which one is more beneficial for me to open? sole proprietor ?( starting from scratch no revenue yet at all) and which state , billing or physical address state ? Thanks a lot in advance?
Thank you
I'm currently unemployed and I would like to invest my savings in reselling health supplements on eBay at home. What kind of business type do I need to do this if I'm going to buy from a distributor like Europa Sports or Muscle Foods USA? And what could happen with supplements that a person could sue over it?
Hi, great video and great channel. By the way, what is the meaning of Howthorn and how did you come up with the name?
What type of entity do you recommend for a real estate agent?
If we are LLC (2 member) and filing as S Corp. do we have operating agreement or shareholder agreement? Or BOTH?
Operating agreement for llc
If I want to give the LLC to my sons (as in a will) how can I do it so they do not to pay have to pay Tax when they get it as inheritance.
is the 20% deduction for LLC only for those who don't take the "S" option?
Great Video
Ssn# or a EIN# for a sole prop? Which is best?
First thank you for your informations
I want to asking you about create company for steel detailing only engineering not construction or fabrications.
The question is do you have idea how much cost it to create this kind of company?
I will appreciate your answer sir and thank you again.
This kind of company is simple and need at least one employee
Also my budget is 6000$
To be honest with you am sicking tired been emplyee in company 😑
You didn’t talk about how you elect to file as an S Corp.
Great information, thanks!
Do you have to put LLC in your name? Or just in your legal docs. I see a lot of people with llc in title
I am planning to create en elopement business in Hawaii, is that better to start as LLC from the beginning?
How difficult is it to start as a sole proprietor and then upgrade to an LLC?
That's the way most people do it.
@@jimhart Do many people start off like this to get their business up and running and to see how well they do before they form an llc?
Thanks so much for sharing!
Thank you again for your videos. Mahalo
What about a small medical company?
"If you do nothing else"...sound very confusing. What does it mean?
Means you can't just doing nothing. If you're running a business and making income, you have to have a way to track and be taxed on your earnings, unfortunately
is web design a "high liability business"?
Spot on Thanks!!
Super helpful thanks
Hi if I would like to sing for LLC .How much for sing LLC ?
video and cheatsheet was awesome
I am partnering up with a friend for a salon. Should we go for partnership or LLC? Which do you recommend? Thanks
You need an written agreement and I typically recommend an LLC. www.hawthornlaw.net/diy-llc
Great video 😁
GOOD INFO SPEAK LAWDER 😂
Nice
👍🏻
Shoulda gave em the finger guns with that last line.
My ADHD brain just stormed out muttering "too complicated"….. sigh I hate having ADHD.
If you hit someone and kill them, they won't be suing you lol
Their estate might!
Stop staring into the camera pls
Where would you rather I stare?
6” above camera
@@jimhart also thank you for the info
😂😂 what the heck? Lol
🤣❤️that sounds stupid