Starting a Single Member LLC? 4 Mistakes to Avoid!
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- Опубліковано 26 лип 2024
- STARTING A SINGLE MEMBER LLC? 4 MISTAKES TO AVOID! //
If you are just starting a single member LLC, there are numerous ways you can make mistakes. Everything from failing to draft a single member LLC operating agreement, to filing an S corp too soon, to not withholding enough for taxes... there are so many ways to make mistakes when forming your LLC.
In today's video I share with you 4 common mistakes that I see people make when forming their single member LLC.
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Single Member LLC Mistakes You Should Avoid: • Single Member LLC Mist...
More Single Member LLC Mistakes (Part 2): • Avoid these Common Mis...
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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.
Great video as I look into starting my own LLC for being an independent contractor...very valuable!
Wow Ive been struggling to find information on forming a llc the correct way for weeks I'm glad I found this video
Thanks for the info. Trying to start my own business and im trying to take and learn all I can before I get started. My whiteboard in my house has tips from you and many others! Thanks
just starting this whole process since business is picking up. trying to avoid all mistakes! thanks for your help!
You are very welcome! Let me know if there is anything I can do to help you out!
Was you able to figure out how not to make mistakes cause im lost still.
dont you just love little ethots that think they run a business lmao your YT Channel isnt a business hon
Thank you very much, for the video. I am looking to start an LLC and am learning sooooo much, thanks in part to you. Have a great day.
Thank you for sharing!
Awesome. Subscribed with all the bells. This was very helpful
Thanks for the info.
Keep em coming thank you for the info
Great video. Forming mine now. Thank you
I've really enjoyed your videos! look to be scheduling on online meeting soon!
I have had a single member LLC for many years, this was the single MOST VALUABLE bit of information that I have heard since creating it in 2006. I had an attorney set it up, he never discussed any of these bullet points! Fast Fwd to 2020, public record, rental houses, used personal address, no registered agent, lesson learned!! I was selling everything (4 sold in 2020) & going to start investing in out of state properties. This Video is a game changer for my little real estate, single member, LLC.
Thank YOU! I have 3 brothers, 3 sons, so burp, fart & sneeze away! Not offensive, just real talk, real life, appreciate you sharing your expertise with everyone that can use this info to save our butt from legal issues down the road! Oh yeah...one more thing, ROLL TIDE!
Roll tide!
very helpful, I like your presentation and explanations
Good advice, Jim. 👍👍
Very helpful video !!
Hey Jim! What a great video! Kudos to you for providing free advice that will save people loads of headaches. You are totally correct that you need a business account. *SUBSCRIBED
Thanks!
This was very helpful
Very informative
very helpful! thanks
The part that stuck out to me the most, was regarding the Registered Agent. Who wants to be stuck at home Mon-Fri during business hours??? No errands, vacations, etc. Sounds like house arrest. ha. Thank you for the education, Jim.
Great information - just starting the process, online business in NY
Thank you Jim
Mmmm.... first time hearing about a registered agent. Thank You!
Shout out the Ohio State coffee mug! ☺️ I went to the University of Toledo. Great video!
Thank you, you are great on screen
Good info
Thank you
Good info! (axe the clock)
Consindering file out of state for insurance reasons in trucking florida rates are close to 15-20k a year and in some other states u can get rates of 6800-12k
This video was very beneficial!
Thank you!
Yes it was 💯🎯
@@jimhart I'm looking to start my own LLC anyway you could give me a helping hand
Thank you for this I’d love to have you help me with creating my LLC in New York
And we would love to help you! You can contact us at www.hawthornlaw.net/consult
excellent
Great video! Could you do one on operating agreements and Indemnifying (or giving ownership) of a UA-cam channel into a LLC Entity?
Here’s one on operating agreements - Starting an LLC: You Need an Operating Agreement ua-cam.com/video/CSZGMlpatIw/v-deo.html
Not sure I understand the other part of your question?
I came here to make sure I did it right and thank goodness , i did 😅
Wihs I came across your videos beifre registering my llc. I love to work with consultants who show their face
Dude I hate you , but I get it 😭😭 it was definitely so super helpful bro
Been wanting to get a CapOne Spark checking but we can only open an account in a branch and they don’t have one here in my area :(
Thanks for the great advice! Mistake #4 may be an issue. I am a motivational speaker so I may not be home because I'm doing an event. Will that be a problem?
Thanks
Hi Jim, thx for the video. I understand the issue about choosing the right state but if I live outside the US can I have a full open choice? thx.
Item #4 clarifies that you need to hire a registered agent, thank you for stressing that. Followup question: if you are still a Sole Proprietor, is there a similar expectation of 100% availability to receive service of process during normal business hours? This would be further motivation to move from Sole Proprietor to LLC.
Not guilty.. Yet but I "plan" to avoid being lazy/not caring enough thanks to your video. (You're a funny guy!)
Hello! Great video! Is it fairly simple to transfer an LLC from one state to another after moving? Thanks!
Can you explain how having a virtual address and listing yourself as the registered agent is a problem? Having a local virtual address gives me access to all of the mail. And the virtual address location will be open during normal business hours. So what’s the problem?
You might just saved my life from frustration. Literally just 98% complete with legal zoom opening up an llc in Delaware although I live in Florida. I am an online entrepreneur. I stopped the process when I read “enter business address” and considered a virtual address in Delaware. It’s $100+ a month. Wow!!! And what you’re saying I would still have to pay taxes sivce I live in Florida? Bc I have to pay myself correct? Or what do you mean?
Hi Jim, from listening to this video, are you saying that if my business hasn’t started making money, that I shouldn’t file for a LLC?
Yes thank you I've done my studying and I'm on the right path I've done everything right so far the only thing is I'll have too use my home address for the llc I can't afford too rent a space right now so gotta make due right?
Just starting literally in NY.
What if I create an LLC, S CORP in WA State, then move to NM. I’m guessing I need to file for another in that state or what do I do with it?
I do have a business account opened w an EIN but I bought lots of stuff(like laptops) at Costco using their credit card to gain points. How do I get credits for these expenses using the business account?
Do RA allow businesses to use their address as their business address to keep home addresses private for online business?
How do you get the Account, Ein etc. without your LLC? Do you go Back? and put these things into your LLC" or do you need these things before you apply for your LLC?
We were going to do our LLC formation ourselves but soon found out that was the worst mistake. We had to form an LLC in another state while operating in a different states due to my husband's job. Glad we used a lawyer
Smart move!
Omg not an Ohio state coffee cup💔🤣🤣🤣🤣
I am in process of opening a single member LLC in Indiana where I own multiple rental properties and plan on purchasing several more. I live in California and I understand that I will need to register with California. I'm having a local Indiana lawyer set it up and then add deeds to rentals to LLC. My goal is also to add family members in the LLC. Any recommendations, or warnings? Also, how do you recommend setting up business e-mail, do I need it with a rental property LLC or could use an ISP email like a comcast or ATT. I need registered agent, going check out you service.
Thank you for the video
I am not a US citizen and I live in Algeria, how can I create my LLC? Can you please give me some an estimation about costs including everything needed like having registered agent, opening bank account...etc.
I did not start my business yet but it will be outsourcing online and similar activities of online services.
Thanks
I'm starting an online business as a virtual assistant. My niche will be Real Estate Transaction Coordinating. I just relocated to TN. But, starting out my business I will only focus on assisting NC Agents since I'm licensed in NC. Do I need to start an LLC in both TN and NC? Or just NC since that's where my business will come from?
I live in Durham, NC, and I would love schedule a consultation with you Mr James.
Hawthornlaw.net/consult - look forward to talking!
@@jimhart Is it only for online business?
Should you still file a LLC if you are the registered agent? I want to pay the $159 I just cannot do it now, but still wanted to file my LLC. Or should I do that at the same time.
I already have a separate bank account which I use for business only, would I still need to open a bank account under an LLC?
I just started a janitorial compony would my registered Agent still need to be available form 9-5? i head you say online business.
Problem with the RA is the state does nothing about it. Florida law allows process servers to serve anyone in home over 15 years old after second attempt. Also, process servers dont have to serve an RA. We can serve owner of companies.
Im buying land in CA and I am from NY, I am going to build my house on the land & I wanted to put the land under a LLC to protect it , but in CA they charge $800 for the pleasure of doing business in their state, so I am thinking about using Wyoming and buying with that LLC
Is that good route to take?
ANy info would be Greatly appreciated
Please let me know
hi Does this apply to small contracting business ?
Thanks for the video! I just formed and LLC and a week later, received a letter from OSHA asking for $300??? Has anyone had this experience?
Question: In an "S-Corp" it says "all business income/loss is passed through to owners each year" (www.legalzoom.com/business/business-formation/compare.html
What does that mean, exactly? Does that mean, if the business profits one year lets say $100,000, but your chosen salary is $50,000, then you MUST pay yourself $50,000 in dividends?
GUILTY!!!
I’m currently registered in Delaware and New Jersey causing me to pay two separate filing fees. I do business in both states. Does this seem correct or should I only be registered in my physical addressed state of NJ?
It depends on a lot of factors. I'd be happy to discuss this with you on a quick call - Can't give legal advice in comments. Sorry. www.hawthornlaw.net/consult
If my LLC is already formed, is there a way to revise it to add your firm as the legal agent and pay your company the yearly fee?
Yes, you can use this link: linc.hawthornlaw.net/product-selection-registered-agent
I love your videos man. I know this would not be legal advice, just curious of your thought. I want to buy a Tesla under my LLC for a vehicle. There is a standard model, long range and performance model. I want the performance model but wondered whether IRS would consider that a luxury or a sports car. However, although it is faster like a sports car, it's still a sedan, the battery can drive a longer range and it has better maneuvering, for safety... Do you see the performance model being an issue?
In fact that'd be a great video, the in's and out's of buying a car under the LLC. But I'd like your quick response first ;)
If you buy me a Tesla, that would certainly qualify as a business deduction... ;)
Seriously though it would really depend on a lot of factors that are outside the scope of these comments. I'm happy to talk it through with you during a strategy call. www.hawthornlaw.net/consult
What kind of coaching do you provide?
Legal coaching for online businesses.
I liked as soon as i saw ohio state
Play at 1.5x. You're welcome :)
You can make the LLC itself the registered agent.
Best of all, he has an Ohio State coffee mug. O-H!
Sir, can your firm help getting an LLC In the state of Oklahoma?
Yes
So your office doesn't take vacation breaks?
:)
I have a question. One of the allegedly BIG mistakes is to inadequately capitalize one's LLC. Sure, the LLC needs adequate funding but, why would I GIVE my money personal to the LLC, of which I was the sole member, as opposed to LOAN the money to the LLC? I would think that loaning the LLC a sum of money on a six month(?) deferred payment schedule, so the business can start to gather clients, provide services and start to make money, would be smarter than a bequeathment. That way I get my money back tax free as loan repayment, except for the interest charged on the loan, instead of as wholly taxable income. Of course I would have a formal loan agreement. This sounds like a more BUSINESS deal than a personal deal so would enhance the separation of person vs business. What say you?
Proof read it, idiot! "... my personal money..." not "my money personal". (Honestly, I make riotous fun of people who make this kind of stupid mistake.)
Do you help individuals in the state of Texas?
It depends. What do you need assistance with?
Hawthorn Law Forming my holding company in the state of Texas
Yes, we can do that. :)
👍
@2:27
I need to write an operating agreement help
We do those
Google
$$$$
Definitely guilty but you’re very helpful
I am about to file a LLC to be a travel agent to go along with my travel show. I am in California where they are crazy with taxes here (min $800 per year tax) so many here file in Nevada or other states. using a registered agent of course in those states. I have a feeling though that it isn't legit or right way to do this. ?
This is a mistake. When CA finds out (when you file your tax returns) I believe there are stiff financial penalties that will make your $800 filing fee seem like a bargain. Whoever does this is taking bad advice from the internet.
Your big mistake is living in California. Leave that nut house and move somewhere not run by the insane.
how could u be a registered agent in all 50 states? do u have an office in all states? thats what it says according to a website. registered agent must live in the state!
I have contracted a corporate entity that has offices in all 50 states.
Hawthorn Law Solid Content. We must connect. #
CASHFLOW
For mistake #3, can you use a registered agent in a different state and avoid having to file a foreign entity?
a lawyer who tells the truth?
Get rid of that sorry coffee mug !!
You from that state up north? 😂
@@jimhart no, Florida. Yes a Gator.
P Bax I was living in Orlando when they played in the football championship game. In a bar surrounded by gators. My wife and I had to leave at halftime. Ugh.
You need the operating agreement before the business bank so this is backwards but still good info
Thank you for sharing!