LLC vs Sole Proprietor: Which is Better for Your Business?

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  • Опубліковано 24 січ 2025

КОМЕНТАРІ • 145

  • @sicariusleif1992
    @sicariusleif1992 Рік тому +29

    Damn, I was going to click another video first, but I think this is the best video on the subject ever made. You are so good at organizing the knowledge so it makes sense!

  • @dflosounds
    @dflosounds 11 місяців тому +64

    So from what I'm understanding, it seems like it boils down to how likely you are to get sued. If you're working alone and doing something that's pretty low-stakes (web development, graphic design, illustration, interior decorator, etc), then it probably makes the most sense to be a sole proprietor. If you're doing something with a higher risk of legal repercussions (construction, architecture, lawyer, physical therapist, etc), then you'd probably want to consider an LLC or S Corp. Does that sound about right?

    • @martialag
      @martialag 5 місяців тому +9

      @dflosounds You make a lot of sense. I'm a chef and plan to launch a cafe and catering company. I plan to start with the sole proprietorship and upgrade to an LLC. As long as I document everything, I pretty protected against possible lawsuits.

    • @jennierussell
      @jennierussell 5 місяців тому +3

      @@martialag Sounds good, but be sure it won’t be difficult in your state to switch from entity to entity- for mine it allegedly is but I can’t confirm that from personal experiences.

    • @annas8535
      @annas8535 3 місяці тому +3

      @@martialagI am starting a cleaning service and am thinking of doing the same. Have you looked into having your clients sign some sort of hold harmless document?

  • @dricana7
    @dricana7 9 місяців тому +5

    Awesome presentation! You did an excellent job explaining the the pros and cons of each business type. You spoke eloquently and clearly to your audience. Great work!!

    • @ftw305mdc5
      @ftw305mdc5 7 місяців тому

      When starting a daycare is it better to be a sole proprietor or llc

  • @LIONESS7118
    @LIONESS7118 2 роки тому +21

    Excellent!!! Excellent!!! Job Krystal. You explained the difference between the two entities in such a way that a minor can glean from the benefits of your knowledge and wisdom. I also love the way you recapped the structure of LLC vs S Corporations in the side panel captions. Very professional and likewise ELOQUENT. This has been the best break downs of the pros and cons between the two entities of corporations I have ever seen. Excellent Job!!!!!

  • @consumerdebtchitchat
    @consumerdebtchitchat Рік тому +6

    This channel is outstanding!! New sub. Thank you for keeping it simple language for those of us that are so new to this. Just got my LLC.

  • @DiqaunColeman
    @DiqaunColeman 3 роки тому +100

    This was eloquently broken down. Keep up the great work guys.

  • @ChristinaMorua
    @ChristinaMorua Рік тому +8

    This video was really well done, easy to understand and not overwhelming. Thank you!!

  • @FlawlessFinishSolutions
    @FlawlessFinishSolutions 2 роки тому +18

    Starting a new business and wasn’t sure which way to go. Honestly still not but definitely have something to think about after this video. Thank you!

    • @BIGNOSEPOPPA
      @BIGNOSEPOPPA 2 роки тому

      Did you start and your business? And if so what did you choose in terms of LLC vs the latter?

    • @FlawlessFinishSolutions
      @FlawlessFinishSolutions 2 роки тому +11

      @@BIGNOSEPOPPA yes I ended up starting it with a sole proprietor ship. Will switch to an LLC after making 75,000 right now it’s still so new not sure if it was worth the income in the beginning.

    • @BIGNOSEPOPPA
      @BIGNOSEPOPPA 2 роки тому +8

      @@FlawlessFinishSolutions I really appreciate you. I'm believe im going to put in my two weeks notice very soon. I have a brand new van so I want to start being a courier. Wish me luck.

    • @FlawlessFinishSolutions
      @FlawlessFinishSolutions 2 роки тому +9

      @@BIGNOSEPOPPA get out there and get it. Keep your head up in the tough moments.

    • @BIGNOSEPOPPA
      @BIGNOSEPOPPA 2 роки тому +3

      @@FlawlessFinishSolutions thank you so much. I'm so close. I will definitely update you as well since you helped me.

  • @ronaldshaw8948
    @ronaldshaw8948 Рік тому +4

    Thank you. Finally a video that just keeps it simple and straightforward.

  • @luluedw
    @luluedw 3 роки тому +6

    Love to see it & share it! Yall answer so many FAQs

  • @CheriFresh
    @CheriFresh Рік тому +3

    Thanks, probably going to start off as SP and than LLC

  • @godivaodonata
    @godivaodonata 2 роки тому +5

    Thank you sooooo much! 🥰 Currently an SP, but pretty sure need to change to LLC. 🤷‍♀

  • @tatianaquintero4355
    @tatianaquintero4355 Рік тому +1

    Thank you! I watched at least 30 videos and until I got here I could not figure out where to start or what I wanted to do.

  • @mariasalmeron532
    @mariasalmeron532 2 роки тому +8

    Can you do a video about the benefits between creating a single member LLC vs the multi member LLC for a husband and wife buying real estate for short term rentals?

  • @interstatebullly3nyg551
    @interstatebullly3nyg551 Рік тому +1

    Outstanding very well presented and explanation.. so many content creators need to take notes

  • @mer197
    @mer197 Рік тому +1

    Omggg I love the structure of the material and the fact that the information is given straight up 👌

  • @PhillipDavisMarketingSolutions
    @PhillipDavisMarketingSolutions 9 місяців тому

    Very clear and concise. I’m currently an LLC, filing as C-Corp. Starting another business and was undecided if I want to go LLC first or sole proprietor. I think I’m going sole proprietor for this one because it’s not going to make any money for a while. Thanks.

  • @MariaS-mj5ey
    @MariaS-mj5ey 2 роки тому +12

    My head hurts all i want is to open an online selling website 🤣😞 still got a lot to learn

  • @seanpaulcurran
    @seanpaulcurran 7 місяців тому +1

    So, I am working with a travel agent hosting agency who recommends the same things that you've overviewed here. The only thing now, is that I am very intimidated by going sole proprietorship - in the event that a client goes on a travel, and then tries to sue or stop payment. Right now though, I cannot afford the fees associated with my state to file for an LLC.
    So I am really at an "intimidation stop" right now, not knowing what route to choose. My business is not open yet, and another aspect that is holding me up, is not knowing if I "have" to go LLC route, if I am the sole proprietor but my business name is not my own name.

  • @oscarconde2516
    @oscarconde2516 2 роки тому +3

    Thanks for the valuable information!

  • @ninaviola5229
    @ninaviola5229 Рік тому +2

    Very informative information thank you 🙏🏽 however how or what site would I get an LLC form to file??

  • @sharisefaniel2871
    @sharisefaniel2871 3 роки тому +2

    Wow! Great video🤗 I'm so glad it popped up
    Thanks Darling 💯

  • @Tennis-3582
    @Tennis-3582 2 роки тому +2

    You just earned my subscription, lots of appreciation

  • @Darlingchildofgod
    @Darlingchildofgod 2 місяці тому

    This was so cool! Easy to follow ☀️ I am a sole proprietor at the moment. I do not like it because of the risk of lawsuits. I look forward to prospering and moving onto LLC status

  • @reynafamilia6446
    @reynafamilia6446 5 місяців тому +1

    Thank you! Very clear!

  • @scruge100
    @scruge100 Рік тому +1

    That was well explained!

  • @mtchief3537
    @mtchief3537 3 роки тому +4

    Excellent work in explaining the differences. Enjoying your content. Any contacts in Orlando, Fl who I can speak to about about using their CPA, bookkeeping services?

  • @franklynthree
    @franklynthree 2 роки тому +3

    great video simple and to the point

  • @annas8535
    @annas8535 3 місяці тому +2

    I want to start a very small service based home business, so I am leaning towards sole proprietorship, but I worry about losing everything in a lawsuit. I'm not afraid of paperwork but it's $800 a year (plus smaller fees) to have a LLC in my state. That's a huge chunk for one person charging $30/hr.

    • @denniskrosss
      @denniskrosss 2 місяці тому +2

      That's cheap.... that's less than 70$ a month to be in business..
      If you can't put that aside then find a difference business to go into

    • @FeatherstoneApothecary
      @FeatherstoneApothecary Місяць тому

      you don't need an LLC. Just business insurance.

  • @ishalljr
    @ishalljr 2 роки тому +3

    LLC here. Do I need to file taxes if I didn't generate any income in the LLC? There were expenses.
    Texas.

  • @GreenandGrain
    @GreenandGrain Рік тому +5

    Excellent video. Thank you! I have watched several similar videos in the past but this made everything “click”! Really appreciate this clear, well organized presentation and the graphics showing the ACTUAL forms (for us visual learners!) thanks again!

  • @FinancialFreedomMadeSimple
    @FinancialFreedomMadeSimple 3 роки тому +4

    Great job Krystal!

  • @drichardson6757
    @drichardson6757 Рік тому +1

    Please explain the difference between sole proprietorship and (individual with a DBA)

  • @travisthompson5379
    @travisthompson5379 3 роки тому +2

    Nicely Done! Great Presentation

  • @billgeoghegan4822
    @billgeoghegan4822 4 місяці тому

    Super clear and helpful. Thank you!

  • @faithfullyyours1684
    @faithfullyyours1684 Рік тому +1

    This is phenomenal. Thank you

  • @savtrendingongawd
    @savtrendingongawd 6 днів тому

    About to purchase a quadplex? New to this so which one does everybody recommend?

  • @GEN2WIG
    @GEN2WIG 3 роки тому +2

    I needed this!!! Thank you 👍🏾

  • @robertlperkins4729
    @robertlperkins4729 3 роки тому +3

    Great job Krystal A! This was very informative. The whole team is doing a great job of informing. Do you guys support startup businesses in Texas from a CPA perspective? Thanks!

  • @monosh1
    @monosh1 Рік тому +2

    LLCS that are single owned do they get 10099s NEC? I’m confused ? Should I ask them how they are filing (S corp or C corp) ? Trying to do 1099s and it gets tricky with them

  • @reginaldjordan8118
    @reginaldjordan8118 2 роки тому +6

    Sole proprietor running a small one person painting company

  • @anwarwright54
    @anwarwright54 Рік тому +1

    Nice breakdown. Thank you.

  • @wcalixte
    @wcalixte 3 роки тому +3

    Thank you for that. I learned a lot. Question, if I invest in an investment club with a sole prop EIN, are gains considered income?

  • @jamalymall
    @jamalymall Рік тому

    Great job explaining

  • @juliusw7895
    @juliusw7895 Рік тому

    You are a good teacher

  • @zinnymg1
    @zinnymg1 2 роки тому +3

    Hi, which is better? Sole proprietor or dba for online tshirt business?

  • @aumoega7991
    @aumoega7991 2 роки тому +1

    Excellent breaking it down 👍🏾

  • @rhondaprice227
    @rhondaprice227 Рік тому

    Thank you. This was on point!

  • @Bormanb23
    @Bormanb23 2 роки тому +3

    Awesome video, Im an sole owner LLC, profit is over 450K through consulting, so should I change to S CORP?

  • @bodified5838
    @bodified5838 Рік тому

    Great video! Thank you!

  • @JelscreationsNmore
    @JelscreationsNmore Місяць тому +1

    when i looked up LLC it wants to elect someone to collect all forms and taxes can i do it myself

  • @tonyhouston9473
    @tonyhouston9473 2 роки тому

    Thanks, this was very informative... Aint nothing like brains and beauty!!

  • @Nhmauto
    @Nhmauto 2 роки тому +1

    Great info! 💪

  • @s.b.p5219
    @s.b.p5219 2 роки тому +4

    Can a LLC be started by a trust or should the LLC be started first and later placed within the trust?

  • @kat4animals004
    @kat4animals004 2 роки тому +3

    For a fictitious business name statement,
    /DBA... Does the owner, the individual that is doing the business have to be listed as the registrant? Can a sole proprietor , hire a registered agent, I don't want to be my own RA. Thanks for your helpful videos!

  • @jimmieroberts1972
    @jimmieroberts1972 2 роки тому +1

    Cant you do a video on Co-ops cooperatives?

  • @allenschneider1847
    @allenschneider1847 Рік тому +2

    Excellent summary.
    For tax purposes, start up costs or annual costs, are their significant differences between an LLC and a PLLC?

  • @mikeperez1116
    @mikeperez1116 Рік тому +1

    Question if I do junk removal and collect cash from all my jobs how do I report that just putting it in the business account as a sole proprietor and i get taxed on all that money besides my expenses ?

  • @ninaviola5229
    @ninaviola5229 Рік тому +1

    Hello again I currently have a business, not operating, since I relocated to another state, the business I currently have I’m the sole proprietor and would like to operate as LLC instead, could you guide me?

  • @broaj1453
    @broaj1453 Рік тому

    Currently I am a sole proprietor but I am established my LLC.

  • @gedavis6482
    @gedavis6482 Рік тому +1

    Awesome Professor! Thank you for helping to keep us on the same page.

  • @griceldasmith9661
    @griceldasmith9661 4 місяці тому +2

    can I start as sole proprietor and as my biz grown switch to LLC?

  • @ricardocarbajall6519
    @ricardocarbajall6519 Рік тому

    great video , thank you.

  • @Aqueenlee
    @Aqueenlee 3 роки тому +5

    Great video with critical gems to keep in mind. Question: if an LLC was setup in 2021 but no revenue was generated, do u suggest opting for the S corp tax election or should one wait until the LLC makes some money? There were several expenses related to the LLC setup.

    • @LYFEAccounting
      @LYFEAccounting  3 роки тому +13

      I'd wait until the LLC started generating some revenue. General rule of thumb is at least $50k in revenue before filing an S Corp election.

  • @thesrobinson848
    @thesrobinson848 2 роки тому +1

    Very helpful

  • @alloutpossible4372
    @alloutpossible4372 7 місяців тому

    Great video

  • @derekdd5229
    @derekdd5229 Рік тому

    Well done. Thanks.

  • @Word85
    @Word85 10 місяців тому

    Thanks for the vid! How does it work if I’m trading stocks?

  • @ericagrant3197
    @ericagrant3197 Рік тому

    Awesome Job! :)

  • @pointblank6467
    @pointblank6467 3 місяці тому

    thank you!

  • @MsIndependent-rb8bw
    @MsIndependent-rb8bw 8 місяців тому

    Great job

  • @christophermoore1776
    @christophermoore1776 6 місяців тому

    If operating as a sole proprietorship would it be necessary to have a bussiness name?

  • @Victoria3Victoria
    @Victoria3Victoria 2 роки тому

    Very informal

  • @yooo2568
    @yooo2568 4 місяці тому

    For a detailing business what is the best route?

    • @MrJ183
      @MrJ183 4 місяці тому +1

      Depends on how much stuff you own . If you are young and dont own anything besides your company vehicle then its alright but just be careful

    • @yooo2568
      @yooo2568 4 місяці тому

      @@MrJ183I’m just going to start one in January.

    • @yooo2568
      @yooo2568 4 місяці тому

      @@MrJ183thank you for your reply

    • @MrJ183
      @MrJ183 4 місяці тому +1

      @yooo2568 if you have the funds the llc may be more worth it as you might be able to get cheaper prices for the products you will use by getting commercial accounts.

  • @InstantlyMotivated365
    @InstantlyMotivated365 Рік тому

    Thank you!!!

  • @tra2118
    @tra2118 Рік тому

    Thank you, sweetheart.

  • @thomasnguyen354
    @thomasnguyen354 2 роки тому +2

    This is my first business. Went to the county to set up a DBA. Haven't made money yet. But should I open up a LLC instead? or can I open a LLC with my fictious name?

    • @espianmashias9565
      @espianmashias9565 Рік тому

      It’s been 8 months can you tell us the answer to your good question?

  • @mediumgrey1947
    @mediumgrey1947 Рік тому

    Thank you

  • @mayalune1973
    @mayalune1973 2 роки тому +1

    So If I don't make much with my business ..I shouldn't make an EIN yet? I have an LLC but no EIN yet

  • @nadiaconseillant8616
    @nadiaconseillant8616 9 місяців тому

    Wonderful ty

  • @FourCornersCustomProducts-4CCP
    @FourCornersCustomProducts-4CCP 2 роки тому +1

    Sole Proprietor and think about changing it to a LLC

  • @martialag
    @martialag 5 місяців тому

    I plan to form a sole proprietorship and form a LLC later.

    • @LUCA-g9l
      @LUCA-g9l 3 місяці тому

      doesn't it cost to change? unless you have that free amendment through your registered agent?

  • @reenasaeed1735
    @reenasaeed1735 6 місяців тому

    Hi which state do you practice in?

  • @diniecehowell910
    @diniecehowell910 2 роки тому

    So if I used my Ecommerce LLC for things outside of e-commerce is that a problem?

  • @NestorHVAC
    @NestorHVAC 2 роки тому

    My business is a LLC but I filed my taxes as a sole proprietor based on my accountant advise. That’s that make sense?
    I’m a one member business
    Thanks

  • @MikahWonders
    @MikahWonders 2 роки тому

    S corp! And I actually am going to stay S corp after watching this hahah thank you!

  • @darkairussachihiro5814
    @darkairussachihiro5814 2 роки тому +1

    Do you recommend a new UA-camr to be Sole proprietor or form an LLC in the very beginning stage?

  • @natediggy6300
    @natediggy6300 5 місяців тому

    Im 21 and just got my application for a sole proprietorship approved, and i want to pursue a handyman business that charges under $1000. Any advice? I know well enough to cut my losses and not risk anything for stuff im not educated on. Thats what the trip fee is for lol.

    • @natediggy6300
      @natediggy6300 5 місяців тому

      Also if someone were to "sue me for all i got"...they wouldnt be able to get very much as i own nothing right now, and if im making payments on a vehicle would they be able to get that from me before its actually paid off

  • @chase7767
    @chase7767 6 місяців тому

    "Or you might be confused on the entire idea and why you should actually care." LOL this

  • @wisdombteah3680
    @wisdombteah3680 7 місяців тому

    Great

  • @McBeeStudio
    @McBeeStudio 4 місяці тому

    So if I were to start a business in digital marketing, would an LLC be best since digital marketing and greatly affect the appearance of a business? Idk why but I just have a hard time understanding all this information. It’s so much

  • @jameswarfield1206
    @jameswarfield1206 2 роки тому

    Hi, I’m a Sole proprietor and I won’t to be a single
    LLC how do I do it?

  • @lukastemberger
    @lukastemberger Рік тому +1

    But wait. If a single member LLC has the liability split between all the members, then the single member has 100% of liability. So liability is not limited and is the same as sole proprietorship?
    In that case, the only difference between sole proprietor and single member LLC is having to pay the $800/year fee for having the LLC?

    • @wenderful1577
      @wenderful1577 10 місяців тому

      That's a good Q... Somewhere else I read something similar to your Q

    • @lukastemberger
      @lukastemberger 10 місяців тому

      @@wenderful1577 Yeah, and no one wants to answer it lol

    • @wenderful1577
      @wenderful1577 10 місяців тому

      @@lukastemberger I did find a short clip that answered it on UA-cam look up. The lawyer mentioned , "flow through taxation"

    • @lukastemberger
      @lukastemberger 10 місяців тому

      @@wenderful1577 I'll have to ask questions to find out what that means next...

    • @wenderful1577
      @wenderful1577 10 місяців тому

      @@lukastemberger 🤣 there's a pretty good flow chart you can find through google

  • @willowriverranch7965
    @willowriverranch7965 Рік тому

    Under a sole proprietorship, does the business get a name or is it just the name of that person?

  • @mjrinfl
    @mjrinfl 3 роки тому +2

    Really great Info. Question i hope can get answered.
    I feel like sole proprietor is better for me at least for now. But there is one thing. I want to run multiple brands for my photography business for different types of photography. But doing a Sole proprietor, you can only have one DBA. So should I file an LLC for that reason and than file a DBA under that llc for the second brand? I don't see any way to do two brands with just sole proprietor

    • @tashierockz
      @tashierockz 2 роки тому +1

      You should check your states requirements. In California, you can have additional names and it’s only $5 dollars more.

  • @FeatherstoneApothecary
    @FeatherstoneApothecary Місяць тому

    has no one here heard of business insurance?? you should have it either way but if you can't pay LLC fees at least get that much.

  • @notme751
    @notme751 10 місяців тому

    So if a LLC makes no money it still pays taxes?

  • @esexavo
    @esexavo Рік тому

    I just want to save money on taxes if I profit 100k a year , what should I do I live in california they tax us into poverty

  • @elgs1980
    @elgs1980 Рік тому +1

    What if a sole proprietor is also an employee of another company? In this case, how will the tax of the salary from the company the sole proprietor works for be calculated?

  • @butterflyj685
    @butterflyj685 Рік тому

    What if you had $0 income for a sole properitorship?