Elizabeth, you answered my most fundamental question on this video. You are not just a lawyer, but also a professional advisor and mentor. Really happy to find your videos. 👌👍🙏

@ElizabethPW

Жыл бұрын

You are so welcome!

@janaesaffold2531

7 ай бұрын

yes you answer mines tooo@@ElizabethPW

Love your content! Thx for tbe great info

@ElizabethPW

2 жыл бұрын

Glad you enjoy it!

Thank you Elizabeth for sharing this video.

@ElizabethPW

2 жыл бұрын

You are so welcome!

Direct and very helpful. Thank You!

Thank you Elizabeth this was so helpful specially as a start up.

@ElizabethPW

2 жыл бұрын

You are so welcome!

Very helpful and straight to the point, thank you

@ElizabethPW

3 жыл бұрын

You're welcome, glad it was helpful!

I'm on a Elizabeth video spree and sponging all of your information, there is a lot of value here :)

@ElizabethPW

2 жыл бұрын

Glad you found it helpful! :)

Hello Liz, thank you so much 😊,you are very clear with your contents-- TODAY IS MY FIRST TIME OF COMING ACROSS YOUR CHANNEL and I just fell in love with your very simple way of explaining stuff. Thank you so much

@ElizabethPW

2 жыл бұрын

You are so welcome!

Love your videos. Super informative and thorough but short!

@ElizabethPW

2 жыл бұрын

Glad you like them!

You are amazing, was so hard to find this information like u said, most don't realize what they get themselves into.

@ElizabethPW

Жыл бұрын

Great to hear!

Thanks Elizabeth!! Your videos are so informative. I dont know the way to go at this time, but you provided all the info I need to make the decision, I just have decide now. Nice job!

@ElizabethPW

Жыл бұрын

Great to hear!

This has got the be the most clear, concise and complete video on the topic! Thank you!

@ElizabethPW

2 жыл бұрын

You're welcome! :)

@kev-othegamer

2 жыл бұрын

I Agree.

omg a legit video that's not just "5 reasons not to do a sole proprietorship" and than proceeds to provide shallow in-concise reasons with very few or just poor examples!? liked and subscribed!

@ElizabethPW

2 жыл бұрын

Glad you liked it!

This is such great knowledge. Thank you for sharing.

@ElizabethPW

2 жыл бұрын

Glad it was helpful!

Thanks for the information, very well explained

@ElizabethPW

3 жыл бұрын

Glad it was helpful!

Thank you, very clear and understanding.

@ElizabethPW

2 жыл бұрын

Great to hear!

Elizabeth, thank you, thank you, thank you soooooo much! I was so confuse as to which way to go until I listened to you. You were clear and straight to the point. All my friends who have money making businesses were encouraging me to go LLC; "Go LLC Bro, it's the right way. Good for taxes!" After listening to you Sole Proprietor is the right choice, I am a one owner, one person worker, I have no property or value other than my wife and kids. Thank you Elizabeth! Two (2) Thumbs up!

@ElizabethPW

2 жыл бұрын

Glad you found it helpful! :)

@Ashley21138

2 жыл бұрын

Right, everyone is so pushy about getting a LLC, sole prop it’s is

Thanks for making that so clear.

@ElizabethPW

7 ай бұрын

You're very welcome!

Hi Elizabeth. I saw your video and it was very helpful. Thank you for explaining it so that I can understand it well even if I am not good at English, and for explaining the necessary parts well.

@ElizabethPW

2 жыл бұрын

Glad it was helpful!

Thank you! Very good information

@ElizabethPW

2 жыл бұрын

You are welcome!

I really love your channel 😍, thank you so much for share all this knowledge 🤗

@ElizabethPW

2 жыл бұрын

Glad you enjoy it!

Oh my goodness THANK YOU! I have been watching some of your videos to help as I try to get started and each one helps more than the last! I felt my anxiety rising because I do have assets to cover and do events but I am just starting out and making hardly any money so I was almost panicking but phew 😅 you ended it with converting after a time so 👏🏽👏🏽👏🏽 to you

@ElizabethPW

3 жыл бұрын

That's great to hear! Glad I could help.

Great help🙏

Very helpful information thank you!

@ElizabethPW

3 жыл бұрын

Glad it was helpful!

This was the best advice someone ever gave me . Thank you..

@ElizabethPW

22 күн бұрын

Great to hear!!

Thanks for the video!

@ElizabethPW

Жыл бұрын

You're welcome!

Ok this video definitely taking some stress off of me whew thank you

@ElizabethPW

2 жыл бұрын

I'm so glad!

So helpful! Thank you!

@ElizabethPW

Жыл бұрын

Glad it was helpful!

Great information thank you so much 👍👍

@ElizabethPW

3 жыл бұрын

Glad it was helpful!

Very helpful, thank you!

@ElizabethPW

Жыл бұрын

You're welcome!

Thank you so much 🙏🙏, I am planning to start a small clothing bussiness and am very much confused about the permits I need . This video is very helpful.

@ElizabethPW

Жыл бұрын

great to hear!

Thankyou for sharing. I appreciate being able to get all the information clearly . I do not feel the need to review a few more videos to get the whole picture 😆

@ElizabethPW

2 жыл бұрын

Glad it was helpful!

Thank you for this. Seriously.

@ElizabethPW

4 ай бұрын

Welcome!

Honest and nuanced information with context. Thanks so much for making this video. Everyone on KZread pushes the "LLC is the only way to go" narrative. I'm guessing a lot of that is due to the money to be made with LLC formation services. I've been binging you videos and found this and the sole proprietorship to LLC conversion video formative and helpful. I'm looking into a side gig making donuts at the local farmers market once a week. Do you think that's small and safe enough if I have insurance? My only assets are a 401k and roth IRA, no property etc. Thanks!

@ElizabethPW

7 ай бұрын

Yep I hear you about the LLCs. Well I'd say when selling food you want to have insurance to cover you in case something happens (someone chokes or is allergic etc).

thank you.......so.much. lol this helps A LOT

@ElizabethPW

2 жыл бұрын

Glad it helped!

Hi Elizabeth love your videos they’ve all been so helpful! Do you have a video on how to switch from LLC to sole proprietor?

@ElizabethPW

2 жыл бұрын

No I don't have a video on that, but I'll add it to the list. It does come up a lot, both switching from LLC to sole prop as well as how to properly shut down an LLC generally.

Thank you so much💎

@ElizabethPW

3 жыл бұрын

You’re welcome

Your voice sounds like a song - I enjoy your English! Thanks so much. :)

@ElizabethPW

3 жыл бұрын

Welcome!

thanks for this! will you make a video about s and c corporations?

@ElizabethPW

3 жыл бұрын

You're welcome - yep I plan to do one about llc vs s corp vs c corp!

thank you

Thank you!!

@ElizabethPW

3 жыл бұрын

You're welcome!

Thank you 💕✨

@ElizabethPW

3 жыл бұрын

Welcome!

Yes yes yes. Thank you!

@ElizabethPW

10 ай бұрын

You are so welcome!

Dammm you are very good in explaining! I would love to go as LLC but it requires all my cash to be transferred to my new business and I can’t do that,,, I’ll might transfer in the future until I make my money growth

This is just awesome info and great help for newbies like who are thinking of starting a business. What would you recommend an online guitar case - manufacturing and selling business? Thank you so much for these videos and for any tip/suggestions. Thank you again!

@ElizabethPW

3 жыл бұрын

Glad it was helpful! Hm if you are manufacturing products, I assume that you will have inventory and contracts with the factories etc. That may be a good case for an LLC, because there's potential liability if something goes wrong with those agreements, if there's unsold inventory, if inventory gets lost or damaged in shipping, delays in shipping and customers want refunds, etc.

@LuckyYouDude

3 жыл бұрын

@@ElizabethPW Thank you again Elizabeth. I mistakenly wrote 'manufacturing', I will actually have the cases manufactured in India and then shipped to USA for online selling? Do you think I can start with sole proprietor or LLC will be a good idea since it involves international dealings? Thank so much I am totally lost on this hah..

@ElizabethPW

3 жыл бұрын

Yes it may be better to have the LLC because of those dealings, shipping, inventory, etc

Hi Elizabeth, thanks for sharing your expertise on this topic. This is very helpful information. If you don't mind, what would you suggest I do as I start up a home staging/ interior design business as well as an event decor/ planning business? I know I'd need a team for either of them so my thought is to do an LLC but would I have to file different ones being that they have two different business names and provide slightly different services?

@ElizabethPW

Жыл бұрын

It really is up to you if you want them to be separate - you could have one LLC and just get a DBA/FBN for the other name (or both names, with the LLC as a holding company). The main issue is if you are comfortable with both biz being liable for each other's problems. I'd recommend getting adequate insurance since both biz have a physical in-person component.

Well done

@ElizabethPW

3 жыл бұрын

Thanks!

Thank you

@ElizabethPW

3 жыл бұрын

Welcome!

Thank you so much. I so glad you are providing this information. I've been going back and forth for far too long with what to do...especially because we own a home now. However, I'm just starting out as a consultant and mostly online for now (due to the world events). However, I want to eventually do engagements in the future. So the 6 month starter I believe is the best option for me. Having an asset, would you advise the same? I really appreciate this. New subbie. PS. Would this also affect my husband's business?

@ElizabethPW

2 жыл бұрын

Make sure you mitigate the risk by having solid contracts, insurance, and being picky about the clients to take (to avoid drama). If your husband's business is also a sole prop, then yes generally everything is liable for each other. But if it is an LLC or corporation, it is separate.

Thanks for sharing this video, Elizabeth. Should I start a sole proprietorship if I'm doing affiliate marketing and print on demand business? Meaning I upload graphics to a another companies website and they buy the product ex ( it can be a tshirt, a mug, an apron) etc. The company ships it out to the customer and that's it. Would it be better to start a sole proprietorship instead? I have no assets. I basically have a shopping mall with this company, am I'm also an affiliate for the company as well. If a customer wants to return an item for example? They will have to send it back to the company, not me. If they have customer service problems they call the company I'm affiliated with. If the customer wants to order in bulk, they call the company that my graphics are sold from which is my store. Do you think it's better to have a sole proprietorship???

@ElizabethPW

3 жыл бұрын

Sole proprietorships are cheaper/easier in the beginning, so many of my clients starting out in an affiliate-type business, with no inventory, will choose the sole p. The risk is that if you are taking on any debt (loan or credit cards), or if something goes horribly wrong with the main company, you are personally liable (so make sure you have a good contract with them that doesn't hold you liable for stuff). I think the other potential risk is if any of your graphics are infringing on someone's copyright.

Elizabeth, thanks so much for this video, more helpful than anything else I've found online. Two questions if I may; I am starting a sales organization that will require me to hire independent contractors, no direct employees and no real risk, do I really need an LLC? AND, I will have a second DBA and would like to open two distinct bank accounts and I understand I can do that with one EIN as long as they are both sole props? Thanks so much for your channel, you are providing a great service!

@ElizabethPW

Жыл бұрын

For that type of business, you'd want to make sure to have well-written contracts so the contractors are indy contractors *for sure* and also require them to have insurance, business license (if they need that) etc. in the contract. Yes you can have multiple bank accounts for each DBA (with one EIN). Well unless that bank has some weird rule but that would not make sense.

Elizabeth, thank you for sharing your expertise. I am starting to fill out my application for my trademark when I came across your videos that left me with this question. If you start out as a sole proprietor and file a trademark under that but then later down the road switch to an LLC , do you need to update and notify the USTPO?

@ElizabethPW

2 жыл бұрын

Yes, you need to file an "assignment" of the trademark. I talk about it in this video: kzread.info/dash/bejne/dnqitMOdiZeWn84.html

Great video. If the business is going to be one-person show, from home, but is IT consulting, do you consider that high-risk? A quick inquiry into insurance for liability came back with, "our underwriters don't have an appetite for that", but they were able to offer a quote on unemployment compensation insurance, which is required by the state. I only checked with one carrier so a ton more probably will or perhaps might cover the liability side, any experience dealing with that side of it? In other words, it sounds like going LLC is best for this particular industry (Information Technology to include security) just based on risk alone. Any recommendations on a national insurance carrier for SP or LLC liability insurance? Thanks so much in advance!!! Subscribed!

Thank you so much for sharing this! Question: I am currently a sole proprietor and have a number of businesses - freelance interior designer with other designers, interior design, art photography, and I let out my house on Airbnb. My Schedule C's are elaborate! I don't own a house but live in my house of trust and have no employees. Should I transfer to an LLC or stay SP?

@ElizabethPW

2 жыл бұрын

Hm switching to an LLC won't make it more simple really. I'd look at whether you'd get a tax savings from having an LLC-taxed-as-an-S-Corp ... whether you would really depends upon your exact income/expenses (great idea to have a tax person run the numbers).

Hello Elizabeth, thank you for this video! I am a US Army Veteran that is wanting to open a credit repair company. Should I still consider opening up as a sole proprietorship vs a llc? I know there are some risk factors in credit repair. Thought you could guide me a bit. Thank you for your help.

@ElizabethPW

Жыл бұрын

If you're doing a business like credit repair, you need to make sure you have proper disclosures and terms & conditions (or written contracts) with your clients. In any business like that, expectations must be managed so people don't expect a miracle etc. Yes, having an LLC helps too, because if someone does file a lawsuit against you, that's another layer of protection for you personally.

Thank you for the clarity, I do have a question. As a sole proprietorship, can I get a EIN # for my photography business?

@ElizabethPW

3 жыл бұрын

Yep you can get an EIN for your sole proprietorship, and it is a good idea. Here's a video about that: kzread.info/dash/bejne/Y5qAm9hxZcKepdo.html

Great i see this i have just Did a quote For my LLC ... but because I sell product I went for my LLC

@ElizabethPW

3 жыл бұрын

Good to hear that the video was helpful! That makes sense.

IM starting a business for my brand and family..first one will be an online retail fashion store. I will be getting it going and running it..everything will be done from my house, then shipped to customers. Should I do an LLC or sole..do you think?

@ElizabethPW

3 жыл бұрын

Many of my clients start out as a sole to keep things less expensive/simple. The down side, when you have a product-based business, is you are personally liable for all those production / vendor agreements, and any debt you are taking on to purchase inventory. It really depends upon your tolerance for that kind of risk.

Thank you!!! I'm so happy, I seen this video before apply for my LLC. I buy hair from vendors overseas and using the product to make my own custom wig. I am using my own ordinary everyday income to make this investment. I am trying to get my self to a passive income to pay for those investments. In your opinion, starting out do you think a sole proprietor or LLC will be the better fit for me ??? Some of my customers who purchase my wigs, get an install. Im just not sure if my business is a high risk factor where i'll need liability from the LLC, at the moment.

@ElizabethPW

2 жыл бұрын

It's a great question! Hm I'd look at how much money you are investing in this business, including how much credit the business will have. For example, some businesses have to order a lot of materials on credit, so if the products don't sell, they still owe for those materials. Some of the risk with the customers can be handled with insurance (like liability insurance if someone slips-and-falls at an appointment).

Im leaning more toward sole proprietor now that ive watched your video. But what would you recommend for starting a small landscaping business? I don't know how successful the buisness would be so i dont want to get an llc off the bat. Great video with a lot of great advice. Thank you

@ElizabethPW

Жыл бұрын

Well landscaping does have some risk since usually have employees and people can get injured, so if don't want to get an LLC then make sure you have adequate insurance to cover those risks

@brandonthomas6880

Жыл бұрын

@@ElizabethPW awesome thank you so much! Your videos are really educational

Hi! Thank you so much for this video! It really helped a lot! I have questions if you don’t mind answering them.. When you were talking about not using the money and pay yourself while having an LLC, is it the same when having a Sole Proprietorship? & For Sole P, we don’t need to have a separate business account? Is a personal checking account okay? Also, how do we go about collecting taxes in other states if we are doing print on demand with Shopify or Etsy? Would we need to apply for a business license in all states?

@ElizabethPW

Жыл бұрын

With a sole prop you are not legally required to have a separate account. But really it makes it hard unless you do, because it is hard to track your income and expenses so you can do your taxes later. If you have a separate bank account, then it is obvious what is your biz income and biz expenses. For sales tax, etsy is a marketplace facilitator so they handle it, but if you have a shopify store I think you have to set it up yourself -- I'd use a vendor like taxjar.com to handle it. For biz license it is state-by-state, city-by-city rules, but typically you'd need some physical connection.

@Eli_Raine

Жыл бұрын

@@ElizabethPW thank you so much!

Hi Elizabeth. Great video and information. I am going to set up a DBA and I will be getting errors and omissions insurance. This is for my notary and insurance business. I am the only employee thus far. Do you recommend DBA with E&O Insurance or does LLC sound safer?

@ElizabethPW

Жыл бұрын

Hm right for a notary business, you get E&O insurance for the biggest risks (mistake in the notarization). Also consider regular business liability insurance, to cover other stuff like a customer slipping-and-falling. LLC does add a bit of protection too, and that's more about your comfort level vs the expense of a CA LLC (including the $800/year franchise fee tax).

Great video! I'm in the works to starting a press on nail business in NJ. I just got my EIN and went under as a sole proprietorship. Was this a good move or should I do I LLC ?

@ElizabethPW

2 жыл бұрын

It can be good to test out the biz as a sole prop, before you spend the $ on the LLC. Make sure you have biz liability insurance.

Great information! If you paid for things like forming the LLC, the Registered Agent, and logo; should you pay yourself back from the business account?

@ElizabethPW

Жыл бұрын

Well you can handle it a few different ways. You can reimburse yourself, you can just count it as your "capital contribution" to "buy" the membership shares of the LLC, or you can count it as a loan and the LLC pays you back in the future. There's no one right way -- it depends on what makes sense financially/tax-wise

@enekneya7378

Жыл бұрын

@@ElizabethPW Wow! Thank you for answering so thoroughly!

Really appreciate this information. If I had a stock trading business, no employees or clients, just earning income trading for myself, would l always need to be a sole proprietor or would an LLC be necessary based on how much income is made? Also, would liability insurance NOT be needed with this type of business? I can’t think of what type of liability this type of business would create since there would be no clients or employees but thought I would ask. Thank you!

@ElizabethPW

Жыл бұрын

You may want an LLC or Corporation, to take advantage of S Corp tax savings (if you are making enough money). One aspect of liability insurance is that if your homeowners/renters insurance company learns you have a business with no insurance, they may cancel your policy. That's a good reason to get business insurance, if nothing else.

Hi thanks for the video, very helpful! What do you suggest for a small business for Tie Dye DIY Kit that planning to start in few months? LLC or sole proprietorship? Live in LA County, Cali. Would you suggest to form LLC from Jan 1st 2022 as it's almost Q4? Than you.

@ElizabethPW

2 жыл бұрын

If you are not going to get your business up--and-running until 1/1/2022 then yes it can be good to register it so it is effective as of 1/1/2022, so you can use 2022 as your "first year" (and get the $800 franchise fee tax waiver for that year). For a product business, it depends upon whether you are making them yourself or if you are ordering/manufacturing a lot of inventory -- when someone has lots of inventory, having an LLC can protect you in case you are not able to sell the inventory.

Thank you for the informative videos, they are very helpful. I have a question, I have started going to thrift stores and garage sales and reselling on eBay as a side gig. I have recently seen videos about big companies suing resellers with some kind of trademark angle even though it’s a legally purchased item. Any way with that in mind do you think it would be wise to get an llc for the protection and peace of mind? Does an llc even protect against anything like that? I wouldn’t want my reselling hobby to impact my family if a company decided do something like that however unlikely it may be.

@ElizabethPW

4 ай бұрын

Hm well yes running the business as an LLC would shield you from personal liability (assuming you observe all the corporate formalities).

Hi 👋🏾 First I love you videos. They are very helpful. Do you have any insights or tidbits about other states like VA? I do understand you work in CA and know more about that state. I just wanted to ask.

@ElizabethPW

Жыл бұрын

In most states, the costs of forming and having an LLC are much lower than CA. Here's a bit of info: www.northwestregisteredagent.com/llc/virginia/cost

@andreabarnett7223

Жыл бұрын

Thank you for this. I appreciate it.

Hello, Thank you so much for the video! I have an 8-5pm job as a graphic designer in Tx and I'm also a freelance graphic designer, videographer and photographer. I plan to invest more time in my side hustles ( which don't make much income yet). I'm wondering which could be more beneficial for Taxes wise now. I want to set up a single-member LLC for legal matters but it might be more headache to set it up compared to Sole Proprietorship. Any advice in this case? Thanks for your helping hands.

@ElizabethPW

Жыл бұрын

For taxes, typically there isn't a big savings by being an LLC vs a sole prop until you are making enough money where being taxed as an S Corp makes sense (usually high five figures of profit, since the S Corp tax status also comes with more admin and costs).

Hi Elizabeth! Thanks for te awesome video. I am a hobby woodworker with a full time job. I have recently started building small pieces and will start selling them at various markets. I have a home, a nice savings, and multiple vehicles. Do you think llc would be best in my situation?

@ElizabethPW

9 ай бұрын

Hm yes if you have some assets it may make sense to have an LLC. Also get insurance too

Hi Elizabeth. Very helpful and informative video. I want to start a stroller cleaning service out of my apartment (eventually renting a space for the cleaning). What do you suggest for this? An LLC or sole proprietorship?

@ElizabethPW

3 жыл бұрын

Hm anytime there's a business that services parents (of children or even pets) it can be a good idea to have both insurance and also an LLC, because that's a category of people who can flip out if something goes wrong. You can reduce the risk a bit if you pick up the strollers yourself instead of having people drop them off.

@ParadisePoint09

3 жыл бұрын

I don't have my own transportation 😬 But I was leaning towards getting an LLC, so this confirms my decision.

Muchas gracias. Well explained. Glory to *Christ Jesus.*

This video was very helpful. Would it make more sense to start a LLC vs Sole P. if I'm opening a small cafe? I do have personal assets but I wasn't sure if purchasing additional insurance coverage such as a commercial umbrella insurance would better serve me to reduce cost if i ever got sued

@ElizabethPW

2 жыл бұрын

Insurance is a good idea, but for a physical-location business like a cafe, and one that sells stuff to be consumed by people, I'd recommend having an LLC. Also is good if possible to have the LLC responsible for the debt / lease (but you might have to co-sign).

@icandacewoods2774

2 жыл бұрын

@@ElizabethPW Thank you soooooooo much for this

Hello Elizabeth! Great video! So under sole proprietorship, can one still hire people? Is there risk to that?

@ElizabethPW

2 жыл бұрын

Yes, you can still hire people. And yes, there is a risk, because you are personally liable for what the employees do and if they come to harm or have some other claim (wages, harassment, etc.). Some of that you can protect against via insurance, but I think with employees it is better to have an LLC.

You’re so wonderful! Thank you for the great info! What about for signing leases doing AirBnB arbitrage? Thanks I’m advance! 🙏

@ElizabethPW

Жыл бұрын

If it is possible to have an LLC sign a lease, that would be much better for you (just in case the airbnb arbitrage crashes like in 2020). But they may make you personally co-sign the leases anyway, if the LLC is new and has no credit. If you are going to do multiple properties over time, may make sense to start with an LLC that you have to co-sign, to build a history for the LLC so in the future it can sign its own leases.

@lissyeubank

Жыл бұрын

@@ElizabethPW I appreciate your prompt response! Makes a lot of sense. Thank you so much!

Great video. May I ask, what would you suggest for an at-home fitness apparel line?

@ElizabethPW

3 жыл бұрын

I'd look at how much liability you are going to have with any contracts you sign with manufacturers, debt you are having to take on, inventory to maintain, etc. If there is a fair amount of potential debt/liability on the line, better to have it shielded from you in an LLC.

@TheAbriWay_

3 жыл бұрын

@@ElizabethPW Thank you so much for that information.

Thank you so much for your videos, it was very helpful ! I am on my way to starting a Recruiting Agency, where I connect employees and employers for long term placement or short term placement. I Will be doing it from home and I might get a partner as the business will grow along the way. In his situation would I need any insurance ? Since I don’t have any employees? And between Sole proprietorship and LLC what would be the best for my type of business?

@ElizabethPW

Жыл бұрын

I recommend always getting general business insurance, probably something called "business owner's" policy that has a bunch of stuff included. Since you are just starting out, you probably don't need much tax planning yet, so you'd look at the risk/liability issues for whether you want to protect your personal assets from the business' liabilities. Also think about whether your potential clients would be more comfortable hiring an LLC vs a sole proprietorship (many larger companies want to only hire an LLC or corporation).

Hi Elizabeth! Thank you for this video, so straightforward and helpful. I am looking into creating my own Nanny Referral Agency in near future. I’m 21 years old, and always dreamt of having something of my own. I plan on serving people locally. Do you suggest an LLC or Sole Proprietorship? Thanks!

@ElizabethPW

3 жыл бұрын

You're welcome! Hm a nanny referral agency may be.a good example of a business where it makes sense to start out as an LLC, because you have increased liability. If you refer someone who does something wonky, you don't want the parents to come back and hold you personally liable. Obviously you also want contracts/releases and insurance to protect you, but since parents (especially wealthy ones) can be over-the-top, protecting yourself as much as possible is a good strategy.

@pausesiponder

3 жыл бұрын

@@ElizabethPW yes thank you for confirming that. I guess I’m more hesitant of the amount of documents because I’m new to this, but I know that’s apart of the process!

Hi great content. I watched your video and would lke to get your perspective. I recently started a videomarketing company, and its a home based business, I filed as a sole proprietor. I have no employees and currently have no assests. ( although at some point i do expect an inheritance like a will). should video marketing be a sole properiror or llc?

@ElizabethPW

2 жыл бұрын

Since you have no employees (and I assume no clients come to your home) the most likely potential dangers are from intellectual property disputes (copyright or trademark) and contract disputes with clients. For contract disputes, it is about having solid written agreements. For managing IP issues, it is about making sure you have all the rights you need when making a video (or having the client indemnify you). Being an LLC can help with that, but it is more important to have good contracts/behavior.

Nice video!!! I have a Heating and Air company as a LLC but I file taxes as sole proprietor, not sure if that’s the correct way to do it. Also if I want to be a S-corp do I have to change the LLC or just the way to file taxes? Thanks

@ElizabethPW

2 жыл бұрын

The default for a one-owner LLC is that it is taxed just like a sole proprietorship. If you want to have the LLC taxed as an S-Corp, you have to file forms with the IRS to make that election. www.irs.gov/forms-pubs/about-form-2553

Hi Elizabeth- When setting up a sole proprietorship do you recommend we open a separate business bank account for tax purposes?

@ElizabethPW

2 жыл бұрын

Yes, set up a separate business bank account. Makes it easier to track everything for tax purposes.

Hi, My scenario My wife and I have created a it revocable trust for our home and a revocable trust for our savings both the children are the trustees I currently have an LLC however I am a single owner business and considering going back to sole proprietor because of the fact at the house is already secure and I have no assets and I do not want to pay the state of Massachusetts an additional $500 for record keeping. Any thoughts The business is less than part time work a side hustle if that. The thoughts back in 7-2023 was to register as a LLC and try growing the business. my health condition has put a hold on growing the business unfortunately. Thank you in advance for your feed back

Great info!!!! Do I create an llc first then file for a general business license?

@ElizabethPW

Жыл бұрын

If you want the LLC to be the entity with the biz license, yes you'd get the LLC first

Hi Elizabeth, I enjoyed your KZread presentation. Very clear and succinct. I will appreciate you comment on out of State registration of LLC and the benefits/implication of such a registration. Thanks. Anil

@ElizabethPW

3 жыл бұрын

Hi Anil - if you form your legal entity (LLC) in a state that's different than where you are located, then you'll need to file as a "foreign" or "out of state" LLC in the state where you're location. Most of the time you're better off just creating your LLC where you are located, so you don't pay fees, file forms, and pay franchise taxes to two different states. Occasionally it makes sense - for example, if you move every year.

@anilsalpekar8466

3 жыл бұрын

Thanks for taking time to answer my question. @@ElizabethPW

@kylahh4903

3 жыл бұрын

California is an $800 fee a yr for an llc. Look into a delaware corporation as they are $100 and have a lot of perks, so many you can read the irs website for specific guidance.

@ElizabethPW

3 жыл бұрын

@@kylahh4903 If you form a corporation in Delaware and you are located in California, you still have to pay the $800/fee to California as a "foreign" registered entity. Also all Delaware corporations have to pay an annual franchise fee of $400 to $200,000. Delaware corporations are best for companies that are looking for outside funding and/or plan to go public.

Elizabeth, Great Information! I want to do online business and continue as sole proprietor until I figure out the Business works or not. Bought the items needed for Business through personal account.What forms I need to fill out in this case and can I deduct my expenses here? If so, they need to be itemized in 1040 schedule c. Thanks for your help on this?

@ElizabethPW

10 ай бұрын

If you are starting as a sole prop then yes you will put them on your 1040 schedule C and they will be deducted against the business income. You'd want to keep a good record of your expenses in a bookkeeping system or at least a spreadsheet or notebook.

This video is super helpful! I am wondering if I should be a sole proprietor or LLC for my business. I am a contractor who does UX/UI design work (seems pretty low risk). The income is decent this year but may not be as high next year if I find a full time job. I do have personal assets which I would like to protect. Should I go the LLC route even though I may not have much income next year and my work is pretty low risk for debt or lawsuits? If I start as a sole proprietor with a dba name, can I use the same dba name for my LLC if I want to change structure later? Or do I have to use a different name for my LLC because it's been registered with my state business license as that name?

@ElizabethPW

Жыл бұрын

I'll answer the easy question first -- as long as the name is available, you can use the same name for the LLC as your current DBA. Hm it really is a personal comfort level for whether you need the LLC - I do agree that UX/UI is fairly low, except for intellectual property disputes about design or code. If you go the sole prop route to save money and make it simple, make sure you get business liability insurance and have a written contract with every client.

hey there ! great video I learned a lot. I want to start selling collectibles . reselling and have accounts with existing toy companies. should I file as a sole since im not a actual company or have thousands of dollars in the banks

@ElizabethPW

Жыл бұрын

It can make sense to start out as a sole prop when you don't have a lot of cash on hand, because it takes a minimal amount to set up. But also look at the potential liability for the stuff you are selling -- in some industries, there is a lot of potential for people suing or not being able to pay debt / sell inventory.

Hi Elizabeth, thanks for your help! As a facilitator, my question is: if I am a sole proprietor and I have liability insurance, is there a reason to get an LLC?

@ElizabethPW

2 жыл бұрын

Good question - you may be able to mitigate the liability risk by managing your behavior, having solid contracts, and the insurance. The other reasons to consider is (1) if your clients are big businesses, they may want you to be an LLC (so they don't have to worry about you being an accidental employee of them) and (2) at a certain point you may need the tax benefits of a LLC-with-S-Corp tax status.

Hi Elizabeth! Thank you so much for the engaging content, it has been so helpful. I have a question about DBA. If I am starting an online business and register a DBA in my county, do I have to register a DBA everywhere I have clients? Online businesses can have clients all over the world, and I did not know if a local county DBA was okay to use for clients located all over the US as an example. I appreciate your feedback!

@ElizabethPW

9 ай бұрын

My understanding is that you'd get a DBA where you have your headquarters/home office and then only worry about getting a DBA where you have some physical connection (in-person work, for example). Yes otherwise we'd all have to get DBAs in every county which is not realistic

@ydco.

9 ай бұрын

@@ElizabethPW you are amazing! 💜

I've heard mixed opinions as to whether or not an LLC actually protects one's personal assets. I'm in Oklahoma and unfortunately find this question very confusing. Thanks for sharing your perspective.

@ElizabethPW

Жыл бұрын

Welcome! Yes there's a lot out there that confuse the issues

@keithmarlowe5569

4 ай бұрын

You must follow the formalities to prevent a court from piercing the corporate veil. It's not difficult to do, but you must be aware and do them. "How to use limited liability companies & limited partnerships" by Garrett Sutton. One area covered is "follow the rules to keep your assets protected". Another point of much contention is which state to form. From my research, if your business primarily operates in your state, then form in your state. Why? 1) What does it look like you are doing if you form in another state?. It looks suspicious 2) It makes things complicated. You now have to register in your state as a foreign entity doing business. There are possible exceptions to these rules, like you or your business has valuable assets, or you have high risk exposure to lawsuits. Read the book, read other books, watch more videos, then consult with a good accountant and attorney.

Hi Elizabeth.I watched your videos about LLC but got a question in my mind that in case of PARTHNERSHIP LLC where should be mentioned the names of the partners?

@ElizabethPW

2 жыл бұрын

If you form an LLC, the owners of the LLC are typically named in an annual filing with the state, usually called an annual report. In California it is called a Statement of Information and is required for LLCs every other year.

Thanks for the valuable information! I’m sure I want to have an LLC for my new business, should I have a single-member LLC? Or should I include at least one more person to get some benefits?

@ElizabethPW

3 жыл бұрын

The big issue is honoring corporate formalities (separate bank account, paperwork, don’t commingle or use biz money for personal stuff). That’s why some single member LLCs have trouble - they don’t keep it proper & formal.

@marcela6299

3 жыл бұрын

@@ElizabethPW Thanks a lot!

@tishshamiller

3 жыл бұрын

@@ElizabethPW Do you mind explaining what you mean by keeping it formal and proper. Also, how can i tax the llc as a sole prior?

@ElizabethPW

3 жыл бұрын

@@tishshamiller I just recorded a video about the common mistakes LLC owners make, including the formal paperwork issue - it will be coming in a week or two

Thank you.

You made it simple and understanding. I'm sure you get asked same question about LLC or Sole Proprietor. Based on your experience and clients you have what would work out if I'm staring a used dealer selling autos at a very very small location, LLC or Sole Proprietor? It just be me (wife and children as support) and no owned property or investments.

@ElizabethPW

Жыл бұрын

Hm for selling used cars I'd recommend an LLC -- there's a fair amount of risk because people physically there & test driving cars, and also people mad about a car & trying to sue. You should also get insurance too but an LLC will help shield your family from that risk.

@B58_Bless

Жыл бұрын

@@ElizabethPW Thank you for your prompt reply! I actually did go with an LLC. God bless🙏

Hi! I’m starting a side hustle piano tuning business. I have invested in insurance, but for this would you suggest starting as a sole prop or going directly to an llc?

@ElizabethPW

2 жыл бұрын

For that type of a business (where you are handling something expensive owned by your client) yes insurance is the first item. Then second I'd work on having solid contracts with your clients, including disclosures and waivers. Yes since you are dealing with something expensive that someone could accuse you of damaging (especially wealthy clients who can afford a lawyer), it may make sense to get an LLC earlier rather than later. It is most vital if you are having others do some of the work.

Hello Elizabeth, what are your thoughts about a consulting business? an LLC or Sole proprietorship? I do own my home/cars/other assets. Just starting out with this business and not sure about how well it will do. Any suggestions?

@ElizabethPW

2 жыл бұрын

For many consultants, they can start with a sole prop (with insurance, good contracts, screen clients, etc.) and uplevel to an LLC when it makes sense. But if you are in a pro-employee state (like CA) and are working with companies, they may want you to be an LLC so they don't have to worry about whether you are a independent contractor or an employee.

Question: CD Baby is a service that helps distribute your music to Spotify iTunes, etc. they currently want their artist to select “a business type” I’m an independent artist. Should I be a Sole Proprietorship since it’s strictly just me? Or should I be an LLC?

@ElizabethPW

2 жыл бұрын

Most independent artists start out as a sole prop, and then only incorporate when it is a tax savings. The main big risk aspect is if someone is sampling or otherwise doing something else that could have copyright disputes -- then it can make sense to form an LLC earlier rather than later.

I have been doing contract work for a non-profit for a few years now ( twice a year for about 20-25 hours) and just started doing contract work (as an admin) for another, this one is more on a weekly basis. If it's something I want to do from time to time which one should I go with? Also, there are expenses I do have to write off as its partially remote.

@ElizabethPW

2 жыл бұрын

Sounds like your big consideration is tax status -- you can be an LLC taxed as a sole prop or an LLC taxed as an S Corp. And of course just be a sole prop (legally and tax status). To know which makes sense in your situation, you'd need to crunch the numbers -- at a certain level of income being taxed as an S Corp makes sense (but there are additional expenses).

Hi!! What about an tshirt e-commerce biz? I started two and I decided on sole proprietorship. Is this wise?

@ElizabethPW

3 жыл бұрын

Just means that both businesses are liable to each other for debts / lawsuits (and you are personally responsible too). It can make sense to do that in the beginning when you are still testing an idea, to save money.

Thank you so much for your videos. I'm in the beginning stage of starting an Ayurvedic Health Counseling/life coaching/energy healing/wellness type business by myself. I will be recommending herbs, supplements, lifestyle changes. I will also be selling books and art. Sessions will be online or public spaces for now. I was thinking an LLC at first since I'm making health and herbal/supplements recommendations, but not entirely sure if thats the way to go vs sole proprietor? I dont have assets or anything of value. Thank you

@ElizabethPW

2 жыл бұрын

An LLC is one way to protect yourself from personal liability. Either way though I'd also recommend having disclosures/waivers that you give to people (as part of a contract or a set of terms & conditions), specifying that you are not providing medical care, that they should seek the care of a professional for any health conditions, that it is at their own risk, etc.

@karlamarie7531

2 жыл бұрын

@@ElizabethPW thank you so much for your reply. I do have an agreement stating those things but wasn't sure. Guess nervous more than anything. An LLC would probably be the way to go if I decide to also offer my services from local health centers as well? Thanks again.

@ElizabethPW

2 жыл бұрын

Yep when you do stuff in person it is good to have an llc or corporation. Also get business liability insurance