Sole Proprietor? LLC? Corporation? Which Should You Choose?
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...
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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.
#hawthornlaw #LLC #onlinebusiness
Пікірлер: 119
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 👍🏾
@jimhart
5 жыл бұрын
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... ;)
@alf4006
5 жыл бұрын
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!
Super helpful videos - thank you for creating these and breaking down complicated terms for the average Joe (or Jill) !
I wasn't expecting that "catch ya on the flip side" at the end, but it was funny.
Hooray! Welcome back!
@jimhart
6 жыл бұрын
Thank you! Happy to be back!
Thanks very informative. Thank you for the free information
@jimhart
Ай бұрын
Glad it was helpful!
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.
can you change your company structures later down the line?
Good info. Thanks for speaking in plain English, too!
@jimhart
6 жыл бұрын
You're welcome Paloma - glad I could help!
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
@JadenAllen
3 ай бұрын
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
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
@jimhart
5 жыл бұрын
I'll add your question to my list Chris - stay tuned!
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
Wow, great information and the differences were very well stated.
@jimhart
5 жыл бұрын
Thank you!
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?
@jimhart
6 жыл бұрын
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.
@thejoxter6315
3 жыл бұрын
@@jimhart do you have a podcast cause I could listen alł day
Thanks for the info sir! currently setting up my online business before the end of this year!
7:04 LLC
sir can you please clarify about the problem regarding all this types of entity. from Siyabonga Mchunu from SA study at WALTER SISULU UNIVERSITY
Thank you for the information sir. You don’t have to give out this gold, but you do so thank you very much🙏
This is sooo helpful!! Thank you!!
@jimhart
Жыл бұрын
You're so welcome!
Thank you again for your videos. Mahalo
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
That ending was pure gold 😂👌
Thank you!! This is the info I have been looking for and wondering about!
Loving your videos, thank you so much
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?
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
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
I’m thinking of having online business to sell clothing etc..should I file for soleP or LLC?
@angelalovebalt
3 жыл бұрын
Hello, which one did you get?
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.
@chocolatebutterfly9295
4 жыл бұрын
That's a great question.
Great information, thanks!
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?
Lol @ catch ya on the flip side. Good video though. Thanks for the info.
Thanks Jim
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
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?
Question: I am a licensed contractor for NY and got a job at PA. How does that work when it comes to taxes?
@jimhart
5 жыл бұрын
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.
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?
@jimhart
4 жыл бұрын
Someone’s house burns down? 😂
@chocolatebutterfly9295
4 жыл бұрын
@@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?
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?
What way should I start my llc in starting a vending machine business funded by me
@jimhart
5 жыл бұрын
Don't understand the question, but if you would like to chat you can schedule a call here: clarity.fm/jameshart
@chocolatebutterfly9295
4 жыл бұрын
That is excellent Will. Have you started it yet because I was trying to get into that years ago
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.
Thanks so much for sharing!
Great Video
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.
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?
@angelalovebalt
3 жыл бұрын
Hello, which one did u get? I’m trying to sell online
Thank you
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.
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.
Jim Hart for SBA president!!
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?
Thanks
Turns up sound to hear, deafened by outro music.
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.
Which is the better option for authors of books, vlogs, and blogs?
If we are LLC (2 member) and filing as S Corp. do we have operating agreement or shareholder agreement? Or BOTH?
@jimhart
4 жыл бұрын
Operating agreement for llc
good information, but i think your camera focus and framing could use a little work
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.
is the 20% deduction for LLC only for those who don't take the "S" option?
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 am partnering up with a friend for a salon. Should we go for partnership or LLC? Which do you recommend? Thanks
@jimhart
5 жыл бұрын
You need an written agreement and I typically recommend an LLC. www.hawthornlaw.net/diy-llc
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
Ssn# or a EIN# for a sole prop? Which is best?
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?
The sound is low I can barely hear
I am planning to create en elopement business in Hawaii, is that better to start as LLC from the beginning?
What type of entity do you recommend for a real estate agent?
Hi, great video and great channel. By the way, what is the meaning of Howthorn and how did you come up with the name?
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.
@patersondash5531
4 жыл бұрын
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 😑
video and cheatsheet was awesome
You didn’t talk about how you elect to file as an S Corp.
Super helpful thanks
How difficult is it to start as a sole proprietor and then upgrade to an LLC?
@jimhart
5 жыл бұрын
That's the way most people do it.
@chocolatebutterfly9295
4 жыл бұрын
@@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?
Spot on Thanks!!
What about a small medical company?
"If you do nothing else"...sound very confusing. What does it mean?
@bandbporter
2 жыл бұрын
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
Hi if I would like to sing for LLC .How much for sing LLC ?
is web design a "high liability business"?
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
@jimhart
5 жыл бұрын
Their estate might!
🤣❤️that sounds stupid
Stop staring into the camera pls
@jimhart
3 жыл бұрын
Where would you rather I stare?
@nlaznicka
3 жыл бұрын
6” above camera
@nlaznicka
3 жыл бұрын
@@jimhart also thank you for the info
@sandybritzman9460
2 жыл бұрын
😂😂 what the heck? Lol