Around 5:30 I'm starting to wonder when there's actually going to be content. The 5 mistakes actually start around 7:00 Regarding the question of improperly spending funds, I'll highly recommend Mike Michalowicz's book Profit First, which has some guidelines on what's basically the envelope method for dividing your company's revenue. Starting out, it's likely 1% profit (because if the biz can get by on 100% it can do it on 99% as well), 15% Tax, 50% Owner Compensation, 34% Operating Expenses but this will vary.
The information he provided prior to the most common mistakes is just as important. Especially for those who are new to this. Perhaps he should start putting timestamps in the description box for those with ADD and those who want to dictate what is and isn't pertinent "content".
First off, big thank you to James Hart / Hawthorn Law for putting out this free and very useful video tutorial... And now what you are here for: 1) 7:05 - Commingling Funds 2) 7:58 - No Corporate Records 3) 9:15 - Inadequate Capitalization 4) 10:40 - Raiding LLC Bank Accounts 5) 11:40 - Not Having Adequate Liability Insurance 6) 12:30 - Misrepresenting Ownership of LLC you are welcomed
People like you that do this, don't understand how RUclips works. You are literally *kneecapping the earnings* of the content creator you're claiming to thank.
As someone who has made many of the mistakes you've mentioned due to starting businesses from flat broke (and homeless at times), I appreciate the information. Most recently, after 3-1/2 years of being a SM LLC, I'm finally fixing my mess, was blessed with an accountant willing to work with me to make sure I fix the mess, and see a tiny light at the end of the tunnel. I can say from experience (and multiple thousands of dollars of IRS penalties from forming a Partnership without understanding the legal requirements) that if you don't do "due diligence" to learn the rules to play by in advance, your failure to do so will come back to bite you big time. Ignorance is not an acceptable excuse when you're sitting across from the IRS Revenue Agent, and they don't care how little money you have to pay their bill. Don't make the mistakes I've made!
also watched your manager member versus member video. so helpful if a side-by-side comparison of both options were included to cover pros and cons. thanks for sharing.
Thanks for this informative video. I started my business before forming an LLC so, I put my revenue into my personal account for the first 3 months. Once I formed the LLC, I moved the money from my personal accounts to the business account.
- Co-Mingling Funds - Operating Agreement in place - Proper Corporate Records - Sufficient Capitalization to cover payables/debts - Using for personal expenses - Business Insurance - Concealing/Misrepresenting Ownership
I never got bored watching your channel. You've got sense of humor and you may not even aware of it lol. Thanks for sharing your knowledge Atty. Great video content!
Really looking forward to your future video on intellectual property rights! There are so many artists who want to start a business, but there are a lot of questions around selling your intellectual property through an LLC.
Great video...I discovered you today and have been binging your videos. Regarding meeting minutes, should I keep minutes even if I am completely by myself? I guess this would be more like a journal of my decisions and why I made them.
Perfect timing! Was just thinking if going thru legal zoom or some other service& wondering if it is ok for a side hustle. Now I have a clearer idea of what is needed.👍🙂
I have watched many of your videos & you have helped me substantially in launching my LLC & in the near future I hope I can hire you to be my legal representation.
Thank you so much! You are a wealth of knowledge so someone like myself who is starting as a small business owner and trying to do this on my own to save a buck. Greatly appreciate your videos...keep them coming :)
This video really helped me and pointed me in the right direction! I've heard of piercing the corp veil, but now I know what that means. Thanks for sharing!
Funny thing is I just read some blogs that advised on how to form multiple LLCs (one being the parent to the others) as a way to keep owner's name secret/private. I'm not sure if this is the same thing that was mentioned in as #6 tip. I just remember that I was overwhelmed with the info I was getting for JUST ONE company, yet here I was running into articles about opening and maintaining multiple LLCs. Hahaha. Oh man!!
I have a question about the Texas Franchise Public Information report. I want to use a virtual address and use a registered agent, but this single annual form seems like it destroys everything. That the virtual address and registered agent accomplishes so that my personal information isn’t public. Please help me understand
I’m wondering if you could do a video about PLLC‘s. Professional LLCs. I’m creating one. I’m also creating a separate LLC. It’s a bit harder to find information about PLLCs. I have professional liability insurance that covers me for the professions I will be working in under the PLLC. But I don’t know much about liability protection other than it’s not the same as with an LLC. Would love to have a video on this. Thank you for all your great videos!
So what if you formed an LLC years ago but may have been using the Business Account for both business and personal bills (classifying each personal use as a "member draw")? If that is comingling, is it possible to "cure" that? Cheers.
Are there companies you can hire to setup the LLC properly and then pay them an annual fee to make sure all the regularly required paperwork is filed each year? Like I know there are certain forms and what not that need to be submitted to the state/country every year. I want things to be as hands off as possible, even if I have to pay for it.
I’m an earlier podcast, you recommended no LLC if you don’t have revenues, low risk business and no assets to protect. I have lots of assists to protect but I’m just starting the business and it’s low risk.
I don’t understand 3:20 “what if you mrs up your LLC” how can you mess up your LLC? All you do is fill the form out with your information , right? How can you fill out the form incorrectly? It’s just all your information.. I’m nervous now.. can Someone comment to help me understand how can you mess up your LLC
I currently run two different businesses and both use Hiscox. Hiscox offers targeted insurance policies for virtually EVERY kind of company and they're incredibly affordable. My primary company offers communications services and needs a $2 million professional and general liability policy. Hiscox provides my LLC coverage for under $70/mo. There are other providers out there and I'm no business consultant, but I've been very happy with Hiscox. Good luck!
Thank you for the information. The city I live in just informed me I need a business license to rent out my primary residence. So I will be creating an LLC. I am guessing that I would not want the property listed as an asset of the LLC. Correct? Thanks again!
If I ordered a laptop for my business but I used wife's debit card because that was saved to the Walmart account and it was a black Friday deal... am I screwed?
Thanks for this great video! I have a question about keeping personal and business finances separated. I have a checking account and savings account in the name of my LLC, but right now I am using a credit card that is in my name. I only use that card for business expenses. Would that put me at risk of a lawsuit piercing the corporate veil? If it is ok to use a credit card in my name, do I need to pay the credit card bills from my own checking account and then reimburse myself? Thanks again for making these videos.
Adorable cup "Da-Do"! Question: So how would I maintain privacy and personal protection when structuring an LLC or sole proprietorship? Recently a cyber bully connected my LLC to me and defamed my personal name and business name access the web. Would an anonymous LLC work? If not, what could a small business owner do to protect themselves from this?
I'm just a fan of yours and heard a broadcast of Doggie Diamond on RUclips last night getting pretty deep. WATCHING you today. . WELL enjoy your day my friend. I text slow.
I'm creating a crypto that is a charity, but need to divert a marketing budget to purchase adspace/billboards etc. I was thinking, I would start an single member LLC. to handle all of this myself so that no one can get corrupted by the money.. does it sound right?
I’m just starting my business, and the LLC sounds like a really good plan. But I think I’m going to get my EIN as a sole proprietorship and then once my business starts growing more, I’ll switch to an LLC, hopefully it’s the right choice
@@BBRR442 because I think you have to pay a monthly fee or price to have your LLC running and if the business is not bringing enough revenue I don’t think is that worth it you know
Sir, on your "mistake #4" you mentioned if you wanted to pay rent, write yourself a check and do that 'bill paying' out of your personal account. My question is: I am eventually going to be paying rent and utilities for running my business out of a garage that is not mine. I was going to write the owner of that garage a check out of the business account. This is correct? Or I should pay myself first, then pay the garage owner from my personal account?? Thank you for your response and for your efforts to support small business owners (like me) who generally am learning on the fly. Kat
does the corp veil work the other way around? in the case of a divorce, can the family court take away assets from my llc or does it have that same protection?
Thank you for taking the time to give free advice. I appreciate all you have to say. As a new AMZ Seller I just opened a "Close LLC" in WY (from Texas). As the only member how do I cover meeting minutes? I do have conversations in my head... write those down? Is there an official format needed for the "meeting minutes"? thx do you live in a log cabin?
You do the minutes as if you are having a meeting with yourself, and what was discussed. Exp: Title [Meeting of Minutes of "company full name" LLC] Participants present: Yourself, (plus any other member if applicable) CALL TO ORDER: This meeting was called to order by (name yourself) at (give date and time) in response to a business need....(list why the meeting was held, ex: buying a laptop, or rental property etc) Approval: The above order was unanimously approved by the attendees of "company full name" LLC and finalized on (date, and time meeting ended)
I got a but confused in the commingling funds. I understand having a separate business bank account to put earnings from the business into the business account, but I don't understand the vice versa when you said "putting in personal pay checks to the business account". Would those paychecks be from other payments not dealing with your business, for example if someone payed you to house sit (which isnt part of your LLC)
commingling funds ~> What is a no-no here above & beyond using your biz account to fund rent/mortgage? articles of org ~> how much scrutiny do you need to give to one thats prefab'd? inadequate capitalization ~> Is there a rule of thumb to follow for capitalization prior to pulling distributions?
I'm about to create an LLC in Wyoming and I will be the only one owner and only one member of this LLC. So should I add myself as a Manager and also as a Member? Does it changes anything or should I just leave these parts since I'm going to be only one owner, manager and member of this LLC? Could you please answer? Thanks for video.
what if someone wants to extend their business to do completely different things under different brands, if you should not form multiple LLCs? how to expand your business and go beyond your initial niche?
Great video! If you moved out to another country (out of usa), would you still be able to run your LLC from the new country? What would be needed to be done? Do you know? Thanks!
What if we use our Business Credit card to pay some expenses, like rent or phone bills for our home based business. In addition, what if we didn’t use our business checking account to pay off the business credit card expenses described. But, we paid those credit card expenses from our personal checking account? Would this be considered coo-mingling of funds ?
Around 5:30 I'm starting to wonder when there's actually going to be content.
The 5 mistakes actually start around 7:00
Regarding the question of improperly spending funds, I'll highly recommend Mike Michalowicz's book Profit First, which has some guidelines on what's basically the envelope method for dividing your company's revenue. Starting out, it's likely 1% profit (because if the biz can get by on 100% it can do it on 99% as well), 15% Tax, 50% Owner Compensation, 34% Operating Expenses but this will vary.
Thought it was just me.
god bless you
The information he provided prior to the most common mistakes is just as important. Especially for those who are new to this. Perhaps he should start putting timestamps in the description box for those with ADD and those who want to dictate what is and isn't pertinent "content".
ツ , I whole heartedly agree!! People should Be appreciative of the fact that he took the time to make this video and break everything down.
@@autumnleaves6383 they don't even have to appreciate, they need to go someplace else!
First off, big thank you to James Hart / Hawthorn Law for putting out this free and very useful video tutorial... And now what you are here for:
1) 7:05 - Commingling Funds
2) 7:58 - No Corporate Records
3) 9:15 - Inadequate Capitalization
4) 10:40 - Raiding LLC Bank Accounts
5) 11:40 - Not Having Adequate Liability Insurance
6) 12:30 - Misrepresenting Ownership of LLC
you are welcomed
People like you that do this, don't understand how RUclips works. You are literally *kneecapping the earnings* of the content creator you're claiming to thank.
@@HockeyJock This is a good point. Wow.
As someone who has made many of the mistakes you've mentioned due to starting businesses from flat broke (and homeless at times), I appreciate the information.
Most recently, after 3-1/2 years of being a SM LLC, I'm finally fixing my mess, was blessed with an accountant willing to work with me to make sure I fix the mess, and see a tiny light at the end of the tunnel.
I can say from experience (and multiple thousands of dollars of IRS penalties from forming a Partnership without understanding the legal requirements) that if you don't do "due diligence" to learn the rules to play by in advance, your failure to do so will come back to bite you big time. Ignorance is not an acceptable excuse when you're sitting across from the IRS Revenue Agent, and they don't care how little money you have to pay their bill. Don't make the mistakes I've made!
also watched your manager member versus member video. so helpful if a side-by-side comparison of both options were included to cover pros and cons. thanks for sharing.
Thanks for this informative video. I started my business before forming an LLC so, I put my revenue into my personal account for the first 3 months. Once I formed the LLC, I moved the money from my personal accounts to the business account.
- Co-Mingling Funds
- Operating Agreement in place
- Proper Corporate Records
- Sufficient Capitalization to cover payables/debts
- Using for personal expenses
- Business Insurance
- Concealing/Misrepresenting Ownership
Much needed information!!! So many businesses fail within their 1st year
Of all of the videos I’ve listened to. These ones are the most organized and understandable with a lot of detail. Thank you.
I never got bored watching your channel. You've got sense of humor and you may not even aware of it lol. Thanks for sharing your knowledge Atty. Great video content!
I just joined a private label company today. Your timing is impeccable. I need to get intouch with you soon
Sounds good!
Really looking forward to your future video on intellectual property rights! There are so many artists who want to start a business, but there are a lot of questions around selling your intellectual property through an LLC.
I loved your lectures! Please don't dumb it down!
Great video...I discovered you today and have been binging your videos.
Regarding meeting minutes, should I keep minutes even if I am completely by myself? I guess this would be more like a journal of my decisions and why I made them.
I was wondering the same thing! Meeting notes with…who?
New subscriber. Thanks for your videos very informative. Thanks for spreading your knowledge
You are so welcome!
"don't commit fraud" ... sage advice. ;)
Seriously, good video. Thanks for the content.
He finally gets to the point at 7:05
You also make a wrong assumption that what he said prior to that was not important. What's wrong with you?
Maybe, make your own video.
@@hyacinthdibley2420 it's not he stalls too much
Mannnn great information and delivery! You are the man, I mean lawyer!😁👊 MUCH RESPECT!
Perfect timing! Was just thinking if going thru legal zoom or some other service& wondering if it is ok for a side hustle. Now I have a clearer idea of what is needed.👍🙂
Sounds good - let me know if I can help in anyway!
I watched the old video and was very happy to see this updated video
Love your videos. Very informative and I like your personal/funny touch.
I have watched many of your videos & you have helped me substantially in launching my LLC & in the near future I hope I can hire you to be my legal representation.
The background looks great!! 😎 And thank you for this information, I needed to hear some of these.
Outstanding info. A transparent lawyer? Unicorn folks.
Thank you so much! You are a wealth of knowledge so someone like myself who is starting as a small business owner and trying to do this on my own to save a buck. Greatly appreciate your videos...keep them coming :)
Thank you for making this
This video really helped me and pointed me in the right direction! I've heard of piercing the corp veil, but now I know what that means. Thanks for sharing!
Super helpful and thank you again for this information
Funny thing is I just read some blogs that advised on how to form multiple LLCs (one being the parent to the others) as a way to keep owner's name secret/private. I'm not sure if this is the same thing that was mentioned in as #6 tip.
I just remember that I was overwhelmed with the info I was getting for JUST ONE company, yet here I was running into articles about opening and maintaining multiple LLCs. Hahaha. Oh man!!
Awesome videos! Keep them coming! It is really good information. Great presentation too!
This applies to my tax overage recovery business. I don't have any revenue yet! Thanks
Thank you very much for this valuable info!!
Thank you for dropping all of the knowledge!!
Love your stuff and your style :)
I appreciate that!
THIS IS HUGELY HELPFUL! Thank you!
This is an awesome video and I feel more confident moving forward. Thanks!
I love your videos. Great personality, A lot of valuable information
I have a question about the Texas Franchise Public Information report.
I want to use a virtual address and use a registered agent, but this single annual form seems like it destroys everything. That the virtual address and registered agent accomplishes so that my personal information isn’t public.
Please help me understand
If my business is based at home. Would I need to have an agreement from me to the LLC? Would I include a dollar amount? Thanks
L
Good question..
Interested in this question as well
Your videos have come at a pefert time...thank you for sharing you knowledge!
Thank you so much for you time and information! Really Helpful!!!
I’m wondering if you could do a video about PLLC‘s. Professional LLCs. I’m creating one. I’m also creating a separate LLC. It’s a bit harder to find information about PLLCs. I have professional liability insurance that covers me for the professions I will be working in under the PLLC. But I don’t know much about liability protection other than it’s not the same as with an LLC. Would love to have a video on this. Thank you for all your great videos!
So what if you formed an LLC years ago but may have been using the Business Account for both business and personal bills (classifying each personal use as a "member draw")? If that is comingling, is it possible to "cure" that? Cheers.
this kind of advice can cost big money thanks for sharing.
Are there companies you can hire to setup the LLC properly and then pay them an annual fee to make sure all the regularly required paperwork is filed each year? Like I know there are certain forms and what not that need to be submitted to the state/country every year. I want things to be as hands off as possible, even if I have to pay for it.
I’m an earlier podcast, you recommended no LLC if you don’t have revenues, low risk business and no assets to protect. I have lots of assists to protect but I’m just starting the business and it’s low risk.
Great content. Do you have any videos on how your LLC should be taxed depending on your income or business?
I don’t understand 3:20 “what if you mrs up your LLC” how can you mess up your LLC? All you do is fill the form out with your information , right? How can you fill out the form incorrectly? It’s just all your information.. I’m nervous now.. can Someone comment to help me understand how can you mess up your LLC
Thank you for sharing. I’m about to set up an LLC and now I know some of the do’s and don’ts.
What if you are going to start a drone business. Would you recommend llc.
Yes
The only thing I’m missing at the moment is insurance. Do you have any recommendations of which insurance company to use?
I currently run two different businesses and both use Hiscox. Hiscox offers targeted insurance policies for virtually EVERY kind of company and they're incredibly affordable. My primary company offers communications services and needs a $2 million professional and general liability policy. Hiscox provides my LLC coverage for under $70/mo. There are other providers out there and I'm no business consultant, but I've been very happy with Hiscox. Good luck!
Good information - thanks for sharing!
Any good referrals for a Lawyer in PA for setting up an LLC?
So where do you write these corporate records in a note pad ?? Or what kind of legal doc.?
Helpful video, thanks!
Thank you for the information. The city I live in just informed me I need a business license to rent out my primary residence. So I will be creating an LLC.
I am guessing that I would not want the property listed as an asset of the LLC. Correct?
Thanks again!
If I ordered a laptop for my business but I used wife's debit card because that was saved to the Walmart account and it was a black Friday deal... am I screwed?
This is great 😆👏✅️
Thanks!
What about transferring money in your business account to your personal account? Could this pierce the corporate veil?
How to fill out a W-9 as a solo LLC? SSN or EIN?
EIN if you have one
Thanks for this great video! I have a question about keeping personal and business finances separated. I have a checking account and savings account in the name of my LLC, but right now I am using a credit card that is in my name. I only use that card for business expenses. Would that put me at risk of a lawsuit piercing the corporate veil? If it is ok to use a credit card in my name, do I need to pay the credit card bills from my own checking account and then reimburse myself? Thanks again for making these videos.
“Man my hair” haha love this guy
Really like that wall
Do I need to notarized the LLC agreement? Btw thanks for the information. I just subscribed.
What about if you remodel bathrooms? Do I need an LLC? I’m not really making a lot of revenue
Adorable cup "Da-Do"!
Question:
So how would I maintain privacy and personal protection when structuring an LLC or sole proprietorship? Recently a cyber bully connected my LLC to me and defamed my personal name and business name access the web. Would an anonymous LLC work? If not, what could a small business owner do to protect themselves from this?
What about holistic healing service?
I'm just a fan of yours and heard a broadcast of Doggie Diamond on RUclips last night getting pretty deep. WATCHING you today. . WELL enjoy your day my friend.
I text slow.
I'm creating a crypto that is a charity, but need to divert a marketing budget to purchase adspace/billboards etc. I was thinking, I would start an single member LLC. to handle all of this myself so that no one can get corrupted by the money.. does it sound right?
I’m just starting my business, and the LLC sounds like a really good plan. But I think I’m going to get my EIN as a sole proprietorship and then once my business starts growing more, I’ll switch to an LLC, hopefully it’s the right choice
Why is that a good choice? Just curious
@@BBRR442 because I think you have to pay a monthly fee or price to have your LLC running and if the business is not bringing enough revenue I don’t think is that worth it you know
Sir, on your "mistake #4" you mentioned if you wanted to pay rent, write yourself a check and do that 'bill paying' out of your personal account. My question is: I am eventually going to be paying rent and utilities for running my business out of a garage that is not mine. I was going to write the owner of that garage a check out of the business account. This is correct? Or I should pay myself first, then pay the garage owner from my personal account?? Thank you for your response and for your efforts to support small business owners (like me) who generally am learning on the fly. Kat
thank you!! this was very helpful.
So, you’re saying, set up an extra business account for the money you plan to use personally? Just want to make sure I’m following.
Im a new subscriber... I like your info, THUMBS-UP!!!
Thank you so much!
I love your personality 👏👏😘
does the corp veil work the other way around?
in the case of a divorce, can the family court take away assets from my llc or does it have that same protection?
When does it start!?
Love the Mug!
Can adding money from your paycheck to your LLC considered comingling?
I appreciate you so much!!!!
Couldn't you just create a holding company to resolve that last issue?
Thank you for taking the time to give free advice. I appreciate all you have to say. As a new AMZ Seller I just opened a "Close LLC" in WY (from Texas). As the only member how do I cover meeting minutes? I do have conversations in my head... write those down? Is there an official format needed for the "meeting minutes"? thx do you live in a log cabin?
You do the minutes as if you are having a meeting with yourself, and what was discussed.
Exp:
Title [Meeting of Minutes of "company full name" LLC]
Participants present: Yourself, (plus any other member if applicable)
CALL TO ORDER: This meeting was called to order by (name yourself) at (give date and time) in response to a business need....(list why the meeting was held, ex: buying a laptop, or rental property etc)
Approval: The above order was unanimously approved by the attendees of "company full name" LLC and finalized on (date, and time meeting ended)
@@jwmultimedia4567 thank you😙
@@jwmultimedia4567 thank you!
Thank you...what is the best way to form multiple stream businesses? I have one LLC, its doing very well, I want to set up another one. thank you
Good question, I want to do the same.
I got a but confused in the commingling funds. I understand having a separate business bank account to put earnings from the business into the business account, but I don't understand the vice versa when you said "putting in personal pay checks to the business account". Would those paychecks be from other payments not dealing with your business, for example if someone payed you to house sit (which isnt part of your LLC)
I do DoorDash and uber eats should i llc that??
commingling funds ~> What is a no-no here above & beyond using your biz account to fund rent/mortgage?
articles of org ~> how much scrutiny do you need to give to one thats prefab'd?
inadequate capitalization ~> Is there a rule of thumb to follow for capitalization prior to pulling distributions?
Do I need to get a separate EIN for the DBA I just added? The business is credit repair hence the LLC.
Can you fund the LLC with a personal loan and then repay yourself once you start making profits?
I make regular deposits (capital contributions) to my LLC to pay off a business credit card: Is this considered commingling/piercing the Corp veil?
Way off topic but what camera and lens are you using! Wow it’s clear! Is it 4K too? Thank you friend
Gold! Thank-you
I'm about to create an LLC in Wyoming and I will be the only one owner and only one member of this LLC. So should I add myself as a Manager and also as a Member? Does it changes anything or should I just leave these parts since I'm going to be only one owner, manager and member of this LLC?
Could you please answer?
Thanks for video.
what if someone wants to extend their business to do completely different things under different brands, if you should not form multiple LLCs? how to expand your business and go beyond your initial niche?
Is there anyway to have a kitchen sink LLC that covers many different types of “business”?
Any good referrals for lawyers in PA to help with setting up LLC's properly?
Great video! If you moved out to another country (out of usa), would you still be able to run your LLC from the new country? What would be needed to be done? Do you know? Thanks!
What if we use our Business Credit card to pay some expenses, like rent or phone bills for our home based business. In addition, what if we didn’t use our business checking account to pay off the business credit card expenses described. But, we paid those credit card expenses from our personal checking account? Would this be considered coo-mingling of funds ?
Why don't make a video about Forming single member LLC for non US resident and best state to locate it ? Any advise in this matter ?
Great video!!
"I decided to do a sixth because I'm a giving type of person" the key to a happy marriage 😉