Thank you for watching! I just announced a new FREE training that reviews the exact 10 Step Process I use for starting an Online Business: www.obfoundations.com/10steps
Been thinking about forming a multi-member LLC with a potential business partner....currently have a single-member LLC. I can see where there are a lot of things that can go wrong, if not addressed, in writing, up front. Great video, Jim. Thanks for sharing your thoughts.
@@ablagos That would be your pass trough income from s corp/partnership (Schedule E part 2). The S corp doesn't get federally taxed, the profit not paid to partners as salary is the s corp profit passed through to the partners on the Schedule E. It's taxed differently.
My brother and I started a LLC about a month ago but started working about 3 months ago and have already made 30 grand without the LLC so what do we do??
thanks for making this video. It is very informative. You said that a single member LLC owned by spouses is still a SMLLC. How can we make sure LLC owned by both spouses and they have 50-50 control over its activities?
This is exactly what I needed. However you kinda just went over key things to keep in mind and didn’t really explain on how to address these scenarios. I know it varies from business to business but it would’ve been good to know some ways to address your points.
great video but can you maybe give some answers or suggestions on all of these issues. Because i need help on how to overcome these issues. you presented these issues but no solutions can you please help out with that ? thanks :)
Been watching your videos about LLC. Thinking about creating this single member LLC structure for my real estate business. Does it make sense? What potential problems? ABC Holding LLC State: WY Member-managed Member: Goose ABC Property LLC State: NY Manager-Managed Member: ABC Holding LLC Manager: Goose
I just subscribed to your channel! Thank you very much for making these video. They are very informative and entertaining. I have a difficult question and am coming to realize that my partner and I need may need to consult a business lawyer or CPA... but I'll throw it out there. We are wanting to form an LLC that operated in two states: Washington & Oregon. It is a service business in which our LLC's gross income will be directly related to each members contribution of time . The problem is that we do not share profits and expenses directly. We want to be 50-50 partners and also want to be paid for our individual efforts (e.g., time invested in exchange for an hourly rate). I don't think an LLC taxed as a partnership will work because of the percentage distributions. If our efforts are not equal, it wouldn't be fair for me to take half of the money brought in from their efforts. Do you think an LLC taxed as an s-corp would work? It kinda starting to sound like more of a franchise than LLC. No pressure to respond and of corse... and I understand this is not legal/tax advise. I'm only trying to get some direction. Also, do you serve clients in WA or OR State? If not, do you have any recommendation?
Thank you so much for your content it is really really valuable! This video is also very insightful! Could you please make a video about when it is the RIGHT TIME to hire a business attorney for your business? for both offline and online business? Thank you!
I tried finding a way to comment on a more relevant video but this is the one I found that allows me to comment. I’ve been looking for weeks on how to file an EIN for my LLC. I find a lot of videos of people filing as a single member, no one filing as a multi-member or partnership. Please help! I don’t want to file incorrectly before I even have an opportunity to start my business. Thank you for all of your videos!
You should have an EIN with the business and articles. Unless you created a business through the Sectary of state and never got your EIN number through the IRS. If that's the case go to IRS gov and apply for the ein number.
Hi great video and very helpful. I have quick question we are 2 members LLC company ( husband and wife) we are also employees. But want form we need to pay taxes like employee?. Please I hope you can help me
Good morning! Thank you, great information. Thank you for taking the time to share. I agree the Profit First book, was an awesome read. You recommended this on another video. Thank you
From everything Ive looked into. Thats only the case in some states. In my state its not, so we still need to file a 1065 and K-1s to each of us. If Im wrong, someone please point me in the right direction!
Wow can I get the resources on about in business with my spouse is known as a single member! I need to confirm that please in NJ. Where can I look this up?
Hey, seen this was your latest video. I was hoping that you would see my comment. First I want to thank you for the great deal of information you give to the public...grateful for that. I’m starting a dump trucking business and want to know which videos should I look at when doing so. I was thinking the LLC would be best being that the business will have a lot of liability. I live in Hillsborough, NC and will be moving a little west because Orange Country taxes are way to high. Thinking between Mebane/Greensboro and asking if I could run my business from home or do I need to have a office. Just need direction to get everything in order.
When running a business what forms of assets are appropriate to deposit into the business bank account so as not to mix business and personal assets? For instance if I'm the manager of a multi member LLC where everyone else is passive and I'm the only one with access to the bank account and so I have to deposit the other members contributions, is it acceptable for the m to give me cash as long as I log it in the business ledger or should they only write a check or money order payable to the business ? Thank you
So it’s basically fine if I have my wife as the other person then right? Im currently about to do my llc but was debating about my wife being a partner
Hi me and my boyfriend have started a multi member LLC in Texas and we are getting married soon would our LLC change to a single member LLC or stay the same?
hello BIG QUESTION I JUST STARTED A CLEANING LLC BUSINESS WITH MY HUSDBAND DO WE PAY OUR SELF ??? PLEASE HELP WE ONE YEAR RUNNING THE COMPANY BUT WE HAVE NO IDEA IF WE CAN PAY AS A REGULAR EMPLOYEE
Only in a Community Property State would you be considered a Single Member LLC. Otherwise, even if you're married in a Non-Community property state, you'd still be considered a Multi Member LLC!
My wife and I just opened a business. I am working with someone already prepping to build the services of the business. No money has come in yet. I am wondering if I should hire him as an employee or a partner. I think it maybe best to place him as a partner. If we three are partners in the company, and split the money equally after company expenses, does the company have to pay taxes? Or do we as partners just pay taxes on our paychecks?
Thanks for all the videos you have posted they have really helped me. I just had a question for you, my husband and I are starting an online store and I was just wondering if we each had to get a resellers permit or of we just needed one for the both of us ?
Note: If an LLC is owned by husband and wife in a non-community property state, the LLC should file as a partnership. LLCs owned by a husband and wife are not eligible to be "qualified joint ventures" (which can elect not be treated as partnerships) because they are state law entities. For more information see Election for Husband and Wife Unincorporated Businesses.
here's a question, is there a way to get your help forming my llc? I am in north carolina, Chapel Hill to be exact. And how much. I am sole owner and need to file for LLC and trying to keep fees as low as possible. there is so many online that offer packages that have things I just do not need and misses things I do. As your in North Carolina I am looking at you.
Depends on the state, but probably not. You might be able set up a simple trust with the child as beneficiary and have the trust be a member of the LLC.
I have a question, my partner and i are planning to open an LLC in Florida and our contribution will be 70/30. Where in the creation of the Llc will be stated? Thank u
I generally like this channel but hope he gets to his points as headlined faster. He spent more than 5 minutes ramblings before talking about the first mistake.
Hi, I want to open an offshore LLC as a NON-US resident, in partnership with my girlfriend who's a US resident. I know how to do it through incfile, but I'm not sure how it's gonna work when it comes to taxes. If I do a single member LLC I'm gonna pay 0% taxes, but I would like to know more about this case. Thank you :)
sound like you got screw buy a partener . most of us dont have that problem. too much bs half vidoes is bs the other half is great clip that down . you would get a lot more likes just my opinon thanks
Thank you for watching! I just announced a new FREE training that reviews the exact 10 Step Process I use for starting an Online Business: www.obfoundations.com/10steps
Main point starts at 3:35
All that extra stuff is so damn annoying. I almost cut it off. Still didn't watch the whole video
more like @ 6:00
@@jessespadthanks
Actual video starts at 5:33
Great info! My wife & I are starting a business together so it good to know that we would be considered a single member LLC.
So apparently only if you live in a COMMUNITY PROPERTY STATE! SO HERE IN ALABAMA where I live, my wife and I file as an Multi-Member partnership.....
Been thinking about forming a multi-member LLC with a potential business partner....currently have a single-member LLC. I can see where there are a lot of things that can go wrong, if not addressed, in writing, up front. Great video, Jim. Thanks for sharing your thoughts.
@ 5:38 you're welcome
I love you channel, I have learned so much about starting my own business. You explain everything plain and clear!
starts at 5:38 with the questions you need to ask your group.
You are amazing. Really great information that everyone in business everone should know
If you leave money in the LLC as a profit (not paid to yourself as salary), how is it taxed?
Please answer this question for us or point us in the right direction please!! 😊
@@ablagos That would be your pass trough income from s corp/partnership (Schedule E part 2). The S corp doesn't get federally taxed, the profit not paid to partners as salary is the s corp profit passed through to the partners on the Schedule E. It's taxed differently.
My brother and I started a LLC about a month ago but started working about 3 months ago and have already made 30 grand without the LLC so what do we do??
Great vid! the freebie link doesn't work, can you reupload?
I just tried the link and it works still.
thanks for making this video. It is very informative. You said that a single member LLC owned by spouses is still a SMLLC. How can we make sure LLC owned by both spouses and they have 50-50 control over its activities?
This is exactly what I needed. However you kinda just went over key things to keep in mind and didn’t really explain on how to address these scenarios. I know it varies from business to business but it would’ve been good to know some ways to address your points.
What specifically did you need more help with?
great video but can you maybe give some answers or suggestions on all of these issues. Because i need help on how to overcome these issues. you presented these issues but no solutions can you please help out with that ?
thanks :)
Owner draws are far more appealing
If you are an S-Corp you still have to pay yourself a reasonable salary.
@@jimhart LLC
Been watching your videos about LLC. Thinking about creating this single member LLC structure for my real estate business. Does it make sense? What potential problems?
ABC Holding LLC
State: WY
Member-managed
Member: Goose
ABC Property LLC
State: NY
Manager-Managed
Member: ABC Holding LLC
Manager: Goose
Thank you so much for providing this information and saving small business owners the headache of expensive lawyers.
Great job Jim!
Thanks Mitch!
I just subscribed to your channel! Thank you very much for making these video. They are very informative and entertaining. I have a difficult question and am coming to realize that my partner and I need may need to consult a business lawyer or CPA... but I'll throw it out there. We are wanting to form an LLC that operated in two states: Washington & Oregon. It is a service business in which our LLC's gross income will be directly related to each members contribution of time . The problem is that we do not share profits and expenses directly. We want to be 50-50 partners and also want to be paid for our individual efforts (e.g., time invested in exchange for an hourly rate). I don't think an LLC taxed as a partnership will work because of the percentage distributions. If our efforts are not equal, it wouldn't be fair for me to take half of the money brought in from their efforts. Do you think an LLC taxed as an s-corp would work? It kinda starting to sound like more of a franchise than LLC. No pressure to respond and of corse... and I understand this is not legal/tax advise. I'm only trying to get some direction. Also, do you serve clients in WA or OR State? If not, do you have any recommendation?
Thank you so much for your content it is really really valuable! This video is also very insightful! Could you please make a video about when it is the RIGHT TIME to hire a business attorney for your business? for both offline and online business?
Thank you!
thanks for tell me up front that LLC with spouse is considered a single-member LLC. :D
What????
great video! thank you - i did NOT know that my fiance and i would be considered a single-member!
You wouldn't be, until you are married. Fiancee if still just a partner not a spouse.
@@mildsoup8978 yes, once we're married of course. sorry to have confused you.
No apology needed, but I do wish you happiness and success in both og your great ventures .
I tried finding a way to comment on a more relevant video but this is the one I found that allows me to comment. I’ve been looking for weeks on how to file an EIN for my LLC. I find a lot of videos of people filing as a single member, no one filing as a multi-member or partnership. Please help! I don’t want to file incorrectly before I even have an opportunity to start my business. Thank you for all of your videos!
You should have an EIN with the business and articles. Unless you created a business through the Sectary of state and never got your EIN number through the IRS.
If that's the case go to IRS gov and apply for the ein number.
How should my business partner and I apply for an EIN ?
Great question..i am wondering the same
Hi great video and very helpful. I have quick question we are 2 members LLC company ( husband and wife) we are also employees. But want form we need to pay taxes like employee?. Please I hope you can help me
Great question. I want to know the same.
Awesome video !! Great info thanks for sharing
Good morning! Thank you, great information. Thank you for taking the time to share. I agree the Profit First book, was an awesome read. You recommended this on another video. Thank you
You’re welcome!
I didn’t know if I was in business with my spouse it’s known as a single member !
From everything Ive looked into. Thats only the case in some states. In my state its not, so we still need to file a 1065 and K-1s to each of us. If Im wrong, someone please point me in the right direction!
Wow can I get the resources on about in business with my spouse is known as a single member! I need to confirm that please in NJ. Where can I look this up?
Hey, seen this was your latest video. I was hoping that you would see my comment. First I want to thank you for the great deal of information you give to the public...grateful for that. I’m starting a dump trucking business and want to know which videos should I look at when doing so. I was thinking the LLC would be best being that the business will have a lot of liability. I live in Hillsborough, NC and will be moving a little west because Orange Country taxes are way to high. Thinking between Mebane/Greensboro and asking if I could run my business from home or do I need to have a office. Just need direction to get everything in order.
When running a business what forms of assets are appropriate to deposit into the business bank account so as not to mix business and personal assets? For instance if I'm the manager of a multi member LLC where everyone else is passive and I'm the only one with access to the bank account and so I have to deposit the other members contributions, is it acceptable for the m to give me cash as long as I log it in the business ledger or should they only write a check or money order payable to the business ? Thank you
Your amazing thanks
Try to get straight to the point
he's making the videos 10+ minutes for monetization (i think)
Lol no I didn't know that! TY
Is there any difference if the LLC is formed by two non us residents?
So it’s basically fine if I have my wife as the other person then right? Im currently about to do my llc but was debating about my wife being a partner
Could you change from a single llc to a multi member?
Hi me and my boyfriend have started a multi member LLC in Texas and we are getting married soon would our LLC change to a single member LLC or stay the same?
What is the difference in pay yourself and distribute the profit
hello BIG QUESTION I JUST STARTED A CLEANING LLC BUSINESS WITH MY HUSDBAND DO WE PAY OUR SELF ??? PLEASE HELP WE ONE YEAR RUNNING THE COMPANY BUT WE HAVE NO IDEA IF WE CAN PAY AS A REGULAR EMPLOYEE
What happens when you start a business with your partner and later in line get married? Should you change it to single member LLC?
Only in a Community Property State would you be considered a Single Member LLC. Otherwise, even if you're married in a Non-Community property state, you'd still be considered a Multi Member LLC!
I may be wrong but I thought single or multi member LLCs cannot have member-employees. That is why you elect S corp designation.
Thanks for really helpful videos. If change operational agreement, what happens with old one ? I put it into shredder or keep it with other documents.
My wife and I just opened a business. I am working with someone already prepping to build the services of the business. No money has come in yet. I am wondering if I should hire him as an employee or a partner. I think it maybe best to place him as a partner.
If we three are partners in the company, and split the money equally after company expenses, does the company have to pay taxes? Or do we as partners just pay taxes on our paychecks?
Whst if you and your spouse dont file taxes together....still cant be partners?
Are you serious about the spouse in a multi partner llc?
I don't understand your question - it depends on whether the state is ED or community property.
Thanks for all the videos you have posted they have really helped me. I just had a question for you, my husband and I are starting an online store and I was just wondering if we each had to get a resellers permit or of we just needed one for the both of us ?
your amazing, Thank you so so so much.
damn u dont gotta be so anel about it
*you're
I thought if you were in a state without community property laws, you were still considered a partnership even if married?
Note: If an LLC is owned by husband and wife in a non-community property state, the LLC should file as a partnership. LLCs owned by a husband and wife are not eligible to be "qualified joint ventures" (which can elect not be treated as partnerships) because they are state law entities. For more information see Election for Husband and Wife Unincorporated Businesses.
www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies
@@brandypendleton7698 Thank u.
here's a question, is there a way to get your help forming my llc? I am in north carolina, Chapel Hill to be exact. And how much. I am sole owner and need to file for LLC and trying to keep fees as low as possible. there is so many online that offer packages that have things I just do not need and misses things I do. As your in North Carolina I am looking at you.
takes almost 4 minutes just to start the topic...
Video actually starts at 5:39
Yeah i got bored
This is Jim's brand, this is what he is known for.
And no one cares about his water 💦🤣
Can a child be a member of an LLC that is young? I'm talking about a 4 year old here. Just wondering
Generational wealth. Smart!
Depends on the state, but probably not. You might be able set up a simple trust with the child as beneficiary and have the trust be a member of the LLC.
Hey. Does anyone know if that works the same, with a father and son? If that would be a single or multi member llc?
5:40
you know what else is like marriage without sex? marriage
2:01 🤯
Did not know that lol. Spouse is in business with you lol
you go around circles for 5 minutes instead of going straight to the point. you're not billing this time, so don't waste it.
Good evening. Do I need a business bank account or can you use a PayPal business account?
Laura Richards for tax purposes its best to get a business account with a bank. Need that paper trail
I have a question, my partner and i are planning to open an LLC in Florida and our contribution will be 70/30. Where in the creation of the Llc will be stated? Thank u
I generally like this channel but hope he gets to his points as headlined faster. He spent more than 5 minutes ramblings before talking about the first mistake.
This video could have been shorter. Not a diss, just saying
Hi, I want to open an offshore LLC as a NON-US resident, in partnership with my girlfriend who's a US resident. I know how to do it through incfile, but I'm not sure how it's gonna work when it comes to taxes. If I do a single member LLC I'm gonna pay 0% taxes, but I would like to know more about this case. Thank you :)
Dude, get to the point.
sound like you got screw buy a partener . most of us dont have that problem. too much bs half vidoes is bs the other half is great clip that down . you would get a lot more likes just my opinon thanks
Long drawn out and doesnt cover the topic...should be titled complicated situations between partners in a business.... thumbs down
You brought up lots of talking points with little advice. Caption of your video is very misleading
Lol no I didn't know that! TY