We Recommend using Northwest to form your LLC which includes 1 year Free Registered Agent Service. 💼 Northwest 75% 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 link - go.truic.com/3uJA2sB (paid) ($29 + state fee) 📙 Read our free 'What is an LLC?' guide : howtostartanllc.com/what-is-an-llc
If you have millions in personal assets, you shouldn't even think about selling a funnel cake at the fair without an LLC. Jokes aside, if you own a business, you should do what you can to have an LLC in place to protect your personal assets.
Usually, yes. An LLC legally separates you and your business. Without an LLC in place, your personal assets are exposed to business creditors and lawsuits. LLCs also offer tax saving options and more credibility. The only time it doesn't make sense to form an LLC is if your business is more of a hobby or if you are looking to attract investors.
Im Cosmetology student and want to start my business because I have clients, should I form an LLC or S-corp. I would hate to lose investor opportunities just because I have an LLC.
Hi, thanks for the question! So it's smart to be thinking about creating an LLC or corporation to protect your personal assets and to give yourself extra tax options. S corporation can be a confusing thing to think about and there's a lot of misinformation on the web. An S corporation is just a tax status that an LLC or corporation can elect from the IRS. LLCs and corporations are business structures. Let's talk about LLCs and corporations first. Let's say you start an LLC. You'll have liability protection (which is so important for cosmetologists) and your business income will pass through to your individual tax return. You'll pay self-employment taxes and income taxes on your net income. Unlike a corporation, you won't need to have special meetings, you won't need to have a board of directors, and things will be pretty straightforward and easy. Here's the problematic part about investors and LLCs: If someone becomes a member and invests in the LLC, they'll pay taxes on their share of the profit even if they didn't get a distribution. Said another way, they'll have to pay taxes on money they didn't get. Now let's say you start a corporation. You'll have liability protection BUT you'll be subject to double taxation. That means that you'll be taxed at the corporate level on the money the business makes and then again on any distributions you take from that same pool of money that's already been taxed. This is great for investors but not so great for you. That's because your investors won't have to pay taxes unless they take a distribution. Corporations need to have a board, meeting minutes, and other high-maintenance activities that aren't fun to manage. Most cosmetologists form LLCs and oftentimes, they save a lot of money on taxes by electing to be taxed as an S corp. They still won't be attractive to investors if they elect S corp, but when we say "investors" we are talking about shareholders. Often times small business owners get help from family etc, and that's not the kind of investor this video is talking about. Please let me know if this clarifies things or if it brings up more questions, I'm happy to help!
Do you talk about or have a video on creating credit profiles for small businesses and where to get funding particularly for my business Cosmetology. Also the difference between adding lines of credit vs business loans and benefits of adding lines of credit. Thanks 🙏
Yes, for sure. Building business credit is a lot like building personal credit. At first, your business won't have much borrowing power, if any. So, you'll start off with easy approval credit cards and net 30 accounts using your business's EIN (employer identification number). You can think of this process as a project that's always running and developing in the background. The benefit of establishing and building your business's credit profile is having cash on hand to 1) keep your business running when things get lean and 2) growing your business when it makes sense to make a move. Eventually, with good payment history and good planning, you'll be able to qualify for unsecured lines of credit and business loans when you need them, using just your business's credit profile and EIN. Here's a video to get you started: ruclips.net/video/zYd0JlSDSqs/видео.html You can take a look at the description of that video for more links to resources. Here's one of our webpages on the subject: howtostartanllc.com/business-credit Please like and subscribe, and, please keep asking questions. Everyone benefits from them!
Can you confirm that an LLC can receive loans or funding immediately with out a credit profile, I understand there are banks out there willing to give?
You failed to mention where and who issues the, K-1 Form and what it does for the viewer, who is thinking about starting a business. Are you a recent college graduate with a business degree or a degree in law? Checked your page and there was information lacking on you as the broadcaster. What is your background?
Thanks for watching and thanks for the feedback. Our video department creatives are translators of the information our dedicated business experts publish across our sites. We’ve been helping people form and be informed about LLCs since 2007 and strive to make that information as accessible and simple as possible. We’ll take note of your questions and use them to improve future LLC content.
People reading this comments, questions and answers. This is exactly how you do ‘’safe dialogue’’. 1) you have a negative observation With 2) a firm answer with facts and manners to support their experience + more, A N D a doble punch with what their commitment to change is and also genuine gratitude at the end. Both parties learned, resolved, and trusted that the chance will happen. Any student of bz or life should make a note on this.
Thanks for sharing this positivity! We really do appreciate ALL kinds of feedback. Our lens can get blurred by doing this day in and day out. Our viewers and subscribers help us see where we can improve, and they let us know what we're doing right.
It is true that nothing is guaranteed but there are certainly steps you can take to make things as secure as possible. LLCs have a corporate veil and in order to protect your personal assets you have to maintain that veil. Here's a guide to help with that: howtostartanllc.com/maintain-llc-corporate-veil
Not really. Spousal property property rights will supersede LLC liability protection. It could help protect the business assets unless the LLC is considered marital property. Also, a good divorce attorney would be able to find LLC assets.
![Yailin La Mas Viral, @kreizyk.official - Dale 2 (Remix) [Video Oficial]](http://i.ytimg.com/vi/JaYHBzgqz94/mqdefault.jpg)
We Recommend using Northwest to form your LLC which includes 1 year Free Registered Agent Service.
💼 Northwest 75% 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 link - go.truic.com/3uJA2sB (paid)
($29 + state fee)
📙 Read our free 'What is an LLC?' guide :
howtostartanllc.com/what-is-an-llc
I was always confused on this thanks
really useful info!!! thank you!!❤
Glad it was helpful! Are you starting a new business?
needed this info!!!
Thanks for being a subscriber!
Thanks!
Thanks for watching!
The girl who's talking on here she's very beautiful ❤
... you must be drunk.
Bretthl1 lol what's wrong with her
@@bretthl1 you know she can see this comment, right?
She is, but random people online should leave her alone.
If you win a power ball lottery should you start an llc to protect money ?
If you have millions in personal assets, you shouldn't even think about selling a funnel cake at the fair without an LLC.
Jokes aside, if you own a business, you should do what you can to have an LLC in place to protect your personal assets.
Is this better than sole?
Usually, yes.
An LLC legally separates you and your business. Without an LLC in place, your personal assets are exposed to business creditors and lawsuits.
LLCs also offer tax saving options and more credibility.
The only time it doesn't make sense to form an LLC is if your business is more of a hobby or if you are looking to attract investors.
Im Cosmetology student and want to start my business because I have clients, should I form an LLC or S-corp. I would hate to lose investor opportunities just because I have an LLC.
Hi, thanks for the question!
So it's smart to be thinking about creating an LLC or corporation to protect your personal assets and to give yourself extra tax options.
S corporation can be a confusing thing to think about and there's a lot of misinformation on the web.
An S corporation is just a tax status that an LLC or corporation can elect from the IRS. LLCs and corporations are business structures. Let's talk about LLCs and corporations first.
Let's say you start an LLC. You'll have liability protection (which is so important for cosmetologists) and your business income will pass through to your individual tax return. You'll pay self-employment taxes and income taxes on your net income.
Unlike a corporation, you won't need to have special meetings, you won't need to have a board of directors, and things will be pretty straightforward and easy.
Here's the problematic part about investors and LLCs: If someone becomes a member and invests in the LLC, they'll pay taxes on their share of the profit even if they didn't get a distribution. Said another way, they'll have to pay taxes on money they didn't get.
Now let's say you start a corporation. You'll have liability protection BUT you'll be subject to double taxation. That means that you'll be taxed at the corporate level on the money the business makes and then again on any distributions you take from that same pool of money that's already been taxed. This is great for investors but not so great for you. That's because your investors won't have to pay taxes unless they take a distribution.
Corporations need to have a board, meeting minutes, and other high-maintenance activities that aren't fun to manage.
Most cosmetologists form LLCs and oftentimes, they save a lot of money on taxes by electing to be taxed as an S corp.
They still won't be attractive to investors if they elect S corp, but when we say "investors" we are talking about shareholders. Often times small business owners get help from family etc, and that's not the kind of investor this video is talking about.
Please let me know if this clarifies things or if it brings up more questions, I'm happy to help!
Thank you , your explanations are so clear and concise.
Do you talk about or have a video on creating credit profiles for small businesses and where to get funding particularly for my business Cosmetology. Also the difference between adding lines of credit vs business loans and benefits of adding lines of credit. Thanks 🙏
Yes, for sure. Building business credit is a lot like building personal credit.
At first, your business won't have much borrowing power, if any. So, you'll start off with easy approval credit cards and net 30 accounts using your business's EIN (employer identification number).
You can think of this process as a project that's always running and developing in the background.
The benefit of establishing and building your business's credit profile is having cash on hand to 1) keep your business running when things get lean and 2) growing your business when it makes sense to make a move.
Eventually, with good payment history and good planning, you'll be able to qualify for unsecured lines of credit and business loans when you need them, using just your business's credit profile and EIN.
Here's a video to get you started: ruclips.net/video/zYd0JlSDSqs/видео.html
You can take a look at the description of that video for more links to resources.
Here's one of our webpages on the subject: howtostartanllc.com/business-credit
Please like and subscribe, and, please keep asking questions. Everyone benefits from them!
Can you confirm that an LLC can receive loans or funding immediately with out a credit profile, I understand there are banks out there willing to give?
The miss click is sad 😢
You failed to mention where and who issues the, K-1 Form and what it does for the viewer, who is thinking about starting a business. Are you a recent college graduate with a business degree or a degree in law? Checked your page and there was information lacking on you as the broadcaster. What is your background?
Thanks for watching and thanks for the feedback.
Our video department creatives are translators of the information our dedicated business experts publish across our sites. We’ve been helping people form and be informed about LLCs since 2007 and strive to make that information as accessible and simple as possible. We’ll take note of your questions and use them to improve future LLC content.
@@HowtostartanllcOfficial , Thank you for your reply.
People reading this comments, questions and answers. This is exactly how you do ‘’safe dialogue’’.
1) you have a negative observation
With
2) a firm answer with facts and manners to support their experience + more, A N D a doble punch with what their commitment to change is and also genuine gratitude at the end.
Both parties learned, resolved, and trusted that the chance will happen.
Any student of bz or life should make a note on this.
Thanks for sharing this positivity! We really do appreciate ALL kinds of feedback.
Our lens can get blurred by doing this day in and day out. Our viewers and subscribers help us see where we can improve, and they let us know what we're doing right.
Wtf hi nekooooo
Add!r
I have a SP now but thinking about going the LLC route
LLCs make a lot of sense. Do you have any concerns about making the change?
You cannot protect your assets with an LLC, nothing protects you from negligence, NOTHING, so get over it.
She said it protects if business fails or gets sued, not negligence
It is true that nothing is guaranteed but there are certainly steps you can take to make things as secure as possible.
LLCs have a corporate veil and in order to protect your personal assets you have to maintain that veil.
Here's a guide to help with that: howtostartanllc.com/maintain-llc-corporate-veil
@@HowtostartanllcOfficial can someone use an LLC to hide assets in a divorce?
Not really. Spousal property property rights will supersede LLC liability protection.
It could help protect the business assets unless the LLC is considered marital property.
Also, a good divorce attorney would be able to find LLC assets.
Very clear and helpful, thank you. Subscribed.
Welcome and thank you for subscribing, we're really happy to help!
I have a lawn care company they have me listed as incorporated is that OK?
By "they" do you mean the state? If so, what state and what's your business's name if you don't mind me asking? I can look at it and see what's up.