Don't Form an LLC until You Watch This! (3 reasons you should NOT form an LLC)

[@love_kiwee]

also, your lil pauses to do or say funny things really helps make this tax content more enjoyable :) nicely done!!

[@JoseMoreno-es5yc]

Thanks!

[@jimhart]

Thank YOU!

[@Brightandgolden]

It depends on the type of business you have. Some companies will take you more seriously if you have an LLC. Also, if you have $$$ in the bank, assets, or simply prefer to protect yourself, get an LLC! It doesn't cost thousands of dollars to get one...not even 1k (depends on your state) And if your business ends up not working, then you dissolve it after one year. Simple. Also, if you want to protect your privacy, get an LLC through an agent. I would recommend people read "how to use limited liability companies and limited partnerships" by Sutton. It explains everything. Once you start making a profit, you will need a good CPA and lawyer to have a good tax strategy

[@bwilks3056]

Wow! Thanks for this additional info :)

[@Moonchildrise]

What are the pros and cons for getting an LLC through an agent? And thanks for all this info!

[@michaeladams6050]

do i have to do through an agent or can i do it online

[@Steakstime]

If you understand accounting then do it yourself, if not then it's very smart to have a professional do it for you

[@GoredGored]

Completely agree. His advice is for 18-24 years old with no asset.

[@mindyweaver9279]

Thank you - I would have been one of "those people" who would try to start an LLC before they needed to, I appreciate the honest information.

[@deadringer-cultofdeathratt8813]

Same

[@highlife7899]

Dido

[@perryd43]

Me too 😂

[@sandyj3945]

Me too.

[@ThrivingDestiny]

Honest people like you should be getting subscribers and views. Thank you for the video. I just stumbled on it and have subscribed.

[@jimhart]

Thank you so much. I appreciate it!

[@KitbashCustoms]

Thank you for this! This I was gonna form an llc later today but now I’ll wait!

[@mayfieldbr]

me too! Glad I came across this video

[@ilariaflores8766]

You make alot of sense. If you’re not bringing in money there’s nothing they can get from you

[@tomcarr5458]

Most people need an LLC to get to S Corp status to save on taxes so unfortunately LLC becomes mandatory. it’s not always about liability, it’s mostly about tax savings

[@WhatItDoobie]

agreed

[@dixielanddigital7952]

If you have an LLC you can back date your S Corp if/when it's needed.

[@mexinumba1]

thats and also if you in the construction bussiness it opens up a lot of doors, I feel it makes you look more professional

[@grapplerguy2007]

My accountant says s corp and llc are same thing without one oe the other he says i can do llc no need for scorp

[@mickeyjo8897]

Not only starting one to generate longevity.. You know what you need to get business credit down the road.

[@TaraWagner]

Yes! I agree 100%. First secure the business then move forward with the right legal structure for your biz. Nice vid! :)

[@Jinkzed01]

You can’t do that for every business…it really depends on what your are trying to accomplish. This is a blanket video that is kinda poorly done.

[@footballgrandma4175]

HI Sir ! In this economy appreciate the valuable advice.

[@jimhart]

Most welcome!

[@reaktorleak89]

Thanks for explaining the importance of timing when starting an LLC.

[@MoneyGist]

This video had me cracking up... at myself! So accurate. Especially the bit about forming an LLC (and opening a corporate bank account) with absolutely no revenue.

[@StaticonDBZ]

I watched 11 videos to get here and this was by far the best in many ways. Thank you.

[@jimhart]

Thanks!

[@klnmn3722]

Thank you for the down-to-earth and honest advice. You’re the type of person I’d do business with in a heartbeat.

[@jimhart]

I appreciate that! Let me know if there is anything we can help you with!

[@robertmcmillan4455]

I was gonna be one of those people, thank you. now I have an idea of where I want to be at when I do set it up

[@AnthonyMClark]

Your video just saved memory, and a headache. thanks man!

[@jdblack9703]

I am a CPA in California. I have at least a half dozen clients with single member LLCs. A couple of these have several. These LLCs are disregarded entities that file “all zeros” tax returns and pay the minimum state tax, pay me to prepare these, and pay me again to report these on Schedules C on their personal returns and pay self employment tax. Another thing I see that I don’t understand is that several of my clients go out and setup retirement plans with administrators and advisors while in the past the clients didn’t contribute to an IRA. You video is excellent. Keep up the good work.

[@rebeccazegstroo6786]

Thanks. One less thing to worry about. You spelled it out very clearly and concisely.

[@vicmo25]

I was about to try and form an LLC with only $23.43 in bank account 😅

[@CobaltxBoom]

😂😂

[@kingdenali6293]

Mood

[@Xhu5by]

How’s business

[@my2cents342]

😂😂😂 damn

[@texasprepper869]

🤣😏

[@pearlivory3483]

The reason I formed an LLC was so that I could get a business bank account and qualify for grants and loans. It was really hard for me to keep things separate with my personal bank accounts and credit cards being all mixed up with my business purchases.

[@ronsfade8122]

u can also file ur DBA u dont realy need llc to open ur business account

[@edg3186]

Hey man I have a business but to do taxes and all that good stuff do I need a llc or is there a way to do all that without a llc do I have to register a company I’ve been look for days on yt but everything just says make a llc no real answers

[@jamesdavis6275]

​@Edg3 a llc is a limited liability company which protects you and your assets if something was to happen and someone tried to sue you

[@dd2cool]

Yeah I did this with just a dba you don’t need loc for business bank account or loans

[@edg3186]

@@jamesdavis6275 ok with a dba can you still file taxes at the end of the year?

[@LuckySloth-uv2hj]

Sole proprietors are 2-3x more likely to get audited 😅

[@XTREMEINDUSTRIEZ]

Thank you, I love how direct and clear you are. Not harsh at all bit honest and thats good business, it made me laugh.

[@_nellysunshine]

This came out 3-4 months after I set up my failed LLC lmao I know better now, love being a start up!

[@arcariusmexen1104]

Thanks for the insight. Just formed one so this wasn't easy to hear but it's done and I intend on moving forward. Thank you.

[@jimhart]

You got this!

[@eskyonthefly4751]

I Love this video, I tried explaining how my friends don't need this but they don't listen, but I think you'll convince them!

[@avowedindependent3934]

I like this guy for his candidness!

[@highlife7899]

Sold.... instantly u got my sub. for life. I love the the Brutal honesty and the swift kick in the ass. First thing u said "no revenue" and "thinking u need an LLC as the first thing to do to start business" LMAO. Im that person u were talking about. I pictured myself walking into ur office and then walking straight out after hearing ur first bit of information in the start of ur video. Great information, great kick in the ass, awesome presentation. Thank you. Much appreciated and much love.

[@moonlightj0y]

Thank you souch for this! I am so sick of the misinformation on social media about this topic.

[@kbcinmedusn]

If you sell: 1.Big ticket items (cars, houses, boats, RVs etc.) 2.Potentially dangerous items that can cause injury or death (firearms, power tools, kayaks etc.) 3.If you perform a service that can go wrong and alter someone's appearance or damage their health like a beauty salon or a barber shop 4.If you provide a service that can damage private property like a mechanic shop. 5.If you're selling food to the public These are all reasons to form an LLC.

[@steventzd.1084]

Phone repair ?

[@Crabs69]

A housekeeping biz ?

[@LOVELYHAIRR]

what about housekeeping?

[@Softballmom20]

What about in the metal carport business not red iron but square tubing? Your response is greatly appreciated 🙏🏼

[@Okie686]

Thanks

[@dudinho7348]

Great honest advice

[@jimhart]

Thank you!

[@levijuneybeats]

This was an informative video, I like how you broke down the purpose for an LLC

[@porschen8055]

Great information for someone just starting out. I’m soaking all this stuff up!

[@jimhart]

Glad it was helpful!

[@raylewis6399]

I definitely appreciate this video @Jim Hart. And I agree with you 100%. I’ve made the mistake of starting multiple LLC’s and never actually ever built the businesses. Now I would never start an LLC until my business is already generating some income.

[@codelucky]

How would you collect payment without a business?

[@enochleffingwell6624]

@@codelucky The business isn't an LLC. An LLC is a tax structure for a business.

[@codelucky]

@@enochleffingwell6624 Ya, one can collect money via Payment gateway as a sole proprietor as well.

[@tedparker640]

@enochleffingwell6624 not really accurate. An LLC is an organizational structure just like a sole proprietary and a corporation. But with a sole proprietorship, the structure is you and only you. Tax liability as well as other liability (injury, insurance etc.) falls solely on the owner, whereas with a corporation, the organizational structure is pre determined and there are lots of rules on how the company is structured and ran. An LLC gives the most options as to how to structure and run a company. What officers there are, what their responsibilities are etc. This is all spelled out in detail in an operating agreement (not to be confused with articles of operation that is filed with the secretary of state outlining the key officers, manager(s) and reporting agent.) The structure for financial/tax purposes is either an s-corp or a c-corp.

[@DavidBorges-m3j]

Thank you for this video, sir. Very informative.

[@alexanderohnemus1545]

3. Situations: 1)Do not have revenue. 2)Not high risk. 3)Judgment proof(own almost nothing),

[@mrtrino2140]

Thank you

[@TimothyP.]

Not what I expected to hear, though 100% what I NEEDED to hear! Thank you so much for saving me time, money, and worry!!!

[@ronsfade8122]

im a barber and all i do is make my clients happy with their haircut i mean i dont think anyone would sued a barber especially if u provide a good service so i realize that i dont realy need the LLC i rather just file my DBA thank u so much for the honesty and the great message appriciated this is all i need to hear

[@jimhart]

Answered your question on my recent live stream!

[@MrJamminguitar]

Good stuff. Thanks for the tips!

[@DonnaDesrosiers]

Appreciate this candid video very much. I think many of us want to form an LLC right away before our business generates income because 1. we are excited and 2. We want to apply for grants/loans using our business name. This video helped clarify why we shouldn't rush to get an LLC if just selling digital products or certain items online that wouldn't attract an easy lawsuit etc. Thank you!! Please make more videos!!!

[@AnikoSMH]

It actually is what I expected to hear from a lawyer. Thank you Sir!

[@bfreeinjesus2323]

Wow, the most honest lawyer I've heard on this topic! Thanks Sir!

[@BrianEhardt]

Thank you for your video. Unfortunately you reaffirmed into why I do need an LLC. Either way you helped me decide and I commend your efforts to put education into the public eye.

[@jimhart]

Glad it was helpful!

[@fkustaa]

Dear Mr. Jim Hart, I agree with you that many of us who start online business stores or drop shipping stores don't need an LLC right away,. However, at my Minnesota secretary of state website, some of us who are starting online business stores are bombarded with requests to sign up for an LLC, EIN tax number, and so on before we start a new online business. How can I handle this issue if I don't want to start an LLC and apply for an EIN tax number right away?. I look forward to hearing from you.

[@BobbieLovesBobbie]

Its not harsh its honest and helpful. Thank you.

[@missouriwomensbusinesscent816]

Great info! I would suggest you also refer clients who don't have the funds for an attorney to reach out to the Women's Business Center or Small Business Development Center. We have access to a lot of free resources and can help set up a business correctly!

[@tazzytyoung19771]

Can you help women from ohio?

[@missouriwomensbusinesscent816]

@@tazzytyoung19771 Hi Tawanna! There are WBCs across the country, including Ohio! Check out this link for more info about Ohio WBCs: www.wbcohio.org/

[@mzbxbooyah1326]

Hii I’m seeking help to open a business the correct way,can you please Help me,I’m in nyc been researching but can’t find anything with the kind of assistance you mentioned,it would be a major blessing to have some-type of assistance,I’m a widow mothers seeking to better her self in life,thanks in advance for your assistance may GOD continue blessing you so you can continue blessing woman as myself!!

[@mzbxbooyah1326]

Hii I’m seeking help to open a business the correct way,can you please Help me,I’m in nyc been researching but can’t find anything with the kind of assistance you mentioned,it would be a major blessing to have some-type of assistance,I’m a widow mothers seeking to better her self in life,thanks in advance for your assistance may GOD continue blessing you so you can continue blessing woman as myself!!

[@spidey31]

Thank you I can setup when I start making money

[@jimhart]

Best of luck!

[@bayargelenkhuu2933]

Thank you so much for this video, even though it was made four years ago. Someone contacted me with a proposal to set up the LLC business for me for $600$. Thank God I watched your video. I qualify for all those reasons why you shouldn't have an LLC.;)

[@jimhart]

Glad it was helpful!

[@writtenbykenya4444]

You’ll need an LLC and get business credit to fund your business. Some don’t have funds to get started so I disagree with this respectfully. I started an LLC and applied for business credit and got a 2500k.

[@lildudefromky]

I was thinking the SAME thing , its all about the owner of the llc ya know

[@itsdragoncraft4260]

How do you apply for business credit

[@mare6318]

And even without needing funding, most banks require an EIN to open a business checking account. Also, it’d be silly (in most cases) to not opt for a business credit card, as the rewards that come with most of them are worthwhile. I love that you brought up needing credit to fund a new business. (A credit line, loan, etc.) It’s not only something that a vast majority of entrepreneurs/solopreneurs will require, but it’s certainly prudent to build creditworthiness as a business and it surely doesn’t hurt to start from the get-go. Additionally, keeping business transactions separate from personal is something just about everyone would recommend. While I can understand the video creator’s points, it’s not the advice I’d give to new business owners. Thanks for your comment! It’s common sense and a commonplace necessity. 👍🏻 (⭐️ ⭐️ ⭐️ ⭐️ ⭐️)

[@mare6318]

@@itsdragoncraft4260 While there are no stupid questions, (and this certainly isn’t one) the fact that you do not know this shows that you would benefit from doing a good amount of research prior to trying to acquire business funding. Droves of free, easy to understand info is available online. A solid place to start is with the state in which you reside. And the county (in some areas). Then also speaking to banks. You need an EIN number. (In almost all cases, but not all) An EIN (employee identification number) acts as a SSN for your business. That’s the simplest way to explain it. Even if you do not have employees, it’s beneficial to have an EIN, because most banks require it to attain business loans and credit cards (again, not all). If you form an LLC, then get an EIN, you’ll have the comfort of having your business expenses separate from your personal ones. Using your EIN (instead of your SSN) with banks, it means that if something happens to your business financially, your personal assets will not be affected. Of course, that’s the simple and dumbed down explanation of it. Your situation may be different than that of many others. Your business may also require additional licensing or certifications prior to operating. Speak to a business attorney first (and banks if funding is necessary or desired) before making decisions based on internet advice. I’m just giving a simple answer, but every situation and business is different. Some businesses require a whole lot more than just an LLC formation and an EIN number to get started. You’ll also need an EIN for several other reasons when it comes to taxes/IRS matters. (You are a multi-member LLC…You are a single-member LLC who chose to be taxed as a C corporation or an S corp...You are a single-member LLC that has, or intends to have, employees. This applies no matter how you elected to be taxed, etc…) Again, take my advice with a grain of salt. It’s worth it to do your homework and speak to a business lawyer. Best of luck to you!

[@kenmckinnie6061]

So would be able to get business credit as soon as I form a llc?

[@cathy349]

So funny and on point. Thanks!

[@jimhart]

Glad you enjoyed it!

[@sagiriizumi8079]

After listening to this… I definitely need an llc

[@nicholassouza5475]

Thank you for this video, I formed an LLC when I was younger only because I remembered it from business class thanks for educating me and others. Terminating my LLC tonight

[@oliferous]

This is such a great bit of advice! i really appreciate your honesty and genuine offering of helpful advice. I'm just starting to upscale my online selling/trying to go fulltime with it and this is the kind of help I need right now. So thanks and I will be watching...and subscribin' and learnin'!! Thank ypu sir!!

[@bradycraig9021]

I really needed to hear this actually. Thank you.

[@brianwillis9024]

I love these sets of videos a treasure trove of info and you do a great job explaining things.

[@jimhart]

Thank you!

[@el_dominikilla7511]

This is exactly what i needed to hear. Thank you so much for the informative video. Have a blessed day!

[@rdubitsk]

Great video, But doesn't an LLC make it easier to deduct expenses for tax purposes? And make it easier to hold IP ?

[@tedparker640]

@rdubitsk not at all. If you are a sole proprietorship, then you file a schedule C with your 1040 to itemize your deductions. With a LLC it's a different form depending on if you have c-corp or s-corp filing status with the IRS

[@shelitaw12]

I enjoy your videos. I learn a lot from them too.

[@shelitaw12]

Wish I would've found you before I formed my L.L.C.

[@Cigarette-gg9ur]

Thank you sir I know I want to be successful in life im 16 and every thing is very frustrating right now you got straight to the point 💯

[@JoeyVX]

Even if you don’t have assets, if you get sued and ask to pay a certain amount you will still be responsible for paying that which means future profits will go towards paying off your settlement! So yeah an LLC is still worth it!

[@tedparker640]

that all depends on why you are getting sued. If it's faulty product, then you need to talk with an insurance agent to see what coverage you can get for this scenario. If it's a personal injury related to the business, this is called inside protection, then same thing, consult an insurance agent. If it's personal injury not related to the business but something you caused, then this is called outside protection and it depends on the state weather the companies assets can be used to settle the claim, but in any and all cases, a good lawyer will almost always be required. As the saying goes: Anyone who represents themselves in a court of law has a fool for a client.

[@anfonieb7434]

I needed this information. Thanks

[@DrDre.]

I really appreciate your honesty. Thank you for this. I totally agree with your reasons

[@saltlifegull4091]

LMAO, You Rock Jim! I think most people do it because it makes them feel legitimate. Super video.

[@chadpunisher]

Thank you I appreciate your honesty Jim

[@jst-c1372]

Doesn't having an LLC protect your business name from others using it in your state? I feel like this is important to consider.

[@Kidscreatetogether]

I agree the reason I got mines to protect my name

[@curatethedetails]

Thank you, this is really informative! Luckily, I'm in the State of Idaho, and there are no annual fees, and it's only $100 to form an LLC. To me, it made sense to add that layer of protection, even though I'm not required to form.

[@WyMustIGo]

An LLC doesn't really protect anything unless you are VERY accurate in the way you handle/conduct business. I suggest you research "Piercing the Corporate Veil". A good lawyer will rip apart your LLC and claim it is simply being used to hide behind in order to avoid being sued. They are not stupid, they know most LLC's exist with either ONE or maybe 2 people, and are not really being run as a business. This is why large companies might form an S-Corp if they seek to protect their assets, an LLC won't cut it. Think you won't get sued as an online retailer for example? LOL... Well what happens when you "private label" some garbage from China to sell on Amazon. Customer buys the item and it burns down their house (don't laugh, many devices have done this) or maybe it kills someone. Guess who will get sued? YOU. Sure, you can blame the manufacturer, but that requires money and lawyers, and if it is some trash made in China, good luck. So you could lose your home or other assets with an LLC or with ANY corporation, but LLC does not protect you and many people think it does. Speaking of crap like this... Retail Arbitrage is a cool trend, right? Well lets use the same example, you go to Walmart and buy a NEW TV, you send that TV to Amazon and sell it on FBA account as a NEW TV (it is till in its original box and is new, right? NOPE.. read on). The TV catches on fire and burns down the house, you get sued. You try to sue the manufacturer, but then you find out that they are NOT liable because you are NOT an authorized reseller of their televisions. Oopsie.... I may sound crazy, but look at the world we live in. Everyone is trying all kinds of scams to make a quick buck, and they believe an LLC will cover their azz. Nope, not in the real world.

[@WyMustIGo]

BTW, of course these lawsuits can happen with or without a company. I think it is good to bring up because people think they can hide behind an LLC, which is not true. Private Labeling is being pushed all over the internet. You find something to knock off, you get some company in China to manufacture the item and label it as YOUR item, then you sell it on a platform like Amazon. Sounds cool right? Easy money! Well do you have product liability insurance for your product? Are you willing to accept the risks? The SAME is true when you buy something at a RETAIL place and then "FLIP" it as a NEW product. You are doing this without being a reseller of the product, so the manufacturer will claim you were not supposed to sell it as NEW, you had no right to do so. Do people think they can buy a CAR on a Ford Lot, then pull it off the lot and resell it as NEW? Of course not, well it can be the same with all products. Point is there is risk... There is less risk if you sell it as USED and out of warranty, as is. Bottom line is I would be careful... For the most part nothing will go wrong UNTIL you are at a position where you become the target of another vendor. It is a nasty place, some vendors will do things on purpose to screw their competition. You will never see any of the sites discussing "how to get rich with e commerce" talk about these things, they are more concerned with selling their books "how to make money online" :D

[@RoschetzkyPhotography]

In Texas is $300 alone for state fees plus many more fees and then annual taxes and fees to comptroller

[@hunterhill4373]

So maybe I’ve been misinformed, but doesn’t forming an llc basically let you write off all of your expenses, ie. car payment, phone bill, mortgage etc...

[@eduardoamezcuaea7919]

You do not need an LLC to be able to write off all your business related expenses. Eduardo Amezcua, IRS Enrolled Agent

[@graghoul]

thank you so much. There just isnt any content out on youtube like this

[@Blah678]

I have a DBA and a business bank account. I have been wanting to get an LLC just for business credit purposes. You know use other people I have about 50K of personal credit cards availability. I do e-commerce, but I have to use small credit amount to avoid my Fico taking a hit. I have a DBA and a business bank account. But I want to use LLC for business credit. Doesn’t it make sense to get an LLC for business credit purposes?I want to keep everything separate on my credit. I am in California BTW where we have the $800 “franchise fee”

[@xanderer5801]

hi, thank you for this best content, i have a question about setting up EIN which one to choose if i do dropshipping, hope you do content for this too,, thank you again

[@jixdahac]

EIN is mostly only needed if you are an employer with employees which you will pay a wage through not your SSC but your legal business EIN Don't quote me

[@jourdanhamme4065]

This was the video I was looking for. Thank you Jim Hart. I see LLC so often in online businesses that I didn't think about needing a business with enough revenue to need to protect it with an LLC. It's not a legal step that if you don't do right away that your are in trouble with the government :)

[@vortexrising2943]

This guy is a G he just saved me $800

[@Happiness379]

Hehe. Is your business in CA like mine? Since CA costs $800 for an LLC.

[@vortexrising2943]

@@Happiness379 its $40 a year in idaho

[@Happiness379]

@@vortexrising2943 oh I see. So you have other fees then? If yes, then my fees will be horrendous if we’re the same.

[@Happiness379]

@@vortexrising2943 oh ok. how did he save you $800 then?

[@DaniGirl6]

Thank you for posting this, clears up that I am not ready yet to go for a LLC.

[@jimhart]

You should watch one of my more recent videos where I give updated thoughts on this video.

[@deathcoder]

So, an LLC offers legal protection for your assets. How about taxes? is an LLC necessary to file taxes and get all the tax benefits that a side business can offer?

[@jgboyer]

Thanks for the straight advice! Solved my dilemma.

[@trinar82]

Can you change it later on once the business starts making money?

[@TheTropics4]

Thank you so very much for this valuable wisdom! I currently only own my paid off car and I rent an apt. I have no other assets and I'm a brand new fresh beginner just in the research stage of starting my online business. ❣️

[@jimhart]

Wonderful! Let us know if we can help.

[@fatcat1683]

These tips are great. I had to file a LLC because there are benefits to applying for a Business Bank Account for a Business Credit Card. Otherwise, my online business, I'd probably save myself the trouble, as in fact I am not at risk of liability.

[@alexmjones013]

Hi there, would love to know more about the benefits of a LLC when it comes to opening business accounts and credit lines/cards. If you don't mind, what is the benefit and how is it going for you ?

[@carminaseg9407]

@@alexmjones013 I opened a business account and got a business credit card without an LLC. I am a sole proprietor and was able to get them by just giving the bank a name for my business.

[@Blah678]

@@carminaseg9407 The only problem is it reports on your personal credit. With business credit you can max a card and it doesn’t hurt your personal FICO.

[@sarahaquino1630]

This video was really helpful, thanks for posting.

[@ashleya3481]

So I want to start my own business and I was thinking about getting a LLC since I would have more legal protection but after watching this it seems as if I should just get a DBA to protect my name and start off as a sole priorpietor and when I start making money/assets to form my llc?

[@Boo-hu5zu]

Yessss Ashley!! I was up the night before lastnight looking it up and BDA came up and I kept scrolling back up to that part. It was reminding me when you fill out something and it asked you if you go by another name it made me think of that. Seeing this and your comment that’s exactly where I’m at. We just want to have our business name in our pockets but understand we want and need to focus on whatever the business actually is!

[@ashleya3481]

@@Boo-hu5zu Right, I been doing a lot of research too and watching other KZbin videos as well. I watched another video that said focus on actually starting the business too, you don’t have to have a llc when you first start depending on what kind of business you are looking to get into.

[@Boo-hu5zu]

@@ashleya3481 yess ! That’s exactly what I’m doing now! As I type lol. I wrote down on my notes what items & products I need, I’m on Etsy getting my items together in my shopping cart. I believe this is what the base of self sabotage and procrastination and distraction comes from. We so busy thinking about the legal aspect but haven’t even made anything (well I haven’t 😅😅😅). Let’s make our products or what your business may be, the right people we will attract. We gone pop off from here and everything else will be GUDIED to us from the ancestors on what to do next. I’m sending you sooooo much love and CONGRATULATIONS 🍾🎉🎈🎊 ON YOUR NU BLESSED BUSINESS! You got this girl ! Trust yourself and your inner knowing !! We was made for this !! Blessings On blessings to you ! And STAY SAFE 💙💙💙✨💫🥂🥂

[@ashleya3481]

@@Boo-hu5zu yesss I haven’t started anything yet but researching so no money yet lol but yes we will get there at least we are researching and writing everything down. And I appreciate the love, Wish you the best and lots of success. And Congratulations on the start of your business. We are speaking into existence. That pre-launch is coming. When things get tough, never give up. Keep pushing ❤️❤️❤️🥰

[@Boo-hu5zu]

@@ashleya3481 💙💙💙💙 thank you !!

[@corporatepimpin6505]

No one‘s going to sue you you’re not doing anything 😂😂😂

[@MichellesdesignsEtc]

We live in a sue happy nation though.... 😂 that's the thing..

[@TheBaller97]

Amazing info 🤝

[@tinam.4090]

I've been following you for a while and I have a questions : can you still write-off expenses without an LLC

[@krapen9406]

Yes you can

[@commentcreeruneboutiqueShopify]

That’s the question I’ve been looking for, Any answer?

[@stevensanchez7740]

HAWTHORNE!!!!

[@tinam.4090]

@@commentcreeruneboutiqueShopify not from Hawthorne

[@cloud28nails88]

This is all I'm trying to find out. 😂

[@rebeccaanne9863]

Thank you. I've been putting off making an LLC because every time I consider all the things I would have to do for it and all the time it would take I cringe. I work a full time job and the effort and time it would take just to maintain an LLC would leave no time to produce art for me to sell. No I can't afford an assistant lol! And what's the use of having a business if I don't have time to supply it with goods? Plus I doubt I would make enough in the first few years to justify the cost of an llc

[@hasanchoudhurymd]

Thanks for your honest opinion.

[@nimson50]

I've been told I should get an LLC 2 years before my business "gets serious", so that the LLC can get "seasoned" and build credit so that the business qualifies for a business loan when I'm ready to "get serious". What do you think of this advice? Thanks!

[@ViolentMLG]

You won't build credit without loans/CC's. You won't get a loan or CC without co-signing it (therefore removing liability). Banks aren't stupid, joblow with a 300 credit score can't go form an LLC and magically poof get money, or keep a name alive for 2 years and do the same. The only way you're going to separate yourself from the LLC is by raising capital, or, co-signing loans, paying them off, generating tons of incoming revenue, then applying for a loan. They're going to want to see your money. I think you should be looking to form an LLC once you're generating enough revenue that it makes since from a tax prospective, then, you form an S-Corp, you co-sign loans, and a few years later, assuming you've built the business into something worthwhile, that's when you can separate yourself.

[@tommieb5712]

That's what I was told by many business ppl to ,it makes more since to do it this way

[@matthiassouthwick7310]

This is what my school said to do as well.

[@JSAbbott]

This video has really helped me. I have been vacillating between a DBA and LLC. I don't make a lot of money right now from my side hustle and I don't have any property other than an old truck (and not much in the bank). I'm just worried about being sued (more anxiety talking than logic). I just want to be a freelance designer and artist so my business isn't a high-risk one. I will just go with a DBA and "upgrade" to an LLC if I need to in the future. Thanks!

[@OmarLopez-kh3dx]

But if you get sued early, can't the court take all your hard earned money from your account because you were not protected by the llc?

[@RobbGorringe]

@@OmarLopez-kh3dx He wouldn't get sued. If it escalated in a crazy way, I would imagine both party's attorneys would settle out of court.

[@rustythefoxcoon5143]

Doing a similar thing. I just bought my beater workhorse. 03 Saturn VUE with front wheel drive, 4 cylinders, and a stickshift. AMAZING gas mileage. Needs a cat replaced. Would recommend for getting supplies and traveling with a stand! Save on gas, keep things dry, and oddly reliable engine wise.

[@romeroaguilar8217]

You are awesome. I appreciate your honesty….

[@vinomatchmaker1784]

I love your videos!!! You cut straight to the point without the fluff. I’m a blogger and I’m in the business of affiliate marketing. I plan to launch my website on October 1st. How should I legally protect my business other than forming an LLC?

[@carm738]

Thank you that was really great advice and so glad i stoped by

[@PinkGomo]

I'm in the process of making a product that I invented. It's a self defense item. I was thinking of forming an LLC. Does this apply to businesses that sell physical items? I am in Florida, and was going to check if I could form an LLC through your services.

[@celwilson]

Thanks for the info I'm definitely that first example of no current revenue, however I anticipate that won't be the case shortly and the fields that I will be working in I believe that it's the correct path.

[@poundcakeartz8946]

I appreciate this information! However, the way you deliver made me feel more patronized than informed. As someone starting a business, we just research and investigate options of how to grow and be the best business possible. This video make a person feel idiotic for trying to do just that.

[@_MusageteS_]

Amazing advice, thank you

[@Lrod005]

I have an online business and it makes no money. Where I’m confused is that I actually do have assets. Do I still don’t need an LLC?

[@jimhart]

It depends - let me know if you would like to schedule a strategy call.

[@endangeredspecies5005]

luis, non us citizens form llc in the states to open a bank account, get EIN and be accepted by payment providers such as paypal and stripe.

[@marcspecial]

@@jimhart how do I schedule an consultation/strategy call with you?

[@xanderer5801]

@@marcspecial those link is in the description buddy

[@rosahodge420]

Perfect...thank you for the insight. .

[@davidcerna8388]

How would I protect a business name if I don’t start an LLC? Is a trademark needed? Looking to start investing in real estate and thought I should start a business and use that business name for all costs and revenue. Bad idea? Thanks for all your info, love your channel!

[@leslietrinidad9672]

Hey! I'm pretty new to this whole legal side of business and was wondering, if we don't need an LLC just yet because of everything you just covered, what DO we need for an online business? I want to start selling jewelry but I don't know what I have to do in legal terms.

[@fearless4371]

Good question

[@m7b327]

Sole proprietorship/DBA

[@OmarLopez-kh3dx]

@@m7b327 if you get sued as a sole proprietorship, won't they take money for damages from your bank account? And all the money you make from your business will be taken as well

[@theexile4694]

@@OmarLopez-kh3dx Sole Proprietorship simply means there is no difference between you and your business. Your Business is not it's own separate legal entity. This has benefits, drawbacks, and limitations like any business model does. The ideal business is a corporation as that business model provides huge tax breaks and it's why the rich are rich. They all own corporations of some sort or another and receive massive tax breaks and benefits. However, for a small mom and pop business, that is single owner and few employees, there is nothing wrong with starting out, or staying as, a Sole Proprietorship, and building from that. You can always upgrade your status later as needed.

[@fortresstarot3419]

Thank you for the laugh. Blunt honesty is always the funniest.

[@shekinahglory604]

Hi! I have a question Jim. I wrote an ebook under a pen name. That later blossomed into a Facebook group (fake name) with a small following. I’d like to begin offering coaching packages. Would I need a DBA in my pen name or create an LLC in my pen name? Should I just start over using my birth name? I’m so confused by all of this.

[@alseppi5348]

Good video. Thanks for the imput.