Why You NEED To Start An LLC in 2024 (NOT a Sole Proprietorship)

[@stephaniekingdesigner]

It would also be great if you could do a video on people who had a long-term Sole Proprietorship and then switched to LLC after several years. Issues that arise, intellectual property developed before LLC formation, income from before LLC formation, issues with handling past clients, etc.

[@jimhart]

That's a great idea!

[@alexandra-lane]

@jimhart yes please will you do this one soon? This is what stood out to me the most in this video around 15min in about starting off with an LLC rather than untangling later. It just seems a bit challenging here in California because it’s so expensive to start on and maintain even if the business and cliental is still nonexistent…

[@stephaniekingdesigner]

It would be great if you could put together a long video or playlist specifically for single-member LLCs vs multi-member.

[@jimhart]

Are you trying to start a multi-member LLC?

[@stephaniekingdesigner]

@@jimhart I have just switched from Sole Prop to Single-Member LLC this summer. Many youtube videos make a few points about things you should do/not do... and then follow up by saying "if you have single member LLC, then this advice may not apply". It would be really helpful to see a long video or youtube playlist that focuses in on specifics for Single-Member.

[@JustMe618IL]

Appreciate your video and insight. Thank you

[@machineman6498]

Thank you for making this

[@jimhart]

You are very welcome!

[@Remydurroo]

Found this off an older video with 3 reasons why not to LLC 😂

[@CustomsRyours]

Right me too I’m confused 🤔

[@happeningheidi]

Then he did this: kzbin.info/www/bejne/nJXSl2SDeLCNY6csi=vOoUcH02cYO_OJ7N

[@diannekevwitch6958]

Q: I started an LLC in Arizona. I moved to GA. I don't want to cancel AZ. How do I proceed?

[@jimhart]

Depends on a bunch of factors... is your move permanent or temporary? Do you want to do this legally or not? How viable is your business?

[@MsKris988]

I just found you! I ike you and appreciate our videos.

[@emilyjohnson5607]

Hey Jim! I just wanted to thank you for all your helpful videos on LLCs! I did have a question for you and would be so appreciative if you could help me! I just started my single member LLC and will start by selling on Etsy. I followed your tips and will get my EIN, but do I still have to register for sales tax in my state even though Etsy collects the sales tax? Likewise, if I'm selling on Etsy, do I also need to register for foreign qualification to sell in states other than my own? I am located in Arizona. Thank you so much!

[@jimhart]

I'm not sure how things work with Etsy. They may have their own state account that they collect and pay on your behalf. I would check their terms of service.

[@keithbertschin1213]

I’m developing an app for the local community and already have interest from advertisers. I will not be making any revenue until 2025. Should I go with LLC to save making that step later?

[@jimhart]

It depends on several factors, including how serious you are about your business, where you live (and will form the LLC), etc. I don’t know enough about your situation to give you legal advice - and I can’t do that in comments anyway. Please feel free to reach out if you would like to talk through your situation. jameshartlaw.com

[@keithbertschin1213]

@@jimhart Thank You Jim

[@reng7726]

Is a beneficial ownership form required to be filed when you are a single member LLC?

[@jimhart]

Yes

[@askmee326]

Which company is better to register llc. Zenbusiness, tailor Brand, etc

[@jimhart]

This is the company I recommend: hawthornlaw.net/incorporate

[@stephaniekingdesigner]

I dont know anything about Tailor Brand, but I can comment on Zen Business. It is much heavier on advertising and sales than expected. (They push a lot of 3rd party services and add-ons.) Also, you can get a checking account, but need to pay a significant monthly fee for invoicing and payments. So make sure you total up all your expenses before you commit to their ecosystem.

[@AllBrightColors]

For a one person business are there any tax benefits for starting an LLC (selling digital products & print on demand products that I will pay manufacturer to produce and ship ) vs a sole proprietorship? Also, can a sole proprietorship have its own EIN number? I don’t want to lose my medical benefits because I make a little bit of money over the amount that qualifies me for them and then be left without being able to afford a plan on my own because the business income isn’t steady. So I want the business earnings to not be under my personal social security number ( so in this case LLC or Sole)?

[@jimhart]

Yes, there are tax benefits to starting an LLC (if you earn enough you can elect S-corp tax status). And yes, a sole-proprietorship can have its on EIN. But the income from a sole proprietorship still flows through to your tax return and shows up as income to you.

[@emilys.3283]

Do I need to file an LLC as a consultant even if I have no clients?

[@jimhart]

When do you anticipate that you will have clients?

[@emilys.3283]

@jimhart I hope in 5 months or so. I will give career assessments and I am a tutor.

[@emilys.3283]

@@jimhart In five months.

[@J._Rivs]

Jim I can't find any answers on my question: I want to use loans to collateralize my bitcoin for my personal use through my multi member LLC (me and my fiancé) . is there anything wrong with taking the capital and paying for whatever I want without paying myself through owner draw, or will I have to just take the owner draw and pay taxes, my business brings in 0 income, it was just a LLC I made for a trucking company I was gonna start but instead invested in bitcoin and this business will never do anything besides refinance bitcoin as bitcoin appreciates

[@jimhart]

Why do you need an LLC for that?

[@J._Rivs]

@@jimhart The company I want to do it through is currently only offering collateralized loans to business at the moment.

[@diannekevwitch6958]

You have fees in Arizona

[@jimhart]

Most states (i.e. all states) have fees.

[@stephenfiore9960]

1x(9/23/24)…excellent