Single Member LLC Mistakes You Should Avoid - 4 Biggies

[@jimhart]

Thank you for watching! When you are ready to form your LLC, click here to use my preferred vendor: hawthornlaw.net/incorporate (affiliate)

[@ThriftDiving]

1. Operational agreement for how your business will operate. 2. Meeting minutes with yourself, especially when you make decisions, like buying new equipment. 3. Good tax records. 4. Separate bank accounts, and draw and deposit money appropriately. 5. Enter into business contracts as the name of the LLC.

[@BBRR442]

Thank you

[@BBRR442]

!!

[@coreycheng9926]

thank you

[@theboxofdogs]

Thank you

[@giselo06]

I love ppl like you ❤️ ❤️

[@williammorton8555]

One of the best presentations on LLC's I have seen. Not polished, not pretentious, not pretty, just good information from someone who clearly works for a living.

[@sammytabasco]

Awesome thanks man! Business school really doesn’t give you this knowledge in such a straight forward way. This is why KZbin is a beautiful community! Keep it comin’.

[@tblankin1]

I needed this video. I started my business almost a year ago and I am almost clueless on the legal side of business. I made the business a single member LLC a couple of months ago but I don't have a separate bank account yet. I had no clue about meetings with myself or operating agreement. I just have a simple contract for the customers. Maybe this channel can steer me in the right direction.

[@rufus5208]

@Shirl Zitting Do you find any of these videos useful and truthful?

[@thumpertorque_]

What kinda business was it?

[@kaitlynnsprinkle7779]

@@rufus5208 l

[@polish2x91]

You're awesome, the fact that real life was happening the entire time you did this was very endearing. Thanks for the info.

[@jimhart]

Thank you!

[@chaseykaluha3040]

Honestly, I had no clue about taxes or business. If it wasn't for my will to learn taxes (basic knowledge so far) and my boyfriend recommending me a few books about business, I would still be clueless. This video along with many others that want to inform people to reach their goals is priceless, much better than college classes when you can find simplified advice in a video. Thank you, sir!

[@lisaedwards3218]

Hi, I'm happy to see this channel. I paid a Law Firm $3,158.05 to form my LLC 4 years ago. Taken advantage of, as I've been told. Just to find out through the State of NY that my LLC was not in compliance with NY State Laws because the firm did NOT File my articles of publication since 2016. They were not very accommodating when I told them that this had been costly to me, I believe one of the Partners advised me that I didn't loose anything. No, Just my time and doing the Lawyers Job and it's quite clear that this Law Firm does not value their clients time. I would LOVE to Bill them for my Time and Correcting their errors. Over Charging and Under Delivering. I hope your channel can be of some help in the future, because I'm quite disgusted with Lawyers. Thank you for the advise I've done the steps you've discussed. This is my first time sharing and venting. Thank you, Lisa E

[@dandelionc69]

I thought my experience was bad ! Yours is on a whole different level! I paid $500 filing fee to a company did an immoral job, my LLC was only half done from not yet meeting the publication requirements by the NY state. And the guy told me that I can ignore this law ! That’s ridiculous !

[@romanhut2917]

Thank you for sharing cause I plan on using a lawyer to form my LLC . The reason is a business lawyer can help set me up for tax deductions for my company .

[@odell.a7223]

still changing lives here in 2023, Thanks brother keep moving forward!

[@ncjim]

Thank you very much for this video! Your charisma and logic flow is much greater than any of the other videos regarding the topic of single-member LLCs. You intelligently encapsulated each area into four logical, distinct categories, and summarized them well towards the end. This makes it so much easier to remember all the nuances to look out for. EDIT: Just realized you had another updated video, will watch now. Sorry about that.

[@deborahtchester686]

You had me cracking up at 6:15 , love your personality. You making learning about business enjoyable and not a drag. You do a great job of communicating all the important information. Thank you so much ! :)

[@jpierce518]

My wife and I are getting ready to start our own company and we're thinking of forming an LLC. Your videos are really helpful and get me thinking of all the things we need to research. Thanks for the info.

[@RepubCitizens]

At first, I thought the interruptions and personal info odd - then I realized how hilarious and down to earth it is. Not enough who do people with these kinds of videos admit they have something in their eye.

[@humblelifeoutdoors4299]

I honestly can’t thank you enough, best of luck to all future endeavors.

[@tamekajones766]

I’m so happy that I found your channel it will help me as I file for my LLC today!

[@darkhorse2reign]

I am a single member LLC and taxed as an S Corp. My issue is that as a new trucking company I have been borrowing from my own savings to purchase fuel, hotels, food. Typically, companies that I run for take 6 to 8 weeks to pay. In the meantime, I haven't been able to pay myself. I guess as checks start coming in I can take a portion that is my salary and set it aside as mine vs the company??? But if I'm paying myself back it gets a little comfusing.

[@charlesholloway3236]

I was advised to use a good factoring company. They pay you in about 24 hours for a small percentage of the loads. Be sure to find a good one though.

[@Dotubetoodaloo]

You can also make a capital contribution to your business and pay yourself from that. In my (not so expert) opinion you should do a cash withdrawal from your personal account and deposit it in you business accounts. If your being taxed as an S Corp its best to keep your payroll account modest and add more towards your operating account. Don’t forget to record it in your minutes as well. Good luck on your endeavor!

[@CS-qc7np]

In some states you can give your LLC a loan with a signed promissory note. This allows the company to pay you back as you become a debt holder. It's called an "arm-length transaction."

[@Bzzzzzzzz535]

As an Scorp you are considered an employee of your company and should be paid like one.

[@shaethefunny1428]

I watched a lot of videos about a lot of different topics. From make up to comedy to financial help. This is was the most helpful. Oddly enough I just put together a proposal for my friends to invest in. This was spot on.

[@yourtraditionalnaturopathfdnp]

This was VERY helpful. I actually watched the whole playlist in this series. EXACTLY what I needed🙏🏾🙌🏾❤️

[@jimhart]

Thanks!

[@grantrogers1858]

This video is worth hundreds of dollars of college classes

[@jimhart]

You mean thousands? 😉

[@chaos_sweaty2204]

This is what they dont want. I appreciate this ✊🏾💯🎯

[@marymarion9483]

SBA courses are not this informative. This is good

[@davidmartin2442]

As owner of "Two Stupid To Fail" I am very happy to learn that I am living up to the companies name. I covered all the bases except keeping the meeting minutes. The good news is I have only been in operation since Nov 2019 and I can easily catch up :-)

[@luxebyserenity7160]

I am just getting started with my LLC last week. I’m getting everything together now. Thanks for the information. Learned a lot . Thanks

[@user_abcxyzz]

Nice. I just applied for my LLc. Goal is to start building business credit

[@karinarivas1064]

This was great for the small biz people! Could you please cover trusts (putting your business inside your trust, dos and donts, etc.)

[@drgirl4443]

Please do this! I would like to know this info.

[@josephbousaada9796]

Same here👍🏻

[@dalewalker4614]

Also please cover having a "parent" LLC set up to own one or more "child" LLCs. Is this a good strategy to have a parent LLC own the assets so that if someone sues the child LLC they would not be able to get to the assets, especially intellectual property, domain names, etc?

[@thehustlemastery]

Exactly what I needed lol thanks Karina

[@johngliha451]

you can hold your membership interest in a trust, makes it much easier and more private, I use my LLC as a pass-through so I can avoid tax on gains and pass-through only the amounts I want to pay taxes on, but the most important is to use the LLC to avoid litigation, not create a legal defense, that will never be covered by attorneys because it's their bread and butter to set you up to get into litigation

[@CAMacKenzie]

Glad to hear you are still in operating order. Thank you for your videos. I am all ears.

[@Bl00DmixedWithPoison]

I appreciate these videos, such in depth conversations like this is how we advance in society while staying within our legal parameters

[@Nyyre]

Single-member LLC: The person who owns an LLC is called a “member” (vs owner of corp is called “shareholder”) 1. Have an operating agreement to make sure LLC is run certain ways Keep good legal records, follow legal formalities 2. Make sure biz is adequately capitalized to pay for biz expenses 3. Separate bank accounts 4. Act as owner of LLC (whenever entering into contract as business… with property stuff, contractors, etc)

[@Blackmage50]

As a young guy just starting out I found this extremely helpful!thanks

[@jimhart]

Awesome - love to hear it!

[@davidferencz9640]

I'm seriously considering starting an LLC. You've given me some great info. I'm checking out your update next.

[@internationaltax7708]

Good technical points, Jim. Many people form LLCs for bogus reasons. I wish they would watch your vids first. :)

[@babymonalisa6785]

This video was sooo helpful. I learned more watching this than scrolling through articles on Google. Thank you!!

[@benadamtu2833]

Yes, I also found this shared information quite helpful. 💯 agree. Thanks man.

[@juzzonmorris]

Thank you , I've just listed my LLC, and actually I'm still in a "pending approval status".

[@perknowitzki7158]

Did you use a website such as legal zoom or did you do it on your own?

[@MyOzempicJourney]

Very helpful. Right now my LLC is in the process of getting approved by our Secretary of State . I appreciate all the things to think about on this.

[@claudecampbell125]

You spoke directly to the Business Mind Entrepreneurs! Thanks.🙏🏾

[@jimhart]

You are welcome!

[@Hollywood22Boutique1]

Great information thanks.

[@marcellaboyer5953]

Awesome!! Just started our LLC & have A TON of questions! I'll be in touch, for sure!👍😎👀😁 Thanks a bunch!!

[@TheElevatedHome]

Thank you for discussing things that books and websites don’t!

[@nicktmccoy3301]

Thank you, for quite sometime I have been very interested in understanding the LLC. You came across as knowledgeable, direct and trustworthy. I look forward to hearing more from you. NTM

[@Filterfinder]

Hey I started an LLC today! I'm so excited!!!

[@podium918]

Jared Green can you explain to me what you did. What it cost. How to do it. Where to do it. Why to do it. Who can do it. .

[@user_abcxyzz]

Jared congrats! I just applied for my LLc. Looking to establish business credit and leveraging that for acquiring assets!

[@carlosberrios1021]

I just open a business in Florida as an LLC for a owner operator truck driver and this video is helpful Thanks

[@lauraaviles3144]

That’s the simplest explanation I’ve heard for an LLC. Thank you for that ! 👍

[@jacquecardona7576]

IM SO GLAD I FOOUND YOUR CHANNEL. ITS EXTREMELY HELPFUL

[@ediciusbizaar4977]

This just helps prove that there is a real difference between "you" and your "self".

[@terrysprague9262]

GREAT that you are willing to give explanations to the lay person who needs to know this content before pursuing decision making for setting up a small businesses.

[@tauheedahmuhammad1507]

Ooo this was great content! Thanks! P.S. I just read some of the other comments....personally I like the random interjections and humor....especially when you say “twitters”🤣🤣🤣. I was informed and entertained 😊. Subscribed and hit the bell “thingy”😉

[@jimhart]

😉 thank you!

[@yopauly580]

😍

[@rondag3569]

Keep it real! Thankyou for the information

[@iKeptIt2Reall]

Thank you for this. Trying to start up a business an your videos are showing up. This is great for pple who are lost an confused at the legal part. Thank you so much

[@gotritons27]

If personally fund the start up of my single person LLC, can I treat that as a loan that needs to be paid back from my LLC once my business is adequately capitalized.

[@kimberly6211]

I would like to know that too.

[@doreeneeason4324]

I would like to know also

[@jamesrobinson2017]

Great question

[@le_th_]

These are the types of things you PAY an attorney to find out.

[@bobbypechal4821]

I did promissory notes, which made the business owe me for a loan, outlining terms and date due. That further separates capitalization of my business from me personally - the LLC owes me money.

[@FABRCTR]

talking about flem and then saying you shouldnt talk about flem and then posting you talking about flem....brilliant stuff sir...

[@ChristaBello]

Thank you so much Hawthorn. Learnt massively. Having meeting with myself and documenting it stood out with me. Thanks again.

[@TiffanyRifferSoap]

So interesting that this video was published in 2018 and KZbin is pushing it out now! But in all seriousness- I started a single member LLC for my own soap business and this was super helpful! I guess I’ll write notes to myself on business plans but whatever it takes to stay protected!

[@Tristan-dz1ye]

I was just scrolling through comments and I seen your comment saying you had your own soap business and I was interested in seeing how you went about presenting your value to your customers. So I went to your channel and seen your website link and clicked on it. Instantly I noticed how well done it was made. I love the way you set up everything and how simple and clean it is. The font is nice, the navigation is smooth, you have everything very accessible and easy to get to, etc. The website overall is very user friendly. I can tell you put time and effort into it and just wanted to tell you great job (as a consumers view).

[@TiffanyRifferSoap]

@@Tristan-dz1ye THANK YOU! I appreciate your kind words very much.

[@4business624]

So to clarify, as a single member LLC, when signing an agreement or contract, is it appropriate to sign Company, LLC by John Smith, Manager or John Smith, Owner or John Smith, Member? Does one have a choice, is there a legal difference?

[@jimhart]

You would want to sign as either manager or member, or potentially manager-member. It depends on how you have structured the company. Good question!

[@timk1512]

Hawthorn Law So, for example if signing as “manager” how would that look? For example would Tim K, Manager of XYZ LLC work?

[@bribri8232]

👀

[@keishamariedouglas]

I’m so glad this came up on my newsfeed!!!! Needed the laugh and the info! Thank you!

[@quinellajohnson4225]

Thank you for this incredible information. Hawthorne Law TV sounds awesome!!!! Great content.🤗

[@nyesmith8751]

Yes, I am picking up what you're putting down. Thank you for this information. Bless you.

[@TyreeFit]

I love not only the info but, how HUMAN you are! You’re so funny and I bet you don’t even mean to be. Lol 👍🏽

[@jimhart]

😉

[@mylifejen6372]

Tyree Simmons yes!! 🙌🏼 My thoughts exactly!

[@BMB6482]

I was thinking the same thing. He seems so easy to get along with and easy to learn from in a very, idk like a chill neighbor that knows his stuff...lol

[@samuelbane6743]

Very informative....I previously had a sole proprietorship....now llc....THANK YOU for sharing!!!!!!

[@dalewalker4614]

Great content, relevant and easy to understand. Your skills in front of the camera and in editing will improve with time and you'll be very good at this. Two suggestions for you. Time is precious for all of us. Cut out the non-essential comments and don't get off track. You will save thousands of hours of viewers time and be loved for it. Get rid of the music. For those of us with "a bit of the ADD" (about 40% of your audience) the music was distracting enough that it was bordering on frustrating, trying to stay focused on you instead of being distracted by the music. We need less drama when speaking of things legal, not more..... Subscribing to follow you.

[@JDuece2009]

the "Twitters"!!! love it! Thanks for the info. im just forming my company so i dont want to get it wrong.

[@nmr20067]

Excellent channel. I need this info as I’m starting as a freelance Digital Marketing professional and my own small agency later down the line. Subscribed!!

[@brandonhood8513]

What does your digital marketing consist of? I’m looking to start an animated webisode series

[@monica62888]

Just started my LLC today. Just subscribed!

[@marclarouche5862]

Thank you for this, direct and clear and just what I needed as I start my next venture! Marc

[@jennybfoxxy]

It is very refreshing to see someone who doesn't doctor their videos up so tightly. "Ugh I have something in my eye" lol I'd rather take advice from someone who is real and normal.

[@jeanalexandre1105]

Make sure to buy enough business insurance to to cover potential loss.

[@ruthcraft5982]

Hello Hawthorne Law, Thanks the overview of the LLC Mistakes You Should Avoid. I found your site informative and concise which in the future will help me organize my LLC.

[@davidguo1866]

Just wanted to say thank you for these very resourceful videos. Amazing content, keep it up!

[@i.love.yogurt9032]

thank you I really appreciate you posting this and making this account. im starting an LLC and haven't been to law school. But thank god for the internet. Don't worry though, I plan on going to business school after I finish up a certification class!

[@abusiveb001]

Thank you so much for calming my fears, you are so helpful!!

[@jimhart]

You are welcome!

[@mariogray4090]

Definitely enjoyed this. I took a trip to go over business ideas and didn't really think about minutes. I need a get away from family/ job to truly focus on what I want to do with the business

[@lacielaielli9704]

Following just for the twitters. Love it. Also great info.

[@TheLuckyWarrior]

I also have an umbrella LLC which is the single member of the other LLCs I formed fro my businesses. The umbrella LLC was formed in Wyoming which affords me more privacy protection.

[@autumnonpurpose]

With the “twitters” 😂 I just started a LLC

[@jonathanjones4737]

Bahahaha

[@lobengone477]

I had to play it back too 😂

[@vickivaught718]

I started one in April.

[@edenise1004]

😆😆

[@rmaria2254]

@@lobengone477 I fell out when I heard that

[@nmr20067]

Excellent video! 👍👍👍 I would like more info on what not to do to have a judge or a good lawyer pierce the veil of the LLC...

[@HelenKerins]

This was excellent! I can't wait to watch more videos and learn from you!

[@linelltillman9709]

Great information. I want to start my trucking company next year as an LLC so this was perfect

[@jaye9300]

The best part of this video.... “hit me up on the twitters”

[@TheDinahdale]

“The twitters” is hilarious

[@wise18525]

Lol lol

[@surveytestmoney2550]

Legit peed myself! LOL!

[@yvonnehernandez622]

Thank you so much for the info. Also would like to say despite the fact that real life was happening you did it with grace. thank you

[@nicklovesdata9546]

I'm getting what your saying

[@wilfredomyself539]

Very informative, specially the legality and formalities, where you're prone to make mistakes and "Pierce the corporate veil". Lots of detail. Thanks!

[@cjoshmartin]

Keep going homie ! Love the energy

[@shartypants8642]

Thank you for this info, I watched 4 other videos prior to yours and you covred what none of them did.

[@frederickhargro5153]

1. How many times can you update an operating plane. 2. Am i required to say LLC in conjunction with my company name once i establish LLC

[@Bzzzzzzzz535]

Frederick Hargro as much as you can. Good habit to get into.

[@dre6289]

Your channel has answered most the questions that keep me up at night. Thanks.

[@SpudRud]

I’m a 17 year old dropshipper, doing very well with a stable income e-commerce business right now. I created an LLC with me and my brother who is over 18. I don’t know what the hell im doing and I hope this was the right thing to do.

[@kimroberson8376]

You are ahead of the game. Plan to scale up in your business model . Control your growth even if you have to turn down business. Everthing takes time. Diversify you business by creating assets. Company stock portfolio/ personal portfolio Invest early in Real estate. Tech /Energy , Pharmaceuticals/ devices , Precious metals in portfolio & Tangible..... Don't ever get married in California, Florida or New York even with a pre-nup. Buy land where you can build a house Build a garage with a 2 Bedroom loft . Live in the loft rent the house out. Let the renters pay your mortgage / Insur. Own most of your assets. Anything else I'll be around

[@SpudRud]

Kim Roberson yea I like the house idea but how about a duplex? Thanks for the input though.

[@kimroberson8376]

@@SpudRud Either way is good it's easier to build a fantastic house in a great community. Duplex if properly built upstairs & downstairs split. Side by side may present some challenges especially if built in a community with HOA.

[@t.bankroll.100]

Kim Roberson kim You would make a great consultant 💯💸

[@lekizotet3434]

@@kimroberson8376 do you have an email, Skype or discord account I can contact you regarding my business?

[@raymo9709]

Useful. Looking forward to checking out your S Corp video and how to draw funds from the LLC.

[@aarons2132]

Thanks for the informative video. Just started a vending LLC for myself. Any suggestions or past experiences you may have heard of any vending LLC"s?

[@jazzyhampton8732]

Yes. I understand what your are saying. Thank you so much for the information.

[@BW-zd6nc]

Haha meetings with yourself. That's called meditation. Haa

[@PC2011HK]

I call it a snooze...

[@presidentialsuite6406]

N people say its not good to talk to yourself😆😁

[@level6585]

Lol

[@presidentialsuite6406]

@ok ay I really don't have extended conversations with myself. However if I did, you think I would care what others think? Nope! I would keep the conversation going just to mess with them😆😆😆

[@nunya973]

That's called choking the chiken.

[@rachaeljohnson8271]

THANK YOU. So so helpful. About to watch your video about how to pay yourself in a single-member llc

[@edhuber3557]

Skip to 5:50 to start on the titled subject. (Or wade through discussion of his phlegm, taking calls, and rambling.... as unedited and apparent filler)

[@AnNguyen-vn4sy]

Ed Huber seriously it was so annoying. Fuck man. Btw I don’t curse often but this damn video was irritating

[@AB-sr3jd]

I think some people have lost their minds .... simple etiquette has been lost and I don’t know why they are on KZbin

[@lisapalmer4725]

Thanksssss

[@ap8441]

Instead of the negativity how about showing some appreciation. The time and research this man spent learning so you don't have to.

[@dre6289]

Dont be a dick.

[@fredacuneo5180]

Excellent info. Excellent channel. Excellent presentation. Thank you! Those separate bank accounts are so important. I understand it's one of the first things the IRS notices and red-flags. (It's the IRS - they follow the money.)

[@banevil2211]

Thanks. I appreciate this info. I'm getting ready to become single owner of LLC

[@victormotorsports06]

Glad I found you I'm doing a LLC. Now going thru the process

[@andyooten8966]

I have found this to be great information to stay protected in my business. I appreciate it very much.

[@TiffanyTerna]

I’m currently starting up my business. As a hairstylist people say to stay low with money when it comes to taxes. I’m literally lost in what to do. But this helped.

[@karensanchez2295]

As a Gemini, having many personalities , talking to the members of the LLC doesn't seem weird for me lol

[@JNAllenstv]

I am a Gemini also😆😂

[@DoItWrightRo]

So am I! Lol

[@karensanchez2295]

#geminigang 🤙

[@BigDaddyThrock]

😀😃🤣😛🧐😫😳🤯😳😥🙁😫😰😰😱😧😯😪😴🤑😪🤒😷

[@truintentions6188]

Ditto everything

[@trigger5.563]

In the process of filing for my Llc. I'm going to need you a lot. A possibly will be giving you a call in the near future.

[@YakMotley]

Great video! So how do I grant ownership of my youtube channel to my LLC? Do I just use a document of assets in the Operating Agreement? Im for sure my mouth is going to get me sued on my channel lol!

[@lifewithlawnaj]

Thank you so much 😊 I start my business in a few weeks looking forward to more videos

[@itsyagirlangell]

Yes make since how can I get an LLC locally and what is the fees?

[@playboicarti1338]

Angel DarkSmile Johnson Google it, everystate different in Wiscons it’s $131

[@zabzahh]

Angel DarkSmile Johnson *sense and you can Google your question and get an easy answer

[@mekz26]

Angel DarkSmile Johnson I Ohio it is $99.00

[@Effybrews]

Really thankful for people like you that take the time to share such valuable information!

[@jamicarpenter8760]

I would like to add my grandchildren to my LLC, but they are not available for meetings. plus they are 8 years old, will roll into dynasty trust when I pass. Is that possible?

[@annievenus3958]

I do have many question to ask you and I have no idea how to use an LLC , I was misguided by a bad business partner who I trust to teach me about business and having a LLC . I will get back to you I thank you for all the information your giving on U Tube ,I’ll be looking forward In tuning in for more understanding on how and what to do with my LLC thank you again it’s about time someone knows what to say about LLC how it works

[@josephsamuels8685]

Yeah, everything was explained perfectly.