Business Structure - How to Choose the Right Structure for your Business

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Күн бұрын

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Business Structure - Choosing the Right Structure for your Business
In this video we will go over each of the business structures and give you an approach for how to decide on the business structure that is right for you.
TIMESTAMPS
0:00 - Intro
0:35 - Part 1: Informal Business Structures (DBA, Sole Proprietorship, Partnership)
1:47 - Part 2: Formal Business Structures (LLC and Corporation)
3:16 - Default vs Special Tax Status (S Corporation)
5:08 - Conclusion
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Nonprofit - go.truic.com/3RXfZ3B (paid)
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#businesstructure #businessstructures #soleproprietorship #llc #scorp #nonprofit #business #structure #partnership

Пікірлер: 77

@HowtostartanllcOfficial 3 жыл бұрын

💼 Use a professional service provider to simplify your business formation (We have negotiated over a 75% discount for you if you use the links below): LLC - go.truic.com/3OyQGAn (paid) Corporation - go.truic.com/46uc8zb (paid) Nonprofit - go.truic.com/48Wl3Lo (paid) 📙 For our free, written guide on how to choose a business structure, visit: howtostartanllc.com/taxes/llc-taxes/choosing-a-business-structure

@erikpedroso1682 3 жыл бұрын

Ive been reading and watching KZfaq for hours. This was def. the easiest video to follow.

@gogurletc8170 2 жыл бұрын

Did you start a business?

@bdbrown71 2 жыл бұрын

I have been looking for this information for 4 hours and stumbled on this video. Very informative, straight to the point and he spoke clearly. I appreciate this video. Thank you.

@Agent_Lane 2 жыл бұрын

1 minutes and 43 seconds in and i already felt well informed , loved this video !

@HowtostartanllcOfficial 2 жыл бұрын

Glad it was useful, thanks for watching!

@theadrianadavila 3 жыл бұрын

Concise and clear, thanks for posting!

@edawg1960 4 жыл бұрын

A BIG TEXAS THANK YOU to you and your team Tony for putting this together. Your video has become my go-to source for everything business structure. As a new voice-over talent trying to start my business, on a zero budget this FREE! information is GOLD. I do appreciate the time you took to make this video. Be safe and stay healthy.

@HowtostartanllcOfficial 4 жыл бұрын

We really appreciate the comment! Good health to you, as well!

@adamokoriscant8500 3 жыл бұрын

Great, concise information. Thank you

@juliao.1839 3 жыл бұрын

great presentation thank you!

@ticoalochancho 3 жыл бұрын

Excellent content! Thanks!

@thetreestand8873 2 жыл бұрын

Very helpful and well explained!

@revivelifewithme 2 жыл бұрын

Tons of thanks to you Tony.

@peace.404 2 жыл бұрын

This was really clear, and I’m so confused normally. What a heaven send! Thank you for the calm and clear explanation. Thank you!!!

@HowtostartanllcOfficial 2 жыл бұрын

Thank you so much for watching! Please tell us if we can point you to any other resources or help you more!

@awaconteh706 3 жыл бұрын

It was very easy to understand.

@ashleyhewitt7681 2 жыл бұрын

This was really helpful thank you

@m.usama22 Жыл бұрын

Thank you very much brother.

@a.prettiblessing1111 3 жыл бұрын

Very helpful ‼️

@TreavorUnion 27 күн бұрын

Awesome.

@ericd1022 2 жыл бұрын

This knowledge is unfathomably helpful, thank you so much. I'll pay it forward best I can.

@HowtostartanllcOfficial 2 жыл бұрын

Thank you for the compliment! And thanks for watching. Subscribe to TRUiC and the channel we sponsor, Startup Savant, for even more content you might find helpful!

@firstclass4447 2 жыл бұрын

Wow I see so many people online sharing your advice

@msfkmsfk 2 жыл бұрын

Thank you for the video. Because of your information I have decided to start an LLC oil change business. I already bought some tools and now I just need to wait until Monday in order to apply for a Federal Employer ID number. After that I will practice my skills at some junkyards and I may do that today as well. After that I may get a temporary part time job in order to buy a jack or I may just say fuck it and get one with my low funds anyway. Either way I will probably see if I can get a simple part time job first before putting too much of my limited personal finances into a whole new business without any guaranteed customers. I don't want to take on all of that risk without having enough financial stability to at least make it last a while. I will also be shopping for computer networking CCNA online self study courses and resources and materials.

@JBKJSA Жыл бұрын

Thank you for sharing this useful knowledge with the world

@aglitbee1404 4 жыл бұрын

this will help me alot

@lizerxoo Жыл бұрын

This was the best video I’ve seen explaining this. Literally understood more in the first two minutes than hours of watching other videos lol

@HowtostartanllcOfficial 11 ай бұрын

Thanks for the comment! Glad it was useful! 😊

@TheOfficialNine 2 жыл бұрын

Excellent presentation

@emilys9976 2 жыл бұрын

im 18 and getting ready to start an LLC with my dad :) thanks for helping me make the choice

@HowtostartanllcOfficial 2 жыл бұрын

Best of luck! For a step-by-step guide on how to setup your LLC, go here: howtostartanllc.com/

@patrykjedryszczyk 3 ай бұрын

I was the 54 thousandth person to like. When I dislike it goes back to 53k, when I liked again it went to 54k. Nice vid btw.

@HowtostartanllcOfficial 3 ай бұрын

Thank you for watching! You must have taken it from 53,999 to 54,000!

@CheffyTV 2 жыл бұрын

This is the best informal video about business entities I’ve found

@HowtostartanllcOfficial 2 жыл бұрын

Wow, thanks for watching! Let us know if you need anything else :)

@georgioyammine5692 3 жыл бұрын

wow really good

@josezintzun927 2 ай бұрын

Very informative professional presentation.

@HowtostartanllcOfficial 2 ай бұрын

Happy to help and thank you for watching! Were you able to choose a business structure? Let me know if you have any questions :)

@MrShads813 2 жыл бұрын

Was not consistent in a note taking way but I understood the info given

@SayanNayak 4 жыл бұрын

Sir , say I have a plan and want to start my startup but don't want partner or partners then how can i raise fund or get investment (ie: sharing equity) and make it as a pvt ltd . i mean to say how should i proceed (I can hire people for work but don't want partners and ready to sahre equity) ?

@YoungAndSuccessfulPodcast 11 ай бұрын

Awesome post, me and my friends want to start and LLC and we were considering many different options

@HowtostartanllcOfficial 10 ай бұрын

Glad we could help. What state are you in? We have How to Start an LLC guides for every state.

@kanekiriota4655 3 жыл бұрын

Booyah

@brittneyharris-holloway5792 3 жыл бұрын

Question: If I am the only owner, am I able to elect the LLC tax class as an S-corp or am I ineligible and after getting an LLC can I change the tax classification later on when I start making more money?

@HowtostartanllcOfficial 3 жыл бұрын

Yes, single-member LLCs can elect S Corp status for their LLC after they've formed their LLC. We would suggest bookmarking this page to return to as your business starts becoming more and more profitable: howtostartanllc.com/form-an-llc/llc-to-s-corp?ref=ytbsc This page explains how and when to convert an existing LLC to S corp tax status.

@manivannanarulalan8921 4 жыл бұрын

Awesome

@chrishevia 3 жыл бұрын

thank you

@williamvierra9669 Жыл бұрын

This sort of answered (a) question but made new ones. when I files I started a Trade Name, and then made an LLC with the same name as the trade name, problem is both are not my store's name. my goal here was to make a trade name and place both of my stores (with different names) under my Trade Name, or do they go under the LLC? do I need to register each store and apply for separate LLC's or can they both fall under the one LLC, Also do I need separate EIN for each store or just use the one for the one LLC?....Thank you if you could clear this up for me. Worried about going forward until I understand how this works.

@HowtostartanllcOfficial Жыл бұрын

Forming an LLC is a way of giving a business a separate legal existence from that of its owner. An LLC can own and operate several stores, even though each store has a name that is different from the LLC. However, some document must make it clear that the stores belong to the LLC. This could be an accounting document, such as a balance sheet. The LLC can conduct business under several trade names. And every store that belongs to the LLC can use one or more of the trade names, since the stores are simply parts of the LLC. An EIN is for a business. If the business is an LLC, the EIN would be for that LLC.

@combatcook Жыл бұрын

tyvm

@HowtostartanllcOfficial Жыл бұрын

You're welcome!

@melinaizebel 2 жыл бұрын

Hi, what would you recommend for an online crystal shop with two people running it? Thanks in advance.

@HowtostartanllcOfficial 2 жыл бұрын

Creating an LLC to conduct a two-person online business has several advantages. Here are two: First, the owners have limited liability, so a creditor cannot go after their personal assets to satisfy a business debt; Second, for tax purposes, the LLC can be treated as a partnership, a C-Corporation or an S-Corporation. See our article How to Start an LLC for more details and also consider consulting a tax or legal advisor. howtostartanllc.com/?ref=cc

@athenamartin712 2 жыл бұрын

As a caterer which would be more beneficial to start Proprietor or LLC?

@HowtostartanllcOfficial 2 жыл бұрын

Due to the potential liabilities involved with a catering business (e.g., lawsuits from customers claiming food borne illness, employee complaints, personal injuries, etc.), an LLC is a better choice for a catering business than a sole proprietorship, as it will help protect the owner's personal assets. Check out our Sole Proprietorship vs. LLC article for a comparison of the two business structures as well as their advantages and disadvantages. howtostartanllc.com/llc-vs-sole-proprietorship

@kaydenise237 4 жыл бұрын

Would i need two separate ein numbers for two separate boutiques with different names. I will be running both boutiques 1st is for kids clothing and 2nd is for adults clothing. And also will i need to separate llc. I hope you see this comment. Thanks for your time.

@HowtostartanllcOfficial 4 жыл бұрын

Hi, You can run multiple businesses in a single LLC (an LLC will only have one EIN number). However then all the businesses will be connected, the liabilities of one business will affect the others as they are all in the same LLC. So as an extra precaution you can form separate LLCs for each business but then you will have to run each business totally separately ( separate bank accounts, separate EIN and share not share any assets between the businesses). For most businesses this is overly burdensome and unnecessary. If each business in a single LLC will have totally names, you can do this by having the LLC take a DBA for each business so it can have a different name.. You can learn more about a DBA in our DBA video kzfaq.info/get/bejne/a6dgoM-WqZy3e4U.html Hope this helps. Good luck

@kaydenise237 4 жыл бұрын

@@HowtostartanllcOfficial it has, thank you so much God Bless ❤

@waqasahmad8903 10 ай бұрын

Nice dear❤

@HowtostartanllcOfficial 10 ай бұрын

Glad you liked it. Which business structure did you choose?

@BaeSyx 3 жыл бұрын

444th like 🙌🏾

@catalogisland8158 Жыл бұрын

I am planning to start a tax preparation business from home. Which business structure would be best for me? Sole proprietor, Corporation or LLC? I will be the only owner.

@HowtostartanllcOfficial Жыл бұрын

Business structure depends on many factors. For example, LLCs and corporations are distinct legal entities, which means their assets and liabilities are their own. If a creditor sues for a debt owed by your corporation or LLC, he would fail, because the debt is not your debt. However, he is likely to succeed if a business owner is a sole proprietor; for the law would then regard all assets, even those used for business, as personal assets. We recommend forming an LLC unless a business owner needs to attract venture capital. Read our article How to Choose a Business Structure: howtostartanllc.com/choosing-a-business-structure for further details.

@zeezashah9966 3 жыл бұрын

which bussiness structure might be suitable for textile bussiness??

@HowtostartanllcOfficial 3 жыл бұрын

The best business structure for a textile business is most likely going to be an LLC unless you absolutely must depend on investors that wouldn’t be members of the LLC. If you need to depend on outside investors, then a corporation might be the best fit. Both corporations and LLCs can protect your personal assets in the event that your textile business is sued. We recommend taking a look at our Choosing a Business Structure guide for more info on the topic: howtostartanllc.com/choosing-a-business-structure?ref=ytbsc

@qbee3413 Жыл бұрын

What do you think would be best for an art business? Digital arts mostly.

@HowtostartanllcOfficial Жыл бұрын

We generally recommend starting an LLC for most small businesses, including digital art businesses and other types of services. This is because LLCs can create a legal separation between the business and the business owner's personal assets. LLCs are also relatively inexpensive to form, they add credibility to a business, and they are easy to start and maintain (unlike a corporation). Here is the article that goes with the video. It may help: howtostartanllc.com/choosing-a-business-structure Also, take a look at this one: howtostartanllc.com/form-an-llc/should-i-start-an-llc-for-my-business

@tspnetwork8714 Жыл бұрын

Greetings, how can I get in touch with someone at your company?

@davisheinrihsons2135 2 жыл бұрын

which structure would suit better a small graphic/web design business with no large assets and 0 loans?

@HowtostartanllcOfficial 2 жыл бұрын

If graphic design is just a hobby, then running as a sole proprietorship might be a good start. But, more serious ventures often start as LLCs. We would recommend checking out these two guides: 1) howtostartanllc.com/should-i-start-an-llc/graphic-design-studio?ref=cc 2) howtostartanllc.com/llc-vs-sole-proprietorship?ref=cc

@DanielDuhon 9 ай бұрын

So what if you are taxed as an S Corp and don’t take a salary? Do you just pay income tax and no self-employment tax (as the owner) if you take a disbursement?

@HowtostartanllcOfficial 9 ай бұрын

Thanks for the question. In an S corp, owners must take a reasonable salary, per the IRS.