Single Member LLC Mistakes You Should Avoid (2020 Update!)

Рет қаралды 86,949

4 жыл бұрын

If you are thinking about starting a single member LLC for your online business, there are a number of common mistakes that people make without even realizing it.
In today's video, I share with you 4 common (and easily avoidable) mistakes I see clients make, as well as one extra bonus mistake thrown in for good measure.
Here's a link to the original video I did back in 2018: • Single Member LLC Mist...
🎓 If you are interested in learning more about the small business legal toolkit I'm currently working on, click here: www.hawthornlaw.net/toolkit
Some of the links below are affiliate links. If you purchase through these links, it won’t cost you any additional cash, but it will help to support my channel. Thanks!
To start your own LLC, click here: hawthornlaw.net/incorporate (affiliate link)
**Or use our DIY service by clicking here: www.hawthornlaw.net/diy-llc
Click here for an operating agreement template that you can use for your LLC: hawthornlaw.net/llc-operating
If you need to get a hold of me, you can schedule a call using this link: www.hawthornlaw.net/consult
*Unless you are a legal or private coaching client, I do NOT respond to emails or contact form submissions.*
To sign up with a payroll service I use and love, click here: hawthornlaw.net/payroll (affiliate link)
Need more information on starting a business? Download our cheatsheet here: www.hawthornlaw.net/cheatsheet
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For a list of all the gear I use when making these videos, click here: kit.co/legaljim (affiliate link)
✳️MAILING ADDRESS:✳️
James W. Hart
The Hart Law Firm, P.A.
1143-B Executive Circle
Cary, North Carolina 27511
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#singlememberllc #hawthornlaw

Пікірлер: 240

@jimhart 4 жыл бұрын

Here's a link to a company we recommend to help you get your LLC started the right way: www.hawthornlaw.net/incorporate (affiliate link)

@randylobb 4 жыл бұрын

this appears to be a dead link

@jimhart 3 жыл бұрын

It's a link to the company I recommend. But you can also go through my law firm as well - here is that link: www.hawthornlaw.net/diy-llc

@damondesade8138 4 жыл бұрын

i LOVE the little snippets you put in, makes it feel like an old family friend giving you trustworthy advice instead of just hammering us with info. much more palpable imo!

@jimhart 4 жыл бұрын

I appreciate that!

@michaelquebec6653 2 жыл бұрын

I do not think that you are "unprofessional." I think that you're quite generous, because you're giving us this free advice (which is very important), so thank you!😁

@AlanMillerFencepost 4 жыл бұрын

Another issue for the address of your company - your home may be in a condo association that has its own rules on running home-based businesses, or you may have local municipal requirements for home based businesses that may include things like safety inspections.

@queens.7916 4 жыл бұрын

I just found this channel and I love him already. His personality is everything!

@marcusthomas5863 3 жыл бұрын

Right! Lol I thought I was trippin 🤣

@Russellsdaughter1975 4 жыл бұрын

People complaining about you discussing being sick is dumb; people get sick and it's natural to talk about it. Pay attention to the information provided, people.

@larryo6874 4 жыл бұрын

Thanks for the info. I like the wood paneling look.

@austinsmith4555 4 жыл бұрын

Great information! I really enjoy your content and sense of humor! :) Keep up the good work Bro!

@love.always_lisa 4 жыл бұрын

Haha love the background and the funny snippets. New subbie & momtrepreneur here. Such Great info. Thank you for sharing!

@Davena 4 жыл бұрын

Great info. Will say that is the same background many preppers use for a backdrop. ROFL The video quality is professional grade. Love it.

@jimhart 4 жыл бұрын

Thanks 👍

@nicoletadanmccaan5602 3 жыл бұрын

Hei there, I live in London U.K and I m about to start an LLC in the US for eCommerce your videos are super helpful. I m so thankful that I found you!!! Stay safe and thanks a lot!

@tanyaembry8158 3 жыл бұрын

Love watching your videos - your humor perfectly integrated with business jargon keeps me watching, laughing and learning. Thanks!

@kommunitykonnected 4 жыл бұрын

Love what you're doing. You definitely have a new follower here!!💪🏿💪🏿💯

@ericacraft9574 3 жыл бұрын

I don't care if you talk about snot or not, because I like how you are so laid back and not talking in technical terms most if us don't understand! Thank you so much!

@lisafreeman8691 3 жыл бұрын

Thank you so much for the help Jim!! Don't change I think you're awesome!

@ericpryor6838 4 жыл бұрын

You need a green screen Jim. Then you can take us on trips around the world 🌎

@Lilzo2.7 3 жыл бұрын

Bahahacrcrcr I am an affiliate marketER FOR THE BEST DAY EVER COMPANY @18 and I want an LLC I LIKE AND APPRECIATE YOUR VIDEOS, faithfully we will work as soon as possible💯🤙🏿🙏🏿📈

@Lilzo2.7 3 жыл бұрын

I’m actually from Nevada. I live in Nebraska as a student athlete.

@Lilzo2.7 3 жыл бұрын

First timer to the page hahah thank you for your service, I’m also studying criminal justice, I want to go pass the bar exam

@firehydrantpetsittingco.3401 3 жыл бұрын

I love the humor of this guy! Haha cracks me up as I watch this. Very entertaining and seems to love what this.

@gonchalo95 4 жыл бұрын

Thanks for the info! Quick question. I started an LLC during this whole pandemic. I was previously running as a independent contractor - 1099, sole proprietor. I have received PPP, and EIDL. I haven't started doing business with my LLC. Should I pause the LLC after I get the PPP and EIDl loan taken care, since the loan and PPP are in my name as a sole proprietor/independent contractor.

@alecbeard8185 3 жыл бұрын

Thank you for all the valuable info! Love your channel!

@NickalusNicoJohnson 3 жыл бұрын

Love it. Same when you said you're in NC I was hooked!

@prettinessful 3 жыл бұрын

Hey. Subscribed‼️💪🏾🤟🏾 I just watched your other video about not only getting your llc but protecting yourself as well and getting the necessary documents to be straight. I’m researching things I need for my business and I’m worried about doing things the right way.

@whmama5 4 жыл бұрын

I love the wood paneling. You fooled me :) Thanks for all the great information you give.

@Mr.JoshuaCovert 3 жыл бұрын

Thank You, Jim, for teaching me so much about LLC's. You are THE BEST!!!!

@teresawilson3823 4 жыл бұрын

Great info. Thanks for sharing, especially about the address.

@saiga12forme88 4 жыл бұрын

Thank you for taking the time to do these videos.

@deborahelliott8460 3 жыл бұрын

This is a great video. I am starting a business in woodworking, and need to know more. So glad you have these up so I can make a good informed decision. Thanks, and keep them coming. I liked, and saved this one particularly cause I may call you up at some point for all this....

@ShaynaKrause 3 жыл бұрын

Wow, that backdrop made a huge difference.

@truculuz 3 жыл бұрын

My business is consulting with people who create content, and present, on their presentation. Smooth delivery with seamless knowledge to humor link. Brava.

@TheDjangoJoEShowOfficial 3 жыл бұрын

6:30 Made me an official fan. 😄😄☕ And your answering every question I have. Keep it going, Thank You!

@David-hy9ni 3 жыл бұрын

I am not a blogger or have an online business but have an LLC. I think you’re hilarious. Great stuff!

@anastasiak7305 4 жыл бұрын

Question. Let say I form my LLC in the State that I live in, but move a year later to another or to a new State. Does this mean I have to form a new LLC with the new State that I move to? Is there any requirements that I have to do before moving to another State? Thank you!

@MrKingdweeb 4 жыл бұрын

Love the videos and find them extremely helpful! Had a quick question though, if I know I am going to be moving at the end of the year to another state but am starting my LLC now can I just set my LLC to the state I am moving to? Not sure how much hassle it would be to change that later on.

@hiphiprenae 3 жыл бұрын

I love this guy. He has taught me so much.

@JawaherElzain2014 4 жыл бұрын

Thank you Jim, great video as always. Just a quick question, what about people from overseas who are forming an LLC in the USA, could we use our home address overseas? Thanks a lot

@Phoenix-ni1or 2 жыл бұрын

This is great. Really well done. You know your stuff and the personality is a bonus (no need to hide it).

@juliejohnson2251 3 жыл бұрын

You just make me laugh 😂😂😂when sharing the best information I really needed at this time. Thank you. Great job! 👍👍

@emilyxadrienne 3 жыл бұрын

Thank you for answering all my questions!!

@trueblue3470 3 жыл бұрын

Awesome information! Thank you!

@vargastaxoffice3423 2 жыл бұрын

I really like your videos and I just subscribed. I am working on getting my EA so that I may better help my clients, your videos are really helping me better understand some of the challenges.

@jhossi2729 4 жыл бұрын

When I tried to file my llc in FL, I see a part where is says managers and don't see a part where ir says ownership. If I put my busband and I as managers, are we both the owners?

@amaysonet5 3 жыл бұрын

I just subscribed and I love you already!! Thank you!!

@jimhart 3 жыл бұрын

Thanks for subbing!

@vivianwilliams6322 3 жыл бұрын

I love your videos!!! Great content and you make us laugh :) ...Love the batman snippet "shut up you're going to jail." LOLLLLL

@tallnblind 3 жыл бұрын

Love the wood paneling! Thx for the information! 🤓

@jessegomez2404 4 жыл бұрын

To be clear, a virtual office can be used as the actual business address when registering with the state and LLC formation documents.

@jaredp17 3 жыл бұрын

like an email address?

@devildog2023 4 жыл бұрын

Love it, thank you!

@luxnatsoap 3 жыл бұрын

THANK YOU FOR THESE VIDEOS! Newbie from Jacksonville North Carolina. Just a soap and candle maker. But the information is profound.

@JEMmusicgroup 4 жыл бұрын

Thank you for such informative content.

@mistymarley9782 4 жыл бұрын

I like how you're wearing a seatbelt but not driving. It's like the face mask thing 😂 great videos!! Thank you so much for the information!

@jacobharris2373 5 ай бұрын

Hey Jim just found your videos and you crack me up you deliver value but also make it entertaining LOL thanks for the value information I will subscribe

@jimhart 4 ай бұрын

Welcome aboard!

@TrevooS 3 жыл бұрын

I actually think your previous video was very helpful and professional with character. It’s definitely great you’re doing things to improve your videos though!

@ellarae7575 4 жыл бұрын

If I knew then what I know now! Thank you for this info.

@aaronquijano6224 10 ай бұрын

love the content, great advice thank you!! Keep it up !!

@Nictona 3 жыл бұрын

Loved this video, great job. Subscribed!

@milanafedotova8952 4 жыл бұрын

Hi! Great info, thank you! What do you think, if you're from other country (Russia in my case), is it ok to open llc in Delawer?

@brendaschaefer2306 3 жыл бұрын

I love that you are real ...keep it real!

@vanessaredford9731 4 жыл бұрын

Great content! Thank you. 🙂

@fortysahinn 3 жыл бұрын

I've watched 4 videos of yours in the last 48 hours and I must say, thank you from Pennsylvania. Do I need to setup the LLC and acquire the EIN first or should I talk to my bank about opening the business account first?

@juinga78 4 жыл бұрын

first i want to say I have watched the last 15 videos and want to THANK YOU for not being the average attorney but being a human!!! THANK YOU! 2nd of all QUESTION... to file for a PPP does the schedule c form need to show profit? I started a LLC last yeast and finished the year with a negative Jan I started to see a turn around until the pandemic hit. Advice please, should i apply anyway or no

@jimhart 4 жыл бұрын

I suspect PPP loan funds are gone at this point. But check with your bank.

@johnkidd7753 4 жыл бұрын

The post office offers a service called “Street Addressing” as an add on with a P.O. Box. Would that suffice? I know you said no go on P.O. Boxes but I would think this falls in the same category as a Mailboxes Etc or UPS Store. Also, THANK YOU for the bonus tip. I’ve been catching a lot of grief from family members who have been trying to convince me to bypass LLC (service industry, so I’m not sure if that’s different) and go straight INC.

@DDavis-mi2cg 4 жыл бұрын

Love your channel.❤️

@clint7312 4 жыл бұрын

thanks for the video. Applied for an LLC in MD this past Friday night and its supposed to take 7 days to process. If I start making purchases for the business now, can they be included as part of my business expenses?

@its_dade 4 жыл бұрын

Great info. Thanks

@generationvintage9722 4 жыл бұрын

I really appreciate you sharing your knowledge in a way that puts people at ease! You are a great source of info & confidence boosting. I will be starting a food truck/trailer business, (long time cook/caterer looking to take the next step for myself.) Would all of this apply to my business or is there a different approach for what I want to do? Right now, I am going it alone. Thank you again, backdrop is cool, your hair is good! 😁

@YourHistoryGirl 4 жыл бұрын

Thank you for the info! The junk mail comes before the business makes its first dollar.

@jimhart 4 жыл бұрын

Yes it does!

@jingyak7 4 жыл бұрын

😄

@cliffljimenez4237 4 жыл бұрын

Thank you Jim! Do you have any recommendations of a trustworthy Real Estate Attorneys who can close a Lease Option and Owner Financing Contracts in the areas of Los Angeles county? Thanks again.

@bradleybryant7538 4 жыл бұрын

What financial threshold you would advise the use of s-Corp?

@anthonymitchell7434 2 жыл бұрын

Thank you for taking the time it is a great help Iwant my own business so thank you

@rub1345 2 жыл бұрын

Hi, thank you for the great videos! Can you tell us why is not a good idea file a LLC in other state than where you live please for online business like affiliates or bloggers?? Also if this is a not good thing to do, how come other CPA firms do these with their clients or new customers when they want to file or get a LLC for online business? What are the cons?

@francismansapit2643 4 жыл бұрын

Thank you Jim . 😁 and Nice Wood Panelling ,

@2012toine 4 жыл бұрын

Great background...keep up the good videos..helpful to newbies

@federicoalonso3941 3 жыл бұрын

Such a cool guy. Thank you very much for the information, greetings from Argentina.

@vincenthenry5819 4 жыл бұрын

Hi Mr. Hawthorn. I'm trying to start a penny stock company. Would you consider that to be a start-up? and can I incorporate?

@braveheart6207 3 жыл бұрын

I LOVE IT! very informative! got the like and the subscribe!

@miajones6160 3 жыл бұрын

Thank you for this amazing video! Very helpful

@grantcalvin 4 жыл бұрын

Back before virtual addresses weren’t a thing, the UPS mailbox was the way to get yourself an address. Some people still wouldn’t accept it, like I remember when registering for sales tax I received a call that told me I couldn’t use that address. THE VIRTUAL MAILBOXES WERE SUCH A GREAT MOVE BY WHOEVER CAME UP WITH THAT. I got one after my yearly mailbox expired and it was so easy to switch all my addresses. All the information to do that is for free on the internet. Love your videos when I have the time to watch them. ❤️

@1978deon 4 жыл бұрын

Please explain what are virtual mailboxes?

@temitopedawodu4430 4 жыл бұрын

How much in percentage of your profit should you pay yourself when you own a business? Do you take this out after paying your taxes quarterly or before? Thank you.

@MDRosaMedia 4 жыл бұрын

Good stuff!

@BestMusicHits 3 жыл бұрын

Questions what do you think about Zen business ? If I'm the only owner of a business can I still get llc ?

@verikarobinson3541 3 жыл бұрын

I liked the other video and this one. Cool content.

@IanSchrauth 4 жыл бұрын

I have a single-member LLC, but I am looking to elect S-Corp status. I have W2s already with Amazon (For book publishing) and don't know if that will affect anything. will that affect anything wiht my W2s I already have set up?

@kwarcc1 Жыл бұрын

if im Serba, which coumtry in USA or in general should I pick to form my LLC? I plan to play with real estate. Thank you!

@kitwanamobley8707 3 жыл бұрын

Thank you for sharing. Love your genuine intellect! 😊 Question: If I am listed as someone else’s registered agent, is there a specific tax form that I file? 🤷🏾‍♀️

@daniellebrown6388 3 жыл бұрын

both videos where great thank you ;)

@chrisislas1838 3 жыл бұрын

Love your "Corky" vids dude. I've been seeing lots of vids about LLC's and its variations of pros and cons. To be a single member LLC, I don't think there is much protection provided which could pierce the corporate vail unless you fall under NV, WY or DE which does provide single member protection (regards to charging orders). And though you still need an LLC for the state you're doing biz in, an LLC one like from WY can also serve as the holding title or interest for the other existing LLC's. But if I can have an LLC w/o WY, NV or DE and really get some protection, well I'm still searching for that answer. If you have that answer, Im all ears. Register Agents are a blessing in anyone's world of LLC. Heh heh heh.

@malcolmlagares8245 3 жыл бұрын

All your videos are good. . . Thank you.

@brettd.cotten9987 3 жыл бұрын

Great video.... much appreciated....

@bionicmonks7346 3 жыл бұрын

Great videos!! I’m starting a trucking company llc. Is it important that my llc is set before buying a truck? Thank you

@aja_6093 3 жыл бұрын

Thank you very informative 👍

@jaluvh 4 жыл бұрын

I may be ready for a tax election. I may want to use a local bank to organize my business banking and will want to learn whether your affiliates allow individual choices in their clients' LLC package. I do plan to check out your affiliate and am planning first to book a consult with you to go over points you've made that appear to apply to my business. Clarification generously offered by you online - I do Zoom - regarding forming an LLC feels right. In other videos you speak of bringing my existing d.b.a. under an LLC umbrella. I'd like to know if that works for me in NY State and is that my best option? I truly appreciate the heads up about operating agreements. Not certain a standard agreement New York State covers my stance: cash flow through one entity (rideshare) to stabilize while developing a business in the content marketing space. Two entities, separate bank accounts and different insurances may be required. I may be fully insured for auto and may require LLC status to minimize how I may be sued, maximize how I'm protected insured and soon after, trademarked or copyrighted for intellectual property to be published online. The work is to pave the way for cash flow from one and protected development of another aspect of business I have all the resources and training to build a site, a list and rankings over the next 12 to 24 months.

@CLRH2O 4 жыл бұрын

For your LLC's 'address'... why can't you use the USPS's 'Real Address' feature with your Post Office Box exactly?

@HowTO-py8rc 4 жыл бұрын

Hello..i'm from a Stripe non supported country. So i'm want to form a LLC in wyoming,just to get stripe for my dropshipping business.But i'm kinda confused with the tax situation.I really appreciate if you can answer these question. 1.Wyoming is the best state to perform a LLC for non-resident.right? 2.i will be targeting USA citizens to sell physical goods from my store.So do i have to pay taxes? 3.If so how much will it be? 4.Which forms do i have to fill and where report and pay those taxes? 5.Lets say my business will not successful & wont make any money.Do i still have to pay anything?Just to keep my LLC. 6.Is it possible to cancel the LLC? Thank you

@torey233 3 жыл бұрын

Are you able to transfer the LLC if you do move to another state or do you have to lose the money that you used to start elsewhere and continue to restart in the new state?

@huedelgado807 3 жыл бұрын

great info and i like your style! if i have several components to my brand as in my main service is barbering but also tattoo and art, do i just register under the one main business name... ex hues cuts, hues tats, hues art, my business name hue but with those other components to it, i just register hues llc or hues cuts llc, hues tats llc and hues art llc?

@alwaysatthefair 3 жыл бұрын

Switching from SP to LLC today. I'm based in NC also! I've never heard of a virtual address.. thankyou!!

@karaokevirtual Жыл бұрын

Hi, I follow you and I like your videos very much. He had to help me a lot. I have a question can I use my virtual bussiness address that already have as a register agent at the same time? Thank you for your videos

@earaujo6004 3 жыл бұрын

Great Vid!! Quick question and kinda urgent... 1- Im from Brazil, was living in Boston and just moved to California -until September 2021- when my leasing contract ends , and will prob be moving back to Brazil or other state to study, 2- Ill be doing and e-commerce business LLC, and will be getting an registered agent. 3-Can I file it in other state than California, like Wyoming etc.. since my address doesn’t matter and I’m having an registered agent in the state ill be filing (lets say Wyoming).? This is to avoid the 800 per year fixed business tax of California.

@travelingwithjosh4934 3 жыл бұрын

Currently live in Ohio and own a Duplex as a rental but plan to move to Florida within 6-10 months to buy more rental properties. Should I start the LLC now in Ohio, or wait to move to Florida and add Ohio as a foreign entity?

@OluwaShagoon 2 жыл бұрын

what if i file a llc in new york for example but move to another state , can i operate my ny llc in another state or do i have to file the llc in that state that i move to