Table of Contents
Write a comment
what's up YouTube world it's your girl Jolene B and today we're gonna be talking about LLC's and Inc aka I and C's and we're gonna be talking about the difference between the two and what the hell they really are and which one you should choose when you're forming your new business so let's go hey there guys it's Jolene dilka there you can call me Jodi today we're gonna be talking about LLC's and I am CZK inks we're going to talking about the primary difference between the two of them and which one may be a better option for you when you're starting your business now I get this question pretty often when someone is just starting out just launching their business hey Julian like what should we choose there's so many options the most common options are your LLC's and your inks we've got some you have some less common options like partnerships limited partnerships and different variations of that but those have very specific purposes if you really really want me to delve into a video on that one I can also put one up but for purposes of today's video let's talk about the most common reasons why you may want to go with an LLC over an ink and an ink over an LLC so let's proceed when we jump into the video though make sure you do subscribe and hit well icon so you know every time I post one of these bad boys up on my channel you can get that knowledge you know I'm Shannon please also let me know if you have any specific requests for me to do a video or any specific questions feel free to leave it in the comments or just email me or DM me on any one of my other social media channels I'm very responsive so ya need anything just learning okay so LLC's what does an LLC stand for an LLC stands for limited liability company and as the name suggests this corporate entity works to limit your personal liability for your business activities under the law your business an LLC is like its own person as its own entity with its own debts liabilities etc so it's very important that you have a separation between your personal assets debts and liabilities and your business assets debts and liabilities an LLC works great to sort of draw the line between your personal stuff and your business stuff LLC's are run by managers or members depending on what state you're in some states have both some of them have one some can be member managed or manager manage or manager managed I'm just joking LLC's are typically manager managed or member managed depending on what state you live in you can have either both options or just the one option and for a small business that usually means that it's a group of owners if it's just you that you could be the only member or manager of your LLC and if there's a group of owners hi baby that's good I can okay be careful you want to come see oh great - Lynette look at you okay mommy's filming a video you see you gotta look into the camera this is this is our llama and what's her name Ethan what's her name oh my god you're such a diva okay okay you have to be quiet a mommy something so LLC's are typically pretty inexpensive to form there's usually a small file the LLC's are typically very very inexpensive to form and they're not very difficult to manage and make amendments to the articles of organization so you get a lot of bang for your buck swen [ __ ] you get a lot of bang for your buck when you go ahead and file for an LLC so when you form an LLC the document that you're going to be using to govern all of your company's activities is called an operating agreement and what this does is it breaks down how your business is actually going to be run so it's gonna break down when you're gonna get distribution how much capital contribution each member or manager is going to contribute to the business how you manage debts loans liabilities different sorts of real property and assets so it's important that if you have more than one person that's in your LLC or different members or managers of your LLC that you have an operating agreement draft it up so everyone is on the same page about how the LLC is gonna be run one of the other benefits of having an LLC is being taxed as an S corporation and a lot of people get this confused they think hey yeah I have an S corp when there really is no such thing as an S corp an S corp is a tax election which allows your business to be subject to pass through taxation and what that means is instead of getting taxed at the corporate level and getting taxed at the individual level when you get money from your company you're only going to be taxed once that means if you get the money through your company to your personal bank account or your personal income you're going to be taxed at that level rather than being taxed two times and this is something that is distinct from having a C Corp which which is your traditional ANC Inc and they get taxed twice if that makes sense you got a question about that just let me know because I feel like that sounded a little bit confusing I remember a time when everybody wanted to be like the CEO of a company like everyone was like oh yeah hi my name is such-and-such CEO of blah blah blah blah blah and it would be like just a regular company like sometimes not even a real company and they would just have no employees and no like office or anything but you to see II oh alright suspect whatever put a laughing emoji down in the comments if you remember someone who did that from back in the day okay so in corporations I am Caesar inks are are a little bit of a different animal they're what you think of when you think of the big traditional companies and there's lots of reasons for choosing an Inc so if you have several different companies and you want to roll them up under an umbrella of another company hey Ethan no noise if you have several different companies and you want to roll them up under the umbrella of one main company and Inc is an awesome way to go because they can be subsidiaries of one overarching umbrella company and it is also subject to sometimes double taxation which is a drawback but and you should really talk to your accountant about that before you go ahead and make that election and as I mentioned before that is where you would be taxed at the corporate level where your corporate makes the income and tax at the distribution level where you receive personal income from your business so sometimes that's a little bit of a drawback I mean but there are also benefits that you other tax benefits that ynx get that other companies don't normally get now with inks it's a little bit more expensive of a filing and it's a little bit more expensive to maintain and to renew every year and to make changes but again there are other benefits to having an ink that may be specific to your asset protection strategy or your tax strategy okay and the governing document for ink are the company's bylaws and the company's shareholder agreements so the bylaws are gonna dictate exactly how the company is run the different policies that it has around its corporate governance and then the shareholder agreement is that agreement between all the shareholders of the company you are tr
Thanks for your comment Elane Mclaws, have a nice day.
- Noe Rhule, Staff Member
Thanks for this interesting article
Thanks Alonzo your participation is very much appreciated
- Noe Rhule
About the author
I've studied non-fiction writing at Queens College, City University of New York in New York City and I am an expert in affine geometry. I usually feel bored. My previous job was social science research assistants I held this position for 19 years, I love talking about ticket collecting and equestrianism. Huge fan of Pablo Neruda I practice luge and collect coins.
Try Not to laugh !
Joke resides here...