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i don't need an llc just a business license all right first off i am not your lawyer i'm not your cpa i'm just a guy that owns a business formation service providing run-of-the-mill uh information you can find anywhere use me as a resource not your only resource this one i wanted to talk about because it's so vague that it could mean a lot of different things and what happens a lot is you know someone hears something from one person and they hear something else from another person and maybe they get the the terms swapped uh so i want to make sure that i answer all the various ways this question could go and give the context of each so what is a business license exactly is this person thinking the business license is the um the filing provided by the state the entity type because then in that case the business license is the llc is the business license a um something for the county so i'm only circling part of the state maybe this county has a business license requirement for bars or for food trucks or something like that that is a permit or license that that business might need in order to do that so maybe this person already has an llc it's not that they don't know the difference between a business license and llc maybe they have an llc and now they just want a business license in which case we provide a permanent license search that you can get from us or you can research yourself uh call the secretary of state and let them know what business you're in and uh you know kind of what you're doing and they they'll be able to tell you you know do you need to fill out a sales tax form do you need to do this do you need to do that that's why the secretary of state is there you can call them and ask them questions there are people that will pick up the phone it might take longer in one state than another state i know i've called the new york secretary of state personally and have been on the phone for multiple hours funny story just so they could tell me that the fax number that i was supposed to fax a document to on the website was not the right phone number so the lady gave me the correct phone number and said no the number on the site is not the right fax number here's the right one so even the states get these things wrong another random because this just happened we are filing a form with wyoming and uh we sent it in it was a it was a someone wanted their llc terminated we we sent it in and the state said this is the wrong document and we're like well this is what we got from your website and they said yes we understand but the legislator just made the change a couple months ago and the web administrator has not updated the site yet so these are just all these silly things that different state governments kind of make you jump through these hoops which is why a company like us exists so you don't have to do that stuff we kind of already know the lay of the land so we can figure that out uh for you depending on what it is that you need done um all right so you know how else can we can we kind of answer this um is is the business license so so the two ways that i view this is maybe they think that the business license is the filing from the state that makes them official in that case the llc and the business license are the same thing and this person really wants an llc they're just asking for the business license the second way is that uh they already have an llc they know what an llc is and they need a specific business license for something that they know about or they were told by somebody hey if you're going to be in the food truck business in this county or in this state you need to get a license and so now maybe they're reaching out to us to get that license i'm not sure how else that can be kind of skewed or or asked so i think those really the only two ways let me let me think for just a second i think that's it if you guys can think of any other way that this can be construed ask in the comments and i will happily kind of make another video a follow-up video or answer in the comments uh but yeah i think that's kind of it um it just depends on what you know what what you're asking this is this is my company this is better legal it's my cool logo you'll notice this is a b for better and then it's a secret l that's an l right there some fun um okay so if you like this video please share subscribe share with a friend get an llc or corporation from us i'd love to continue to provide more of these educational videos and the way that we get to to do this is that uh you know better legal makes money you know so we're we're a corporation and you know we got to make money in order for us to continue to provide more services and technology and education things like that so uh yeah anyway until the next video
Thanks for your comment Jamey Pihl, have a nice day.
- Raymon Pepitone, Staff Member
and again Jim Hart back out you're here from Hawthorne law and today I want to share with you how to start an LLC [Laughter] this information is gonna be pretty much the similar regardless of what state you're in as an attorney I practice in North Carolina I'm also licensed in Florida so by the end of the day I'm going to tell you about the different steps you need to know if you're gonna start your own LLC and this is really important actually a client in yesterday he was wondering who was trying to going through a divorce situation and they have a business a rental property business that he needs to separate with his wife and they both want to keep the rental properties and we talked about one of the things they can do is start an LLC so how do you do that well it's actually pretty easy to do depending on the state you're on and before I get into that I want to remind you hit the subscribe button below make sure you comment like this video and share it with your following in social media we'd really appreciate it also hit the little bell thingy there should be a bail thing you down there as well I like to say bail thingy I don't know why so that you get notified when I post new videos so anyway here's the deal when you're starting an LLC the first thing you need to do is you need to do a search for your name you need to make sure your name is not taken and this doesn't need to necessarily be your brand name this can be a special name for your LLC your business name but you need to go to the way you're gonna do that is you're gonna go to your Secretary of State's website in the state where you're starting the LLC by the way I need to mention something right off the bat you do not need to go to Delaware you do not need to go to Nevada you do not need to go to why aunt Wyoming to start your LLC you can start your LLC in your own state if you're starting in another state then you're gonna have to register in your own state anyway as a foreign entity big mistake costs a lot of money it's more effort it's more pain than it's worth don't do it there's there's people out there they say you can do that because you can avoid taxes you can't avoid the taxes okay rant over start the LLC in the state where you're doing business that's gonna be the best state for you to do it in that's number one number two so I already mentioned go to your Secretary of State's website do a search for your name make sure the name is not taken if it's not you can go ahead and file what are called or are articles of organization and I think it's named the same thing in all 50 states I'm not sure about that but that's that's what you're gonna file you're gonna fill out this form your articles of organization it's going to give information like the name of the LLC the business address who the agent is make sure you see up here my video on registered agent that needs to be an actual physical address where somebody can accept mail on behalf of your business if you get sued that's where the registered agent does basically there's corporate entities that do that but it means to be a physical address in the state where your LLC is located they're gonna want information such as who the initial members are of the LLC owners of an LLC are called members not shareholders and other information like that and you're gonna take those articles of organization you're going to take them down your Secretary of State's office or potentially you can file this electronically through through the interwebs and you're gonna pay a filing fee it varies in different states and then once they file those your LLC is going to be formed they're gonna send you a little a document back that's gonna tell you that your LLC has been formed then you can the LLC but here's the thing that's not enough people if that's all you're doing to start your LLC there you might as well do nothing because it provides no liability protection to you there's no tax advantages to doing that that you you've basically done nothing to protect yourself which is the whole point of forming LLC hold on a second my wife thinks wanted me when I drink coffee that way anyway if you're getting what I'm saying so far make sure you leave a comment down below and just type something cool you can type something cool that's fine and let me know you get what I'm saying so far so that's number one you got to file those articles of organization but there's another step you need to create and what's called an operating agreement an operating agreement is a document it's a contract between you and you as a member of the LLC and the LLC the basically spells out exactly how the LLC is going to operate what you're gonna pay yourself in terms of a salary or distributions or how those are going to be distributed all those different things where the businesses can be located what you're gonna do if you decide to add new members what you're gonna do if you decide to break up with your the other members how often you're gonna have meetings what's going to be the subs those meetings all these things there's all these things that need to go into this operating agreement and you need to have that done and then you need to follow the next step is you need to actually follow the terms of the operating so that if somebody decides to see you at some point they can't do what's called piercing the corporate veil and by piercing the corporate veil that's how they can do that if you basically don't operate yourself as the LLC according to the terms of your operating agreement so that's important all right the next step is to make sure oh and let me go back if you're in some some states ask you to publish a notification I know I think New York asks you to do this so there might be other requirements in your particular state you want to check those requirements and make sure that you follow the law and the legal requirements in your particular state the next thing you want to make sure you do is remember to to file all the necessary updated paperwork every year and and that may be annual minutes that may be an annual report different things there's usually going to be filing fees associated with with this so you want to make sure you do that on an annual basis to make sure your LLC stays active I've had situations where people have failed to do that and then the LLC becomes inactive and then anything the LLC has done up to that point while it's inactive basically is is void I had a big issue with the client who there it involved a transfer of real estate through the LLC and a deed was passed and money was paid and things like that but the LLC does not shoot we're talking about Oh making sure you do all the annual reporting requirements you need to make sure you do that if you don't do that then you can run into problems and your LLC can be disbanded and as I mentioned I had a client that had a real estate deed and the real estate deed was basically void and that was a big problem because my client had spent several hundred thousand dollars I'm acquiring that piece of property but his deed was no good and then there was a death and that's that's what we do tha
Thanks Ashlee your participation is very much appreciated
- Raymon Pepitone
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I've studied sports / exercise at Thomas More College of Liberal Arts in Merrimack and I am an expert in natural language processing. I usually feel hyper. My previous job was sales representative (printed advertising) I held this position for 21 years, I love talking about video gaming and ice diving. Huge fan of Trace Adkins I practice skateboarding and collect stamps.
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