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hey guys this is robert with malaya law we help entrepreneurs just like you start their businesses without dealing with complicated legal forms we are also the number one highest rated business law firm for entrepreneurs with more than fifteen hundred five-star google reviews today i am going to discuss the three things that you should do before forming an llc as many of you guys know an llc is a limited liability company and the main purpose is to provide you with personal liability protection an llc is a way of creating an entity that separates you from your business so that you can have peace of mind an llc is recommended by most accountants and lawyers if your business is generating a decent amount of income and especially if your business subjects you to potential liabilities the last thing you want is for someone to sue your business and be able to go after your personal assets because you didn't spend the time to register for an llc so the first thing you should do before forming an llc is to research the tax implications of registering an llc it is important to speak with a tax professional before you decide to register an llc so he or she can determine if this is an economical uh decision from a tax perspective the accountant will also be able to help you determine if you should do an llc or corporation and how to have the llc taxed many people form llc's because they think that they will help them save more money on taxes but this is not always the case for example if you live in california and register an llc in california then you are going to be required to pay minimum eight hundred dollars per year franchise tax board fee overall an llc is not a tax savings strategy and llcs and sole proprietors are taxed at the same rate meaning that you will pay the same amount of taxes with or without an llc keep in mind this is not accounting advice and i am not an accountant but oftentimes an llc does not guarantee you know is not guaranteed to save you money on taxes however in many situations an llc can save you money on taxes such as if you elect to have the llc tax as an s corporation if you elect to have the llc taxed as an s corporation then you can save about 15 percent on self-employment taxes but keep in mind this is only something that should be done if you are making a certain amount of money so moving on the next thing i recommend that you do before you register an llc is to speak with a legal professional to determine which business entity is best for your particular situation there are many factors that must be taken into account before you decide to register your business sometimes an llc will unnecessarily complicate things and we'll recommend that you just start out small and be a sole proprietor with an ein and dba other times we will recommend a corporation over an llc especially if you plan to go public raise money from outside investors or plan on becoming very large in the near future whereas with an llc we would recommend this if you don't plan on going public but just want the liability protections so that you can rest easy or that you have a layer of protection and division between you and your business if an llc or corporation is recommended then a legal professional will also help you determine which state to file the business entity oftentimes people hear that forming in delaware or nevada is the best thing to do however a legal professional will not usually recommend that you do this because you will still have to register your own in your own state as a foreign entity oftentimes it is recommended that you just register in the state that you are in and not register in one of the popular states like delaware because it will result in you having to pay fees in two states and having to deal with more paperwork and maintenance the last thing i recommend that you do before you register a business is to put together a business plan of some sort that sets forth the capital you plan to invest your marketing strategies and company structure when you register an llc it is important to have your ducks in a row and know who is going to be the owners of the business and who plans up to manage the business you should speak with your partners and put down the organizational structure on paper so that when you do speak to the professionals you can utilize your time more efficiently the number of partners and capital you plan to invest will significantly impact the lawyer and accountant's recommendations for example if it is just you then you will likely to be taxed as a sole proprietor however if there are multiple partners then you will be taxed as a partnership or an s corporation overall these are three very important things to do and consider before you register your business in the us and our law firm has helped thousands of entrepreneurs register their businesses in the us and would be happy to help answer your questions so feel free to click on the link below to schedule a free consultation during the phone call we will be able to determine how you should get started with your business and we will hold your hand throughout the process so go ahead and click the link below and also if you have any questions just post them in the comments below and my team and i will try to get to them as soon as possible i'll see you guys in the next video
Thanks for your comment Steven Legendre, have a nice day.
- Adelle Vanhuss, Staff Member
in today's video i'm going to talk to you about when you should form and register an llc for your business ventures so you probably clicked on this video because you want to learn a little bit more about business specifically you want to learn when you should form and register an llc for your business ventures hi my name is andrew i'm an attorney from the malai law firm where we help entrepreneurs just like you start their businesses without dealing with the complicated legal forms we are the highest rated business law firm and as i'm speaking to you we currently have over 2153 five-star google reviews so allow me to talk to all of you about what is in llc also known as a limited liability company one of the major reasons why business entrepreneurs choose to register an llc for their business ventures is because an llc provides the same type of shield from personal liability as a corporation but it also provides a tax flexibility similar to that of a partnership i like to see it as an llc is almost a type of hybrid between a corporation and a partnership in fact some people would say that it's right in between it's the middle ground in fact all 50 states here in the united states will recognize an llc as a valid and as a authoritative business structure one of the major reasons why business entrepreneurs are registering llcs is because it provides an extra barrier of protection for your personal assets while providing you with the simplicity of taxation in fact llcs are the most popular business entity for small and mid-sized business owners this basically means that they are a lot easier to manage and operate in comparison to an actual corporation and what i mean by this is an llc has less formalities one major benefit of registering an llc as opposed to a corporation is the flexibility of the number of owners that can be a part of the ownership interest and the management of an llc there are certain considerations that you're going to want to be mindful of when registering in llc some of these requirements and some of the considerations that you're going to want to keep in mind are the costs as well as the filing requirement now a basic understanding of an llc is that llc owners are called members there can be one member of an llc which means that there would be one owner or there could be multiple members which would mean that there would be multiple owners of the llc the amazing aspect of having an llc is that an owner does not have to be an individual or a human being an owner can be another corporation or another llc that is amazing benefit the llc's provide is that you have that sort of flexibility to choose and decide the exact type of business structure you want to create the beautiful thing is any type of business can be an llc some of the more popular types of businesses that use an llc include the following online business online business has been booming in the year 2020 and 2021. as i'm speaking to you now there are so many entrepreneurs that are entering into the online space why are they entering into the online space because online space provides vast opportunity there are limitless opportunities when it comes to running an online business because not only do you have that flexibility not only do you have that freedom of autonomy to move around but you can connect with individuals through an online business from anywhere in the world some other common businesses that use llcs are going to be your consulting firms are going to be your marketing firms which include facebook instagram marketing agencies it firms landscapers contractors and builders restaurant owners that want to create a restaurant for themselves and their families restaurants are very common llc as well as gyms gyms is another very common llc other llc's that you may want to take into consideration are going to be amazon llc's trucking llc's real estate llc's llcs the list of businesses that register for an llc go on and on and on as i mentioned earlier one of the greatest benefits that you have as an llc owner is that you're able to create that extra barrier between your personal assets as well as your business assets you have to ask yourself how important is it to you to separate your business from your personal and the reason why i ask this is because if you decide to register a business as a sole proprietorship everything including your business will be connected directly to you in the eyes of the law you and your business are the same person this means that if you're the same person under the eyes of the law you will be responsible for any type of obligations any sort of liabilities any sort of consequences that's directly connected with your business that's where an llc comes in if you have a registered llc your business assets ties connections will be tied to the llc alone which means that your personal life will not be impacted this means that the llc as a business entity is responsible for any type of debts or obligations that the llc alone owes to others the llc can owe obligations and liabilities and debts to others while you yourself as an individual will not have those types of obligations these sort of issues arise when your business is being sued and as we know anyone is trying to sue for whatever type of reason whether it's a legitimate reason or not so the most important thing that you have to do if you're considering forming and registering an llc it's important that you do it properly because if you fail to register your business properly then you will not receive the benefits that llcs offer in other words your llc will be ineffective if you happen to have any questions about anything that i talked about in today's video if you would like to learn a little bit more about whether or not an llc is right for you make sure you click the link in the description box below to book your free consultation with a professional who can evaluate your situation and who can provide you with the guidance that you're looking for as to whether or not an llc is right for your business ventures if you haven't gotten the chance to please make sure you hit the like and subscribe button as well as the bell notification so you won't miss out on any future videos it's time to invest in yourself it's time to rise if you would like to learn a little bit more about llc's business entities corporations go ahead and watch one of these videos you
Thanks Dwight your participation is very much appreciated
- Adelle Vanhuss
About the author
I've studied econometrics at College of the Holy Cross in Worcester and I am an expert in fiscal policy. I usually feel giddy. My previous job was quality control inspector I held this position for 3 years, I love talking about gingerbread house making and acrylic painting. Huge fan of Chanakya I practice parachuting and collect non-sports trading cards.
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