“I mean, I don’t *really* have to file for a business license till I start making a profit, right?”
^^ I see people asking this advice online from NON-attorneys all the time when they’re talking about whether or not they should form an LLC.
The answers they get?
A mish-mash of various (typically illegal) advice from well-meaning-but-clueless family and friends with no legal or accounting experience with online businesses (or any business structure for that matter!).
I know YOU would never go poking in the wrong place for legal advice though, which is why you’re here…
So what is an LLC and how does it work for business owners?
How does an LLC legally protect you (and your business debts or personal assets), friend? Why’s an LLC any different than:
- Not registering your business at all; OR
- Being a sole proprietor or having a sole proprietorship; OR
- Having good intentions by tracking your profits and losses in a *very official* spreadsheet; OR
- Amassing 30,000 Instagram followers and failing to sell a single t-shirt to your audience.
(?OK, I’m not covering that last one. But I AM talking about the difference between LLCs and sole proprietorships!)
This is a GREAT question and I’m answering it in my latest YouTube episode you can watch right here??:
- Do I really need an LLC? Am I even an owner of and LLC?
- Can’t I just get by with a sole proprietorship? What about… the wait and see approach? Surely the Internal Revenue Service won’t notice anything when I file my tax returns, right? *wink, wink*
- And even if you get an LLC, what does it really do for you? Can a solopreneur register as a single owner LLC? Is there a secret club for members of an LLC? 😉 Like how does this thing work exactly?
Watch my latest YouTube episode called “What is an LLC and how does it work?” to learn if LLCs are even right for you according to your state law, what LLCs do to legally protect you, what they mean when you’re filing your income tax and employment taxes, and more!
When you watch my new episode, be sure to:
- Like the episode if you find it helpful.
- Hit “SUBSCRIBE” on my YouTube channel; and
- Leave a comment letting me know what your biggest takeaway was.
PS. Grab some popcorn and settle in because my latest YouTube episode teaches you what an LLC is (and all about articles of organization and operating agreeements…juicy, right?), how it works to legally protect you (and your personal assets – hello home, car…everything!), how to save yourself from double taxation under the IRS, and what the difference is between an LLC and sole prop. Enjoy!