From Sole Proprietorship to LLC in 10 Simple Steps! (Legally)
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- čas přidán 29. 06. 2024
- Are you currently operating as a sole proprietor and want to switch to an LLC? In today's video I walk you through how to go about this process in 10 easy to follow steps.
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#LLC #soleproprietorship #hawthornlaw
Thanks for the quick simple advice. This answered most of my big questions about forming LLC after sole prop.
This the video I been waiting for 👍
Love the step by step approach.
Just what I needed, thank you!
Thank you, You're the best!!
Sooooo straightforward and clear. Thank you so much :)
Thank you for this
My pleasure!
so basically you have a brand new business
Thank you!
5:25 yes... Happens to me all the time lol. Great video, by the way.
Thanks!
He kinda brushed over this but if you have an EIN number designated as sole proprietor with he IRS you will need to file a new SS4 form; print and mail it in to get a new EIN number. You cannot change the business designation. It takes several weeks so plan ahead. I learned this the hard way. Hope this helps.
You can apply for a new EIN online after you receive your LLC paperwork back from the state where you formed it.
Half way in and it’s the first time you mention this is for the states. 😅
u should add timestamps in your vid, great for us viewers & it benefits you in the youtube algorithm :)
Is this really about the 10 requirements of LCC? I really thought I would find out how to convert from sole proprietorship to LCC. Any idea?
Great tips.Tips.. have a question started a online small business no making much yet, started a sole Should I switch to LLC or should I wait??????
Can you have a sole proprietor under one EIN and then create an LLC to build credit on both entities since they would both have their own EIN?
Does this mean with the new ein, there would be a new credit history for the business? I was hoping to keep the credit history/credit lines or amount of available credit carried over.
I watched your video on why you should not get an LLC before this one. You said there was not tax benefits with LLC vs sole
Start @3:18
Also, if basically you’re creating a different business but taking over the existing business from family, is it better to just create everything new or try to transfer the existing sol proprietorship into my new llc? Like I said, new business will be replacing old business.
I have so many questions even after I watched this video. I wish it’s easy to get the questions answered. I’m a sole proprietor and wanna switch to an LLC
Here's a link if you would like some help. 😉
www.hawthornlaw.net/services/
Did anyone know where is the link for the operating agreement template he mentioned for a single member LLC
Would I also have to re-file my trademark application when going from a sole proprietor to LLC?
New business from NJ here prepared to register my business. One of my main questions regarding the name is can you keep the same business name from the sole proprietorship or do you have to choose a new name? I'd much rather keep my business name for the LLC.
No one ever answers the question, If I have an EIN for my sole prop. I am aware I have to make a new one for my LLC but what happens to my old one. How can I cancel it? if I switch over all to my LLC n all platforms will I still have to file a quarter sales tax DR-15 for my old EIN if I am no longer doing business under it?
Answered your question on my recent live stream!
I registered my self as an agent. created an llc, got the EIN, even the operating agreement. but my credit is so bad banks just give me risk checking accounts. when I try to open an account for the llc the moment I use my social to setup as the owner the banks automatically cancel the application.
When to Chase in person why this happens and an agent told me am seen as a "high risk customer" and they can't open accounts for me.
How can I have a biz account!? am not looking for loans or anything I just need an account so clients write the checks to the biz and see they are dealing with a business not just a freelancer.
Ein# I was 🤔 I was told when I file my llc taxes to take that tab with your ein# or else they won't recognize your company
Sol-member LLC in here
Do you get the same tax benefits and write offs with a sole prop. as an LLC?
the bank account for the sole prop. has its own EIN and once you have an LLC you dont need to the sole prop so do you simply stop using the EIN and cancel the associated bank account or do you have to file a cancellation of the sole prop EIN?
Can you speak on Series LLCs?
i have a question hopefully youll respond, i had an llc registered with the state, Virtual address, registered agent etc, however due to the business not making alot of money in its first year, i was told to file together ( personal and business as one), therefore it was filed as an sole proprietorship as opposed to llc, can i still move forward with my business as a llc next year filing. , if so what are the steps
Where's The link? For the Steps you said 3 Pages for the DIY.?
So you can use a PO Box for your business address when you file for your LLC? (In Florida here, and yes, I know you're not my Lawyer rofl)
So can you put yourself as the registered agent or not?
Do you have to open a brand new bank account? Can you tell the bank to switch your EIN number on the current account?
That would depend on the bank. I'm not sure, but I suspect that you probably have to open a new one.
PO box at the post office in most cases it's only like $100 for the year
It's best to open a USPS po box as they have a physical mailing address you can use on your LLC application. That or pay for a "virtual office" which doubles as both a PO box where you can safely receive mail but also register as your address for your place of business.
I filed online thru legal zoom and it said I could not use a P.O. Box
What 8f you are an single member llc is that basically a sole proprietorship
Thank you so much! Question? How does it work for quarterly taxes with the department of revenue? Do I have to file the taxes for sole proprietor separate from the taxes for the Llc if I changed in the middle of the month? For example sole proprietor continued until 1/25 and LLC started on 1/26?
I would talk to an accountant to make sure you handle this correct. And I recommend Gusto for running payroll once you set up your LLC. hawthornlaw.net/payroll (Affiliate)
What if you have a virtual address?
Does getting a new ein reset the clock on your your years in buisness in particular when it comes to funding?
Did you figure this out?
How the ein works with retirement accounts? Do you can you change that?
I'm not sure what your question is. What does an EIN have to do with a retirement account?
If you file for a DBA being a sole proprietor to choose a name and later you create an LLC, the name you chose is protected or it's only protected when you create an LLC?
good question, you ever figure out an answer?
@pressurewashingandmylife As far as I know, to protect the name of your company, you need a trademark. The level of protection a DBA gives you us very low.
Can you transfer a net operating loss from your sole proprietorship to the LLC?
I don't think so - it would just be a separate schedule C on your tax return. But I'm not a tax lawyer, so check with your accountant.
What happens if you have a business line of credit under the sole prop EIN
What do you mean exactly?
Gooker left?
do you have to create a new account for your website domain ownership? I want to just update my website domain account and registration with my llc contact details instead of creating a new account and transferring it
Anybody please once you become a new business to LLC
Do banks have to give you a loan to start business? Is that true ?
No - that is not true. And if you are just starting out, the banks would loan you based on your personal credit anyway.
If I have a DBA under my sole proprietorship can I switch to an LLC with just my DBA name? I don't want to add the LLC after my brand name
Have you found the answer to this. I'm barely starting as a teen and would appreciate the knowledge.
Yes I did! Thankfully I found a great lawyer on fiverr that helped me and I am not sure of laws in your state so of course do your own research for your state but I was able to get a DBA and upgrade my sole proprietorship to an LLC. Now I can market myself as the name I chose for my DBA which means doing business as " what you want to be called".. Also for general information for you're area you can look up your local small business Association. Hope that helps.
I currently have a EIN# as a sole proprietorship, and recently incorporated my business as a LLC. Do I need to create a new EIN# or file a form with the IRS of the change?
Dis you get an answer for this?
@@iwalkerpreston873 nope
@@iwalkerpreston873he answered that in the video around 8 mins
I am obsessed with Cobra Kai!
I thought picking a registered agent was picking your address
My new ein paperwork doesn’t have LLC in the name as my new entity does, is this okay?
Did you apply yourself or did you use a 3rd party?
@@jimhart 3rd party.
My business is not online.
I recently have reason to change my position on Liability. In the past my risk to liability was low. No I have a increasing personal asset liability due to inheritance. I greatly desire to continue my business however recognize that I need to clearly separate my business and my assets. I'm slow as a rock can you suggest some books or literature that can help me move to a LLC. I am a sole owner and a one man show I suck at accounting. "Lazy" but my work is good and I love what I do. Any help Thanks.
Hey man, can you answer my biggest bottleneck question for me real quick. Just starting as a teen and I'm thinking about starting off as a Sole P. cause I'm working with very little capital and don't have any assets to protect at the moment and just wish to get started. With your experience what do you recommend?
I like your video but too many interruptions. Coffee drinking, mug brand, Netflix, blowing leaves, battery died. Viewers just the info as quick as possible. As we’re all busy. I still appreciate the professional advise.