LLC vs Sole Proprietorship for One Owner | Should a 1 Owner Business be an LLC or a Sole Proprietor?

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As a one-owner business, should you be an LLC (limited liability company) or a sole proprietorship? In the United States, when you start a business by yourself you are automatically a sole proprietor. That can be okay in some situations, but there are certain cases where forming an LLC will be the best legal structure for your finances and risk management.

00:00 Intro
01:08 Benefits & Problems of Sole Proprietorships
03:15 Benefits & Problems of a Limited Liability Company (LLC)
07:07 Bottom Line: LLC or Sole Proprietorship?

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Legal Disclosure: Elizabeth is licensed to practice in the state of California and before the United States Patent and Trademark Office. Information contained in this video is not legal advice – please seek advice of counsel. This video and description may contain attorney advertising.

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#LLCorSoleProprietorship #oneownerbusiness

[ericvigen]

Elizabeth, you answered my most fundamental question on this video. You are not just a lawyer, but also a professional advisor and mentor. Really happy to find your videos. 👌👍🙏

[johnbriscoejr]

Elizabeth, thank you, thank you, thank you much! I was so confuse as to which way to go until I listened to you. You were clear and straight to the point. All my friends who have money making businesses were encouraging me to go LLC; "Go LLC Bro, it's the right way. Good for taxes!" After listening to you Sole Proprietor is the right choice, I am a one owner, one person worker, I have no property or value other than my wife and kids. Thank you Elizabeth! Two (2) Thumbs up!

[glorias.]

This has got the be the most clear, concise and complete video on the topic! Thank you!

[yummyfunnybunny]

omg a legit video that's not just "5 reasons not to do a sole proprietorship" and than proceeds to provide shallow in-concise reasons with very few or just poor examples!? liked and subscribed!

[gaeseki]

Honest and nuanced information with context. Thanks so much for making this video. Everyone on YouTube pushes the "LLC is the only way to go" narrative. I'm guessing a lot of that is due to the money to be made with LLC formation services. I've been binging you videos and found this and the sole proprietorship to LLC conversion video formative and helpful. I'm looking into a side gig making donuts at the local farmers market once a week. Do you think that's small and safe enough if I have insurance? My only assets are a 401k and roth IRA, no property etc. Thanks!

[electromejia]

Dammm you are very good in explaining! I would love to go as LLC but it requires all my cash to be transferred to my new business and I can’t do that, , , I’ll might transfer in the future until I make my money growth

[Ilovelucy]

You are amazing, was so hard to find this information like u said, most don't realize what they get themselves into.

[primex]

I'm on a Elizabeth video spree and sponging all of your information, there is a lot of value here :)

[B_Bless]

You made it simple and understanding. I'm sure you get asked same question about LLC or Sole Proprietor. Based on your experience and clients you have what would work out if I'm staring a used dealer selling autos at a very very small location, LLC or Sole Proprietor? It just be me (wife and children as support) and no owned property or investments.

[MiriamR]

Thank you Elizabeth this was so helpful specially as a start up.

[jayleahhg]

Ok this video definitely taking some stress off of me whew thank you

[ShrandaM]

Thank you Elizabeth for sharing this video.

[JesusLopez-sbir]

This was the best advice someone ever gave me . Thank you..

[jreillw.]

Great i see this i have just Did a quote For my LLC ... but because I sell product I went for my LLC

[kme]

Oh my goodness THANK YOU! I have been watching some of your videos to help as I try to get started and each one helps more than the last! I felt my anxiety rising because I do have assets to cover and do events but I am just starting out and making hardly any money so I was almost panicking but phew 😅 you ended it with converting after a time so 👏🏽👏🏽👏🏽 to you

[allenschneider]

I've heard mixed opinions as to whether or not an LLC actually protects one's personal assets. I'm in Oklahoma and unfortunately find this question very confusing. Thanks for sharing your perspective.

[captainbagels]

Very helpful and straight to the point, thank you

[AskYourComputerGuy]

Love your content! Thx for tbe great info

[chriscal]

Thankyou for sharing. I appreciate being able to get all the information clearly . I do not feel the need to review a few more videos to get the whole picture 😆

[lakshmiumabharathirachakon]

Thank you so much 🙏🙏, I am planning to start a small clothing bussiness and am very much confused about the permits I need . This video is very helpful.