LLC vs Sole Proprietor: Which is Better for Your Business?

LLC vs Sole Proprietor!

Outline:
Intro: (0:00)
What is a Sole Proprietor?: (0:46)
Sole Proprietor Taxes: (1:35)
What is an LLC?: (3:59)
LLC Taxes: (5:56)
Pros and Cons Sole Proprietorship: (7:35)
Pros and Cons LLC: (8:03)

Have you ever wondered the difference between sole proprietor and LLC? Like, what are the tax benefits of each?

In today's video, I go over the similarities and differences of the two and what you need to know to decide which one is best for your business.

Watch to learn more.

Please be sure to give this video a like and subscribe to our channel so you don't miss out on future videos!

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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

[dflosounds]

So from what I'm understanding, it seems like it boils down to how likely you are to get sued. If you're working alone and doing something that's pretty low-stakes (web development, graphic design, illustration, interior decorator, etc), then it probably makes the most sense to be a sole proprietor. If you're doing something with a higher risk of legal repercussions (construction, architecture, lawyer, physical therapist, etc), then you'd probably want to consider an LLC or S Corp. Does that sound about right?

[DiqaunColeman]

This was eloquently broken down. Keep up the great work guys.

[sicariusleif]

Damn, I was going to click another video first, but I think this is the best video on the subject ever made. You are so good at organizing the knowledge so it makes sense!

[shantejones]

Excellent!!! Excellent!!! Job Krystal. You explained the difference between the two entities in such a way that a minor can glean from the benefits of your knowledge and wisdom. I also love the way you recapped the structure of LLC vs S Corporations in the side panel captions. Very professional and likewise ELOQUENT. This has been the best break downs of the pros and cons between the two entities of corporations I have ever seen. Excellent

[FlawlessFinishSolutions]

Starting a new business and wasn’t sure which way to go. Honestly still not but definitely have something to think about after this video. Thank you!

[GreenandGrain]

Excellent video. Thank you! I have watched several similar videos in the past but this made everything “click”! Really appreciate this clear, well organized presentation and the graphics showing the ACTUAL forms (for us visual learners!) thanks again!

[ChristinaMorua]

This video was really well done, easy to understand and not overwhelming. Thank you!!

[dricana]

Awesome presentation! You did an excellent job explaining the the pros and cons of each business type. You spoke eloquently and clearly to your audience. Great work!!

[consumerdebtchitchat]

This channel is outstanding!! New sub. Thank you for keeping it simple language for those of us that are so new to this. Just got my LLC.

[mariasalmeron]

Can you do a video about the benefits between creating a single member LLC vs the multi member LLC for a husband and wife buying real estate for short term rentals?

[ronaldshaw]

Thank you. Finally a video that just keeps it simple and straightforward.

[godivaodonata]

Thank you much! 🥰 Currently an SP, but pretty sure need to change to LLC. 🤷‍♀

[luluedw]

Love to see it & share it! Yall answer so many FAQs

[MariaS-mjey]

My head hurts all i want is to open an online selling website 🤣😞 still got a lot to learn

[tatianaquintero]

Thank you! I watched at least 30 videos and until I got here I could not figure out where to start or what I wanted to do.

[PhillipDavisMarketingSolutions]

Very clear and concise. I’m currently an LLC, filing as C-Corp. Starting another business and was undecided if I want to go LLC first or sole proprietor. I think I’m going sole proprietor for this one because it’s not going to make any money for a while. Thanks.

[CheriFresh]

Thanks, probably going to start off as SP and than LLC

[EmpireLiberty]

This is a prime example of why I choose to conduct all my activities in full view of the customer. I possess a high level of assurance when it comes to them witnessing my efforts. This aspect holds significance for both the clientele and myself. Establishing a sole proprietorship aligns with my chosen path.

[mer]

Omggg I love the structure of the material and the fact that the information is given straight up 👌

[mtchief]

Excellent work in explaining the differences. Enjoying your content. Any contacts in Orlando, Fl who I can speak to about about using their CPA, bookkeeping services?