Sole Proprietor or LLC - Which is Right for My Business?

Explaining the difference between LLC and sole proprietor - Deciding if your business should be a sole proprietor or a limited liability company (LLC) can mean the difference between saving costly setup and annual fees, saving thousands per year in taxes, an protecting yourself and your personal assets.

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0:00 Intro
0:27 What is a sole proprietor
0:50 Defaulted to SP - so do I have to file other paperwork?
1:23 SP can operate under their legal name
1:53 SP owner + business are one and the same
2:15 LLC separated business + personal
2:19 SP does not offer asset protection - LLC does
2:58 LLC disregarded entity - taxes pass through
3:10 LLC have the option to ELECT S corp tax classification
3:31 Understanding S Corp election is important to weighing the benefits
3:55 TAX SAVINGS for some with LLC taxed as an S-Corp explained
5:03 LLC as and S-Corp must pay yourself as an employee on payroll
5:48 SP fees are low
6:05 LLC annual tax, setup costs
6:40 QUICK RECAP of important points

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Ginny Silver and Retrospect Images, LLC provides content to Youtube for entertainment purposes only. It is the responsibility of the viewer to verify all information as information may be inaccurate or outdated. Ginny Silver is not a CPA, attorney, insurance agent, lender, EDD or other government employee, or financial advisor and content in these videos shall not be construed as legal, financial, tax, government, or other advice. You are urged to contact a certified professional to help your individual needs.

[ginnysilver]

0:00 Intro
0:27 What is a sole proprietor
0:50 Defaulted to SP - so do I have to file other paperwork?
1:23 SP can operate under their legal name
1:53 SP owner + business are one and the same
2:15 LLC separated business + personal
2:19 SP does not offer asset protection - LLC does
2:58 LLC disregarded entity - taxes pass through
3:10 LLC have the option to ELECT S corp tax classification
3:31 Understanding S Corp election is important to weighing the benefits
3:55 TAX SAVINGS for some with LLC taxed as an S-Corp explained
5:03 LLC as and S-Corp must pay yourself as an employee on payroll
5:48 SP fees are low
6:05 LLC annual tax, setup costs
6:40 QUICK RECAP of important points

[Lavonne]

As always, thank you for explaining things slowly, clearly, and repeatedly. 👍

[SirenASMR_]

Thank you for helping us . I had to file a DBA but was confused about S corporation/ LLC . Right now I am a sole proprietor .

[Michael--]

Thanks again for all your past help with EDD. Your channel is awesome👍

[sharilevy]

Hi Ginny... hope all is well with you.
You continue to always put out very useful information!!!

[Cantetinza]

I was leaning towards LLC because of the security should something go wrong, but I went to SCORE and he said that's I should think of Sole Proprietorship because cost wise it's easier and then change it to LLC later. I definitely don't have that much money, so maybe I'll do that.

[traceymallard]

I haven't even started my business yet, I just wanted to sell T-shirts but I haven't started yet. No website or anything, I just registered as a LLC, and now I need to be a sole proprietor, because I will have to pay a 800$ tax next year, and I don't expect I will have this. I live in California.

[samuelmejia]

Which LLC do you recommend for a small coffee shop business? With or without the S Corp?

[raymondchen]

Thank you for the YouTube video very much also.

[marthaperez]

Hello Ginny, I received a letter from edd. It is a notice of amended unemployment insurance award. It seems as though I qualified for another year. It shows the amount of money I will be paid per week however I have not been able to certify.

[traceymallard]

How do I change over from LLC to sole proprieter?

[davmun]

Hi Ginny, hey do you have a video out on how a business owner can write off their pay compensation to theirselves as a tax deduction? Thank you

[shaolinxzid]

Hi Ginny
I have a question please about Golden stimulus check. Is there anyway to check when it’s coming, like website or contacting someone?
My friend just got his check but I don’t. And I’m qualified.
Thank you

[SoCalburro]

Stop with that hot top! Lol Good job on the info. You are on the pulse. Tons of people are making vertical movements, going into business themselves, or have investments.

[davidcole]

Hi Ginny. Your business coaching is excellent 
Going to need you help setting up a new photo business.

[carlheller]

What if I want to be a "non-profit sole proprietorship entity?"

[sharilevy]

Do you know if your name of the business can still be an entity in a S - Corp. Some people don't want their real name to be known?

[SoCalburro]

Happy Halloween!
Spooky thing is tomorrow.
OMG next video: Those who were unable to make rent for 11/2021. How is everyone coping? Job, income, housing options, etc.

[debbiehall]

Ginny----will you disclose which are you???

[pamelalam]

i need a part time job my early retirement at 62 only 1235 dollars not good