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LLC for Dummies (LLC Simplified in Easy Terms!) - YouTube
Channel: Helping Entrepreneurs Start Their Business! 馃殌
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Hey guys, today we're gonna talk about
everything you need to know about LLC's.
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From what is it - what are the
advantages and how you can use it to
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your advantage.
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So let's get to it,
LLC stands for limited liability company.
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An LLC is just one of several business
structures. Other common examples include
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Corporations, Sole proprietorships, and
Partnerships but today we're just going
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to talk about an LLC. Forming an LLC is
the simplest way of structuring your
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business to protect your personal assets
in case your business's sued. So this is
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the most important benefit of having an
LLC is that it protects your personal
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assets so let me clarify what this means.
This means that if you have any personal
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assets such as having your own personal
chicken account or your a home or any
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kind of assets that you have either you
know items or real estate or anything
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like that
by creating an LLC it separates your
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business from you personally so that if
your business gets sued then only your
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LLC is responsible for that lawsuit and
you yourself won't be personally liable.
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Unlike Sole proprietorships and
Partnerships LLC's can protect your
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personal assets
if your business is sued as we already
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talked about. Also, for most small
businesses an LLC offers the right mix
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of personal asset protection and
simplicity just in basically just it's a
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simple structure it's the most simple a
business structure. Unlike corporations
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LLC's are relatively easy to form and
maintain and are not subject to double
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taxation we won't get into too much
about double taxation but all you need
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to know is that LLC's that you'll be
taxed personally on your own personal
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tax return you they're not subject to
double taxation which is how C
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corporations are usually taxed. So let's
look at a breakdown of the LLC benefits
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first is business duration can be
perpetual so let us say by creating an LLC
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if something happens to you then the
business continues to live just by
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something happening to you let's just
say God forbid if you happen to pass
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away then the business can still
continues. LLC can also be owned by
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another business there's
no requirements for annual meetings for
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an LLC there's less formalities LLC is
formed on the state level and LLC owners
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can report profits and losses on
personal tax returns that's not the case
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for corporations. Also, owners have
limited library protection which we
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talked about which corporations share
the same benefit and LLC's can also be
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kind of like to be taxed as an S
corporation which basically will save
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you in taxes I won't go to to into too
much detail but I'm sure I'll have an
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have a video that explains this as well.
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LLC's can be owned by one or more people
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who are known as LLC members so if
you're if you ever hear about members
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these are essentially just the people
who own an LLC. Generally an LLC is
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managed by its members known as member
managed LLC. However in some cases
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members will appoint a manager to handle
the LLC's daily operations and this is
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called manager managed LLC. So usually an
LLC there's two types either member
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manage which basically means that the
else is run by the members themselves or
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if you want exactly somebody else to run
the day-to-day operations then it could
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be designated as a manager managed LLC
an LLC with one owner is known as a
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single member LLC and then LLC with more
than one owner is known as a
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multi-member LLC so you may hear about
single member LLC's essentially all it
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means is it's a single owner who owns
LLC that's all it means
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so what's the point of forming an LLC
forming your business as an LLC helps to
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protect you against lawsuits again we
talked about personnel we talked about
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personal liability protection that
analysis LLC also significantly cuts
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down on paperwork
compared to corporations and other
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illegal entity types as you talked about
LLC is very simple to form and it's very
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easy on easy to deal with the ongoing
requirements of LLC LLC prevents your
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company from being taxed twice
essentially corporations have this
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determined as I manage this is C
corporations not S corporations so by
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having LLC you'll be you won't have to
deal with double taxation and I'll see
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also helps to present your business as
more credible usually other vendor
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vendors and other businesses want to
deal with LLC's don't they don't want to
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deal with some fighter ships so by
having LC you be able to do you'll be
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able to put yourself out there as a
registered and business entity in
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conclusion LLC is the simplest way to
create a business entity in order to
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protect your personal assets from
possible lawsuits so yes there are other
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businesses business types such as an S
corporation but if you're trying to take
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the easy simple way out then LLC is the
best business type if you'd like to
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learn more about LLC's and which
business type is right for you click the
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link below in the description below and
if you have any other questions go ahead
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and comment look forward to answering
all your questions thanks
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