How to Convert Sole Proprietorship to LLC (& Why You Should in 2019!)

If you started your business as a sole proprietorship, it’s time to start thinking about changing to an LLC. Naturally, there are a lot of questions that come with changing sole proprietorship to an LLC. “How do you change sole proprietorship to an LLC?” “What are the benefits of changing sole proprietorship to LLC?” In this article I will discuss the advantages of an LLC and how to change your sole proprietorship to an LLC in order to get personal liability protection. The #1 reason to form an LLC is for personal liability protection. By forming an LLC you create a “protective wall” between your business assets and your personal assets so if your business is sued then your personal assets (like your personal bank account, home, cars, properties, investments or anything that you personally own) will be safe and secure as they will not be considered a part of the business. If you don’t form an LLC, your personal assets will be at MAJOR risk if your business get sued. You owe it to yourself to understand the differences between …

LLC vs S Corp California

As a new business owner in the state of California, one of the biggest decisions you will make is whether you want to form an S Corporation or a Limited Liability Company. Both LLC and S Corp will provide you with personal asset protection, tax advantages, and several other benefits. But each business entity does have a lot of key differences as well. While I highly recommend contacting an experienced business attorney such as myself at sam@mollaeilaw.com to help you when you decide to establish a new business, I’m hoping this article highlights some key information to make the selection process a little easier on you.   What to Consider When Selecting Your Business Entity Trying to sort out how an LLC differs from an S Corp is confusing and overwhelming. Fortunately, there is a solution to that problem. You just need to focus on these key areas: Personal liability protection Taxes Before you can address these things, it is important to take a step back and look at the bigger picture. How many owners (or members) a business has …

Types of Companies

There is a wealth of decisions that go into forming a business in the United States. Arguably one of the most crucial in relation to taxation is the legal structure of your new business. In addition to taxes, this decision plays a role in how much paperwork you end up dealing with and your ow n personal liability in the company. It even factors into how you can raise money on your company’s behalf. The most well-known legal structures for a business include sole proprietorship, partnership, corporation, S corporation, and LLC. Limited liability partnership (LLP) is a newer development in the business world. Fortunately, you do have the option of kicking off your business as a sole proprietorship and reorganizing your structure if you decide to take on partners. So, it isn’t set in stone. Just make sure you notify the IRS if you make changes in the structure of your business. Whether this is your first business venture, or you have rode this rodeo before, I highly recommend reaching out to an experienced business lawyer such as myself at …

Is an LLC a Corporation (What’s the difference?)

As a new business owner, chances are pretty good everyone and their brother has lined up to give you a piece of advice. Don’t form an LLC, you want to form a corporation instead. Corporations are to complex, go with an LLC instead. Sound familiar? While all this advice can be helpful, it can also be confusing. One of the biggest questions new business owners and aspiring business owners email me at sam@mollaeilaw.com and ask is: is an LLC a corporation? The answer is no. An LLC and a corporation are two different types of business entities. It is up to you to look at the pros and cons of an LLC vs a corporation and decide which one is right for your business venture.   LLC vs. Corporation: What’s the Difference? Apart from a sole proprietor, all other business organizations must register as a specific type of business such as a corporation, LLC, or partnership in the state the business is located in. As a new business owner trying to decide which one is right for you can be …

Do Uber Drivers Need an LLC? [New Secrets!]

Do I need an LLC as an Uber Driver? What tax form do I use for Uber? The one down side of being an independent contractor is that you don’t have a proper employer to handle your tax situation or protect you in the event of a lawsuit. Luckily, you don’t need an employer to enjoy being an independent Uber Driver and have the best of both worlds. Setting up an LLC is simple to do, and comes with many benefits that will set your Uber Driver business up for success. What are those benefits? How do you set up an Uber Driver LLC? Should you form an LLC for your new rideshare business? Keep reading below so I can answer all these questions and more to tell you how setting up an LLC is right for you. If you have any questions about how to set up that LLC, or if you’re ready to get started today, email me any time at sam@mollaeilaw.com. What is an LLC? An LLC is a business structure that separates your business and personal …