What if everything you owned was taken from you? Your house–gone. Your car–gone. Your business assets–gone.
Sounds like a sick nightmare, right?
When you run a business, you put your PERSONAL assets at risk if you don’t do anything to protect them. At this point, you’re probably wondering how to protect them, because you don’t want this scenario to even be a possibility. Watch today’s video to find out how you can protect yourself.
Today’s video also includes a special guest! Can you guess who it is?
{Disclaimer: Kris has made this information available for educational purposes only as well as to give you general information of business-related topics–not to provide specific legal advice. The content of this video does not constitute legal advice, because legal advice must be tailored to the specific circumstances of each case and the laws are constantly changing. You should seek the assistance of licensed and competent legal counsel for specific legal advice.}
haha, love his imitation at the end. lol
Thanks Erin!
whoops, hit submit before I was done! Great advice, but doesn’t it cost a lot more and involve quarterly taxes to have an LLC? The reason I’m a sole proprietor now is because I barely clear $20k a year (before taxes) and after paying 40% in taxes–well, let’s just say if I was sued and lost everything I owned, it wouldn’t be much.
Not asking for legal advice, but just generally, do you think that everyone should have an LLC to protect themselves, or do you think it only matters if you have a decent amount of assets or make a certain amount of money each year?
If you’re a sole member LLC, you can be treated the same as a S-Corp as far as taxes. So, you won’t be penalized for legal protection and will only be taxed once a year. But, you could file quarterly taxes.
Here’s the problem with not having protection: Even if you don’t have many personal assets now, if you get a judgement against you, it doesn’t go away. As you accumulate personal assets, you’ll have to pay. So, if you don’t own much now but your business grows, you’ll still be responsible for the judgement.
I hope that helps!
LOL! Oh thank you for the giggle and the advice! I must explore LLC further! 🙂 Your new background is beautiful and your hubby is lovely! 🙂
You’re welcome Alicia! 🙂 Glad you enjoyed it!
erin, thanks for the info… funny thing… today on my ‘to do’ list was “complete business paperwork” and that includes paperwork i printed off for an llc! guess you (and your sweet husband) were here to remind me to ‘get her done!’
Get her done Julie! 🙂
The state of Virginia actually makes it easy for you to incorporate. If you go to Business One Stop (http://bos.virginia.gov/), it tells you everything you need to do and either fills out the forms for you or tells you where you can find them. It does cost $20, I think, plus any fees for processing the paperwork, but it made everything so simple. I would have been completely lost without it.
Thanks for sharing that resource Allyson!
This was awesome! Thank you so much. I have been trying to decide if an LLC is right for me, so your timing was perfect. And I loved the entertainment time at the end – you two are so cute!! 🙂
Thanks Tessa! So glad it was helpful.
Haha! I think I’m in love with you both.
LLC-ing over a year ago is my favorite business decision I’ve made. Not only does it protect me, but it just makes me feel hella legit. That little bit of paperwork made me feel more real, and that’s kind of a big thing with us creative professionals.
Awwww shucks! 😉
Yep, “going pro” can definitely create a good business shift.
Great knowledge, Thank you for passing it along!
The two of you make a great team 🙂
Thanks Tracy! I think we make a pretty good team! 🙂 I found a good one.
This was hilarious. And of course, great information. I pretty much hate all the paperwork-y, legal-y, finance-y side of my business and sometimes try to pretend it doesn’t exist. Thanks for the wakeup call!
Thanks Natalie! I love to entertain 🙂
I hate that stuff, too. Luckily, I have my husband to tell me that it needs to be a priority.
Thanks for the tip and info April & Kris! I too thought like Erin… will need to look more into “sole member LLC”.
You guys are a good lookin’ couple!!.. and good to see Kris in front of the camera since we’re always hearing his voice in the bloopers. ;D
I definitely recommend looking into it. In my book, it’s much better to be safe than sorry.
Thanks for the kind words!!! I nabbed a good one 🙂
such great advice. my paperwork is being filed even as we speak!
Awesome!
Thanks so much for the info (and it’s great to see the hubs in front of the camera)! I haven’t really decided whether or not to go the LLC route. Right now I’m just doing the sole proprietor route but I did apply for a separate tax id number from the IRS so it does make me feel more like a real business. I’ll have to look into LLC a little bit more. I think my biggest thing is that I don’t want to file separate taxes. I don’t really make enough on the business side yet for it to be considered a legit option yet.
I hear ya Sasha, but I still get nervous for people who don’t have any protection legally!
*LOL!*
Kris, is handsome indeed. Nice to have a face to associate with the voice behind the camera. =)
Good advice, too. Thanks. =)
Thanks Phoebe! I think he’s quite good-looking!
This serves as a reminder for all of us. Business is risky so you better do the right thing always.
So true! Thanks for joining the conversation.
Really found this post interesting! I’ll be pinning this on pinterest!
Awesome! Glad you enjoyed it.
The end was hilarious!!
I’m really glad you tackled this topic because I know I get caught up in the creative aspect of my biz (because it’s more fun) and totally forget to make sure that I have the not-so fun apsects of my biz covered. So making my company legit is on the list.
Btw: I really love the new backgrounds you are doing and those still shots of your videos (before you press play) would make a gorgeous new profile pic for you. I just think with the new videos, we are getting to truly see “April” and it’s fantastic. Just a friendly observation 🙂
Thank you Tabassum! That makes my day.
It can be easy to put aside the not-so-fun tasks and concentrate on the creative aspects. I’ve been there!