Small Business Tax Savings Podcast Do You Need an LLC For Your Business?
Why do you need to file for LLC protection for your business? On this episode of the Small Business Tax Savings Podcast, we welcome Andrea Sager, Andrea is a serial entrepreneur and a lawyer. She knows first-hand how important it is for businesses of any size or stage to have legal support.
Andrea Sager discusses the importance of filing for LLC protection from day one and how it can protect your personal assets from the debts of your company.
She explores the potential drawbacks of not obtaining an LLC, including how to combat them. Andrea sheds light on setting up a separate business banking account to properly account for finances and maintain LLC protection. Get all this helpful information and more in this episode of the Small Business Tax Savings Podcast.
Tune in now and learn how small business owners protect their businesses and maximize their tax savings!
[00:01] The Pros And Cons Of An LLC
- Mike welcomes Andrea Sager to the show!
- Why do you need an LLC for your business?
- What does an LLC stand for?
[01:30] The Benefits Of LLCs For Small Businesses
- An LLC will protect you personally from the debts of your company
- LLCs are usually the best option for small businesses, while corporations are better for businesses with investors
- Most companies file their corporations in Delaware due to its favorable laws and courts
- It is usually best to file in the state that you live in as there is no tax benefit to filing in another state
[10:26] How To Setup An LLC And Protect Your Business
- The only way to avoid the California franchise tax is to literally move out of California
- To maintain the protection of an LLC, separate bank accounts must be maintained and funds cannot be commingled
- An operating agreement is not required by law but is recommended in case something happens to the business or its owners
[16:44] Closing Segment
- Andrea invites listeners to her own podcast, “The Legalpreneur Podcast”!
- Final Words
Key Quotes
“You want that protection as soon as possible. You don't want to wait until you're making a hundred thousand dollars or whatever that magic number is. You want that LLC from day one because anything that happens before you're an LLC you do not get the LLC protection for.” – Andrea Sager
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
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Podcast Website: https://www.TaxSavingsPodcast.com
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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com