In this video, I'm going to walk through the basics of a Single Member LLC, including the benefits, drawbacks and steps you need to take to set up this entity.
In addition, I'll walk through an example tax return to show you how your Single Member LLC business results will impact your tax return.

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Setting up a Single Member Limited Liability Company (SMLLC) involves several important steps and considerations:

Name Selection: The chosen name for the LLC must be unique within the state and should include an indicator like "LLC" or "Limited Liability Company".

Articles of Organization: This document is crucial as it legally establishes the LLC. It usually includes details about the LLC's name, purpose, and registered agent.

Registered Agent Selection: A registered agent is necessary to send and receive legal documents on behalf of the LLC.

Operating Agreement: Even though not always mandated for SMLLCs, creating an operating agreement is highly recommended. This document outlines the operational details of the LLC and can strengthen its standing as a separate legal entity.

Employer Identification Number (EIN): This number is needed for federal tax purposes and can be obtained from the IRS for free. An EIN is necessary even if you don't plan to hire employees.

State Taxes Registration: Depending on the state and the nature of your business, registering for certain state taxes may be required.

Business Licenses and Permits: Specific licenses or permits may be necessary depending on the type of business and local regulations.

Business Bank Account and Credit Card: Keeping business and personal finances separate is critical for maintaining limited liability protection. Hence, setting up a separate bank account and credit card for the LLC is recommended.

Finally, while SMLLCs provide limited liability protection, this is not absolute and may be compromised if personal and business finances are mingled. The LLC also comes with costs such as filing and annual report fees. It's best to consult with a business advisor, lawyer, or accountant to make sure all requirements are met and that an SMLLC is the best structure for your specific situation.

About my channel:
Rob CPA channel was created with a mission to provide viewers with accurate content so they can be proactive in their tax planning strategies and build financial wealth. The video topics I selected reflect real-world issues that I’ve seen our clients experience relating to their personal tax returns, retirement plans, and accounting.

The channel allows me to share my passion for taxes, personal finance, and accounting. I create content I wish schools and entrepreneurship programs/accelerators would teach their students and companies. I take complex topics and simplify them for the viewers as well as show examples.

I will be covering the following topics:

- Personal & business tax planning tips;
- Personal finance;
- Accounting;
- Investing;
- Entrepreneurship

New videos are released every week, so be certain to SUBSCRIBE! : shorturl.at/fL014

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