how to change business type to llc on shopify

hey welcome back into another video i,hope your day is going extremely well so,far,today we are going to be talking about,when you should open an llc or any sort,of legal entity,for an e-commerce business this could be,a drop shipping store,it could be non-drop shipping on shopify,wix amazon literally any sort of online,business,and it could be even like a service a,software whatever here's my philosophy,when you're starting okay your first,business,this is very different if you already,have a successful company and you're,starting something else that,relates to it and you're very confident,that you can get it off the ground,quickly okay,if you're started i don't think it makes,sense and by the way this is all in my,opinion,consult professional advice this is just,my opinion okay based on my experience,you can run a business as a sole prop,right a sole proprietor everything can,be under you personally,you don't even need a dba which means,doing business ads technically,everything can be under you,personally tied to your social security,obviously this is not,ideal when you have a legitimate company,because if there's a lawsuit for an,example they can come after your,personal assets,now you might be like oh well i'm 19 or,i'm 34 i'm just starting a business i,don't have anything,okay well you know that's not really the,point the point is to protect yourself,long term,but there's also many tax advantages to,different legal structures,that's not exactly what i'm here to talk,about today but here's my philosophy,starting for an example in llc a limited,liability corporation,it's the easiest thing to do but it,takes two things okay,a couple hundred bucks depending on,where you are and this is for people in,the us,by the way a couple hundred bucks and it,takes your time,you have to think about it you have to,set it up you have to apply for it,you're gonna have to pick at least three,names in case one isn't available,you have to do all these things and i,don't think in my opinion it makes sense,to do that,until you have an e-commerce business,that is making consistent sales,and here's why on this channel we talk a,lot about little tips on facebook ads,how to optimize your website how to find,the right products a lot of stupid,mistakes that i've made over the years,but all those things ultimately lead,into your experience,and with e-commerce it might not be your,first store that is your winner,it might not be the first product and in,fact e-commerce might not even be the,thing for you and that's not a bad thing,a lot of people try it and for whatever,reason it's not for them or they don't,want to stick with it,you know i really push to make sure that,everybody watches the content here,sticks with it because it does work and,it's no more difficult than anything,else so,you know people tend to jump around,looking for the easy thing but there is,no easy thing so stick with one thing,but you shouldn't do that llc thing and,open up even if it's you know an llc,filing as an s,corp which is some of my corporations,and how we structure the tax filings,you shouldn't do that until something's,established and you're confident that,you're going to be doing this,long term now this could be a 30-day,period because in 30 days you could have,10 sales a day coming in you're like,okay this is starting to work a couple,dollars is coming in let's uh let's take,some of that first profit and just open,an llc,and then you can use that llc for,anything in the future that is just my,recommendation to you,i would love to open up the comment,section right now any questions you have,about e-commerce,i try to usually stay away from the tax,and business formation side of things,just because that's you know it can get,me into some legal troubles that's why i,say this is all an opinion,but uh you know it's just it's it's,different for every situation it's,different based on where you live,it's different based on the the income,that your business is producing but,again i would just recommend going slow,making sure it's something that's gonna,work long term,and then you can easily just pay a,business attorney or a cpa,a hundred dollars like 75 dollars for an,hour of their time,and you just ask every question that you,have that's what i did okay,so and just to give you a point of,reference i don't really like talk,numbers unless it's a learning,experience i always try to make that,very clear,um for me just from a learning,experience perspective here i didn't,talk to a cpa and pay for,like i think it was a hundred dollars,for an hour of someone's time,i was already doing like 25 000 a month,so like there was money coming in and i,wanted to then figure out how to,structure it i knew it was coming in,consistently,and it was growing every single month so,that's why i went ahead and you know,just,sat down with someone for an hour and is,only 100 bucks so,that's my advice to you um one thing you,can do right now if you're new to the,ecommerce space i would highly recommend,you check out,our eight-step checklist it's absolutely,free no gimmicks no games,you can check it out link down below as,well as if you're ready to fully dive in,and you really want to get an e-commerce,business working,you can go ahead and check out our,facebook ad program we're not talking,about google,we're not talking about and showing live,how to build a shopify store and all,that stuff this is just facebook ads,it is the single most crucial component,to an e-commerce,business that wants to market through,facebook this is you know 100 of the,marketing we talk about ad copy we talk,about finding products,we go through the entire scope of,facebook which is directly how,personally i've been able to generate,tens of millions of dollars in sales,and now we do the same thing as well for,our clients inside of our advertising,agency e-com season,so a lot of cool stuff inside there you,can check out a bunch of other resources,linked in the description i hope you,enjoyed this video hope it gave you a,quick snippet of what to do in terms of,the llc,and legal tax side of things when you're,just getting started now obviously if,you're an established business,just jump right into that route of,consulting with someone who can give you,some advice and hopefully point you in,the right direction,all right hope this video found you well,again hope you have a great day be sure,to reference some of those resources in,the description,especially that checklist that's brand,new super cool just a simple pdf you can,check out all right,drop a like down below and i'll be,seeing you in the next video peace

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