Why & How to Convert Sole Proprietorship to LLC (Attorney Explains) [Video]

In this simple tutorial, I cover: (i) why change from a Sole Proprietor to LLC, (ii) how to convert a Sole Proprietorship into an LLC, and (iii) what you should know when comparing a Sole Proprietor vs LLC. Transitioning from a sole proprietorship to an LLC doesn’t have to be difficult, and I take you through the process in a simple step-by-step manner.

I try to address questions I think you might have about changing a sole proprietorship to an LLC, but if you have any additional questions, please leave them in the comments section!

✅ Go Here to Confirm LLC Name Availability: https://bit.ly/Name-Search

✅ Go Here for a Registered Agent service (with no price increases): https://bit.ly/Registered-Agent

✅ Go Here for a Virtual Office (least expensive – mail accessible online): https://bit.ly/LLC-Office

✅ Go Here to Determine Best State for Your LLC: https://youtu.be/Qag9vlnp348

✅ Go Here to Set Up a WY LLC: https://youtu.be/NUezXXe7nwI

✅ Go Here for Videos to Set Up LLC in Other States: https://www.youtube.com/@cjlawvideos/videos
If your state is not covered, note that you can use any video as the principles are generally the same.

✅ Go Here for the following Legal Templates referenced in the video: LLC Operating Agreement, Sole Proprietor to LLC Contribution Agreement (coming soon if not there), Assignment & Assumption of Contracts (coming soon if not there), and the LLC Next Steps Guide: https://bit.ly/Legal-Templates

✅ Go Here for Video on How to Obtain an EIN on Your Own: https://youtu.be/sEJnB0nfHrA

Chapters:
00:00 Intro: How to Change Sole Proprietorship to LLC
00:40 Why Switch from Sole Proprietor to an LLC?
00:50 Sole Proprietor vs LLC (Limited Liability Protection)
02:22 LLC vs Sole Proprietor (Tax Differences)
04:09 Sole Proprietorship vs LLC (Credibility)
04:31 LLC vs Sole Proprietorship (Growing Your Business)
05:05 Sole Proprietorship vs LLC (Longevity of Business)
06:08 Summary: How to Convert from Sole Proprietor to LLC
07:21 Pre-LLC Formation Steps (Sole Proprietorship to LLC)
14:25 LLC Formation Steps (Sole Proprietor to LLC)
19:01 Next Steps after Forming LLC

*Next Steps After Forming an LLC:*

1. For my video on Steps to Take After You Create Your LLC, go here: https://youtu.be/QvFuTI3CdbQ

2. For a Virtual Office (where you can have meetings), go here: https://bit.ly/AllianceVirtualOffices

3. For a Registered Agent Service (with no price increases), go here: https://bit.ly/Registered-Agent

4. To Qualify Your LLC to Do Business in Another State, go here: https://bit.ly/Foreign-Qualification

*LLC Operating Agreement Options:*

1. Basic Free Version (included in Standard & Premium Packages using LLC Formation Links above)

2. Better Free Version, go here: https://youtu.be/-7NH95aM2YQ

3. *The Best Quality Template:* (from related company of mine): https://bit.ly/Legal-Templates

4. For DIYers, here’s my video on what should be included in your Operating Agreement: https://youtu.be/Siw3Gr1y118

*LLC Management & Operations:*

1. For video on Manager-Managed vs Member-Managed LLC, go here: https://youtu.be/EKN-InxE2QQ

2. For *Comprehensive “Next Steps Guide”* (covers next steps, how to avoid piercing the LLC veil & operation issues), go here: https://bit.ly/Legal-Templates

3. To have Bizee file your annual reports (and/or remind you of same), go here: https://bit.ly/annual-report-service

4. For video on How to File your LLC BOI Report, go here: https://youtu.be/IxfSmVARHp8

If you are in California or doing business in CA and prefer to hire an attorney, feel free to reach out to me at: https://www.chrisjacksonlaw.com

Thank you!
Best regards,
Chris Jackson
@cjlawvideos

*Bio:*
I have over 25 years of experience as a California-licensed business attorney. I’m also an entrepreneur who has owned, managed and sold at a significant profit multiple franchise coffee houses. In addition, I have finance and operational experience in several companies, including as a Chief Operating Officer (COO) and General Counsel of a group of companies.

*Legal Disclaimer:*
NOTE that nothing in this video is intended to create an attorney-client relationship. This video, the description above, my answers to questions, and my channel are for general information and entertainment purposes only and should not be construed or relied upon as legal or tax advice (generally or specifically). You should not act or rely on any of the information contained herein. For legal or tax advice, I encourage you to get such advice from an attorney and/or CPA authorized to practice in the applicable state.

*Affiliate Notice:*
Some of the links in the description, video and/or comments may be affiliate links whereby if you select such links and purchase something, my LLC may earn a commission *(at no extra cost to you)*. Note that I only recommend companies or services I use myself, and any commissions received by my LLC support my channel, and for that I thank you – it is much appreciated!