1 00:00:00,000 --> 00:00:04,660 Hey friend, listen, if you formed an LLC recently and you think that's 2 00:00:04,661 --> 00:00:09,180 all it takes to maintain that limited liability and to really be a 3 00:00:09,181 --> 00:00:12,220 boss and have your LLC in order to guess what? 4 00:00:12,780 --> 00:00:15,580 Hey, it's a break into you, but there are a few more steps that 5 00:00:15,581 --> 00:00:17,860 you need to take to maintain your LLC, 6 00:00:18,380 --> 00:00:21,840 but have no fear. I am going to break all of that down in 7 00:00:21,841 --> 00:00:24,340 this video, so let's jump right in. 8 00:00:24,341 --> 00:00:27,540 Now, if you're new to the channel, my name is Temi Siyanbade. 9 00:00:27,541 --> 00:00:30,040 I'm a huge sub-based attorney in the host of Ask Tami Live. 10 00:00:30,400 --> 00:00:33,260 But we discuss the best ways to establish your business, protect your name and 11 00:00:33,261 --> 00:00:36,040 keep your own profits. And today's question of the day is, 12 00:00:36,280 --> 00:00:39,120 how do I maintain my limited liability company? 13 00:00:39,740 --> 00:00:42,540 Essentially, what you're asking is, how do I maintain my limited liability? 14 00:00:42,660 --> 00:00:46,440 How do I stay protected? Because isn't that the point of getting the LLC 15 00:00:46,441 --> 00:00:50,100 in the first place? It's to take advantage of certain tax benefits. 16 00:00:50,400 --> 00:00:53,340 It's to make sure that you are protected from a legal standpoint, 17 00:00:53,780 --> 00:00:58,480 right? Guess what? That protection will fly away from you if you 18 00:00:58,481 --> 00:01:00,820 don't maintain your LLC the right way. 19 00:01:01,360 --> 00:01:04,280 So let's talk about it. First thing I want to talk about are what 20 00:01:04,281 --> 00:01:07,920 are some of the potential things that could happen if you don't protect or 21 00:01:07,921 --> 00:01:11,860 maintain your LLC? Well if you enter into some type of, 22 00:01:12,000 --> 00:01:15,120 let's I'll give you a couple of scenarios. Things that I've seen. 23 00:01:16,000 --> 00:01:20,160 I've had individuals who want to file a trademark application and then we'll be 24 00:01:20,161 --> 00:01:23,100 wanting to file that mark application in the name of the business. 25 00:01:23,540 --> 00:01:26,000 But then when we do the research we find out that hey your business 26 00:01:26,001 --> 00:01:30,820 is not actually formed. What does that mean that means if they continue with 27 00:01:30,821 --> 00:01:35,360 forming that trademark or registering that trademark with an LLC that 28 00:01:35,361 --> 00:01:40,360 is out of status, that's going to finally avoid that trademark application 29 00:01:40,361 --> 00:01:44,060 because it wasn't a legitimate business that submitted the application. 30 00:01:44,500 --> 00:01:46,800 That's one area where if we see this come to play. 31 00:01:47,060 --> 00:01:50,960 Another area that this comes into place, let's say you are doing business in 32 00:01:50,961 --> 00:01:54,160 a particular state and something happens and you want to sue somebody. 33 00:01:54,600 --> 00:01:58,260 And you're getting ready to go to the court and file this lawsuit from 34 00:01:58,261 --> 00:02:01,780 your business perspective. But then you get there and you find out that your 35 00:02:01,781 --> 00:02:03,820 LLC is not an existence. Yes, 36 00:02:03,821 --> 00:02:06,540 what? You're going to run into issues because again, 37 00:02:06,900 --> 00:02:09,020 you are out of status, right? 38 00:02:09,021 --> 00:02:12,420 So you need to make sure you maintain your LLC. 39 00:02:12,900 --> 00:02:16,220 I mean, this is a huge thing. And then when you don't maintain your 40 00:02:16,221 --> 00:02:19,900 LLC open up, opening yourself up to a discourse. 41 00:02:20,440 --> 00:02:22,940 So those are some of the major things that I want you to keep 42 00:02:22,941 --> 00:02:26,560 in mind when we're talking about why you should even care about it. 43 00:02:26,900 --> 00:02:28,700 All right, so what do you need to do now that you know that 44 00:02:28,701 --> 00:02:31,200 I don't want to lose that? All right, 45 00:02:31,220 --> 00:02:33,160 so the first thing you need to do is you need to make sure 46 00:02:33,161 --> 00:02:35,880 that you maintain your annual report. What do I mean? 47 00:02:36,480 --> 00:02:39,680 In every state where LLCs are allowed, which is an office state, 48 00:02:40,000 --> 00:02:44,940 you require you to do some for an organization that annual report 49 00:02:44,941 --> 00:02:49,020 is you basically let it know, hey, this is the updated information about the 50 00:02:49,021 --> 00:02:52,380 owners or the managers. This is how much we made, 51 00:02:52,820 --> 00:02:55,980 this is our registered agent information, things like that. 52 00:02:56,200 --> 00:02:59,180 If there are any changes, they want to know. Because part of the reason 53 00:02:59,181 --> 00:03:02,400 why you have an LLC registered is so that people can have access in 54 00:03:02,401 --> 00:03:06,180 terms of if there were some type of lawsuit and so if something happens, 55 00:03:06,460 --> 00:03:11,040 they need to notice information. Now, different states also may have a fee 56 00:03:11,041 --> 00:03:15,820 that's associated with it, so states like California has an annual $800 57 00:03:15,821 --> 00:03:19,340 fee, but you just gotta pay. Delaware has a similar fee, 58 00:03:19,440 --> 00:03:22,900 but it's not as expensive. California is very much similar to high-end. 59 00:03:23,600 --> 00:03:27,620 Texas does not have an annual fee that you need to pay unless you 60 00:03:27,621 --> 00:03:30,180 make a certain amount to each year. 61 00:03:30,220 --> 00:03:32,900 So if you, it's closer to $2 million at this point, 62 00:03:33,000 --> 00:03:35,680 so if you're making around $2 million in terms gross revenue, 63 00:03:36,080 --> 00:03:38,920 then you're going to be responsible for what they call a franchise text. 64 00:03:39,380 --> 00:03:42,280 I know the name is very deceitful because you hear franchising, 65 00:03:42,440 --> 00:03:44,700 you think, oh, this is just where people are franchises, 66 00:03:44,980 --> 00:03:48,200 but no, in the state of Texas, it's for LL season as well, 67 00:03:48,540 --> 00:03:52,340 it's if it's dependent upon how much your annual revenue is, 68 00:03:52,500 --> 00:03:56,720 okay? So you, again, have to make sure you are doing the annual reporting 69 00:03:56,721 --> 00:03:59,000 and any associated feeds. 70 00:03:59,820 --> 00:04:03,180 Okay? Now the second thing that you want to do in order to maintain 71 00:04:03,181 --> 00:04:05,500 your limited liability statics, 72 00:04:05,760 --> 00:04:08,300 right, that comes with your liability company, 73 00:04:08,700 --> 00:04:11,320 is you want to keep your documentation separate. 74 00:04:11,620 --> 00:04:13,800 If you've watched my videos on LLCs in the past, 75 00:04:14,000 --> 00:04:18,200 you probably heard me say this like 1 million. And it's still the same. 76 00:04:18,920 --> 00:04:21,320 Keep your personal asset separate from your business. 77 00:04:21,960 --> 00:04:25,060 Okay, right? So separate bank accounts, 78 00:04:25,660 --> 00:04:27,740 right? It's a contract. It's keep it cool. 79 00:04:28,020 --> 00:04:29,880 It's going to help you too. It's going help you with some time for 80 00:04:29,881 --> 00:04:32,740 taxes. It's going to help you in terms of just keeping yourself organized, 81 00:04:33,400 --> 00:04:35,460 keep them separate. All right, 82 00:04:36,000 --> 00:04:38,500 so that's the second thing that you want to make sure you do. 83 00:04:38,860 --> 00:04:41,700 The third thing that you want to do and this one nobody talks about 84 00:04:41,701 --> 00:04:44,080 is you want to keep your LLC funded. Now, 85 00:04:44,100 --> 00:04:47,480 we know that as you're starting your business, you might not have any income, 86 00:04:47,760 --> 00:04:50,460 you're just getting started, you might even be operating at a bit of a 87 00:04:50,461 --> 00:04:53,460 loss when you're just getting started, and that's understandable and it's okay. 88 00:04:53,860 --> 00:04:56,700 But then there comes a certain point where it's like, if you're engaging in 89 00:04:56,701 --> 00:05:01,580 certain types of contracts or in certain types of behavior has a business that 90 00:05:01,581 --> 00:05:05,740 basically sounds like you've got a lot of money and this sounds very vague 91 00:05:05,741 --> 00:05:09,380 what I'm trying to say. But essentially what I'm trying to articulate is you 92 00:05:09,381 --> 00:05:12,100 need to make sure that you're thinking about ways of keeping your LLC funded. 93 00:05:12,600 --> 00:05:14,620 One thing that I see people do is you know you have your LLC 94 00:05:14,621 --> 00:05:17,640 and you generate your income but then you take all that money out you 95 00:05:17,641 --> 00:05:20,940 put in your personal business or in your personal account and I mean that 96 00:05:20,941 --> 00:05:23,020 you get to keep your profits for sure. 97 00:05:23,260 --> 00:05:27,840 But in terms of responsible LLC maintenance there should 98 00:05:27,841 --> 00:05:32,360 be money in the LLC That is, at least enough to maintain all 99 00:05:32,361 --> 00:05:35,640 of the ongoing fees associated with your LLCs. 100 00:05:35,760 --> 00:05:38,040 So you want to make sure you're keeping it funded. 101 00:05:38,740 --> 00:05:41,660 Now again, these three steps that I spoke about are critical. 102 00:05:42,000 --> 00:05:43,740 There are a couple of other things that you can do in terms of 103 00:05:43,741 --> 00:05:47,460 just limited liability protection. Like signing your documents appropriately. 104 00:05:47,940 --> 00:05:50,100 What do I mean? I mean, if you're entering into a contract, 105 00:05:50,220 --> 00:05:52,600 don't enter into the contract as a person as yourself. 106 00:05:53,400 --> 00:05:56,340 Enter into the contract in your professional role for the business. 107 00:05:56,341 --> 00:05:59,800 So I'm not going to sign any least agreements to say Tamishia about it. 108 00:05:59,801 --> 00:06:02,880 I'm going to say this agreements are for the law office of Tamishia about 109 00:06:02,881 --> 00:06:05,720 it and it's signed by Tamishia about a managing member. 110 00:06:05,920 --> 00:06:10,000 Do you know what I'm saying? So like signing your document on behalf of 111 00:06:10,001 --> 00:06:14,680 the organization and putting on your specific cap as it pertains 112 00:06:14,681 --> 00:06:18,540 to your role in the LLC. Those are the things that you do that 113 00:06:18,541 --> 00:06:20,700 maintain that separation say, hey, 114 00:06:20,940 --> 00:06:24,800 I'm serious about my business. Okay? You really want to make sure you do 115 00:06:24,801 --> 00:06:27,100 that. Now, if you're hearing all of this, 116 00:06:27,120 --> 00:06:29,820 you're like, oh my gosh, I've never done that. 117 00:06:30,180 --> 00:06:33,080 What is Temi talking about? I formed an LLC about 20 years ago, 118 00:06:33,340 --> 00:06:35,780 and I've never submitted a document. 119 00:06:36,640 --> 00:06:41,380 Okay, let me tell you, your LLC probably doesn't exist anymore, 120 00:06:41,381 --> 00:06:43,500 and if you're operating and doing business with it, 121 00:06:43,820 --> 00:06:46,380 you're really playing around your big, 122 00:06:46,381 --> 00:06:50,860 pretty risky. But I also want to encourage you that you can reinstate your 123 00:06:50,861 --> 00:06:54,920 LLC. What does that mean? That means you can go back and re-submit filings 124 00:06:54,921 --> 00:06:57,880 and catch up with your late fees and do whatever it is that you 125 00:06:57,881 --> 00:07:00,620 need to do that you didn't do in most states. So they will allow 126 00:07:00,621 --> 00:07:03,820 you to submit documentation and says, okay, I haven't filed in the past three 127 00:07:03,821 --> 00:07:07,020 years. Here are my late fees and they don't need to be super significant, 128 00:07:07,560 --> 00:07:10,460 they're very from state to state. But you pay up the late fees if 129 00:07:10,461 --> 00:07:14,200 their taxes do, you pay the taxes and then you receive some communication that 130 00:07:14,201 --> 00:07:16,860 comes from the Secretary of State, you fill out whatever forms you need to 131 00:07:16,861 --> 00:07:20,040 fill out there, you also need to fill out some forms with your Comptroller's 132 00:07:20,041 --> 00:07:24,100 office and we submit the forms through the respective parties and they they don't 133 00:07:24,101 --> 00:07:27,080 always communicate with each other so that's why there's all this back and forth 134 00:07:27,081 --> 00:07:30,540 but essentially by the time you receive the information and submit it to the 135 00:07:30,541 --> 00:07:32,440 right person in this group and that group and I have all the groups 136 00:07:32,441 --> 00:07:35,760 that get all their paperwork and all that stuff they will reinstate your LLC 137 00:07:35,761 --> 00:07:39,160 and you'll be able to move forward. Why might people do this? 138 00:07:39,700 --> 00:07:42,340 Here's where I see it come up often where people are like you know 139 00:07:42,341 --> 00:07:45,120 I'm going to reinstate my LLC. Maybe you're trying to get some type of 140 00:07:45,121 --> 00:07:48,000 loan approval and you don't want to start a fresh because you want to 141 00:07:48,001 --> 00:07:50,360 have the longevity of your business behind you. 142 00:07:50,620 --> 00:07:52,840 Right? If you start a French, you might not be able to qualify for 143 00:07:52,841 --> 00:07:55,360 certain loans or for certain types of credit. 144 00:07:55,800 --> 00:07:58,800 And so to have the longevity of the time that you've had in the 145 00:07:58,801 --> 00:08:01,440 past, you may want to reinstate your LLC. 146 00:08:01,960 --> 00:08:03,940 All right, so that's where I see it come up. It's when people are 147 00:08:03,941 --> 00:08:06,740 up for opportunities where longevity matters a lot. 148 00:08:07,440 --> 00:08:10,320 And that's in a lot of instances. All right, 149 00:08:10,480 --> 00:08:13,960 now I hope that this didn't scare you. I hope that this helped you, 150 00:08:14,180 --> 00:08:16,780 and you're like, okay, now I know what I need to do. 151 00:08:16,781 --> 00:08:19,380 like do not play games with maintaining your LLC. 152 00:08:20,080 --> 00:08:22,140 It's critical, it's critical, it's critical. 153 00:08:22,880 --> 00:08:25,280 Now, if this video has been helpful to you, 154 00:08:25,440 --> 00:08:28,140 you might want more information. You might be asking, 155 00:08:28,540 --> 00:08:30,800 hey, Timmy, how can I stay connected with you? 156 00:08:31,020 --> 00:08:33,480 Download our level up your business checklist. 157 00:08:33,840 --> 00:08:36,440 It's a great checklist that tells you exactly what we do for our businesses 158 00:08:36,441 --> 00:08:39,960 and how we help them to make sure that they are protected and established. 159 00:08:40,400 --> 00:08:42,420 Essentially, we want to help you protect what you create. 160 00:08:42,520 --> 00:08:46,080 And that's what the checklist talks about. And when you sign up for that 161 00:08:46,081 --> 00:08:50,640 checklist, When you download that checklist, you will also receive an exclusive bonus invitation 162 00:08:50,641 --> 00:08:54,760 to our new private community where we have a growing resource hub. 163 00:08:54,960 --> 00:08:57,440 You have access to free courses that I've made. 164 00:08:57,580 --> 00:09:02,180 You have access to articles that I've made and you have access to videos. 165 00:09:02,360 --> 00:09:05,420 You have access to a whole lot of stuff in this resource hub and 166 00:09:05,421 --> 00:09:08,760 it's all available to you for free. If you download the checklist, 167 00:09:09,220 --> 00:09:12,280 so go ahead and do that. Now before we go, 168 00:09:12,320 --> 00:09:14,720 I'm going to ask you in the comment section below. 169 00:09:14,721 --> 00:09:17,740 Let me know, let's be honest, let's be honest out here. 170 00:09:18,040 --> 00:09:22,180 How many of you struggle with keeping up with maintaining your LLC? 171 00:09:22,700 --> 00:09:25,980 And what are one or two things you think you can do to improve 172 00:09:25,981 --> 00:09:28,020 that? We have some things that we do for our clients, 173 00:09:28,240 --> 00:09:31,460 essentially, we do it for them. And that's one thing that you can look 174 00:09:31,461 --> 00:09:34,300 into. But what are the things that you have found that have helped you 175 00:09:34,301 --> 00:09:38,080 to maintain your LLC or what were the things that kind of caused you 176 00:09:38,081 --> 00:09:40,100 to mess up? We want to hear it. All right, 177 00:09:40,160 --> 00:09:42,520 that's all I have for you today. Talk to you soon. 178 00:09:42,640 --> 00:09:42,820 Bye.