I'm in Hawaii! Should I use an LLC?

Mark Kohler advises a Hawaii viewer on structuring a mobile auto repair business. Start as an LLC, then convert to an S corp once you're making $30-40k net income. Get your operating agreement, EIN, and corporate book in place from the start.
Chapters
All right, where do I start to set up my mobile auto repair business in Hawaii? An llc. Mark David Foster. Mark, I love it, and my heart goes out to all of you in Hawaii some. You think maybe I'm being funny. I'm not. Hawaii was beat up with the Airbnb law passed two years ago. A lot of people are renting out. Their homes got shut down by the state. Extra income was taken off the table for them. It's brutal. And then Covid hit Hawaii harder than almost any state in the country. Tough. The unemployment rate is off the chart. Tourism went through the floor. It's been terrible. So my heart goes out to Mark David and anybody else in Hawaii that's watching right now. God bless you. We just hope everybody gets traveling to Hawaii soon, which they're going to be happy to do. All right. Spend lots of money when they come. So Mark David in Hawaii is going to set up a mobile auto repair business. I love that. I've heard of mobile detailing, mobile oil changes, but mobile auto repair, that's pretty cool. I haven't heard of that. So Mark David's going to show up, put your car on blocks in your front yard and work on it. Now, you might fit right in in Arkansas, but I. I don't know, in Hawaii, maybe in Waimanalo or somewhere like that, you can get away with that. Okay. Anyway, so he's going to go put someone's car up on blocks and work on it. Mark, you're going to start with an llc. It's operational. And then you're going to convert to an S corp. When you're making more money. We have a paralegal setup for 450 bucks. Done. You could also try to go online and do it. But. But remember, you got to get all the pieces and parts. It's not just filing one piece of paper. You got to get operating agreement minutes, a corporate book, tax ID number, membership certificates. Get everything involved. If you go to LegalZoom, you're still going to spend around $450 because you're going to check all the boxes you're supposed to. So if you need help, give us a call. If you want an hour with an attorney, we charge 800 bucks. So you can go to the state. You could go to an online service. You could go to us. Just make sure you get all the pieces and parts. But I'd start with an LLC. And when you start to make 30 to $40,000 or more net, so you're bringing home three grand a month, you're going to convert to an S Corp right away.
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