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legal protection and the flexibility to switch entity types - there are many other benefits, you can see my video here for more information th-cam.com/video/supr7VYaZcA/w-d-xo.htmlsi=GQRkbrFCHE-IwYCm

we cannot advise on the legality, but they should know better and should have deducted it, it is the obligation of the taxpayer not the employer to pay the taxes, so, in other words, you should have checked into that before accepting the job. I know that is not the best-sounding answer, but that is correct.

My pleasure!

Who said that ? What ls your source?

Our pleasure!

Thank you :)

still wet behind the ears lol

You bet!

You can probably leave the state domicile, look into the state of NY to see how to formally leave the domicile and take it from there.

This is part 3 or 3, you should see the previous videos in this series.

exactly, I am glad to have helped you in a more secure financial future. Thank you for your interaction. Please let me know how I can help you further. Best regards, Greg

You got it !!

This question is beyond the scope of an informational YT video. I would advise seeking out a paid tax professional with multi-state experience. I would also look at tax court cases for a similar situation and see how the courts have ruled in CA. You are certainly not the first one to move the way you did. I apologize if I cannot further guide you, as we are prohibited from rendering formal tax advice to an individual we have not formally engaged within a professional setting. We may be sued for malpractice if we render advice without being in the thick of it. I hope our video and my response give you a better direction. You are on the right track :) Please let me know if I can be of further use to you. Sincerely, Greg Freyman

We greatly appreciate you, and will contimnue to bring fresh new content for our beloved viewers! Your success is our success.

Glad you enjoyed it, thank you :)

Always a pleasure! Thank you for watching and subscribing. We greatly appreciate you.

one needs to look at all the taxes to make such a choice, some states have no taxes but the overall tax cost is greater than a state with income tax. Yes you are correct, thre are many taxes that can come into play in our txa world, those are some examples you are correct, here we discuss income tax as that tends to have the most impact and that is what get people the most, hope that helps :)

Hey there, this is not a straight forward answer as you are asking about your business, and that is certainly more complex than personal taxes, which is what this video is about. If for the franchise tax of $800 you are going to need to pay that as long as you have the CA entity, whether or not you pay business taxes or personal taxes is an entirely different question. Hope that helps, and sorry it took so long to get back to you.

Lol he is the star of the show! You are certainly in the right place for accounting.

Tax samurai warrior yes! :)

This is a great question. It is hard to say what will trigger an IRS audit; no one knows. We know for certain that some situations do, but it is hard to say with the salary audit. We know from reading other court cases that when the IRS reclassifies the distributions to salary, they typically have not exceeded the social security cap, so that is a very safe amount to take as a salary. I would recommend you point the client to the reasonable compensation reports and take it off your plate, it is not your salary to help set, and then you end up involved with determining a salary for them. I hope this helps.

Thank you for your interest in our content. You can forward your questions to info@taxproff.com, we can see how to best help you with your tax questions.

Thank you very much, I use Canva to design the template, and I have some folks here and there that help with the graphics. Our mission is to educate people and help people with taxation, as it is highly complex. If we are lucky, our videos also look entertaining and pleasant to the eye.

Hello, and sorry for such a late response time, I am not clear on the question, and unfortunately, if we are not engaged formally we are not allowed to render specific tax advice as we may lead you down the wrong path without knowing everything in detail, I may be doing you a disservice and it may cause you tax problems. If you can clarify your question I can see how to help steer you to the right answer unofficially.

Glad it was helpful!

Hi Alexandra, you pose an excellent question. Unfortunately your question is out of the scope of this informational video. This video was created with the intention of informing the general public on multi-state tax issues and to create an overall awareness of potential tax consequences when “switching” states for tax purposes. If you would need further information on how exactly the law is applied to your specific situation, we strongly suggest that you seek out the help of a qualified tax professional that will help you navigate the complexities and prepare a correct tax filing. Thank you, Freyman CPA

Our insurance policy prohibits us from rendering advice without being fully engaged. Thank you for understanding.

DOMICILES are not 'part time' - as the person in the video says, you may only have 1 Domicile, despite residing in, well 50 States as such may be the case with RV'rs. If you establish your FULL Domicile in South Dakota for example, you only need to reside in the State for 24 Hours, however, you have to build that connection to the people, such as joining a Church congregation, establishing a charity foundation, registering vote as a S.D Citizen, let alone joining a Housing Association, and/or placing our main "Bank Account" preferrably a CREDIT UNION chartered only in South Dakota. Now, IF 100% of your "INCOME" passes through South Dakota, it is effectively property of the "State" aka State Identity as a S.D CItizen - you need to also establish your TRUSTS in South Dakota, which many many People do, and by Trusts, I am referring to your Commercial Trust such as D.B.A Name, LLC, etc, your Retirement Trust, Healthcare Trusts, Education Trusts, Land and Real Property Trusts. They are ALL designed to protect your Unearned Income, shielding it from Other States, and this is becoming a huge issue to other States, cause in South Dakota - according to our statutes, and regulations, the State does NOT allow a Foreign State or Territorial Govt (federal government) access to them. South Dakota also does not have an Income Tax, it has a Direct State Sales Tax, which means, YOU as a domiciled S.D Citizen - do not owe sales tax to another State, so if you did pay sales tax in another state, you could end up with a "Tax Credit or Refund" inside S.D. All you statutory forced to pay is a 4.5% Sales Tax plus up to 2.0% Sales Tax in the City you reside within S.D in, so if you travel outside of S.D - you lawfully do NOT owe another States sales tax, you could, if you know how to do so, 'exempt' yourself from another States sales tax at the time of purchase. In South Dakota - the Sales Tax is defined as being DUE at the time you deliver the merchandise to your "Domiciled Residence" - not the store front itself. Although, if you shop and do business inside the State, the Retailers are collecting the tax up front, but in reality, the "Tax' is NOT due until you actually deliver the merchandise to your home. What South Dakota has done, is create RULES, if the Retailer has been contracted by the State, meaning a Sales Tax # - it legally has to collect the tax from you up front, however, IF you are purchasing items remotely, or by traveling to other States, and if the State can prove that those Businesses have generated revenues from you or other fellow Citizens, earning $100,000 a year, then those foreign businesses have to collect the tax from you up front. However, YOU are the one who actually owes S.D Sales Tax as a domiciled resident. Regardless of where you buy food, clothing, merchandise, services, the 'goods and services' are to be presumed, delivered to your "Front Door" or your Domicile Residence. So, it now comes very important, where you 'pass that income" through, if you wish to avoid Sales Tax let alone Income Taxes in other States, so long as South Dakota can show evidence, that your INCOME has been shielded inside South Dakota, by means of Banking, or other forms of TRUSTS, South Dakota will actually go to bat for you, and sue the other State over a Controversy or Dispute between States or Group of States. This is what is the majority of the argument today, over S.D Trusts... Americans are actually domiciling themselves in South Dakota thanks to our Trust Laws. The South Dakota Legislative Research Council has a very interestign research paper it published that you may want to read: mylrc.sdlegislature.gov/api/Documents/Issue%20Memo/207378.pdf South Dakota is fast becoming a huge "Domicile State" for not only RV'rs, but for many wealthy Americans wanting to shield their incomes from foreign states and territories.

Our insurance policy prohibits our firm from rendering tax advice without a formal engagement. Thank you for understanding.

It's on Balance Sheet...

This is beyond the scope of this video - we recommend to seek out and engage a tax professional.

@@FreymanCPA thanks lol

Thank you for your feedback!

You are quite welcome. You would need to go back and review the financials or reconstruct it. Capital contributions are funds contributed personally by the owners. Many owners contribute funds into the business and inaccurately call it a loan. A true loan would be treated no different from a bonafide business loan with any other third party lender such as a bank or other financial institution. If there were such instances you can count those contributions as capital contributions too. This is not formal advice and we would need to get into more details to fully assist in the right capacity but that is the idea.

Your comments mean so much to us, thank you so very much.

I noticed lol

So sorry we are a small firm with limited capacity for replies to our videos. Unfortunately we are prohibited from rendering advice without being formally engaged as we may be sued for rendering wrong advice without seeing everything. If you are a viewer, you will understand that tax law is highly complex and what may seem to be the right answer for one, may not seem to be the right answer for another. To address your question, ratably means evenly paid over the course of the year. You need to run a payroll for the entire year to avoid exactly your situation from my understanding. When withholding is made via payroll, it is not calculated on the personal return as if it was paid at a specific point of time, it is considered paid evenly over the course of the year, hence, you would avoid penalties by doing so.

You should probably watch the entire video to see the comparisons. All our content is presented by top experts in the nation on tax matters.

Excellent question, I do not see a publication 503 for 2021 on the IRS website just yet, I will reach out to our continuing education resource to see if they have an answer for you. www.irs.gov/forms-pubs/about-publication-503

Our pleasure!