I am thinking of going S Corp. I am a LLC right now. But after watching this. You told me just what my lawyer told me. Thank you for your advice. I will continue watching your videos. Very educational.
Excellently broken-down! Thanks for making this so much easier to understand. It's also good to know you can start as an LLC and then move to an S-Corp with the right forms. I'm just starting this self-employed journey, so I hope an S-Corp will make sense in the not too distant future!
Yess! Watched this 2X with my 18 y/o and shared with family and friends. So well-organized, well-presented & easily digestible info - Darn great job y’all! 2021 is ours 🙏🏾❤️ 🙏🏽
Could you guys make a video one day about how to switch from an LLC to "elected to be taxed as an S-Corp" ? That would be extremely helpful. (edit. Great video btw!)
Great video! I recently made the switch to S-Corp and there were definitely quite a few steps (plus some expenses) to getting things set up. I'm hopeful and optimistic it will be worth it, though, and wish I'd done it sooner. Thanks for all the great info!
Thank you for shedding some light on this topic. I now have a much better understanding of these two business structures. Keep up the good work and much success to you.
Great video! I’m classified as an S-corp- I don’t think you mentioned having to pay social security. I am required to pay $1600 quarterly, which seems like a lot but I’m told still saves money in the long run.
You are absolutely right! If I would have understood this concept when I first got started with my biz it would have saved me tens of thousands of dollars. Now, I'm aware and sharing it with my boss clients so that they don't make the same mistake. Great tips!!
I have be struggling to make a decision whether LLC or S-Corp for my hair salon business for a long time.... but after watching your video I have come to the conclusion that I’m going with an S-Corp
Remember that S corps are great if you are going to be making more than over 100k but I wouldn't stress over entity selection now, focus on business growht!
@@mr.vickterry it’s a pain in the ass trying to switch entity structure do it correctly from the beginning who goes into business not planning to make a lot of money s corp man just learn the rules for s corps & your good
Well done presentation. I would just offer you left out a critical piece about S-corps and qualified shareholders. Your list mentions US residents, but you forgot to mention that businesses (C-corp, S-corp-, partnerships) cannot be a shareholder in an S-corp, otherwise it automatically revokes the S status. Only US "individuals" and certain types of trusts can be shareholders in an S-corp. Very nice job mentioning the unreasonable compensation issue for S-corp owners. An often overlooked exposure area of taxes.
Great information! I didn't know about the Self Employment tax issues. I'm currently a sole proprietorship planning on switching status to LLC but since my company will just be starting I think I'll pass on the S-corp option unless my actual sales far exceed my projections
You can establish an LLC and still run as a sole prop if you really want to. When your self employment tax exceeds the tax burden of S Corp you can choose to convert your tax filing method to an S Corp.
OMG! THANK YOU! This video was clear, concise, and to the point! No filler and you provided me with the info I needed. My current tax person leaves me feeling confused. Can I hire you?
In my opinion by far hands-down the best explanation of the two differences so far I’ve seen on TH-cam. Thank you so much, do you have a video on the difference between an S corp & C corp ?
you said if you plan on reinvesting your money back into the business (what if you want to reinvest the money into something else like non profits or another business?) there may be another entity type that may suit me better and im just wondering what other one should I be looking up or if you have another video on that? .. ps your amazing god bless you girl
thanks for beautiful video, my question is, if you pay yourself 50k salary per year, you will save 50% of all taxes usually covers by employer, but what about all income tax and other 50% of social security, fico and others? it will deduct from 50k salary right? then no different between those two. if you have no salary then you pay 15% tax, but if you have salary, you pay 7.5% tax plus usual w-2 tax on your paycheck salary, am i right?
Need to clarify that there is a minimum S Corp tax or franchise tax. Of course there are thresholds for those taxes. Many small business can’t reach the thresholds but many do. Those do should already know their tax obligations👍💰✌️💪
No, thank you! From this page I've learning so much. Like the fact that I need to speak with my accountant, lol. As a sole proprietor that has just hired my 1st apprentice, I think I might need to change the entity.
Great content!! Buy nice or buy twice, get a good competent CPA, full stop. All these folks out here doing their own taxes yikes!!!! I subbed like 6 videos ago lol
Wait, but an S-corp is not a business entity. What i understand is that you set up an LLc entity and you can choose how you want to get taxed. Either like an Sole pro or an S-corp. Right?
I'm so glad I found your channel; I just subscribed. You do an excellent job clearly explaining the differences between an LLC VS. S Corp entity. Thank you so much!
So either way you need to have a LLC right? Just the difference is once you planning to do your taxes, you can either be tax as a LLC alone, or a LLC with S corp . Am I right?
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If you enjoyed this video, watch this next - How to Form an S Corp th-cam.com/video/_G16zXAwm08/w-d-xo.html
For those interested, go to 2:48 to avoid filler in the beginning.
She was incredible explaining all this stuff
Aww thank you, we work hard on our videos. Do you have an LLC or S Corp?
I’m thinking about starting a-Corp
S-corp *
Yes agree!
I am thinking of going S Corp.
I am a LLC right now. But after watching this.
You told me just what my lawyer told me. Thank you for your advice.
I will continue watching your videos. Very educational.
Glad I could help, hope you consider subscribing!
@nasty piglousy Yup
Excellently broken-down! Thanks for making this so much easier to understand. It's also good to know you can start as an LLC and then move to an S-Corp with the right forms. I'm just starting this self-employed journey, so I hope an S-Corp will make sense in the not too distant future!
The difference between an LLC and an S Corp. Thanks so much! You made it plain and that works for me! 🙏🏾
Yess! Watched this 2X with my 18 y/o and shared with family and friends.
So well-organized, well-presented & easily digestible info - Darn great job y’all! 2021 is ours 🙏🏾❤️ 🙏🏽
That makes my heart smile. Glad you enjoyed it!
Could you guys make a video one day about how to switch from an LLC to "elected to be taxed as an S-Corp" ? That would be extremely helpful. (edit. Great video btw!)
Great suggestion! Will add that to the queue for you.
@@LYFEAccounting Thank you! Ya'll are the best.
F
Has this video been made? If so, can you pin it. 💕
looking for the exact thing 😟
Hands down, probably one of the best explanations I've seen on TH-cam by far! Very well done, thank you!
I watched like 10 videos similar to this one. This was by far the best and easiest to understand. Thank you
i thought she was plain simple and gave me a good understanding between the two llc vs s corp
This was excellent! It helped clear up a ton of confusion and questions about which direction to go in. Thanks!
Great video! I recently made the switch to S-Corp and there were definitely quite a few steps (plus some expenses) to getting things set up. I'm hopeful and optimistic it will be worth it, though, and wish I'd done it sooner. Thanks for all the great info!
By far the best explanation i've heard on this topic. I like how at the end you zero in on the keys points
Thank you
This is the best video I've seen on the subject matter yet, keep up the amazing content!!
Two vids in and I'm in love 😂😂😂 hands down the BEST ❤
Valuable information that I thought I knew but mostly inadequate. Thnx again Crystal and Lyfe Accounting
Glad it was helpful!
Thank you for shedding some light on this topic. I now have a much better understanding of these two business structures. Keep up the good work and much success to you.
She’s knows her stuff! I can’t wait to get hired so I can practice this stuff
This was the most comprehensive explanation I’ve ever heard THANK YOU!!!
Great video! I’m classified as an S-corp- I don’t think you mentioned having to pay social security. I am required to pay $1600 quarterly, which seems like a lot but I’m told still saves money in the long run.
😮
This is by far the best video explaining LLC vs S Corp
This is by far is the best video on this topic made it so easy to understand
You are absolutely right! If I would have understood this concept when I first got started with my biz it would have saved me tens of thousands of dollars. Now, I'm aware and sharing it with my boss clients so that they don't make the same mistake. Great tips!!
You saved me so much money just watching this video! I will definitely recommend you on my channel!
Yay! Thank you!
This is valuable information. Thank you all for your time and efforts on this channel.
I need her as a cpa she explained so well
Best video I’ve discovered on tax type: sole proprietor versus s-corp!
Thanks for sharing!
Watched about 10 times! I learned so much! Thank you Crystal!
She’s the best right?
@@LYFEAccountingIt will be great if y’all can open up a accounting place in New York for us small business owners
finally someone gave a great explanation and looked great while doing it
Watch when to Switch from an LLC to S-Corp next: th-cam.com/video/nNW2jvGhcSQ/w-d-xo.html
@lyfeaccounting y’all really need to open up A accounting place in New York for us small business people
Help me setup art gallery
You just got a new subscriber. I must now say I have a better understanding as to what entity I must choose for my business.
I have be struggling to make a decision whether LLC or S-Corp for my hair salon business for a long time.... but after watching your video I have come to the conclusion that I’m going with an S-Corp
Remember that S corps are great if you are going to be making more than over 100k but I wouldn't stress over entity selection now, focus on business growht!
@@LYFEAccounting so starting an LLC it would be smart to just get that done first and then figure out the Entity down the road?
@@mr.vickterry it’s a pain in the ass trying to switch entity structure do it correctly from the beginning who goes into business not planning to make a lot of money s corp man just learn the rules for s corps & your good
I learned when I have to file for S-Corporation status. I understand better the self-employment taxes differences between an LLC and S-Corporation.
You videos are very clear and I like the way you give example and do the comparison.
Excellent.
Thank you pretty one. I enjoy it and understand well. I will be changing as soon as I get the paper from the state.
Great information, I had forgotten about the S Corp information.
Glad it was helpful!
So Glad that I came across your video, Im a visual learner and you made everything nice & clear to understand, Thank you Krystal!
You are so welcome!
Well done presentation. I would just offer you left out a critical piece about S-corps and qualified shareholders. Your list mentions US residents, but you forgot to mention that businesses (C-corp, S-corp-, partnerships) cannot be a shareholder in an S-corp, otherwise it automatically revokes the S status. Only US "individuals" and certain types of trusts can be shareholders in an S-corp.
Very nice job mentioning the unreasonable compensation issue for S-corp owners. An often overlooked exposure area of taxes.
Peace… Shalom… Salam... Namaste and Thank You for All that you are doing to Heal our Mother Earth 🙏🏻 😊 🌈 ✌ 🌷 ☮️❤️
Excellent breakdown. Very helpful in my decision making for my co
Great to hear! Thanks for watching.
wow I’m blown away on your delivery and presentation you guys get straight to the point the flow is excellent love it, Iron sharpens iron
This was a thorough and good explanation of the titles.
Wow! This video was extremely helpful! Thank you! ☺
Explination well done, thank you.
Thanks! Glad you got some value out of it.
This was excellent and clear. I think I need to watch it again to have it sink in! Thank you!!!
So glad you liked it. definitely take your time with it
@@LYFEAccounting thank you!! I also spoke with my accountant, and got clear on what I would get taxed on.
Wow...Great breakdown.
Glad you liked it!
Great information! I didn't know about the Self Employment tax issues. I'm currently a sole proprietorship planning on switching status to LLC but since my company will just be starting I think I'll pass on the S-corp option unless my actual sales far exceed my projections
🎯
You can establish an LLC and still run as a sole prop if you really want to. When your self employment tax exceeds the tax burden of S Corp you can choose to convert your tax filing method to an S Corp.
@@UNDERTHEHOODPODCAST so if your starting off S-corp will not be a good fit?
That was intense but I will watch it again. It was alot for me viewing for the first time. Very detailed !
Replay it as often as you need to
What entity is best for businesses who reinvest back into their business?
Great information Thank you, wish I had known this before doing an LLC.
You can convert your LLC at any time!
She finds a easy example and words to explain a little complex issues.
What happens to the distribution amount on the tax return?
OMG! THANK YOU! This video was clear, concise, and to the point! No filler and you provided me with the info I needed. My current tax person leaves me feeling confused. Can I hire you?
You're welcome! We're not accepting clients at the moment
Explanation of video was great!
In my opinion by far hands-down the best explanation of the two differences so far I’ve seen on TH-cam. Thank you so much, do you have a video on the difference between an S corp & C corp ?
Great stuff and well explained , straight to the point without any nonsense .
Love it !
Thank you, Edy!
Why would anyone want the double taxation? What is the benefit of going that route?
Thanks for the information keep uploading videos like this it’s good information for young entrepreneurs
USA permanent resident so which should choose between LLC and S.Corp ?
Thank you for such clarity! You're a gem!
Another fantastic video! So glad I found this channel!
So glad you are here :)
Great explanation. Thank you Krystal!
you said if you plan on reinvesting your money back into the business (what if you want to reinvest the money into something else like non profits or another business?) there may be another entity type that may suit me better and im just wondering what other one should I be looking up or if you have another video on that? .. ps your amazing god bless you girl
Thank you for your quick and easy-to-understand breakdown.
An extremely well-done presentation. Thank you.
Glad it was helpful!
thanks for beautiful video, my question is, if you pay yourself 50k salary per year, you will save 50% of all taxes usually covers by employer, but what about all income tax and other 50% of social security, fico and others? it will deduct from 50k salary right? then no different between those two. if you have no salary then you pay 15% tax, but if you have salary, you pay 7.5% tax plus usual w-2 tax on your paycheck salary, am i right?
That also came to mind.. you usually end up paying the same
I've been researching this topic. So glad I found you! I learned so much.Thank you
You are so welcome!
Which of both would you advise a start-up restaurant to use?
Need to clarify that there is a minimum S Corp tax or franchise tax. Of course there are thresholds for those taxes. Many small business can’t reach the thresholds but many do. Those do should already know their tax obligations👍💰✌️💪
On the application for LLC can the assigned agent address be a PObox?
Thanks for watching. PO boxes are not allowed.
After watchin this video i still dont know wich one to pick for a trucking busines..
Excellent video as usual. Nice job.
You’re going to be a pro if you keep watching
Thank you so much for this info! I have subscribed and I'm currently binge-watching your videos. 🙏🏾👏🏾👏🏾👏🏾
Awesome! Thank you!
No, thank you! From this page I've learning so much. Like the fact that I need to speak with my accountant, lol. As a sole proprietor that has just hired my 1st apprentice, I think I might need to change the entity.
Very well explained. Visuals are great too.
Excellent information. So well explained. Thank you!
Thank you this was great info, I choose an S Corp and was unsure about my choice. Now I feel more confident about my decision.
Great content!! Buy nice or buy twice, get a good competent CPA, full stop. All these folks out here doing their own taxes yikes!!!! I subbed like 6 videos ago lol
Aww so happy you are liking our videos, keep sharing your feedback ❤️
Wow, this is the information I was looking for. You explained very well. I had many doubts and most of them are resolved. Thank you.
Hello, great video!! Thank you. Do you have a video about investing profits back to the LLC? I didn’t understand that part.
SHE'S SMART, WELL SPOKEN AND BEAUTIFUL DANG YOU GO GIRL
WOW thank you, :)
I’m telling you that intelligence is attractive lol
You’re really good at this. You should start a podcast.
this was very helpful. thank you
Very easy to understand and good breakdown. Thanks!!
great video, lot's of important information !!! i learned a lot here, thank you for the video !!!
Thanks for watching and supporting.
Pretty good content. Good explanation. Easy to understand
Glad it helped. Are you an LLC?
Very clear explanation. Now I know which one to chose. Thank you!
Which would be better to have a LLC or S-Corp to start off with a at home candle business?
Fantastic video and VERY well put together! Thank you for the information
Glad you enjoyed it!
Can a cleaning business classifies as a S. Crop
Wait, but an S-corp is not a business entity. What i understand is that you set up an LLc entity and you can choose how you want to get taxed. Either like an Sole pro or an S-corp. Right?
exactly
I'm so glad I found your channel; I just subscribed. You do an excellent job clearly explaining the differences between an LLC VS. S Corp entity. Thank you so much!
Again great content! found answers 2 my questions. Thank you.
Our pleasure! Just curious though, what were the questions??
Hi. Can you tell me how a s-corp works with a franchise?
How do you take it out as a distribution? And what do you mean by one class of stock?
Can you use one style one year and Decide the other is a better fit and change if you need to?
So either way you need to have a LLC right? Just the difference is once you planning to do your taxes, you can either be tax as a LLC alone, or a LLC with S corp . Am I right?
exactly
what's the difference btw s-corp and sole proprietorship?
Where the salary money is coming from if your S-Corp is not making any money?
Thank you for the great information. You made it very clear!!!!