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!
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.
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!)
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!!
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!
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
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 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.
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 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.
One area of confusion I think should be clarified for your viewers: (1) Terminology: The IRS does not consider S corp. shareholder-employees to be "self-employed"; they are "employees" of the entity, and therefore, social security and Medicare taxes (FICA taxes) are referred to as "payroll taxes" and not "self-employment taxes". (2) The S corp. (the employer) pays 50% of each employee's FICA taxes and the S corp. shareholder-employee pays 50% of FICA taxes. (3) The S corp. (the employer) deducts its 50% share of FICA taxes from gross revenues the same as any other business expense on Form 1120-S. LLC members deduct 50% of self-employment taxes on Form 1040 via Schedule 1, line 14.
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👍💰✌️💪
You need to quickly clarify a few things. A Limited Liability Corporation (LLC) or a Corporation is a designation based on the state where you register your business. Being a C-Corp or an S-Corp is an IRS designation. A state registered LLC can have a C-Corp or an S-Corp designation with the IRS. Stating that you choose between an LLC and an S-Corp is very misleading and incorrect.
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?
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.
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.
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!
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
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
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!
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!
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
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
Valuable information that I thought I knew but mostly inadequate. Thnx again Crystal and Lyfe Accounting
Glad it was helpful!
She’s knows her stuff! I can’t wait to get hired so I can practice this stuff
Two vids in and I'm in love 😂😂😂 hands down the BEST ❤
This was the most comprehensive explanation I’ve ever heard THANK YOU!!!
This was an absolutely phenomenal breakdown!!! The presentation is an "A+"
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!
Peace… Shalom… Salam... Namaste and Thank You for All that you are doing to Heal our Mother Earth 🙏🏻 😊 🌈 ✌ 🌷 ☮️❤️
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!!
This is by far the best video explaining LLC vs S Corp
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
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
This is the best video I've seen on the subject matter yet, keep up the amazing content!!
I need her as a cpa she explained so well
You saved me so much money just watching this video! I will definitely recommend you on my channel!
Yay! Thank you!
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
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.
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?
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
SHE'S SMART, WELL SPOKEN AND BEAUTIFUL DANG YOU GO GIRL
WOW thank you, :)
I’m telling you that intelligence is attractive lol
Best video I’ve discovered on tax type: sole proprietor versus s-corp!
Thanks for sharing!
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 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.
😮
finally someone gave a great explanation and looked great while doing it
This is by far is the best video on this topic made it so easy to understand
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!
One area of confusion I think should be clarified for your viewers: (1) Terminology: The IRS does not consider S corp. shareholder-employees to be "self-employed"; they are "employees" of the entity, and therefore, social security and Medicare taxes (FICA taxes) are referred to as "payroll taxes" and not "self-employment taxes". (2) The S corp. (the employer) pays 50% of each employee's FICA taxes and the S corp. shareholder-employee pays 50% of FICA taxes. (3) The S corp. (the employer) deducts its 50% share of FICA taxes from gross revenues the same as any other business expense on Form 1120-S. LLC members deduct 50% of self-employment taxes on Form 1040 via Schedule 1, line 14.
This is valuable information. Thank you all for your time and efforts on this channel.
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
Wow! This video was extremely helpful! Thank you! ☺
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, this is the information I was looking for. You explained very well. I had many doubts and most of them are resolved. Thank you.
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👍💰✌️💪
She finds a easy example and words to explain a little complex issues.
You videos are very clear and I like the way you give example and do the comparison.
Excellent.
You need to quickly clarify a few things. A Limited Liability Corporation (LLC) or a Corporation is a designation based on the state where you register your business. Being a C-Corp or an S-Corp is an IRS designation. A state registered LLC can have a C-Corp or an S-Corp designation with the IRS. Stating that you choose between an LLC and an S-Corp is very misleading and incorrect.
What is the right way to go about this for a small business?
I've been researching this topic. So glad I found you! I learned so much.Thank you
You are so welcome!
Great information Thank you, wish I had known this before doing an LLC.
You can convert your LLC at any time!
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
Great stuff and well explained , straight to the point without any nonsense .
Love it !
Thank you, Edy!
An extremely well-done presentation. Thank you.
Glad it was helpful!
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.
Thank you queen sister. Much respect 🙏
Wow thanks Steven
Great information, I had forgotten about the S Corp information.
Glad it was helpful!
This was a thorough and good explanation of the titles.
Thank you pretty one. I enjoy it and understand well. I will be changing as soon as I get the paper from the state.
Excellent breakdown of the pros and cons. Thank you!
My pleasure!
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.
Excellent video as usual. Nice job.
You’re going to be a pro if you keep watching
Another fantastic video! So glad I found this channel!
So glad you are here :)
Explanation of video was great!
Thank you for your quick and easy-to-understand breakdown.
great job explaining all of this!
Fantastic video and VERY well put together! Thank you for the information
Glad you enjoyed it!
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
Thank you for such clarity! You're a gem!
explained so easily. amazing job, thank you!
Thanks! You're very welcome!
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.
Perfect explanation!
Explination well done, thank you.
Thanks! Glad you got some value out of it.
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.
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.
Thank you for the great information. You made it very clear!!!!
I'm in the process of deciding. You was great, you've just gained a subscriber.👍🏽👏🏽
Thank you so much. Welcome aboard!
Thanks for the information keep uploading videos like this it’s good information for young entrepreneurs
Finally, a great video explanation. Clear, concise and easy to understand. THANK YOU!!
Thank you!
Very clear explanation. Now I know which one to chose. Thank you!
Again great content! found answers 2 my questions. Thank you.
Our pleasure! Just curious though, what were the questions??
Excellent information. So well explained. Thank you!
Very helpful thanks so much for the clear and distinct explanation of the differences between the two.
It’s crazy how many times we were told what we were going to learn before we actually heard anything.
THE BEST VIDEO BY FAR!
Aww thanks, im going to make more now
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!
GREAT VIDEO!!! Very clear explanations! Thanks so much!!!!!!
Aww glad you enjoyed it!
Very easy to understand and good breakdown. Thanks!!
thank you for explaining this topic!!
Thank you for this. Best video I've seen on this subject. Very helpful!!
Wow, thank you!
Great explanation. Thank you Krystal!
Very well explained. Visuals are great too.
Pretty good content. Good explanation. Easy to understand
Glad it helped. Are you an LLC?
great video, lot's of important information !!! i learned a lot here, thank you for the video !!!
Thanks for watching and supporting.
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 ❤️
Awesome video - thanks for the info!
Great video! I'm just starting my business and this was helpful!
Glad it was helpful!
Great video ... thank you 💪🏽🤘🏽
Glad you liked it!
You are advise is very valuable, great points identified on tax savings. Thanks
My pleasure!
Excellent breakdown. Very helpful in my decision making for my co
Great to hear! Thanks for watching.
These videos are phenomenal
Thanks for the video!