I 100% agree. These tips are golden!! If a small biz owner grasps this concept from the start and has a supportive attorney and CPA they will be in great hands.
Fantastic video! I'm going into my second year as a business owner and the stress of filing taxes has been unbelievable. This has reduced my stress ten-fold. There's been so much going on that I actually forgot that I subscribed to this channel (my bad). Today is a day that I took off to get it together and found this subscription. This.....This is why slowing down is super important! 🥰
This was such a helpful video. You did a great job at simplifying something complex as taxes to a person who only understands little about the topic. I learned a lot from this video! Thank you! I just subscribed!
I'm so glad I found your channel! I'm preparing to start a private practice as an Expressive Arts Therapeutic Coach/Facilitator, and I'm exploring the best way to set myself up
Your breakdown of how an LLC is taxes is so clear and easy to understand! I appreciate this, especially since I'm starting a company shortly. Thank you for sharing and I will be following your advice and channel.
Thank You all so much for putting this is laments terms. You guys are teaching me more than what I learned in school. Please continue the good work. Good bless you all and TH-cam University🎉😊
Great video great information thank you for taking time out of your life to do these videos for small businesses like myself who's trying to self educate themselves and business independently
I love to watch your videos. Please clarify these 2 questions: 1. When you said 50000 income to switch to s - corp, do you mean after all deduction or do you mean revenue? 2.do you pay tax on distribution base on your personal tax brackets?
I'm a dole proprietor and I'm a dealer for manufactured homes. Should I change to a LLC? I still am working my full time job but plan on quieting in the future. Dealer is a side hustle but soon main hustle
This is very helpful! Are the words distributions, income and profit all interchangeable when considering whether or not an LLC or S-Corp is right for you? For example, Do LLCs pay taxes on all income as in "revenue" or only the profits? From my understanding distributions are payments made to LLC owners from profits. Then owners are only taxed on the amount of the distribution NOT the entire income/revenue of the business. Correct?
This information is GOLD! Just started following this channel and it is more than what I was looking for. Thank you!! Can you recommend a channel that is similar to follow regarding bookkeeping/accounting-as in, understanding the balance sheet, p&l and income reports?
Can you make a video about Re-Investing into your business. I want to know if you can invest your salary, back into your business, how does that work and how would you put that in the system in QuickBooks or any accounting software? I know it is suppose to show up on the financial documents... but how is it supposed to show up on financial documents? When I start a business, I want to reinvest my first 6 month earnings towards the debt/loan... but I am not sure if we are allowed to do so. :) Thanks
Hmm. This is a complex question and not specific advice since we don't know the whole situation. But in general, you can only reinvest profits into the business without it being taxed, and even that would depend on your entity type. The moment, you take a salary or distribution, that money is taxed. Now of course, you can reinvest money into your business at any amount, especially after taxes
What if I open S corp without LLC ? If someone wanna go after me , do I still have protection of my own assets? Also, another question. With S corp, if I made 100k and had 85k experiences , do I still have to do w2 for myself? I know I am gonna pay taxes for the rest 15k, but I don't pay extra 15% taxes on 15k
I need assistance here... I didn’t establish my LLC until mid February. However, on eBay, I exceeded $1000 total of sales since the beginning of the year. I am a seller in the state of Illinois. My receipts of the item I sold are still kept, however one receipt applies to more than one item sold. How do I file the income from those sales, versus LLC? Is this filed together? Is there a different form? Every CPA firm and Attorneys aren’t taking new clients at the moment, I believe it’s because people rushing their taxes... I’m trying to figure this out before I have to file for next year.
I have a question I hope you're willing and able to answer...What if you own multiple businesses and your total salary for all businesses are over 50,000 a year, will you recommend have all of them s corps for filling purposes?
Ok, this video is glorious, thank you! Here's where I get caught up - at 10:05, what would I do with the extra $30,000? Right now I'm a sole proprietor, so I would get taxed on that but obviously then it would be accessible to me. If I put it into my business as an S-corp, what would I be able to do with it? I guess just use it for business expenses? (I don't have many)... or invest? 🤔 I would so appreciate any thoughts!
I created my LLC in July 2021as a single member. I wasn't aware that I had to file an ECE with the IRS and it had to be done within 75 days of formation until today! I was told that i don't want my LLC to be automatically classified as a Disregarded Entity. The problem is I'm not sure what classification I should elect. I would like to pay as little self employment tax as possible.
If I have an SLLC I would have to file with my personal taxes? Does this change my income bracket if I work full time at a 9-5 job or does the IRS separate that?
I am a sole proprietor how do I categorize the funds that I have deposited from my personal account to my sole proprietor business account to keep my business afloat?
So I prematurely elected to file as an S-Corp, considering I don’t make profit yet and am still trying to get out the red… with that being said, do I still have to pay myself even if my company is not making money yet? If so, is there a way to revert back to an LLC until my business becomes profitable? Really wishing I seen these videos last year when I was starting my business 🙂🔫
@@LYFEAccounting i will be single member. Thank you for reply. I want to start small candle business on etsy, if I understand you right, better to start with llc, right? Thank you again
Greetings - love your videos. Tried to apply on your website for a consultation. Looks like your system isn’t accepting more customers. So I’ll try asking you my Question here:: if I have both the LLC and an inactive S-Corp setup for my existing business, can I treat the LLC like an S-Corp and take a reasonable salary and separate income distributions to save on SE taxes without going the full S-Corp way? Further, I’ve elected to opt for a solo-401k and plan to use the 100% option of personal contribution of $26k (I’m 60), is the employer (20%) portion taken before or after business expenses? I’m trying to minimize my taxable income to the lowest possible amount and shelter as much pretax income to my Solo-401k as legally possible, while keeping my taxable income as low as possible to minimize my self employment and tax burden. My 1099 income is currently about $175k per year. I hope you can help me….
Just have justification for the reasonable salary. Don't be a goblin and take everything as a dividend. If you are a dentis, 30% of production, move on, if you are a business manager, 90k and move on. DONT OVER THINK REASONABLE SALARY, JUST BE REASONABLE.
Thank you! Super!! I learned: an LLC is a corporate entity while Scorp is a taxation mode or status. LLCs offer liability protection. If I have cash flow going in my savings account how is that taxed? I wonder, what about my day job income?
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best breakdown ive seen thus far!
VERY kind, thank you :)
I second that
Your channel is like a GOLD MINE. Thank you for these! You saved me thousands in taxes.
Great to hear!
I 100% agree. These tips are golden!! If a small biz owner grasps this concept from the start and has a supportive attorney and CPA they will be in great hands.
Excellent information. I am starting a new business as a self proprietor and I needed this
Thank you for such a straightforward presentation!
This is the most unfold easy explanation I've seen so far.. great job..
This is the question I’ve wanted answered since deciding I want to start a business. THANK YOU!!!
Our pleasure!
Fantastic video! I'm going into my second year as a business owner and the stress of filing taxes has been unbelievable. This has reduced my stress ten-fold. There's been so much going on that I actually forgot that I subscribed to this channel (my bad). Today is a day that I took off to get it together and found this subscription. This.....This is why slowing down is super important! 🥰
This is exactly the kind of answer I’ve been looking for for weeks. Great video
Glad I could help!
Thank you so much! Sitting here with my paperwork to register my new business scratching my head. Explained perfectly and easy to understand!🙌🏽
Best, most detailed, yet still simple video of these topics of found so far. Thank you so much
This was such a helpful video. You did a great job at simplifying something complex as taxes to a person who only understands little about the topic. I learned a lot from this video! Thank you! I just subscribed!
Clear and concise brotha!!! Bravo! had to dig through 100 other vids about this and they all lacked clarity.
I'm so glad I found your channel! I'm preparing to start a private practice as an Expressive Arts Therapeutic Coach/Facilitator, and I'm exploring the best way to set myself up
That was very helpful and informative. ❤ Much appreciation. 🙏
Excellent content as usual. Thank you. Keep it up!
Thanks for constant support!!
Very clear and to the point, also very well presented, really great video!
This is the most concise explanation I’ve received
Thanks so much
Your breakdown of how an LLC is taxes is so clear and easy to understand! I appreciate this, especially since I'm starting a company shortly. Thank you for sharing and I will be following your advice and channel.
Thank You all so much for putting this is laments terms. You guys are teaching me more than what I learned in school. Please continue the good work. Good bless you all and TH-cam University🎉😊
Very helpful! Typo at the 6:41 mark on the word single.
Thank you! Very clear presentation of information. Incredibly helpful!
Perfect I just started my business as an LLC but I'll be looking to switch it up next year.. 😎 great advice
Super concise and just what I needed on the last day to file.
Best channel on TH-cam, love your videos
So clear and concise!
Really, really good JOB!!!! You and your team did a really good jo!!!
Very informative and helpful video, saving this for later!
Thank you for this video, I'm starting my business and I wasn't sure which way to go. I think I have it more narrowed down now.
Glad it was helpful!
Great video great information thank you for taking time out of your life to do these videos for small businesses like myself who's trying to self educate themselves and business independently
Our pleasure!
This stuff is a headaches. I see why people don't start businesses
This was fire!!
Great video great breakdown of how it works great job
Glad it was helpful!
THAT WAS SO HELPFUL!!
Thank you on your clear explanation and the overall advice!
Thank you very much for making that easily understandable! Fantastic job thank you for your time and your effort really appreciate it
Very informative. Thanks!
Great knowledge, thank you
Wow this was soooo helpful, much much appreciated
Glad you got value out of it! Thanks for watching.
Great video!! Thank you
That dogs face was totally me at that moment.
Thank you for the easy to understand explanation!
Glad it was helpful! Thanks for supporting the channel.
Thank you for the post neighbor
Super helpful. This was a great breakdown.
Glad it was helpful!
I love to watch your videos. Please clarify these 2 questions:
1. When you said 50000 income to switch to s - corp, do you mean after all deduction or do you mean revenue?
2.do you pay tax on distribution base on your personal tax brackets?
You’re always very informative thank you so much you saved me money and time ❤️
You are so welcome! ❤️
Thank you! Very helpful :)
This was GREAT! Thank you!!!
Thank you so much, LYFE Accounting :-)
Very on point, and greatly appreciated.
Thank you, this was super helpful!
Awesome, thank you so much for watching
Great information, thanks!
I'm a dole proprietor and I'm a dealer for manufactured homes. Should I change to a LLC? I still am working my full time job but plan on quieting in the future. Dealer is a side hustle but soon main hustle
Yea. It'll protect your personal assets.
Amazing. Thank you!
this video is sooo goood!!
Wow thanks so much 🙌🏽
You mentioned 50K income to consider S corp. - is that gross or net? Thank you!!!
Great learning, Thanks
You are welcome!
This is very helpful! Are the words distributions, income and profit all interchangeable when considering whether or not an LLC or S-Corp is right for you? For example, Do LLCs pay taxes on all income as in "revenue" or only the profits?
From my understanding distributions are payments made to LLC owners from profits. Then owners are only taxed on the amount of the distribution NOT the entire income/revenue of the business. Correct?
Myz from trailor brandz I'll grabbed LLC single sole s corporation I see now ty 👍🏽💯🤟🏽❤️🔥🙌🏽🙏🏽
Yes it did help, thank you!
Thank you for watching! Just curious, which part did you find most helpful?
Great video
So glad you enjoyed it
this was great!
This information is GOLD! Just started following this channel and it is more than what I was looking for. Thank you!! Can you recommend a channel that is similar to follow regarding bookkeeping/accounting-as in, understanding the balance sheet, p&l and income reports?
Can you make a video about Re-Investing into your business. I want to know if you can invest your salary, back into your business, how does that work and how would you put that in the system in QuickBooks or any accounting software? I know it is suppose to show up on the financial documents... but how is it supposed to show up on financial documents? When I start a business, I want to reinvest my first 6 month earnings towards the debt/loan... but I am not sure if we are allowed to do so. :) Thanks
Hmm. This is a complex question and not specific advice since we don't know the whole situation.
But in general, you can only reinvest profits into the business without it being taxed, and even that would depend on your entity type. The moment, you take a salary or distribution, that money is taxed. Now of course, you can reinvest money into your business at any amount, especially after taxes
Great content! Which entity do most independent [Salesman] contractors choose for tax benefits?
Excellent material
Thanks, Mike!
Thank you so much!
What if I open S corp without LLC ? If someone wanna go after me , do I still have protection of my own assets? Also, another question. With S corp, if I made 100k and had 85k experiences , do I still have to do w2 for myself? I know I am gonna pay taxes for the rest 15k, but I don't pay extra 15% taxes on 15k
WOW! I get it now!
Great information
I need assistance here... I didn’t establish my LLC until mid February. However, on eBay, I exceeded $1000 total of sales since the beginning of the year. I am a seller in the state of Illinois. My receipts of the item I sold are still kept, however one receipt applies to more than one item sold. How do I file the income from those sales, versus LLC? Is this filed together? Is there a different form? Every CPA firm and Attorneys aren’t taking new clients at the moment, I believe it’s because people rushing their taxes... I’m trying to figure this out before I have to file for next year.
If your LLC was setup this year and your money was earned in 2021, then you don't have to worry about filing taxes right now
Thank you sir.
So I can wait several months before going for S-corp? What are the federal tax brackets for an S-Corp?
I have a question I hope you're willing and able to answer...What if you own multiple businesses and your total salary for all businesses are over 50,000 a year, will you recommend have all of them s corps for filling purposes?
So in my case filing a Single member LLC and elect to file as S Corp is best
Thanks you!
Yeah I’m subscribed
YAY ;)
So out of that last $30,000. You'd have to pay $25,500 in taxes?
Great explanation
💯
You said a "2253" form but showed a 2553 form. Which one is correct?
Ok, this video is glorious, thank you! Here's where I get caught up - at 10:05, what would I do with the extra $30,000? Right now I'm a sole proprietor, so I would get taxed on that but obviously then it would be accessible to me. If I put it into my business as an S-corp, what would I be able to do with it? I guess just use it for business expenses? (I don't have many)... or invest? 🤔 I would so appreciate any thoughts!
I created my LLC in July 2021as a single member. I wasn't aware that I had to file an ECE with the IRS and it had to be done within 75 days of formation until today! I was told that i don't want my LLC to be automatically classified as a Disregarded Entity. The problem is I'm not sure what classification I should elect. I would like to pay as little self employment tax as possible.
So does a company with a llc that doesn’t make at least 50,00 yet not pay taxes until they hit 50,000?
If I have an SLLC I would have to file with my personal taxes? Does this change my income bracket if I work full time at a 9-5 job or does the IRS separate that?
Amazing 🤩
Great vid
Thanks for watching!
I am a sole proprietor how do I categorize the funds that I have deposited from my personal account to my sole proprietor business account to keep my business afloat?
You can do a bank transfer? But for purposes of taxes, it is irrelevant
What if my S.P. is my name in all caps? The same one all my bills come addresses to?
So basically DBA My corporate identity.
Perfect 👌
Is it true That my Holding company LLC can't own my individual LLC if I select it to be a S-Corp?
So I prematurely elected to file as an S-Corp, considering I don’t make profit yet and am still trying to get out the red… with that being said, do I still have to pay myself even if my company is not making money yet? If so, is there a way to revert back to an LLC until my business becomes profitable? Really wishing I seen these videos last year when I was starting my business 🙂🔫
When u mean start getting bussines income over 50k a year that is the gross or net, please let me know. Thanks
Hello, thank you for information. Can you tell me please, can i put my expenses in taxes for my small business with llc?
You can deduct business expenses. Do you have partners or are you a single member llc?
@@LYFEAccounting i will be single member. Thank you for reply.
I want to start small candle business on etsy, if I understand you right, better to start with llc, right?
Thank you again
@@LYFEAccounting or s corp? I'm confused, very confused:)
Greetings - love your videos. Tried to apply on your website for a consultation. Looks like your system isn’t accepting more customers. So I’ll try asking you my Question here:: if I have both the LLC and an inactive S-Corp setup for my existing business, can I treat the LLC like an S-Corp and take a reasonable salary and separate income distributions to save on SE taxes without going the full S-Corp way? Further, I’ve elected to opt for a solo-401k and plan to use the 100% option of personal contribution of $26k (I’m 60), is the employer (20%) portion taken before or after business expenses? I’m trying to minimize my taxable income to the lowest possible amount and shelter as much pretax income to my Solo-401k as legally possible, while keeping my taxable income as low as possible to minimize my self employment and tax burden. My 1099 income is currently about $175k per year. I hope you can help me….
How do you elect to s-corp for tax when i need to file?
Just have justification for the reasonable salary. Don't be a goblin and take everything as a dividend. If you are a dentis, 30% of production, move on, if you are a business manager, 90k and move on. DONT OVER THINK REASONABLE SALARY, JUST BE REASONABLE.
Thank you! Super!!
I learned: an LLC is a corporate entity while Scorp is a taxation mode or status.
LLCs offer liability protection.
If I have cash flow going in my savings account how is that taxed?
I wonder, what about my day job income?
What entity type is your business?
Starting a home daycare I hear so much about LLC vs sole priority I can’t decide which route to take. Any suggestions?
I would think you want some protection with an LLC if you are doing daycare, but it really comes down to your preferences
I'm starting a esports center, I'm in partnership with my wife, what is the best tax entity to file with?
I am so confused, set up an LLC if you are starting, don't do LLC if you're not making money 🤔😕😐😒 . If I'm starting I'm not making money 😭
If you think you will make money day 1 or with the first few months of business then you can go with an LLC
How do you know if your state requires the owner to b a P-corp?