This used to be one of my most watched channels... sadly, it's been a while since i visited it has been a very rough year... i am experiencing one of the toughest phases of my life... Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround.
You 100% can turn it around Bert. Keep moving, motivating, and educating yourself. Youll only get better, smarter and more resourceful. Things WILL work out as long as you're giving your all.
Wish you the best, I lost my job, and ex-wife 7 years ago and still feeling it but look to a better future and starting my own business. Best of luck to you brother, never quit. Its only after weve lost everything that were free to do anything.
Nothing was early lost. You may have learned a pretty big lesson. But all the knowledge that you had to obtain the money is there. Now you have a knowledge needed for the next round. Life hit hard but you can hit back.
Thank you for breaking it down this way! I've flip-flopped on which structure to use to begin my business. Now I realize I've been wrong the whole time...I need to BEGIN as an LLC and hopefully grow to need/change to S-CORP.
I was having confusions whether to go LLC vs S Corp and this video made me decide to go for LLC. I asked a doctor friend of mine who already have an established practice, and she suggested to choose S Corp. But I am just starting out so an LLC makes more sense. This video is very informative
At around the 10min mark is where he points out the primary reason to be an S-Corp...the share holder distribution that is untaxed. 100k in net income is zero'd / split up as 50k as a W2 and 50k as a K1. You still report the K1 on your taxes but it is not taxed. Literally, 50% of your income is not subject to any tax withholdings at all. I have been doing this for years with my accountant. I believe the IRS code says Corp shareholders can receive a "reasonable" distribution that is not taxed. It's generally assumed that "reasonable" is half...
I appreciate your content. I would suggest people also consider the following. 1) the list of regulations, accounting costs huge difference, set up, servicing costs for the s-corp are substantial vs the LLC. 2) If an LLC is producing a K1 distribution into a SCH C the very same FICA tax benefit deduction is also available as employer/employee reducing the $15,300 tax to $7650. 3) depending on state income tax laws the tax on profits to an S corp far exceed the tax limits on revenues to an LLC $11,790 vs $15,000 on business revenues of $5mil with profits of $1mil in California. 4) once you start an S-corp you cant go back to an LLC but if you start as LLC you can always go to S corp status
I not only liked this video. I Loved it! This was the most simple and clear explanation I've heard thus far. I'm so sick of people over explaining this. You just kept me from making a HUGE mistake in starting an S Corp tooo soon. I will most defiantly be hiring you in the upcoming year.
You just saved me from jumping the gun and going to file as an S-Corporation. I'm gonna wait to acquire some more assets and increase my clientele before I give myself the headache and cost of S Corp. Very informative vid. Thank You!
Such an good video. I was leaning towards starting the LLC S-corp right away, but after your points at the end of the video, it totally makes more sense to wait till I reach higher profits to justify the additional cost and headaches from the requirements in the S-corp world. Thank you!
This has been thr BEST video Ive seen explaining in simple terms the pros and cons of filing as an LLC or an S-Corp. Thank you!!! Especially the recommendation at the end about when to file based on the soze of your business.
THIS VIDEO REALLY HELPED ME DECIDING WHICH ENTITY TO GET. I WAS PLANNING TO FILE FOR S-CORP FOR MY PART TIME BUSINESS BEFORE WATCHING THIS VIDEO. DIDN'T KNOW THE TAX FILLING FEE WOULD BE SO HIGH (AND OTHER COSTS) FOR AN S-CORP. GLAD I FOUND THIS VIDEO!!! THANK YOU!!!
Best video on TH-cam that sums it all up! I spent 3 hours watching videos until I came to this one. Knowledgeable company, worth using as a tax advisor.
I am in the process of establishing a logistics company and anticipate a gross revenue of approximately 560k USD within the first year of operation. As I consider operating as an S-corporation, I seek clarification on whether I am obligated to compensate myself with the minimum salary mandated by the state.
Very great video overall. Under the Self-Employment tax section of this video, did you mention SE taxes are capped at $160K? I believe only the social security tax component of the SE tax is capped at the limit. It doesn't seem the medicare component is capped. I'm open to chatting about this further
Thank you for this information. I plan on opening my business soon. From this video alone it’s seems more reasonable to start off as an LLC then later level two s corp. my dream is to become level 3 (passive owner) within a two year span. With the area that I am in and the demand for what is being requested I feel 1000% positive on this idea. It’s just time to make this dream a reality one step at a time #BBO ❤
Very simply explained and helpful in choosing between the two. We were suggested to start with an S-Corp but in listen here, we are able to make a more informed decision on what to start with then move to later. Thank you for providing this information.
Omg! I can’t thank you enough for this video! I was conflicted on how to go about starting a new business and this video helped me tremendously. Thank You 🙏🏼 so much!
Make sure you know how to do the proper deductions when filing your taxes or have an accountant that specifically knows the deductions that you can deduct that will save you tins of thousands of dollars in taxes
Such great information! Easy to understand, infomative, and very well structured. I really appreciate the warning on starting an S-Corparation too early. Thanks!
Beautiful explanation of the pros and cons of LLC and S-Corp thanks 🙏🏾. I have one question if you file for $100,000 as an S-Corp and pay your taxes only on the $50000 when you go to purchase a home what would they consider your annual salary to be $100000 or $50000
insightful basic but not at the at advance level. You can set up the LLC - manager with the lowest ownership or through teir partnership/-corp. LLC as partnership has many advantages that S-Corp does not have, such as cash and property ditributions, but the best part is special allocations that S-Corp cannot have. A SMLLC should always become the s-Corp.
This video was a comprehensive overview for some of the info I was looking for. It was a perfect outline of the general knowledge with some specifics. I've got some questions that pertain to my exact situation & future, but I'm going to peruse your other videos to see if I can find an answer. Nevertheless, I'm subbed.
Everyone in a buisness needs to watch this video Seriously, thankyou so much for that info! Unbelievably excellent and to the point explanation! One thing im curious of, if a s corp does do a 50k salary and pays the 15.3% on that, then has a distribution of 50k with no 15.3 self employment tax does the distribution still pay out fed 15%+- and state 7%+- taxes?
Thank you! Please make several examples about scenario 3, looking for more information about that. For example about Real estate in scenario 3, about stocks, and about IT online business that make more than 1M in a year.
Great information! Thank you, made making my decision to start as an LLC and once I have a nice net profit file as an SCorp :) Once I do this, should I completely change to running the biz as an SCorp? or continue as an LLC taxed as an Scorp?
Very clear on which I should decide on! I’m so glad I came across this video! I was struggling for a few months on which to choose and I couldn’t decide but this really breaks it down for me to see clearly, which category I belong in! Thank you so much!
I love you, man ! and i love this channel. However, in several areas in several areas of this video (e.g., at time 14:23) as well as some of your other videos, you say "net profit" instead of "revenue" (sales). At 14:23 dont you really mean sales? I could be wrong, and frequently am.
For scenario 2 , you wouldn’t pay 15.3 self employment tax because you are an EMPLOYEE OF YOUR COMPANY. So your company would pay 7.5 % or so and you as the w2 employee would pay the other 7.5%
I appreciate this video !! You answered my question - I need to “lower” my SCorp to an LLC cause I DO NOT have the net income for an A Corp (at this time) lol.
how much should we be setting aside for taxes? is that based on each time a client pays us or how do we figure out how much to set aside each time someone buys our service?
Free tax planning:-So this is how it will work. Have two companies one in a tax haven country n the other in usa. Then the company in the tax haven will hold your trade name. So you will have to receive invoice or have an agreement to pay an amount to this company in the tax haven for the use of the trade name. This amount will end up putting your usa business into loses each year n no tax will be paid. Take a screenshot. The good thing is . The company in the tax haven can pay for your expense in the US as a consultant and pay you in stock so you don’t pay on self employment income. Let me know if you have other tax planning strategies like this.
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](/img/tr.png)
So the moral of the story... We should start the LLC first.. and once you start making money you should switch to an S corp
Correct. Work with a good CPA who will guide you and make sure you track expenses.
I'm still filing as an S-corp because I don't intend on paying myself much and can easily do my own accounting.
This was the BEST video I saw about whether to file as an S Corp or LLC. Clear, succinct, and with practical examples. Excellent work! Thank you.
This used to be one of my most watched channels... sadly, it's been a while since i visited it has been a very rough year... i am experiencing one of the toughest phases of my life... Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround.
🙏🏾
You 100% can turn it around Bert.
Keep moving, motivating, and educating yourself.
Youll only get better, smarter and more resourceful.
Things WILL work out as long as you're giving your all.
Wish you the best, I lost my job, and ex-wife 7 years ago and still feeling it but look to a better future and starting my own business. Best of luck to you brother, never quit. Its only after weve lost everything that were free to do anything.
Nothing was early lost. You may have learned a pretty big lesson. But all the knowledge that you had to obtain the money is there. Now you have a knowledge needed for the next round. Life hit hard but you can hit back.
Hang in there Bert!!!! You’re stronger than you know!!!! Best of luck!!!
Thank you for breaking it down this way! I've flip-flopped on which structure to use to begin my business. Now I realize I've been wrong the whole time...I need to BEGIN as an LLC and hopefully grow to need/change to S-CORP.
What is your business model? You can start as a sole proprietorship.
@Jennine Morel sole proprietorship would not work for my business. That's why I had to figure out if I needed an LLC or an S-Corp.
@Nikolai Krow what is your business model?
I am an accountant and business consultant 20 years now...just curious.
I might have some suggestions
@@jenninemorel7693what would you recommend for starting a pressure washing business?
I was having confusions whether to go LLC vs S Corp and this video made me decide to go for LLC. I asked a doctor friend of mine who already have an established practice, and she suggested to choose S Corp. But I am just starting out so an LLC makes more sense. This video is very informative
Thank you so much for your info and your super clear presentation and options, this is the most comprehensive list I've seen on YT on this topic
At around the 10min mark is where he points out the primary reason to be an S-Corp...the share holder distribution that is untaxed. 100k in net income is zero'd / split up as 50k as a W2 and 50k as a K1. You still report the K1 on your taxes but it is not taxed. Literally, 50% of your income is not subject to any tax withholdings at all. I have been doing this for years with my accountant. I believe the IRS code says Corp shareholders can receive a "reasonable" distribution that is not taxed. It's generally assumed that "reasonable" is half...
I appreciate your content. I would suggest people also consider the following. 1) the list of regulations, accounting costs huge difference, set up, servicing costs for the s-corp are substantial vs the LLC. 2) If an LLC is producing a K1 distribution into a SCH C the very same FICA tax benefit deduction is also available as employer/employee reducing the $15,300 tax to $7650. 3) depending on state income tax laws the tax on profits to an S corp far exceed the tax limits on revenues to an LLC $11,790 vs $15,000 on business revenues of $5mil with profits of $1mil in California. 4) once you start an S-corp you cant go back to an LLC but if you start as LLC you can always go to S corp status
btw LLC Ca state tax is maxed out in LLC $5 mil in revenues whereas S corp income tax @ 1.5% unlimited profits are taxed
Wait can you type your 2nd point, differently? It is because i'm not quite sure i know exactly what you mean.
@@badhairday86 The SCH C business gets all the same self employment tax deductions the S corp W2 gets
Thanks for breaking down the consequences of becoming an s corp too early. Ive been searching for that info for weeks.
I not only liked this video. I Loved it! This was the most simple and clear explanation I've heard thus far. I'm so sick of people over explaining this. You just kept me from making a HUGE mistake in starting an S Corp tooo soon. I will most defiantly be hiring you in the upcoming year.
Very thorough and helpful video!! Thank you.
You just saved me from jumping the gun and going to file as an S-Corporation. I'm gonna wait to acquire some more assets and increase my clientele before I give myself the headache and cost of S Corp. Very informative vid. Thank You!
Subscribed
Very insightful content. Thanks for sharing
Such an good video. I was leaning towards starting the LLC S-corp right away, but after your points at the end of the video, it totally makes more sense to wait till I reach higher profits to justify the additional cost and headaches from the requirements in the S-corp world. Thank you!
This has been thr BEST video Ive seen explaining in simple terms the pros and cons of filing as an LLC or an S-Corp. Thank you!!! Especially the recommendation at the end about when to file based on the soze of your business.
THIS VIDEO REALLY HELPED ME DECIDING WHICH ENTITY TO GET. I WAS PLANNING TO FILE FOR S-CORP FOR MY PART TIME BUSINESS BEFORE WATCHING THIS VIDEO. DIDN'T KNOW THE TAX FILLING FEE WOULD BE SO HIGH (AND OTHER COSTS) FOR AN S-CORP. GLAD I FOUND THIS VIDEO!!! THANK YOU!!!
I’m glad you watched and enjoyed it. S corps are definitely not for everyone!!
This is great video. It is so informative and helpful. Thank you! I'm subscribing! and sharing!
Best video on TH-cam that sums it all up! I spent 3 hours watching videos until I came to this one. Knowledgeable company, worth using as a tax advisor.
The best video, watched 3 times.
This is clear and straight to the point.thank you.
Excellent video ! Cleared my doubts and got clarity in deciding LLC vs S-Corp. Amazing work !
After 11 days of searching.. i came across this video and got my answer in 15min and 20 seconds 😂.. 🙏🏽 🙏🏽 👏 👏
Exactly.. awesome content, that's what we were looking for 🎉
the best video ! thanks so much
Hi Sean, I have to say you are one of the best I have seen on thus far. Truly clear and concise
Awesome. Very helpful.
One of the best instructional videos I’ve seen. Very clear and concise. 👍🏼👍🏼👍🏼
Omg, where have you been all these years⁉️Thank you so much‼️
My favorite topic good job with this!
I am in the process of establishing a logistics company and anticipate a gross revenue of approximately 560k USD within the first year of operation. As I consider operating as an S-corporation, I seek clarification on whether I am obligated to compensate myself with the minimum salary mandated by the state.
Wow, Bro! You are one of the elite and best instructors I have heard in while. Kudo to you!
Great clear and concise information! Thanks for walking us through it!
Very great video overall. Under the Self-Employment tax section of this video, did you mention SE taxes are capped at $160K? I believe only the social security tax component of the SE tax is capped at the limit. It doesn't seem the medicare component is capped. I'm open to chatting about this further
Great job!!!
Outstanding presentation. Very clear and informative. Do you have a video comparing a Disregarded Entity and a Partnership LLC?
Thank you for this information. I plan on opening my business soon. From this video alone it’s seems more reasonable to start off as an LLC then later level two s corp. my dream is to become level 3 (passive owner) within a two year span. With the area that I am in and the demand for what is being requested I feel 1000% positive on this idea. It’s just time to make this dream a reality one step at a time #BBO ❤
Oh my gosh! I have just paid £220 to register my sole trading trademark and now I will not eat properly this month. I feel like I am acting crazy!
Very simply explained and helpful in choosing between the two. We were suggested to start with an S-Corp but in listen here, we are able to make a more informed decision on what to start with then move to later.
Thank you for providing this information.
This was an awesome video. You explained everything clear as day. I appreciate your time and keep up the good work.
Very high quality explanation. Thank you.
SUPER EASY TO UNDERSTAND. THANK YOU!
Unbelievably prompt and informative. Thank you for this treasure trove of information!
Thank you so much! I finally understand these topics!
Same boat
I got LLC sole member and plus I use trailor brand and they don't be taxing me that much this year in beginning this yr it was almost 300 hundred
Omg! I can’t thank you enough for this video! I was conflicted on how to go about starting a new business and this video helped me tremendously. Thank You 🙏🏼 so much!
Make sure you know how to do the proper deductions when filing your taxes or have an accountant that specifically knows the deductions that you can deduct that will save you tins of thousands of dollars in taxes
Thank you! Thank You! This was a great video. I have been so confused and now I have a clear understanding. You explained everything very well.
Super great video for the non-accountants out there, thank you for giving me direction!
So clear man. First time watcher. Looking forward to more. Thanks for the concise and clear information
Such great information! Easy to understand, infomative, and very well structured. I really appreciate the warning on starting an S-Corparation too early. Thanks!
Thank you very much! This was much more helpful than other information I found.
Beautiful explanation of the pros and cons of LLC and S-Corp thanks 🙏🏾. I have one question if you file for $100,000 as an S-Corp and pay your taxes only on the $50000 when you go to purchase a home what would they consider your annual salary to be $100000 or $50000
My favorite business finance channel!
You guys are always so clear in your explanations. Thank you
Excellent video! Thank you for your amazing work!
By Far, One of the best video that I ever seen ! .. helped me a lot ... Thanks ❤❤❤
super informative, very easy to understand. Great info. Thank you.
insightful basic but not at the at advance level. You can set up the LLC - manager with the lowest ownership or through teir partnership/-corp. LLC as partnership has many advantages that S-Corp does not have, such as cash and property ditributions, but the best part is special allocations that S-Corp cannot have. A SMLLC should always become the s-Corp.
Perfect video! we watched tons of videos but they didn't touch on all of this
What happens with the distribution in scenario2? and the net profit in scenario3 when becoming passive with the general manager?
Thank you very much. I definitely liked the video. It was very helpful. I’m going to start an my second LLC
AMAZING VIDEO!! THANK YOU SO MUCH FOR GVING EXAMPLES. WOW NEED TO SIGN UP FOR AN S CORP. GREAT VIDEO.
This was extremely helpful thank you!
This video was a comprehensive overview for some of the info I was looking for. It was a perfect outline of the general knowledge with some specifics. I've got some questions that pertain to my exact situation & future, but I'm going to peruse your other videos to see if I can find an answer. Nevertheless, I'm subbed.
Everyone in a buisness needs to watch this video
Seriously, thankyou so much for that info! Unbelievably excellent and to the point explanation!
One thing im curious of, if a s corp does do a 50k salary and pays the 15.3% on that, then has a distribution of 50k with no 15.3 self employment tax does the distribution still pay out fed 15%+- and state 7%+- taxes?
Wow, very good video. I feel like I just took a 2 week crash course. Keep up the good work!
Excellent video! Thank you for breaking it down so clearly!
Thank you! Please make several examples about scenario 3, looking for more information about that. For example about Real estate in scenario 3, about stocks, and about IT online business that make more than 1M in a year.
Great information! Thank you, made making my decision to start as an LLC and once I have a nice net profit file as an SCorp :) Once I do this, should I completely change to running the biz as an SCorp? or continue as an LLC taxed as an Scorp?
awesome video
Very clear on which I should decide on! I’m so glad I came across this video! I was struggling for a few months on which to choose and I couldn’t decide but this really breaks it down for me to see clearly, which category I belong in! Thank you so much!
This is a fantastic video! Thank you for sharing!
Excellent video! I loved the last part on considerations. Great job!
Thanks man great video! Lots of helpful information in there.
I like your video presentation. It is informative too, at the same time. Thanks a lot for your guidance!
I love you, man ! and i love this channel. However, in several areas in several areas of this video (e.g., at time 14:23) as well as some of your other videos, you say "net profit" instead of "revenue" (sales). At 14:23 dont you really mean sales? I could be wrong, and frequently am.
thanks ma dude good video i was trying to tell my girl but couldnt explain it,
Great video. Highly recommended 👌 👍 👏
Best video on this topic. Many thanks!
SO HELPFUL 🙏🙏🙏
I liked the video with pleasure and gratitude after all that great info. Thanks a lot bud! 🙏
For scenario 2 , you wouldn’t pay 15.3 self employment tax because you are an EMPLOYEE OF YOUR COMPANY. So your company would pay 7.5 % or so and you as the w2 employee would pay the other 7.5%
Thank you so much for all of this valuable info!
I appreciate this video !! You answered my question - I need to “lower” my SCorp to an LLC cause I DO NOT have the net income for an A Corp (at this time) lol.
Thank you. This was extremely helpful
New subscriber here, I thoroughly enjoyed your video, and the others that I’ve seen. Thank you for the information.
Very informative. Thank you!
How much in profit should we be making before considering a S corp election?
how much should we be setting aside for taxes? is that based on each time a client pays us or how do we figure out how much to set aside each time someone buys our service?
VERY HELPFUL information thanks for this vid.
So helpful, thank you so much for the clear explanation. Awesome video! 😊
Outstanding content! Thank you so much for your very clear information.
Awesome video on a subject I had no idea about - thanks!!!!!
What about for an independent hairstylist starting their business? Not salon- but just me myself
Excellent explanation!!!!
You’re amazing this was so perfect!!! You have a new subscriber!!
Wow this was so helpful! Thank you for making this its exactly what I was looking for! :)
Free tax planning:-So this is how it will work. Have two companies one in a tax haven country n the other in usa. Then the company in the tax haven will hold your trade name. So you will have to receive invoice or have an agreement to pay an amount to this company in the tax haven for the use of the trade name. This amount will end up putting your usa business into loses each year n no tax will be paid. Take a screenshot. The good thing is . The company in the tax haven can pay for your expense in the US as a consultant and pay you in stock so you don’t pay on self employment income. Let me know if you have other tax planning strategies like this.
Thank you very much. Your video is very informative!😍
Good explanation! Answered some questions I had, thank you for posting 👍🏻