With around $120k invested in Palantir stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.
Prioritize two goals: strategically buy stocks to limit losses and maximize gains, and be prepared to capitalize on market shifts. Consult a financial advisor or professional for personalized guidance.
@@SorensensHiersas The issue is people have the "I want to do it myself mentality" but are not equipped enough for a crash and, hence get burnt. Ideally, advisors are reps for investing jobs, and at the first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
@@KheroFrei The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
It is amazing how you can watch so many videos and still be confused because other creators try and cover too much. I just wanted to know about single owner LLC. Nothing more.. and this video was the first one that make it clear and simple.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
@WilliamEthan00 Alice Marie Coraggio her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy...
I’m on Social Security and Medicare. The thing that happens is yes we got a three point whatever percent increase last year but my Medicare part B payment also went up by $60 a month more than my cola so I actually took a $60 a month cut. I literally made best decisions when i started working with an advisor
Totally agree. A good financial adviser is a game-changer. My portfolio is balanced for all market conditions, and it has returned 120% since early last year. My adviser and I are now working toward hitting a seven-figure goal, which could take another year.
Over the years, I’ve worked with a few, but I’ve stuck with “Julianne Iwersen Niemann” for the last five years. Her performance has been consistently impressive. She’s well-regarded in her field-look her up.
My CFA Julianne Iwersen Niemann, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Finally someone makes it easy and understandable for all us single LLC entrepreneurs. Hiw many videos i had to go through to get to one that finally lays it out clearly. Can't thank you enough, huge cheers.
oh my god this is the best explanation and most simplistic example that you could use. I really learned a lot and appreciate how easy you make it for us new business owners to understand !
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
Love this explanation! I can’t tell you how many videos I’ve watched & this is only 9 mins too. You kept my attention & taught me something valuable & extremely needed & helpful thank you 🙏🏼😎👍🏻
Thank you so much for this! I made myself an "employee" with my single member LLC and was paying myself as an employee and having taxes taken out that way. Thank you for this explanation!❤❤❤
Well - if you are taxed as a sole proprietor - not an S Corp - I’d ask your tax professional to assess this. Owners of single member llcs are not employees and cannot receive a w-2 paycheck!!!
This is extremely helpful for TH-camrs, Streamers, and other creatives that make a steady income and open an LLC for the liability protection. Would love to hear you talk more about how to do quarterly estimations, actually pay taxes, and how to reduce tax payments.
Hello, I am a Corporate Accountant with 30+ years of experience, and now I'm launching my own online business. Your straight-forward approach is greatly appreciated!
Thank you so much. This gave a great template to look at. I was more or less gifted my dream business very suddenly and I’m trying to figure it all out. Thank you again
Great video, had to just watch once (at 1.25x) and I already have much better understanding on how to manage payments and taxes as a single member LLC. Thank you so much!
Thank you for making this so easy for me to understand. I have paid taxes for the entire 5 years I have been operating but NO ONE has explained this part. Thank you
@@ChadPavelcpa Ok so your gonna pay quarterly taxes on your LLC profits? And at the end of the year you file and do a pass thru-so schedule c to 1040? Does that sound about right?
Thank You, Thank You for this video!! I still barely know what I am doing. I am going to watch the next video now. I am not great with numbers at all. My husband and I just started an LLC and my job is the “books”. He’s not getting paid until I figure this out 😂😂. He might be homeless soon lol!! Thanks again!
Thank you so much for putting this out and not taxing people for the info. God bless you keep going there are only roughly 650,000 CPAs in the country. Your a rare breed and in high demand.
This is awesome! I feel I struggle with working a w-2 job, then I work a 1099 job and also own a single member LLC. I always get stuck with how to document that on a schedule C (do I combine them or add two schedule C documents). I also get stuck with do we need to show proof when providing a schedule C on our LLC income? So many questions haha!
Hey Chad awesome video! I’m a New single member LLC also and I’m trying to figure out all the tax requirements and deductions I need to be aware of, I’m a videographer/Photographer and I would like to know what form to file since this is my main source of income. Also typical deduction for camera gear, mileage, and other travel expenses. This video was really helpful I don’t quit have the capital to hire an accountant or CPA but I am going to sign up for quickbooks to manage everything.
Hello! See our full video + blog post here, new video just came out today expanding on this exact topic: pinewoodfs.com/blog/self-employed-schedulec-taxes
@@TCOMold once your net income exceeds $50,000 for the year and you intend to grow it beyond that then S Corp could make sense - but not always. But it comes with more cost and complexity: payroll, potential state corporate income tax, a separate tax return, and other corporate filings and actions. All of which have a cost and compliance to deal with. So self employment tax is only one consideration out of the many...I wouldn’t worry about S Corp until you have good profits and want to take on the additional s Corp overhead - then you can save thousands on SE tax.
Thanks for your question. The answer is: there is no difference. Sole proprietors and single member LLC owners follow the same tax laws and file the same tax return (schedule C). The real tax differences come into play if you add a second owner to an LLC or choose S corporation tax status on an LLC.
Basically it doesn’t matter how much distribution you take out at the end of the year you have to pay for the entire net profit. Even if you haven’t taken it out yet. Good video!!
See update video here hot off the press! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!) th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
So I'm confused. My CPA said I should form an LLC to help me with taxes. I'm currently buried in taxes and it's my single largest expense every month. She said that the income that I pay myself from the LLC would be tax deductible instead of paying myself as a sole proprietor. But now I'm hearing that it won't make any difference. So which is it?
Thank you for explaining this in a simple and understandable way. Are there thresholds on the minimum income of an LLC to file taxes? and also one more question, what if you break even the first year between expenses and income? do you still file taxes? (super new at navigating all of this)
You should always file a Schedule C if your single member LLC has any revenue or expenses at all. You may not have any tax due if the expenses are higher than the revenues (a loss), but you still need to file.
This is so helpful, I just started my LLC by myself, thank you so much!! This may be a stupid question after watching the whole video - but does a single member LLC have to do anything quarterly with taxes? Thank you again!
Great! Yes, as a self-employed person, if you make a net taxable profit in your business you may have to pay estimated taxes to the IRS and your state each quarter. Why? If you don't have a W-2 paycheck, then you aren't sending any money to the IRS or state each week, and instead, you need to send in that money each quarter (to avoid penalties and interest). I'll make a video soon on how estimated taxes work for self-employed / Sch C, thanks for posting!
@@ChadPavelcpa , I’ve had a side hustle all this year but just got an LLC yesterday, I have not made quarterly payments (didn’t know about them till now), any idea how much those are going to be when I file in a few months?
How would I pay myself in a structure with a single-member holding LLC (S-Corp) that owns my operating LLC, of which I’m the only owner and employee? How can this be done without piercing the corporate veil and losing asset protection, while still seeing the tax benefits of an S-Corp? Which LLC would handle payroll and how would dividends be distributed? Thanks!
You pay taxes with your schedule c, and the IRS extracts from that single payment a state income tax, medicare tax, federal income tax and social security tax. Use an llc tax calculator online to find your taxes per state and net income amount.
Great video! I have scenario to add to this....what if I want to take those profits and put them in a savings accound FOR the business, not myself....how would taxes work for that? Taxes still paid the same?
Hey Chad - great video! I'm looking into signing up for EFTPS in order to pay my quarterly taxes coming up. I am a single-member LLC and I'm a bit confused if I should be enrolling as a business or an individual. Which one would you recommend I select when signing up?
Hello - you pay your taxes as an individual using your SSN. EFTPS is only for federal taxes for corporations and some other taxes. Make your estimated tax payments to the IRS as an individual. www.irs.gov/payments
Chad, you did a great job with this video and your explanation helped a lot. The one question I still have... so when you make an owner's draw, there are no additional taxes such as self employment or social security that you have to pay, correct? You would still have to pay those even if you just left the money in the company as retained earnings, right?
My accountant explained that with an LLC you will have to pay FICA (Social Security Medicare) and Ordinary Tax, therefore if your total business profit is 100k then you are paying FICA and Ordinary tax on that total amount, which can be pretty hefty, however, if you are an LLC and elect to be taxed as an S Corp then the portion that you pay yourself will be responsible for FICA state and federal just like when you work for any other company that issues a W2 and your business will only be responsible for paying Ordinary Tax. So example: My business made a profit of 200k after all expenses, I paid myself and my partner 40k each so a total of 80k in wages, that leaves my actual profit at 120k. Since I already paid FICA taxes on 80k through my payroll then my business will not be responsible for paying that and therefore all my business would pay is Ordinary Tax on the 120k instead of on the original $200k. The cool thing is that any draws that we make out of the business account throughout the year wont be taxed again so for example: I receive my paycheck (from my 40k salary) but I want to draw an extra $1000 from my business profits every month as a "bonus", that amount will not have to be taxed like my salary gets taxed. I dont know if its different for a single member LLC, but my example is on a 2 member LLC.
I have asked my book keeper/Acountant about this. Just want to get a solid answer, but never have. You sir finally explained it perfectly. Only question is what about self employment tax isnt that an extra 14%?
Yes, on your tax return that is tacked on top of your total income, but you get a deduction for half the Self Employment tax on your individual return.
great video. however, didn’t answer my question. wanted to know how to take out taxes BEFORE the end of the year so i can be paying all along 😩. like if you pay yourself a set amount based on your monthly profit. how to calculate and withhold ahead so you don’t have to pay a bunch at the end of the year.
Hello Chad, good information. I just subscribed. Let say you pay yourself a 1099 from your business, will you be required to pay taxes on the 1099? I assume you would. Then my next question is if you make profit from your business LLC, will you also pay taxes? If so, wouldn’t that be a double taxation? What are the best options to save then on taxes? 2- can you pay a sub contractor under you? If yes, would that count as a business expense? 3- Finally, Can you add new members to your business after you open a single member LLC or do you have to open a new LLC?
1. If it is a single member LLC - You don't want to send yourself a 1099. You pay tax on that 1099 income. But if your business then makes a loss or little income, it basically cancels out. But don't send yourself a 1099 from your business as a single member LLC. 2. Yes. Yes. Send them a 1099. 3. Yes, when you add a member you are now a multi member LLC and file a partnership tax return 1065.
With around $120k invested in Palantir stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.
Prioritize two goals: strategically buy stocks to limit losses and maximize gains, and be prepared to capitalize on market shifts. Consult a financial advisor or professional for personalized guidance.
@@SorensensHiersas The issue is people have the "I want to do it myself mentality" but are not equipped enough for a crash and, hence get burnt. Ideally, advisors are reps for investing jobs, and at the first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
@@DarnellsStevenses I will be happy to get assistance and glad to get the help of someone, but how can one spot a reputable one?
@@KheroFrei The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
@@DarnellsStevenses I will give this a look, thanks a bunch for sharing.
It is amazing how you can watch so many videos and still be confused because other creators try and cover too much. I just wanted to know about single owner LLC. Nothing more.. and this video was the first one that make it clear and simple.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
@WilliamEthan00 Alice Marie Coraggio her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy...
I’m on Social Security and Medicare. The thing that happens is yes we got a three point whatever percent increase last year but my Medicare part B payment also went up by $60 a month more than my cola so I actually took a $60 a month cut. I literally made best decisions when i started working with an advisor
Totally agree. A good financial adviser is a game-changer. My portfolio is balanced for all market conditions, and it has returned 120% since early last year. My adviser and I are now working toward hitting a seven-figure goal, which could take another year.
That sounds interesting! Could you share the details of your adviser? I'm urgently in need of one.
Over the years, I’ve worked with a few, but I’ve stuck with “Julianne Iwersen Niemann” for the last five years. Her performance has been consistently impressive. She’s well-regarded in her field-look her up.
My CFA Julianne Iwersen Niemann, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I just looked her up, and her credentials are impressive! I've already reached out and scheduled a call for some guidance. Thank you!
Finally someone makes it easy and understandable for all us single LLC entrepreneurs. Hiw many videos i had to go through to get to one that finally lays it out clearly. Can't thank you enough, huge cheers.
I was dreading how complicated this could be....but conceptually, you made this pretty understandable. Thank you.
Glad to hear!
oh my god this is the best explanation and most simplistic example that you could use. I really learned a lot and appreciate how easy you make it for us new business owners to understand !
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
pls how can I reach this expert, I need someone to help me manage my portfolio
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Love this explanation! I can’t tell you how many videos I’ve watched & this is only 9 mins too. You kept my attention & taught me something valuable & extremely needed & helpful thank you 🙏🏼😎👍🏻
Thank you so much for this!
I made myself an "employee" with my single member LLC and was paying myself as an employee and having taxes taken out that way.
Thank you for this explanation!❤❤❤
Well - if you are taxed as a sole proprietor - not an S Corp - I’d ask your tax professional to assess this. Owners of single member llcs are not employees and cannot receive a w-2 paycheck!!!
@@ChadPavelcpaso can u write yourself checks if it is S corp as W2?
You just cleared up so much for me, literally wrapping up 1st year and you answered so many questions I had thank you
I am glad this helped - check out my 2022 video update on schedule C too. Thanks and good luck 👍
Thanks!
One of the best and simplified videos Ive seen on this topic. Thanks Chad. keep putting out good info.
Thank you sir. Recent LLC business owner and trying to figure things out, this helped alot. Thank you!!
My three favorite channels: Charlie Chang, Stock Brotha, & How Money Works. Make my week complete!
This was the most simplistic explanation I have seen on paying yourself from an LLC. Thanks!
Glad it helped
This is the BEST, most straightforward explanation that I needed! Thank you!
Glad this helped.
This is extremely helpful for TH-camrs, Streamers, and other creatives that make a steady income and open an LLC for the liability protection. Would love to hear you talk more about how to do quarterly estimations, actually pay taxes, and how to reduce tax payments.
Thank you! We have more content coming that addresses these items, coming soon!
Great question!
You need to do some more research my brother…
Phuong tran
Hello, I am a Corporate Accountant with 30+ years of experience, and now I'm launching my own online business. Your straight-forward approach is greatly appreciated!
Congratulations on launching your business!
Thank you for taking your time to explain in such a simple and easy way to understand.
Thank you so much. This gave a great template to look at. I was more or less gifted my dream business very suddenly and I’m trying to figure it all out. Thank you again
Glad it is helpful to you. Good luck with the new business!
You've clearly made this video for lil ole me. Thank you!
😍
Great@
Finally , I can understand this , simple but very very informative.. did not exaggerate once or try to flex “big words”. Thank you bro .
Glad this helped!
Your video presentation was not only informative but engaging as well. Thank you for providing such valuable guidance!
Great video, had to just watch once (at 1.25x) and I already have much better understanding on how to manage payments and taxes as a single member LLC. Thank you so much!
Thank you for making this so easy for me to understand. I have paid taxes for the entire 5 years I have been operating but NO ONE has explained this part. Thank you
I have been looking all over for this information thank you for making it so clear.
Glad it was helpful!
@@ChadPavelcpa Ok so your gonna pay quarterly taxes on your LLC profits? And at the end of the year you file and do a pass thru-so schedule c to 1040? Does that sound about right?
This was amazing! Very easy to understand for beginners the way you broke it down… THANK YOU
Thank you!
Wow, just write yourself a check...thanks for clarifying how easy it is to pay yourself from a sole proprietor LLC!
Brilliant video. I'm doing the "side hustle" setup, and your explanation and sketch of the forms made everything clear. Thanks so much!
Jackson I am glad this helped! All the best to you!
See update video here Single Member LLC Taxes, Estimates, and How to Pay Yourself
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
Chad. Your excellent man. You made it very simple and saved me from unnecessary headaches. You are awesome. Good luck
Thank you glad this is helpful
This video is amazing. You answer my question so simple. Thank you! Finally after going through so many videos
Thank You, Thank You for this video!! I still barely know what I am doing. I am going to watch the next video now.
I am not great with numbers at all.
My husband and I just started an LLC and my job is the “books”. He’s not getting paid until I figure this out 😂😂.
He might be homeless soon lol!!
Thanks again!
Hope the videos help!
😂🤣😂🤣
See 2022 update: Single Member LLC Taxes, Estimates, and How to Pay Yourself
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
Awesome great information! Thank you so much and also make a video for foreigner owned single member llc tax planning 😊
Thank you, this topic is on my list!
Thanks Chad, LLC newby here, your video was clear and easy to understand.
very clear and to the point , you are the first video of many I have watched that gave it to us straight (Just the Fact) , Many thanks
Great video, thanks for help. I just started my own llc and freaked out about this topic but you explained it well
Glad to help!
Thank you so much for putting this out and not taxing people for the info. God bless you keep going there are only roughly 650,000 CPAs in the country. Your a rare breed and in high demand.
Thank you Get more help here: pinewoodtax.com/
2022 tax update for you!! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
Literally asked everybody I knew in business how this process works and never got this clear of an answer. Thank you so much ✌
Glad this helped!
That's true talk unhelpful
2022 update for you! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
This is an amazing video man, thank you. .Simplicity is king
Glad this helped! More on the channel and updates coming soon.
Quite helpful and easy to follow. Love that you added the visuals. Cheers!
Thank you!
See 2022 update video: Single Member LLC Taxes, Estimates, and How to Pay Yourself
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
THANKS, VERY CLEAR AND EASY TO FOLLOW
Awesome! Thanks for making this so simple. I was having a hard time getting that simple answer elsewhere
Thank you, I have been saying for a while now that someone needs to explain this like I was 5 years old. I think I understand now.
Amazingly easy to follow. Thank you for the information!
Awesome explanation!! (the music was very distracting for me.... had to try really hard to tune it out) But really, Thanks for the education!
Well explained and easy to understand. Super helpful! Thank you!
Love the white board, it made everything so simple. Thank you!
Glad you enjoyed
See 2022 update! Single Member LLC Taxes, Estimates, and How to Pay Yourself
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
This is a fantastic video. It's clear and easy to understand your explanations. Thank you for providing this information.
This is awesome! I feel I struggle with working a w-2 job, then I work a 1099 job and also own a single member LLC. I always get stuck with how to document that on a schedule C (do I combine them or add two schedule C documents). I also get stuck with do we need to show proof when providing a schedule C on our LLC income? So many questions haha!
I hope this helps.
Sounds like your trying to do it yourself ...U need HIRE an ACCOUNTANT...sis ......
Here is an update for 2022! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
Thank you, Chad. Great information. Very helpful.
Thanks glad to help!
My people been flooring it with da pedal to the metal
Hey Chad awesome video! I’m a New single member LLC also and I’m trying to figure out all the tax requirements and deductions I need to be aware of, I’m a videographer/Photographer and I would like to know what form to file since this is my main source of income. Also typical deduction for camera gear, mileage, and other travel expenses.
This video was really helpful I don’t quit have the capital to hire an accountant or CPA but I am going to sign up for quickbooks to manage everything.
Hello! See our full video + blog post here, new video just came out today expanding on this exact topic: pinewoodfs.com/blog/self-employed-schedulec-taxes
Sweet thanks I definitely will look at it !
Also should I do an S-Corp to get away from paying Self employed taxes I just have a basic Single member LLC currently.
@@TCOMold once your net income exceeds $50,000 for the year and you intend to grow it beyond that then S Corp could make sense - but not always. But it comes with more cost and complexity: payroll, potential state corporate income tax, a separate tax return, and other corporate filings and actions. All of which have a cost and compliance to deal with. So self employment tax is only one consideration out of the many...I wouldn’t worry about S Corp until you have good profits and want to take on the additional s Corp overhead - then you can save thousands on SE tax.
Hi, so if I write a check to myself from the business will that be the same deduction like paying a bill or buying something for the business?
Amazing video. Explained every question I had
So let’s say of the $100,000 you made in profits, you pay yourself $20,000 through owner draws. You don’t have to pay additional taxes on the $20,000?
Simplest explanation that I was able to follow
Can you do a comparison from the perspective of having an LLC vs not having an LLC? I'd love to see how it directly effects the amount of taxes paid.
Thanks for your question. The answer is: there is no difference. Sole proprietors and single member LLC owners follow the same tax laws and file the same tax return (schedule C). The real tax differences come into play if you add a second owner to an LLC or choose S corporation tax status on an LLC.
So staying a single member llc is more beneficial than switching to a s Corp?
@@Stealth79761 In the right situations S Corp provides more tax benefits. But s corp
Taxes are more complex so you’ll have to weigh the options.
@@Stealth79761 see above comment follow up
Great video sir
Thanks!
Great content and way to stay on topic. Very good! Also, your penmanship is somehow worse than mine, didn't think that was possible! 😉
Chad, could you make a video for people with a single Member LLC living outside the US? For lots of us that would be awesome! Thanks!
Great explanation. Thank you!
Thank you hope it was helpful
Basically it doesn’t matter how much distribution you take out at the end of the year you have to pay for the entire net profit. Even if you haven’t taken it out yet.
Good video!!
Correct - thanks!
See update video here hot off the press! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
Vey information video. Thank you so much for posting!
So I'm confused. My CPA said I should form an LLC to help me with taxes. I'm currently buried in taxes and it's my single largest expense every month. She said that the income that I pay myself from the LLC would be tax deductible instead of paying myself as a sole proprietor. But now I'm hearing that it won't make any difference. So which is it?
This information is gold! Thank you for sharing.
Glad it was helpful!
You made this so simple! Thank you:)
Glad it’s helpful.
Thank you for explaining this in a simple and understandable way. Are there thresholds on the minimum income of an LLC to file taxes? and also one more question, what if you break even the first year between expenses and income? do you still file taxes? (super new at navigating all of this)
You should always file a Schedule C if your single member LLC has any revenue or expenses at all. You may not have any tax due if the expenses are higher than the revenues (a loss), but you still need to file.
@@ChadPavelcpa thank you 🙏🏻
This is so helpful, I just started my LLC by myself, thank you so much!! This may be a stupid question after watching the whole video - but does a single member LLC have to do anything quarterly with taxes? Thank you again!
Great! Yes, as a self-employed person, if you make a net taxable profit in your business you may have to pay estimated taxes to the IRS and your state each quarter. Why? If you don't have a W-2 paycheck, then you aren't sending any money to the IRS or state each week, and instead, you need to send in that money each quarter (to avoid penalties and interest). I'll make a video soon on how estimated taxes work for self-employed / Sch C, thanks for posting!
@@ChadPavelcpa , I’ve had a side hustle all this year but just got an LLC yesterday, I have not made quarterly payments (didn’t know about them till now), any idea how much those are going to be when I file in a few months?
What about loss instead of profit from LLC? Can it write off on individual side?
@@ChadPavelcpa have you posted this video yet? About the quarterly estimates taxes. Please send link thank you.
Great video ! Clear and to the point !!
How would I pay myself in a structure with a single-member holding LLC (S-Corp) that owns my operating LLC, of which I’m the only owner and employee? How can this be done without piercing the corporate veil and losing asset protection, while still seeing the tax benefits of an S-Corp? Which LLC would handle payroll and how would dividends be distributed? Thanks!
Excellent video! I have a quick question, do you pay yourself from the total revenue, or from the taxable profit?
Thank you for making it so simple to understand.
Glad it was helpful!
Thank you! Exactly what I needed to know.
Glad it helped!
You are the man! Thanks so much for the great explanation.
Thank you glad it helped
See 2022 update video: Single Member LLC Taxes, Estimates, and How to Pay Yourself
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
Nice video. If I start my business and do not take any pay from my LLC for the entire year, am I expected to pay or file taxes?
If your LLC makes a profit, yes, you have income that combines with any other income you make personally. All of that is taxed.
Omg love love this! This was so clear! I actually understand this. Thank you so much 🥰
Glad this helped
What awesome information. Thank you!!!
Glad it helped!
You pay taxes with your schedule c, and the IRS extracts from that single payment a state income tax, medicare tax, federal income tax and social security tax. Use an llc tax calculator online to find your taxes per state and net income amount.
Calculator always a good idea. You pay state taxes on your state return 1040. But yeah it’s all the same format and similar calculations. Thanks.
Great video! I have scenario to add to this....what if I want to take those profits and put them in a savings accound FOR the business, not myself....how would taxes work for that? Taxes still paid the same?
You are still taxed on the profits of the biz. Whether the $ stays in the biz or not.
Hey Chad - great video! I'm looking into signing up for EFTPS in order to pay my quarterly taxes coming up. I am a single-member LLC and I'm a bit confused if I should be enrolling as a business or an individual. Which one would you recommend I select when signing up?
Hello - you pay your taxes as an individual using your SSN. EFTPS is only for federal taxes for corporations and some other taxes.
Make your estimated tax payments to the IRS as an individual. www.irs.gov/payments
This video is better then great
Thank you this was extremely helpful
Glad it is helpful!
Very good, easy to understand video. Thank you!
Chad, you did a great job with this video and your explanation helped a lot. The one question I still have... so when you make an owner's draw, there are no additional taxes such as self employment or social security that you have to pay, correct? You would still have to pay those even if you just left the money in the company as retained earnings, right?
Hello Pierce yes this is correct. You are taxed on the profits of the business regardless.
My accountant explained that with an LLC you will have to pay FICA (Social Security Medicare) and Ordinary Tax, therefore if your total business profit is 100k then you are paying FICA and Ordinary tax on that total amount, which can be pretty hefty, however, if you are an LLC and elect to be taxed as an S Corp then the portion that you pay yourself will be responsible for FICA state and federal just like when you work for any other company that issues a W2 and your business will only be responsible for paying Ordinary Tax. So example: My business made a profit of 200k after all expenses, I paid myself and my partner 40k each so a total of 80k in wages, that leaves my actual profit at 120k. Since I already paid FICA taxes on 80k through my payroll then my business will not be responsible for paying that and therefore all my business would pay is Ordinary Tax on the 120k instead of on the original $200k. The cool thing is that any draws that we make out of the business account throughout the year wont be taxed again so for example: I receive my paycheck (from my 40k salary) but I want to draw an extra $1000 from my business profits every month as a "bonus", that amount will not have to be taxed like my salary gets taxed. I dont know if its different for a single member LLC, but my example is on a 2 member LLC.
Good video but unless I missed it, there is the Self Employment piece of the tax return that wasn't addressed. Thanks
Excellent video. Very clear and understandable.
This was very informational and answered a lot of questions I had.
Great! Good luck build your legacy!
Thank you for this video!🎥 easy to understand!
Thanks an update video coming soon!
See 2022 update here: Single Member LLC Taxes, Estimates, and How to Pay Yourself
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thanks Chad! good video!
Thank you!
Here is a 2022 update for you! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
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I have asked my book keeper/Acountant about this. Just want to get a solid answer, but never have. You sir finally explained it perfectly. Only question is what about self employment tax isnt that an extra 14%?
Yes, on your tax return that is tacked on top of your total income, but you get a deduction for half the Self Employment tax on your individual return.
Or you have to transfer it on monthly basis
Pay yourself / transfer / draw, all same thing. Pay yourself every day, week, month, doesn't really matter.
Hey Chad, great video! Is this all true even if my single member LLC has its own EIN?
Thank you for the explanation
Thanks!
Great information! 👍🏾
See 2022 update Single Member LLC Taxes, Estimates, and How to Pay Yourself
th-cam.com/video/lLwZ6VAttpQ/w-d-xo.html
great video. however, didn’t answer my question. wanted to know how to take out taxes BEFORE the end of the year so i can be paying all along 😩. like if you pay yourself a set amount based on your monthly profit. how to calculate and withhold ahead so you don’t have to pay a bunch at the end of the year.
Extremely Helpful, but it would be great if you could explain a NON-Resident Alien owning an LLC
Thank you for putting this video out!
About to start a travel massage therapy business and boy am I OVERWHELMED.
Thank you! This is the exact info I needed
Thanks glad to help!
Hello Chad,
good information. I just subscribed.
Let say you pay yourself a 1099 from your business, will you be required to pay taxes on the 1099? I assume you would. Then my next question is if you make profit from your business LLC, will you also pay taxes? If so, wouldn’t that be a double taxation? What are the best options to save then on taxes?
2- can you pay a sub contractor under you? If yes, would that count as a business expense?
3- Finally, Can you add new members to your business after you open a single member LLC or do you have to open a new LLC?
1. If it is a single member LLC - You don't want to send yourself a 1099. You pay tax on that 1099 income. But if your business then makes a loss or little income, it basically cancels out. But don't send yourself a 1099 from your business as a single member LLC.
2. Yes. Yes. Send them a 1099.
3. Yes, when you add a member you are now a multi member LLC and file a partnership tax return 1065.
@@ChadPavelcpa thank you
Do you have a video explaining the same thing but with a loss in the first year?
How are SE taxes paid?