After you earn SS of 132,900, SS Stops. You only pay Medicare Taxes of 2.9%. S Corp you need to file Federal & State Tax Returns which is additional Accounting Fee of at least $1,200 and Worker Compensation Insurance also. Single member LLC files a Schedule C. You're not paying SS Tax on income above $132,900. S Corps are not cheaper. - my opinion.
After 5 other videos I finally saved yours!! Clean, well paced and to the point. Much appreciated. Would you have any recommendations for a CPA/tax lawyer in Las Vegas, Nevada?
How do you advise "paying yourself a wage?" I have heard people treat themselves as a contractor in there own scorp, issue themselves 1099misc(from the scorp) so the fica would be paid. this is easy solution but is wrong. Is it worth paying a 3rd party company to handle payroll, 941/940 forms, or is there an easier solution to paying yourself a wage for 1 employee?? It seems like a lot of work for just 1 employee payroll. If you could make a video on this, I'm sure tons of small business people would love it.
Ivan Pakhnyuk As far as I’m aware, one can run payroll for themself once a year, which in theory means you can pay a company like Gusto for a month out of the year.
My Brand new LLC( Two memeber and not selected any thing special treatment ) did not make any Money for the last year so do I still need to file Taxes or it is not required ? My CPA is saying it is not required file taxes for LLC as it did not make business yet
An LLC that is taxed as a partnership is subject to the same federal income tax return filing requirements as any other partnership. The LLC must file an informational partnership tax return on tax form 1065 unless it did not receive any income during the year AND did not have any expenses that it will claim as deductions or credits. Thus, an LLC with no business activity that is taxed as a partnership (such as yours) is not required to file a partnership tax return unless there are expenses or credits that the LLC wants to claim. I hope this helps!
Mark J Kohler Thank you very much for the detailed info . I have expenses of about $1500 for initial Incorporation fee and the monthly virtual office space and the bank account fee ,, exceptthat I don’t have any income ( business) for the last year .
If you convert from an LLC to S-Corp mid year, how is the payroll handled? In other words, an LLC does not require payroll so after the conversion is payroll for the previous months (previous LLC) paid out in a lump sum? Also, what do you charge for corporate (s-corp) taxes? Can't find it on your site. Thx!
I would back date the s-corp election to the beginning of the year . PLEASE get a consult right away. Call Darci my scheduler at 435-586-9366 ext 2024. Also, the website is kkoslawyers.com
Ok check my "Math" on this please. An LLC protect YOU from your assets. If you open a small business in (or as) an LLC then your personal property is protected from your business in case of a lawsuit against the business. Assuming this is correct, will changing my Business that is under an LLC to an S-corp, remove my protection or does the S-corp give me the same protection if that S-corp is sued?
Quick Question; In 2019 I earned about net 30,000 from my S-corp. I am married with 2 kids. I am not getting any earned income credit or child tax credit. Is there any way to get earned income credit or child tax credit for 2019? If not, what should I do so I don't have this issue for 2020? Is there any benefit for me to switch to LLC?
What if you earn 200k profit, always over the social security limit. Does that 2% Medicare savings make it worth all the extra tax prep, payroll fees, etc
Hi Heather! Thanks for watching! This is a pretty in-depth question. To give you the advice you need, please reach out to our firm to schedule a 20 minute paid consultation with one of my attorneys. Call 435-586-9366
Great information Mark- we are about to furmulate a constructiion company - and we will have existing employee and we are forecasting about 4M gross annually, do you think we need to go S-Corp.? Need your feed back. Mahalos- WA
On the S-Corp example “$50,000 distribution” and a $25,000 salary, how does that $50,000 get into the owners pocket? Does the owner just simply write a check to himself, minus taxes of course? What if that $50,000 is left in the business account as business profit, taxes have to paid on that $50,000? I have always been told, I’m LLC S-Corp, to leave very little to no profit at the end of the year because I the business owner would have to pay taxes on that profit, because that profit goes on my personal wages. Which is crazy because I personally didn’t get any of that $50,000 and the business could lose that $50,000 the next calendar year.
Yes for LLC S Corps- taxes are paid on retained earnings. Doesn’t matter if your actually distributed the cash to yourself or not. The only safety net you have is if the business loses $50k the next year, that’s a tax deduction.
If I convert my LLC to an S Corp will I have to get a new EIN number? The reason I’m asking is because of business credit. I would hate to start over building business credit again that I have already established. Please advise and thanks in advance.
Terry, Amazing question! I would be happy to answer that for you! Join me for my live stream on February 27th, starting at 4pm MST and I will answer that for you then! Thanks for the question!
How do you balance the goal of paying the lowest reasonable salary and the desire to maximize the company match into a Solo401k. In this case, a higher salary means a higher company match given its 25% of the salary no to exceed 56K in 2019 including the max employee contribution of 19K. To achieve the max, one needs a salary of $148K. Now I know this is economies of scale, but if the business revenue is going to be high enough to do this, then there seems to be little choice in the salary selection.
Thats the real trick. I've been fine tuning a strategy for that my entire career for 20 years. To the point of your question, I always start with what your reasonable salary MUST be, then work backwards from there. If we want to increase your salary for a 401k contribution we can, but I only do it if it makes sense. Here is a recent article of mine on the topic: markjkohler.com/dial-in-your-s-corp-strategy-before-year-end/ . Also, you would love this video on the "sweet spot": markjkohler.com/dial-in-your-s-corp-strategy-before-year-end/
@@MarkJKohler Do you have a video on your payroll matrix and s-corp strategy? Or is it in one of your books (which so I can buy). BTW above...they are both the same link
Ughh. You're right. Sorry. Here is the link: th-cam.com/video/tD_GYE5CplI/w-d-xo.html. As for more info on Payroll and S-Corp strategy. It's a whole chapter in my book "The Tax and Legal Playbook": markjkohler.com/products/the-tax-legal-playbook/ Also, I have 60+ videos in my Tax and Legal Library and have an entire video on S-corps where I work the white board for approx 30min...and so much more. Check that out too here: markjkohler.com/product/tax-legal-library/
Hello Mark, My name is Ford, and I am leaving my current company as an IT Manager as W-2 employee. On January 10, 2022, I will be starting with a new company but with a caveat that I will be hired as a CONSULTANT (1099 basis) for a few months, then convert/hire me as a full-time W-2 Employee thereafter!! Note: My Rate will realize between $40K to $50K for those few months in 2022. Question: Is it worth me getting an S-Corp? (i.e. Will my initial cost for setting up the S-Corp + your Service cost for Tax filings (Form 941) etc... worth spending vs me just keeping it as a Sole Prop?)
Hi, I am a small business owner that elected to be an s-corp when I changed my sole proprietorship to an llc. BAD IDEA ..... I wasn't ready for it and I don't know how to go back. Help!!!
@@causa04 hi 👋, my business is still very young and very small. I wanted to start expanding and hiring employees so I got the s Corp. But, I didn't need that to hire people... All it did was give me more paperwork, double taxes, and a headache trying to keep my still active sole proprietorship and my s-corp separate.😒its been exhausting. Good luck😉
@@chaunteseturner7818 I see, by the way double taxation only happens on a C Corp. The S Corp selection supposed to give you a break on self employment taxes thru dividend distribution so you should be saving some money in taxes =) you must have another business because you shouldn't be doing sole proprietor and S corp for the same business. =) best of luck
Jazzy, If your LLC meets the S corporation requirements, then in many states you can use a process known as a “statutory conversion” to make the LLC/S corp. change. In a statutory conversion, the LLC's assets and liabilities automatically transfer into a corporation.
Hey mark, I’ll call bullshit. With a SMLLC taxed as an s Corp where the hell are the dividends (in excess of officer comp) coming from????? Your various licenses don’t cover the fact that your doing shady shit. Yes, these SMLLCs often fly under the radar, but that doesn’t make it right. You makes us accountants look bad.
Just watched your updated video Feb 2021 for this same topic. You almost said it word for word! That's how you know you have a good tax guy that knows his stuff.
Yes it is. You file taxes differently. I am convinced that for entrepreneurs, S-Corp is one of the most powerful long-term strategies to build upon. I wrote an article about it. Check it out markjkohler.com/dial-in-your-s-corp-strategy-before-year-end/
Does your firm set up S corps? I’m currently a sole proprietor and have been for two years. I plan to gross six figures this year. Can an Corp be back dated in my case? I never had an llc
I have started looking into filing an LLC/SCorp in California. I started earning in January but now its March. Can I retroactively file for an LLC or will I have to file a 1099 for the first 3 months? Thanks love your videos!
Mark, about the 1 year retroactivity of the 2553: Can you reference the IRS code that allows this. Just in case my accountant needs some help with the retroactive part.
I'm confused, so you pay yourself ordinary income the high tax rate but s corporation allows you to do depreciation and other deductions if you are in real estate?
Hi Tony!Thanks for watching! This is a pretty in-depth question. To give you the advice you need, please reach out to our firm to schedule a 20 minute paid consultation with one of my attorneys. Call 435-586-9366
Is it worth it to elect the S-corp if u make $60k or less a year. Like is there a certain amount of money that is needed to justify the election. Also do u know anything about structuring Holding companys with Operating companies for small businesses entrepreneurs.
Freak yeah! Yes to both! You need a consultation and I know it will save you! Give my assistant Rosalie a call at 435-586-9366 ext 2024 to set up one with me or with one of my attorneys. Thanks
Should you be set up as an LLC, S-corp, sole proprietor if you're only going to receive one large lump sum commission as an independent agent? Would you have to pay self-employment tax on a Form 1099? Thanks
Dumb Question - I have my wife and my father as part of the LLC. My dad has 10% stake. Can he get paid a salary and still have a S Corp? What happens with the profits above the salary's?
"Hard enough to be a small business owner." True Dat. My partner and I (50/50) have an LLC and we do an S election and pass the income through. We each are on payroll with a "reasonable" salary that takes part in our 401k, etc. We distribute the rest (rather, we pay K-1 taxes on the rest, distribute some and bank some). However, we have a slew of "personal business" expenses that differ between the two of us that we have "true up" with a bonus payroll. For this reason, and a desire to start additional businesses, we are considering having individual S-Corps that each own 50% of the LLC. My question is, do we have to move our salaried income from the LLC to our individual S-Corps? We'd rather keep our "reasonable" salary at the LLC and realize all of our distributions through our S-Corps only.
Great question! Freak yes.. if you have the right CPA attorney that knows what they're doing. I think you need a consultation and trust me, it will be very beneficial for you! Please reach out 435-586-9366 ext 2024 to get scheduled. Thanks!
Yes :) my team and I work with international clients as well. There is, in fact, an international law attorney on my team: Kristie Parker. Please call 435-586-9366 ext 2024 if you would like to make an appointment.
What’s about when the Attorney by mistake Signed for an LLC in the state and in the federal he signed for an Corp. .. He opened a different institution, now what’s the best way to fix it? Sign a form to be an LLC in federal file from IRS or he can file to be a S Corp?
The entire amount distributed from an LLC taxed as a Partnership is eligible for the 20% deduction, however only the profit from an S Corp is eligible for the 20% deduction, correct?
Listen to my podcast about S-Corps: th-cam.com/video/kNUH3idUuxM/w-d-xo.html. We stat talking about expenses and other important strategies at: 47:29. I hope you find the podcast helpful. If you have any other questions, please reach out to my assistant at jack@markjkohler.com who can connect you with the right people.
Lets say my old accountant made a mistake and opened a c corp when you wanted a s corp, then when you realized this the IRS said the company would be recognized as a c corp for that year , but would change to a s-corp the following year. during the first year you net $6000 as a c -corp, you paid the taxes on the earnings and now are into the folllowing year now recognized as a s-corp . how or can you get that $6000 you already paid taxes on ,out ?
I'm Trying to understand what benefit, if any would there be to having an LLC that is owned by 2 single owner S-corps, instead of just making an conversion from and LLC to an S-corp owned by the 2 50% shareholders?
Thanks for asking! So technical... Please set up a consultation with me or with one of my attorneys to go over this matter in details and we can explain to you the benefits as well as tailoring all answers to your situation. Please call 435-586-9366 ext 2024 to get scheduled. Thanks!!
Fair question. If you are starting a business, 2 choices in my opinion. Get a consult with one of my associates. Call Darci my scheduler at 435-586-9366 ext 2024. And purchase "8 Steps to Start and Grow your business" here bit.ly/2zTXFP1
Can you do a video on best practices to handle your S-Corp money (i.e. how much to keep it capitalized, what bank accounts to have for the biz [one for operational, one for taxes, etc.] That sort of thing) thanks!
Good idea. I'll keep it in mind. I'm always looking for new topics to record on. From an operational standpoint I just released an awesome workbook this past fall on amazon (at least I think it's awesome). I talk about this very issue you bring up and so much more. There are 60+ videos and 8 Sections. Please check it out, it's probably just what you are looking for. It's a little investment but pays off big. www.amazon.com/Steps-Start-Grow-Your-Business/dp/172420890X/ref=sr_1_fkmrnull_1?keywords=mark+kohler+8+steps&qid=1552187942&s=gateway&sr=8-1-fkmrnull
Check out this article of mine here, it should help: markjkohler.com/qualifying-to-own-an-s-corporation-if-you-are-from-a-foreign-country/ Thanks for watching!!
I'm sold! I have struggled to find someone that can explain this to me. Usually people would just tell me what I should do, without backing up with good facts. Your office will definitely be receiving a call from me.
Hey Mark, if a startup misses the filing deadline for an S-corp in the fiscal year they start, can they make the selection after the deadline? For ex: January 1st Launch, and it's now April
YES!!! Absolutely. We charge $125. You have to include a special revenue ruling to do it. Please don't do it on your own. Don't use us if you don't want...but use a professional. Call my head paralegal over this, Susan Kumpe, at 435-586-9366 or susan@kkoslawyers.com and she can hook you up. No expensive fees with a lawyer...although I would at least recommend a 30min consult so you know what the HE%% you are doing with payroll, and the split and maintenance, etc... 😊
Sorry I'm not 100% familiar with OR area. However, I have a team of tax attorneys who can all provide you with tax and legal advice in any state. Please feel free to give them a call 435-586-9366
To do a retroactive s-Corp election would i have had to have taken a salary all year? What if I took regular distributions and paid quarterly taxes as planned? Could I still elect for it?
Great question! I would suggest schedule a consultation with a CPA attorney at my firm to go more in-depth on your matter. Call Rosalie at 435-586-9366 ext 2024 to get scheduled. Thanks!
Great question! I'd say your best bet is to watch some more videos on this topic, and/or visit my website at markjkohler.com/blog/ and find some articles I have written for this! If it is still unclear, give my assistant Rosalie a call at 435-586-9366 ext 2024 and she will point you in the right direction!
Frankly, the easiest is to call the IRS. You'll be on hold for a while, and they'll transfer you around a little, but you'll get your answer. Call (800) 829-1040. mjk
Yes about different entities with different purposes...but I would want I don't want a 'holding' LLC to be owned by the S-Corp. HOWEVER, if it's an 'operational' LLC, it SHOULD be owned by the S-Corp. PLEASE get a 1/2 hour to 1 hour consult with one of my Tax Attorneys. You would love it and they can set you straight. Contact Darci at 435-585-9366. Thanks
Hard to see handwriting but VERY useful
After you earn SS of 132,900, SS Stops. You only pay Medicare Taxes of 2.9%. S Corp you need to file Federal & State Tax Returns which is additional Accounting Fee of at least $1,200 and Worker Compensation Insurance also. Single member LLC files a Schedule C. You're not paying SS Tax on income above $132,900. S Corps are not cheaper. - my opinion.
After 5 other videos I finally saved yours!! Clean, well paced and to the point. Much appreciated. Would you have any recommendations for a CPA/tax lawyer in Las Vegas, Nevada?
Hey Angelo! Our firm assists clients in all 50 states, if you email drew@kkoslawyers.com she can help you get scheduled for a consult!
How do you advise "paying yourself a wage?" I have heard people treat themselves as a contractor in there own scorp, issue themselves 1099misc(from the scorp) so the fica would be paid. this is easy solution but is wrong. Is it worth paying a 3rd party company to handle payroll, 941/940 forms, or is there an easier solution to paying yourself a wage for 1 employee?? It seems like a lot of work for just 1 employee payroll. If you could make a video on this, I'm sure tons of small business people would love it.
Ivan Pakhnyuk As far as I’m aware, one can run payroll for themself once a year, which in theory means you can pay a company like Gusto for a month out of the year.
This was exactly what I was looking for, thank you!!!
You're very welcome!
Great & simply video..
why you never reply the comments here?
I am sorry about that! Sometimes it takes me a bit cause I am busy! I will try to answer sooner. Thanks!
My Brand new LLC( Two memeber and not selected any thing special treatment ) did not make any Money for the last year so do I still need to file Taxes or it is not required ?
My CPA is saying it is not required file taxes for LLC as it did not make business yet
An LLC that is taxed as a partnership is subject to the same federal income tax return filing requirements as any other partnership. The LLC must file an informational partnership tax return on tax form 1065 unless it did not receive any income during the year AND did not have any expenses that it will claim as deductions or credits. Thus, an LLC with no business activity that is taxed as a partnership (such as yours) is not required to file a partnership tax return unless there are expenses or credits that the LLC wants to claim. I hope this helps!
Mark J Kohler Thank you very much for the detailed info .
I have expenses of about $1500 for initial Incorporation fee and the monthly virtual office space and the bank account fee ,, exceptthat I don’t have any income ( business) for the last year .
Very helpful first couple minutes!
He dropped. The marker!
BOOM!!
Haha!
Love it.
THANK YOU!
Morning coffee with Mark...thanks for the video helpful.
If you convert from an LLC to S-Corp mid year, how is the payroll handled? In other words, an LLC does not require payroll so after the conversion is payroll for the previous months (previous LLC) paid out in a lump sum?
Also, what do you charge for corporate (s-corp) taxes? Can't find it on your site. Thx!
I would back date the s-corp election to the beginning of the year . PLEASE get a consult right away. Call Darci my scheduler at 435-586-9366 ext 2024. Also, the website is kkoslawyers.com
Ok check my "Math" on this please. An LLC protect YOU from your assets. If you open a small business in (or as) an LLC then your personal property is protected from your business in case of a lawsuit against the business. Assuming this is correct, will changing my Business that is under an LLC to an S-corp, remove my protection or does the S-corp give me the same protection if that S-corp is sued?
Awesome video. Callin my cpa tomorrow. Thanks for the info.
What if your income is not steady and some months make money but others don't? Is S-corp a good choice?
I always look forward to seeing your videos show up in my feed! =)
Quick Question; In 2019 I earned about net 30,000 from my S-corp. I am married with 2 kids. I am not getting any earned income credit or child tax credit. Is there any way to get earned income credit or child tax credit for 2019? If not, what should I do so I don't have this issue for 2020? Is there any benefit for me to switch to LLC?
Does this strategy of an LLC owning an S-corp still work? How might Section 267 factor into all this?
Thank you so much for this info. Very helpful
What if you earn 200k profit, always over the social security limit. Does that 2% Medicare savings make it worth all the extra tax prep, payroll fees, etc
Hi Heather! Thanks for watching! This is a pretty in-depth question. To give you the advice you need, please reach out to our firm to schedule a 20 minute paid consultation with one of my attorneys. Call 435-586-9366
I converted my LLC to a S-corp starting 2022. I want to know how I can update it with SOS
Love the energy Bro.
Thanks!
You're so perfect. Thanks !
Oh thank you! Thanks for watching!
Do you know a CPA in AZ.? I live in Nevada but want my business set up in Arizona.
paralegal option ! Plus "registered agent" , for state website
can you keep your LLC and be taxed as a S Corp? Also what does a Dun & Bradstreet number do for a business?
A Duns number is for business credit
that's how I was understanding it
If a person has a homebase business...wouldn't make sense to have a llc 🤔
Mark is spittin' the truth. It's not what you make it's what you keep!!
Do you still have the LLC protections after electing S Corp?
Great information Mark- we are about to furmulate a constructiion company - and we will have existing employee and we are forecasting about 4M gross annually, do you think we need to go S-Corp.? Need your feed back. Mahalos- WA
Please shoot me an email at mark@markjkohler.com and I'll get back to you as soon as I have a chance!
$
What is the downside of choosing an S Corp for rental activity?
On the S-Corp example “$50,000 distribution” and a $25,000 salary, how does that $50,000 get into the owners pocket?
Does the owner just simply write a check to himself, minus taxes of course?
What if that $50,000 is left in the business account as business profit, taxes have to paid on that $50,000?
I have always been told, I’m LLC S-Corp, to leave very little to no profit at the end of the year because I the business owner would have to pay taxes on that profit, because that profit goes on my personal wages. Which is crazy because I personally didn’t get any of that $50,000 and the business could lose that $50,000 the next calendar year.
Yes for LLC S Corps- taxes are paid on retained earnings. Doesn’t matter if your actually distributed the cash to yourself or not. The only safety net you have is if the business loses $50k the next year, that’s a tax deduction.
How about a very small c-corp to an s-corp? I never hear about that scenario.
If I convert my LLC to an S Corp will I have to get a new EIN number? The reason I’m asking is because of business credit. I would hate to start over building business credit again that I have already established. Please advise and thanks in advance.
Terry, Amazing question! I would be happy to answer that for you! Join me for my live stream on February 27th, starting at 4pm MST and I will answer that for you then! Thanks for the question!
How do you balance the goal of paying the lowest reasonable salary and the desire to maximize the company match into a Solo401k. In this case, a higher salary means a higher company match given its 25% of the salary no to exceed 56K in 2019 including the max employee contribution of 19K. To achieve the max, one needs a salary of $148K. Now I know this is economies of scale, but if the business revenue is going to be high enough to do this, then there seems to be little choice in the salary selection.
Thats the real trick. I've been fine tuning a strategy for that my entire career for 20 years. To the point of your question, I always start with what your reasonable salary MUST be, then work backwards from there. If we want to increase your salary for a 401k contribution we can, but I only do it if it makes sense. Here is a recent article of mine on the topic: markjkohler.com/dial-in-your-s-corp-strategy-before-year-end/ . Also, you would love this video on the "sweet spot": markjkohler.com/dial-in-your-s-corp-strategy-before-year-end/
@@MarkJKohler Do you have a video on your payroll matrix and s-corp strategy? Or is it in one of your books (which so I can buy). BTW above...they are both the same link
Ughh. You're right. Sorry. Here is the link: th-cam.com/video/tD_GYE5CplI/w-d-xo.html. As for more info on Payroll and S-Corp strategy. It's a whole chapter in my book "The Tax and Legal Playbook": markjkohler.com/products/the-tax-legal-playbook/ Also, I have 60+ videos in my Tax and Legal Library and have an entire video on S-corps where I work the white board for approx 30min...and so much more. Check that out too here: markjkohler.com/product/tax-legal-library/
LOVE LOVE LOVE the brevity without compromising detail & importance. Also enjoy the delivery!
Thanks your support means a lot to me!
Hello Mark,
My name is Ford, and I am leaving my current company as an IT Manager as W-2 employee.
On January 10, 2022, I will be starting with a new company but with a caveat that I will be hired as a CONSULTANT (1099 basis) for a few months, then convert/hire me as a full-time W-2 Employee thereafter!!
Note: My Rate will realize between $40K to $50K for those few months in 2022.
Question: Is it worth me getting an S-Corp? (i.e. Will my initial cost for setting up the S-Corp + your Service cost for Tax filings (Form 941) etc... worth spending vs me just keeping it as a Sole Prop?)
no, it's not worth your time and money in your situation.
Is it still $125 to file the 2553 IRS form and back date it with your firm?
Yes it is.
The price has gone up to $200!
great info thank you for this video
Hi, I am a small business owner that elected to be an s-corp when I changed my sole proprietorship to an llc. BAD IDEA ..... I wasn't ready for it and I don't know how to go back. Help!!!
why was it a bad idea? I wanted to open a biz and make it an LLC and select it to be S corp. Please help. thanks
@@causa04 hi 👋, my business is still very young and very small. I wanted to start expanding and hiring employees so I got the s Corp. But, I didn't need that to hire people... All it did was give me more paperwork, double taxes, and a headache trying to keep my still active sole proprietorship and my s-corp separate.😒its been exhausting. Good luck😉
@@chaunteseturner7818 I see, by the way double taxation only happens on a C Corp. The S Corp selection supposed to give you a break on self employment taxes thru dividend distribution so you should be saving some money in taxes =) you must have another business because you shouldn't be doing sole proprietor and S corp for the same business. =) best of luck
Thanks for the video.
If there any way to completely turn an LLC to a s Corp. I want to be able to leave my any assets that may have to my children.
Jazzy, If your LLC meets the S corporation requirements, then in many states you can use a process known as a “statutory conversion” to make the LLC/S corp. change. In a statutory conversion, the LLC's assets and liabilities automatically transfer into a corporation.
Hey mark, I’ll call bullshit. With a SMLLC taxed as an s Corp where the hell are the dividends (in excess of officer comp) coming from????? Your various licenses don’t cover the fact that your doing shady shit. Yes, these SMLLCs often fly under the radar, but that doesn’t make it right. You makes us accountants look bad.
Just watched your updated video Feb 2021 for this same topic. You almost said it word for word! That's how you know you have a good tax guy that knows his stuff.
Just stay an LLC and choose to be taxed as an S Corp. Easier
Is being an LLC and taking the S-corp election different than just filing as an S-corp from the start?
Yes it is. You file taxes differently. I am convinced that for entrepreneurs, S-Corp is one of the most powerful long-term strategies to build upon. I wrote an article about it. Check it out markjkohler.com/dial-in-your-s-corp-strategy-before-year-end/
Does your firm set up S corps? I’m currently a sole proprietor and have been for two years. I plan to gross six figures this year. Can an Corp be back dated in my case? I never had an llc
I have started looking into filing an LLC/SCorp in California. I started earning in January but now its March. Can I retroactively file for an LLC or will I have to file a 1099 for the first 3 months? Thanks love your videos!
I'm an HR Consultant and I need to change my LLC to S-Corp now effective 1/1/21. I'm so screwed up. Can you help with this?
Lol started laughing when you said blah blah blah. Great info thanks!
Mark, about the 1 year retroactivity of the 2553: Can you reference the IRS code that allows this. Just in case my accountant needs some help with the retroactive part.
YOU NEED A SINGLE MEMBER LLC
Not just any LLC. S CORPS ONLY TAX WHAT YOU PAY YOURSELF
What should I do to file as LLC after been filing as S Corp?
Great question! To get your question answered, please submit it to podcast.mainstreetbusiness.com/ Thank you!
I'm confused, so you pay yourself ordinary income the high tax rate but s corporation allows you to do depreciation and other deductions if you are in real estate?
if I have an LLC but I want to go ahead and setup an payroll system that pays me and taking taxes out, would that benefit me?
Hi Tony!Thanks for watching! This is a pretty in-depth question. To give you the advice you need, please reach out to our firm to schedule a 20 minute paid consultation with one of my attorneys. Call 435-586-9366
Is it worth it to elect the S-corp if u make $60k or less a year. Like is there a certain amount of money that is needed to justify the election.
Also do u know anything about structuring Holding companys with Operating companies for small businesses entrepreneurs.
Freak yeah! Yes to both! You need a consultation and I know it will save you! Give my assistant Rosalie a call at 435-586-9366 ext 2024 to set up one with me or with one of my attorneys. Thanks
@@MarkJKohler Thank you, will do!!!
Should you be set up as an LLC, S-corp, sole proprietor if you're only going to receive one large lump sum commission as an independent agent? Would you have to pay self-employment tax on a Form 1099? Thanks
You are awesome thanks for the info got a new subscriber
That means a lot, thank you!
Dumb Question - I have my wife and my father as part of the LLC. My dad has 10% stake. Can he get paid a salary and still have a S Corp? What happens with the profits above the salary's?
"Hard enough to be a small business owner." True Dat. My partner and I (50/50) have an LLC and we do an S election and pass the income through. We each are on payroll with a "reasonable" salary that takes part in our 401k, etc. We distribute the rest (rather, we pay K-1 taxes on the rest, distribute some and bank some). However, we have a slew of "personal business" expenses that differ between the two of us that we have "true up" with a bonus payroll. For this reason, and a desire to start additional businesses, we are considering having individual S-Corps that each own 50% of the LLC. My question is, do we have to move our salaried income from the LLC to our individual S-Corps? We'd rather keep our "reasonable" salary at the LLC and realize all of our distributions through our S-Corps only.
What if you have a full time job as a W2 making 250k but also have an LLC taxed as an s-Corp. do you still save on taxes?
Great question! Freak yes.. if you have the right CPA attorney that knows what they're doing. I think you need a consultation and trust me, it will be very beneficial for you! Please reach out 435-586-9366 ext 2024 to get scheduled. Thanks!
Hi. Could you help with LLC s-corp for no-residents? Nice presentation! :)
Yes :) my team and I work with international clients as well. There is, in fact, an international law attorney on my team: Kristie Parker. Please call 435-586-9366 ext 2024 if you would like to make an appointment.
Mind if I ask you a question sir???
Mark,
You are the best!
Thank you so much! Thanks for watching!
Wow. Thank you for the tip.
Anytime cottondai, thanks for the support!
What’s about when the Attorney by mistake Signed for an LLC in the state and in the federal he signed for an Corp. .. He opened a different institution, now what’s the best way to fix it?
Sign a form to be an LLC in federal file from IRS or he can file to be a S Corp?
The entire amount distributed from an LLC taxed as a Partnership is eligible for the 20% deduction, however only the profit from an S Corp is eligible for the 20% deduction, correct?
Who is your gosh?
Do I only need to fill out the 2553? Or should I fill out an 8832 then the 2553?
Thanks
So what do you recommend for an LLC truck driver owner operator that's grossing average 200,000 to 250,000 a year?
convert to s corp to save on self employment taxes
@@marciamarcia7449 Thank you that's what I was thinking one new year hits to go s corp
@@carlosberrios1021 hopefully you are netting in the 40-50k range?
i really like you, you are a straight bullet
Thank you!
How do u handle business expenses on an S corp
Listen to my podcast about S-Corps: th-cam.com/video/kNUH3idUuxM/w-d-xo.html. We stat talking about expenses and other important strategies at: 47:29. I hope you find the podcast helpful. If you have any other questions, please reach out to my assistant at jack@markjkohler.com who can connect you with the right people.
Thanks for that , do we need to change all the licenses and back accounts ?
Good video. Thanks for sharing. Grateful for tips. :)
Thanks so much!
LOVE MJK! Thank you for all that you guys do.
This is great. I scheduled a consult
Thank you for the great information.
My pleasure! Thanks for watching!
Lets say my old accountant made a mistake and opened a c corp when you wanted a s corp, then when you realized this the IRS said the company would be recognized as a c corp for that year , but would change to a s-corp the following year.
during the first year you net $6000 as a c -corp, you paid the taxes on the earnings and now are into the folllowing year now recognized as a s-corp . how or can you get that $6000 you already paid taxes on ,out ?
Are you guys familiar or have experience with VI tax laws?
I'm Trying to understand what benefit, if any would there be to having an LLC that is owned by 2 single owner S-corps, instead of just making an conversion from and LLC to an S-corp owned by the 2 50% shareholders?
Thanks for asking! So technical... Please set up a consultation with me or with one of my attorneys to go over this matter in details and we can explain to you the benefits as well as tailoring all answers to your situation. Please call 435-586-9366 ext 2024 to get scheduled. Thanks!!
Can you be a Sole Proprietor, but still retroactively start the S. Corp to the beginning of the year?
Thank you so much for your time, and knowledge sir. I appreciate it. You saved me prophit thanks.
Zzzzzzzzzzzzz I forgot my coffee.
I'll personally drink a cup of coffee for, just to help you out. No thanks needed. ;)
Is it true that in order to convert to the S-corp, one needs to setup a board of directors?
Is it even necessary to even have an LLC first?
Fair question. If you are starting a business, 2 choices in my opinion. Get a consult with one of my associates. Call Darci my scheduler at 435-586-9366 ext 2024. And purchase "8 Steps to Start and Grow your business" here bit.ly/2zTXFP1
Hi is this work with NON-US?
I would get scheduled for a free 15 min interview with one of my attorneys to go over some options. Please call Darci at 435-586-9366 ext 2024
Can you do a video on best practices to handle your S-Corp money (i.e. how much to keep it capitalized, what bank accounts to have for the biz [one for operational, one for taxes, etc.] That sort of thing) thanks!
Good idea. I'll keep it in mind. I'm always looking for new topics to record on. From an operational standpoint I just released an awesome workbook this past fall on amazon (at least I think it's awesome). I talk about this very issue you bring up and so much more. There are 60+ videos and 8 Sections. Please check it out, it's probably just what you are looking for. It's a little investment but pays off big. www.amazon.com/Steps-Start-Grow-Your-Business/dp/172420890X/ref=sr_1_fkmrnull_1?keywords=mark+kohler+8+steps&qid=1552187942&s=gateway&sr=8-1-fkmrnull
Can a non-resident alien single member LLC elect S-Corporation?
Check out this article of mine here, it should help: markjkohler.com/qualifying-to-own-an-s-corporation-if-you-are-from-a-foreign-country/
Thanks for watching!!
I'm sold! I have struggled to find someone that can explain this to me. Usually people would just tell me what I should do, without backing up with good facts. Your office will definitely be receiving a call from me.
Glad it was helpful!
Hey Mark, if a startup misses the filing deadline for an S-corp in the fiscal year they start, can they make the selection after the deadline? For ex: January 1st Launch, and it's now April
YES!!! Absolutely. We charge $125. You have to include a special revenue ruling to do it. Please don't do it on your own. Don't use us if you don't want...but use a professional. Call my head paralegal over this, Susan Kumpe, at 435-586-9366 or susan@kkoslawyers.com and she can hook you up. No expensive fees with a lawyer...although I would at least recommend a 30min consult so you know what the HE%% you are doing with payroll, and the split and maintenance, etc... 😊
Hi Mark, do you have any recommendations for a Tax Attorney in Portland, OR? Thanks!
Sorry I'm not 100% familiar with OR area. However, I have a team of tax attorneys who can all provide you with tax and legal advice in any state. Please feel free to give them a call 435-586-9366
Should i start with s corporation or file for it later?
To do a retroactive s-Corp election would i have had to have taken a salary all year? What if I took regular distributions and paid quarterly taxes as planned? Could I still elect for it?
Great question! I would suggest schedule a consultation with a CPA attorney at my firm to go more in-depth on your matter. Call Rosalie at 435-586-9366 ext 2024 to get scheduled. Thanks!
does he ever respond here ? Is that a good strategy for someone planning on selling the business in the future?
Great question! I'd say your best bet is to watch some more videos on this topic, and/or visit my website at markjkohler.com/blog/ and find some articles I have written for this! If it is still unclear, give my assistant Rosalie a call at 435-586-9366 ext 2024 and she will point you in the right direction!
I started an LLC late last year. How can I determine if I elected the S-Corp option?
Frankly, the easiest is to call the IRS. You'll be on hold for a while, and they'll transfer you around a little, but you'll get your answer. Call (800) 829-1040. mjk
Better call ... ? Saul
Would it be wise to build an LLc and a separate S-Corp,Then install the LLC into the S-Corp?
Yes about different entities with different purposes...but I would want I don't want a 'holding' LLC to be owned by the S-Corp. HOWEVER, if it's an 'operational' LLC, it SHOULD be owned by the S-Corp. PLEASE get a 1/2 hour to 1 hour consult with one of my Tax Attorneys. You would love it and they can set you straight. Contact Darci at 435-585-9366. Thanks
Can you take the S election is you are a single member LLC?
Yes. All good. Please call for a consult and email my assistant rosalie@kkoslawyers.com.
Would doing this on a rental house that produces $10,000 a year be necessary?
no...just an LLC per Mark's videos in most instances for rentals.
How can I get in contact with your firm
For any legal advice you can contact my office at 435-586-9366. For any tax or accounting needs you can contact my office at 435-865-5866.