Fantastic video! I'm going into my second year as a business owner and the stress of filing taxes has been unbelievable. This has reduced my stress ten-fold. There's been so much going on that I actually forgot that I subscribed to this channel (my bad). Today is a day that I took off to get it together and found this subscription. This.....This is why slowing down is super important! 🥰
I 100% agree. These tips are golden!! If a small biz owner grasps this concept from the start and has a supportive attorney and CPA they will be in great hands.
This was such a helpful video. You did a great job at simplifying something complex as taxes to a person who only understands little about the topic. I learned a lot from this video! Thank you! I just subscribed!
I'm so glad I found your channel! I'm preparing to start a private practice as an Expressive Arts Therapeutic Coach/Facilitator, and I'm exploring the best way to set myself up
Your breakdown of how an LLC is taxes is so clear and easy to understand! I appreciate this, especially since I'm starting a company shortly. Thank you for sharing and I will be following your advice and channel.
Thank You all so much for putting this is laments terms. You guys are teaching me more than what I learned in school. Please continue the good work. Good bless you all and RU-vid University🎉😊
Great video great information thank you for taking time out of your life to do these videos for small businesses like myself who's trying to self educate themselves and business independently
I love to watch your videos. Please clarify these 2 questions: 1. When you said 50000 income to switch to s - corp, do you mean after all deduction or do you mean revenue? 2.do you pay tax on distribution base on your personal tax brackets?
This information is GOLD! Just started following this channel and it is more than what I was looking for. Thank you!! Can you recommend a channel that is similar to follow regarding bookkeeping/accounting-as in, understanding the balance sheet, p&l and income reports?
Can you make a video about Re-Investing into your business. I want to know if you can invest your salary, back into your business, how does that work and how would you put that in the system in QuickBooks or any accounting software? I know it is suppose to show up on the financial documents... but how is it supposed to show up on financial documents? When I start a business, I want to reinvest my first 6 month earnings towards the debt/loan... but I am not sure if we are allowed to do so. :) Thanks
Hmm. This is a complex question and not specific advice since we don't know the whole situation. But in general, you can only reinvest profits into the business without it being taxed, and even that would depend on your entity type. The moment, you take a salary or distribution, that money is taxed. Now of course, you can reinvest money into your business at any amount, especially after taxes
I'm a dole proprietor and I'm a dealer for manufactured homes. Should I change to a LLC? I still am working my full time job but plan on quieting in the future. Dealer is a side hustle but soon main hustle
This is very helpful! Are the words distributions, income and profit all interchangeable when considering whether or not an LLC or S-Corp is right for you? For example, Do LLCs pay taxes on all income as in "revenue" or only the profits? From my understanding distributions are payments made to LLC owners from profits. Then owners are only taxed on the amount of the distribution NOT the entire income/revenue of the business. Correct?
Ok, this video is glorious, thank you! Here's where I get caught up - at 10:05, what would I do with the extra $30,000? Right now I'm a sole proprietor, so I would get taxed on that but obviously then it would be accessible to me. If I put it into my business as an S-corp, what would I be able to do with it? I guess just use it for business expenses? (I don't have many)... or invest? 🤔 I would so appreciate any thoughts!
I created my LLC in July 2021as a single member. I wasn't aware that I had to file an ECE with the IRS and it had to be done within 75 days of formation until today! I was told that i don't want my LLC to be automatically classified as a Disregarded Entity. The problem is I'm not sure what classification I should elect. I would like to pay as little self employment tax as possible.
What if I open S corp without LLC ? If someone wanna go after me , do I still have protection of my own assets? Also, another question. With S corp, if I made 100k and had 85k experiences , do I still have to do w2 for myself? I know I am gonna pay taxes for the rest 15k, but I don't pay extra 15% taxes on 15k
I am a sole proprietor how do I categorize the funds that I have deposited from my personal account to my sole proprietor business account to keep my business afloat?
Thank you! Super!! I learned: an LLC is a corporate entity while Scorp is a taxation mode or status. LLCs offer liability protection. If I have cash flow going in my savings account how is that taxed? I wonder, what about my day job income?
I need assistance here... I didn’t establish my LLC until mid February. However, on eBay, I exceeded $1000 total of sales since the beginning of the year. I am a seller in the state of Illinois. My receipts of the item I sold are still kept, however one receipt applies to more than one item sold. How do I file the income from those sales, versus LLC? Is this filed together? Is there a different form? Every CPA firm and Attorneys aren’t taking new clients at the moment, I believe it’s because people rushing their taxes... I’m trying to figure this out before I have to file for next year.
I have a question I hope you're willing and able to answer...What if you own multiple businesses and your total salary for all businesses are over 50,000 a year, will you recommend have all of them s corps for filling purposes?
So I prematurely elected to file as an S-Corp, considering I don’t make profit yet and am still trying to get out the red… with that being said, do I still have to pay myself even if my company is not making money yet? If so, is there a way to revert back to an LLC until my business becomes profitable? Really wishing I seen these videos last year when I was starting my business 🙂🔫
Just have justification for the reasonable salary. Don't be a goblin and take everything as a dividend. If you are a dentis, 30% of production, move on, if you are a business manager, 90k and move on. DONT OVER THINK REASONABLE SALARY, JUST BE REASONABLE.
If I have an SLLC I would have to file with my personal taxes? Does this change my income bracket if I work full time at a 9-5 job or does the IRS separate that?
