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Sole Proprietor vs. S-Corp vs. C-Corp (Here Are The Pros & Cons!) 

Toby Mathis Esq | Tax Planning & Asset Protection
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If you're curious about the difference between a Sole Proprietor vs. S-Corp vs. C-Corp, then this video is for you! In this video, we'll compare and contrast the pros and cons of each business entity, so you can make the best decision for your business.
"People can sue you for just about anything, and in business, they will." 3:19
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As a business owner, it's important to know the difference between these three types of corporations. This video will help you decide which type is best for your business.
We'll discuss the pros and cons of each type of corporation, and help you decide which is the best fit for your business.
Show Notes:
0:00 Intro
3:05 Why Entities are needed
7:00 Sole Proprietorship
13:41 Pros and Cons of S-Corp
19:59 Pros and Cons of C-Corp
25:20 Summary
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ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#scorp #ccorp #soleproprietorship

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25 июл 2024

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Комментарии : 80   
@TobyMathis
@TobyMathis Месяц назад
Have questions about this video? Sign up for a free consultation to get your questions answered by professionals. aba.link/a3f0ff
@stacysouthard
@stacysouthard Год назад
I have never had anyone sit down and explain things like this before. I have asked and asked and asked numerous people how I need to structure my business and all anyone ever says is an LLC. I learned more in 30 minutes from you than I have in years of asking people, including accountants. Thank you for being real and honest!
@Photo66videos
@Photo66videos Год назад
30+ years in business. Never knew some of this. Pure GOLD!
@JamesAutoDude
@JamesAutoDude Год назад
When you're a sole proprietorship: You earn, you're taxed, then you spend When you're a business: you earn, you spend, then you're taxed This alone has really opened my eyes.... Also everything else you explained, Literally the best explanation I've ever found As for the separate tax return... Not much different then doing a schedule C which is also separate and tax preparers charge more for that too
@kevinhynes6325
@kevinhynes6325 Год назад
Toby, I just want to say you are the bee’s knees man. I’ve never seen anyone else explaining these things to the peons like us. Super helpful. I hope you continue making content for a long time
@EpicenterLLC
@EpicenterLLC Год назад
I'm always better informed when I listen to your videos. Happy New Year! Missed your cats :)
@terenceeans1577
@terenceeans1577 5 месяцев назад
As per usual, you killed it!!! So educational I'm implementing every gem that you're passing along and also passing it along. I love the fact that you're passing all of this content from your passion of it!!! Has to be from your heart cause you have plenty of wealth, very inspiring!!! So I've spoken to my wife and we've decided that we're going all in, based on all of the copious notes 📝 we've been taking from your channel!!! Definitely going to I also invest into all of your other workshops 😊😊😊😊😊😊😊😊. We thank you!!!!
@thepakitrucker6869
@thepakitrucker6869 Год назад
Thank you so much for explaining this so thoroughly. Everyone says llc and not once I’ve heard of a c corp until my accountant brought it up and now with your explanation this makes so much sense
@michael_house
@michael_house Год назад
Awesome video. Thanks again!
@Sekona.realtor
@Sekona.realtor Год назад
Definitely best and clearest explanation I ever listen to thank you so much
@lisaevans5843
@lisaevans5843 3 месяца назад
I've listened to this a few times! Thanks so much.
@hyojinlee
@hyojinlee Год назад
Thank you so much for this video!! So helpful :)
@botanyandboard
@botanyandboard 11 месяцев назад
Super helpful - thank you!
@cicsrh
@cicsrh 2 месяца назад
Thank you for the info as usual
@Biztalkcontrolcenter
@Biztalkcontrolcenter Год назад
very clear explanation
@leahmthompson1987
@leahmthompson1987 Год назад
Thank you so much for all this great content!!❤
@TobyMathis
@TobyMathis Год назад
You are so welcome! Thank you for watching our content!
@efrenestrada2230
@efrenestrada2230 Год назад
I see the bottle of Petrone, now I know I can trust you hahaha happy new year
@takeshi1242
@takeshi1242 Месяц назад
Very good points on liability protection most dont think the worst case!
@dennisholle1005
@dennisholle1005 Год назад
Thanks good info.
@yvonnesilva7716
@yvonnesilva7716 Год назад
Geat video. Very informative. Thanks.
@TobyMathis
@TobyMathis Год назад
Glad you enjoyed it! Thank you for watching!
@elguapo3811
@elguapo3811 Год назад
Lots of valuable information for someone who just started their LLC S Corp. Thank you
@TobyMathis
@TobyMathis Год назад
Thanks for watching!
@hugomontano5833
@hugomontano5833 Год назад
I really appreciate the explanation for the different entities. Wife and I trying to start investing in real estate, we are both W2 employees in the higher end of the bracket. We also do stock investing providing another source of income. We currently don't have a structure, what do you think of having two LLCs (one each of RE and Stocks) being in a holding company LLC taxed at C-corp? Want to avoid any non W2 income to be taxed at the higher bracket and limit it to the 21% corporate rate. Thanks
@moneylifetv1754
@moneylifetv1754 Год назад
great video will like it many people need it
@roxulerz
@roxulerz Год назад
Such a helpful video! I learned so much as an entrepreneur just starting out. Thank you!
@TobyMathis
@TobyMathis Год назад
Glad it was helpful! I hope you subscribe for more future videos 👍
@rhadiem
@rhadiem 6 месяцев назад
This is gold, Toby. Thank you.
@TobyMathis
@TobyMathis 6 месяцев назад
Glad you found the video helpful!
@matthewsalathe5491
@matthewsalathe5491 Месяц назад
Good stuff Toby! Thanks.
@TobyMathis
@TobyMathis Месяц назад
I'm glad you enjoyed the video!
@sb9791
@sb9791 Год назад
Always appreciate for your videos that are very helpful to me.
@ellenoir5678
@ellenoir5678 Год назад
Happy holidays!!
@TobyMathis
@TobyMathis Год назад
Happy holidays to you too!
@bendertechnology
@bendertechnology Год назад
Awesome video, Toby! This blew my mind. I got a ton of bad advice over the past years and I think this will help me to moving forward. If I plan to use an s-corp or c-corp for an entity, does it need to be in place on January 1 of a tax year? Thanks for sharing your knowledge!
@JamesAutoDude
@JamesAutoDude Год назад
As far as I know, no it doesn't. As a C Corp you get to choose the closing month, as an S Corp it'll just be December as the last month. And you just file whatever you did from the time it was opened until the close date
@HODL-Diamond-Hands
@HODL-Diamond-Hands Год назад
good stuff.
@aaronjaggers3117
@aaronjaggers3117 3 месяца назад
Thank u great advice for the average person who would walk right into trouble . Thank you
@TobyMathis
@TobyMathis 3 месяца назад
Glad it was helpful!
@derekcasanares4785
@derekcasanares4785 17 дней назад
I always love watching your videos and I have a gut feeling that I will need your expertise within a year.
@TobyMathis
@TobyMathis 16 дней назад
Thanks for the support, don't hesitate to reach out to my team. aba.link/a3f0ff
@derekcasanares4785
@derekcasanares4785 15 дней назад
@@TobyMathis I'm going to start trading again and want to use your services and expertise but I really need to know what type of daytrading I will be doing. I'm looking at the Forex Indicie again or possibly day trading stocks and I have some special things that need to be addressed.
@IrwingMartinez
@IrwingMartinez 10 месяцев назад
great value in this video
@TobyMathis
@TobyMathis 10 месяцев назад
Glad you think so! Thank you for watching my content. 👍
@MartyMarz
@MartyMarz Год назад
Depends. The 21% tax was implemented in 2017 and the c-corp tax rate fluctuates based upon laws passed
@hrstories2
@hrstories2 Год назад
Thank you. Just started a new family trade with zero $ and applying for EIN. I will be choosing S corp.
@TobyMathis
@TobyMathis Год назад
Thanks for watching!
@willmallory9085
@willmallory9085 Год назад
Thanks
@TobyMathis
@TobyMathis Год назад
Thank you!
@jrgvb
@jrgvb Год назад
Thanks for this video. I am starting an online business now with expectations for little net income the first year. I am moving from CA to another state later this year. Can you “move” an LLC in California to the other state when I move so that I no longer have to lay $800 the second year when I don’t live here?
@nolebeeks303
@nolebeeks303 9 дней назад
Wouldn't it be beneficial for the sp to have insurance ? And can they right it off ?
@AuGold808
@AuGold808 Год назад
What about states like Tennessee that aren't as friendly to s-corps? Single member llc here w roughly 100k gross annual profits looking at a s-corp election possibility.
@earningscall
@earningscall Год назад
If someone qualifies for the trader tax status and his/her trading account is under an LLC that's taxed as a C-corp...Would that person pay a 21% flat tax even on short-term capital gains? Thank you
@TobyMathis
@TobyMathis Год назад
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
@mar91942
@mar91942 Год назад
I like the c-corp for the no salary requirement
@pastormosesmaloney1604
@pastormosesmaloney1604 Год назад
Thank you so much man. Just helped me decide between s and c. Going with S corp.
@TobyMathis
@TobyMathis Год назад
That it was helpful! Thank you for watching!
@ImRAM428
@ImRAM428 Год назад
Hi Toby. I have a question regarding S vs C corp. Our family has a side business which we do not rely on for living expenses. Would a C corp be a better option for us, since we use the money as “fringe benefits “ and paying for incidental expenses (car repairs, insurance deductibles, etc). Our accountant wants to convert our C corp LLC to an S corp LLC.
@JamesAutoDude
@JamesAutoDude Год назад
In my opinion, stick to C Corp so the losses and incomes don't pass through to you and stays in the business... But I'm not a professional in any manner
@huiyuliang-frazier1241
@huiyuliang-frazier1241 11 месяцев назад
Thank you for the information. We just change our business to S-Corp. We need a good,experienced accountant to help us to prepare our next year tax return. Do you know any experienced, honest and caring accountant at the near centeral Columbus Ohio area? Or do you think we can do our own tax return? We have been filing by ourselves.
@TobyMathis
@TobyMathis 11 месяцев назад
Here is the link to schedule a free strategy session, aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741. Anderson would love to help you file your taxes.
@LeoSS570
@LeoSS570 Год назад
Can you offer guidance? I'm considering starting my own enterprise representing various manufacturers in the valve industry (valves, pumps). As a sales representative for multiple companies, I'll solely receive commissions on sales. Given these circumstances, which legal structure would be more suitable for me: an LLC or an S corp?
@TobyMathis
@TobyMathis Год назад
Hi Sangeet! Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
@Flossy_Female
@Flossy_Female Год назад
If you’re operating under the sole proprietorship and therefore subject to paying your self-employment tax, does that mean that upon retirement, you are able to pull from that?
@stevenbastian3882
@stevenbastian3882 Год назад
Yes, in the form a social security check and medicare coverage.
@davidpeterson7850
@davidpeterson7850 28 дней назад
I've heard of people layering entities, with an C-corp as a holding company, and an LLC or S-corp as the operations arm that deals in the day-to-day money flow. Is there an advantage to layering like that? For instance, if I'm interested in setting money aside to buy a competitor, or maybe expand my own business if a big contract comes in and I need to hire engineers to get the job done. Thoughts? I'm about to file for something... LLC, S or C within the week [Engineering / AI-ML data company with 5 principles]. Typical contact = 5-6 digits.
@TobyMathis
@TobyMathis 24 дня назад
Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. aba.link/a3f0ff
@anandradhakaurthewanderer749
I am a sole proprietor now, can I switch to an llc now or do I have to wait till the end of the year?
@TobyMathis
@TobyMathis Год назад
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
@intelimoteintelimote7448
@intelimoteintelimote7448 Год назад
Can i elect to have Google issue a 1099 to my S corp as opposed to me as an individual creator for YT AdSense revenue? I intend to form a single member S Corp.
@overarmourinc.7783
@overarmourinc.7783 9 месяцев назад
i would really try to annunciate "S-Corp" from now on. the subtitles make this video go in a very different direction 😅
@hansklauaa
@hansklauaa 6 месяцев назад
Hello . I write you from Uruguay ( south america) i am interested to open one company your country . Can can you recommend me for to beginning ? S corp .. or one LLC am so confused. Thank you so much
@TobyMathis
@TobyMathis 6 месяцев назад
Thank you for reaching out! Opening a company in a different country can be confusing, but our team can help. I would recommend setting up a consultation so we can provide tailored advice based on your specific goals and circumstances. Visit: aba.link/a3f0ff Good luck with your venture!
@J2NMP
@J2NMP Год назад
I'm from California... can we hire you to do our tax... we just started our business/foundation .
@TobyMathis
@TobyMathis Год назад
Hello, we have five physical offices located in Nevada, Wyoming, and Washington and we operate virtually in all 50 states. andersonadvisors.com/locations/ Here is the link to schedule a free strategy session, aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
@valerieleuba
@valerieleuba Год назад
I want to protect my property from any tax lien frauds. I am constantly getting post card and calls to sell my house. I want to make the house invisible.
@AKDisobey
@AKDisobey Год назад
Great video!
@TobyMathis
@TobyMathis Год назад
Thanks!
@AKDisobey
@AKDisobey Год назад
Wish i watched this 7 years ago, when i took bad advice from a tax preparer to file as sole prop while having an llc, just to save on 2 filings 🙈
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