Tax Benefits of LLC vs. Sole Proprietor vs. S-corp - How does the LLC save taxes?

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In this video, I'm covering 3 tax benefits of LLC and explaining how the LLC "saves taxes." In the process, we'll also be explaining tax benefits of LLC vs Sole Proprietorship and the tax benefits of LLC vs S-corp; because the truth is the LLC is a disregarded entity and can only be taxed as a Sole proprietor OR s-corp.
Download the Business Spreadsheet Template here: www.amandarussell.mba/
MORE ON THESE TOPICS:
1. How to Pay Myself in My Business (Owner Pay Part 1): ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-0VPfIFGJyl0.html
2. 4 Tax Strategies for Paying Yourself (Owner Pay Part 2): ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-vb8O6K9XoeU.html
3. S-Corporation Tax Savings Calculator ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-UqujNM4IkFA.html
4. How to Best Structure Your Business With Your Spouse! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-JxEnRXlssqY.html
FILING YOUR TAXES ONLINE FOR FREE!:
- STEP-BY-STEP TUTORIAL: Filing your taxes for free in any situation ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ntmvzLi1T2k.html
- STEP-BY-STEP TUTORIAL: How To File a 1099 Online For FREE ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-AO-f0OVP_6Y.html
- STEP-BY-STEP TUTORIAL: Home Office Tax Write-off - Worksheet for tracking ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Fo-7_LkBO-k.html
To really understand how the LLC works, check out some of the other videos I recommend:
1) How Businesses Are Taxed: Legal business types & Tax business types ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-8qzQop2xPZY.html
2) Sole Proprietor vs. LLC vs. S-corp: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-tCiv1p0__JI.html
3) How am I paid in a multi-owner LLC? ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DZ6KKdtdfAo.html

Опубликовано:

8 июл 2019

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Комментарии : 272

@Jeff-qq1tz 4 года назад

Finally, a video that gives a simple layout that can easily be answered by someone who knows. Your explanation and display of graphics (cheat sheets) are an incredible help. I’m subscribed!

@fcarrozzini1 3 года назад

Same!!!

@earlgarcia2736 3 года назад

Actually you can save income tax by forming an S Corp. After paying yourself a "reasonable salary", you can take cash distributions that are NOT subject to payroll tax FYI, I'm almost a 40 year CPA.

@businessfinancecoach 3 года назад

I didn't say you CAN'T save taxes with an s-corp but you would be 1000% incorrect to put most small businesses in the S-corp - since you are a CPA I will NOT educate you on the matter as you ought to be educated on it yourself!

@tonizargari9718 4 года назад

First off, you're so clear and easy to understand. Thanks, girl!

@riseupalex 4 года назад

Hey this was very helpful and valuable! Your attitude and voice makes this an easy watch also. Thank you for all the value!

@jangojinga 3 года назад

I dont subscribe to alot of RU-vid channels but yours is a must. You told it like it should be heard. Thank you I needed the truth

@greko6 4 года назад

Pure gold. Thank you for sharing this!

@judit3191 3 года назад

Great video, answered all my quiestions, thank you!

@megamattress6145 3 года назад

I'd like to clarify that there are some businesses that do substantially better being an S-Corp. Example: Profit of 100K, in Sole Prop you would pay 15% SE taxes on 100k but in S-Corp only 15% on 50k (with reasonable salary of 50k), saving about $7000 year. Do you agree?

@linwinbush 3 года назад

Very informative, short video. It helped me decide about LLC vs. S Corp

@toniesuarez8018 4 года назад

This information helped me to understand LLC and how to approach business/personnel tax return.

@user-rm5oj4ew9q 4 года назад

Thank you! Addressed my exact questions and concerns. Good info.

@ericdavid8282 4 года назад

his website has not been reachable due to the pandemic Covid -19 but You can reach out to this dude on instagram he helped me with mine I got like 5 soft pulls out from Him and some inquiries removed got his referral from a friend and he did a good job i must say ,he also deals with sale of authorized trade lines his handle on Instagram is andrewhacks247 my 1st car I bought was with his CPN and he did for 2 others I must recommend this Dude I met on Instagram is so professional and legit.reach out at +1(281)783-4167

@marclarouche5862 4 года назад

Thank you!! This really cleared it up for me!

@kaaba92 3 года назад

Awesome video, very informative. I will be in the near future starting a single LLC business. So thank you for the information.

@shelbylowery2188 3 года назад

Thank you for the great get to the point video!!

@shanechostetler9997 3 года назад

Thanks for posting this video, it’s really up to the business owner to educate themselves. As a Commercial Fisherman, I’ve had to inform more than one tax preparer on some of our nuances of our industry.

@JuanJLara-ui2uj 4 года назад

Absolutely remarkable!

@benrushingsr6056 4 года назад

Great presentation, thank you so much!

@ericdavid8282 4 года назад

@johncox2157 3 года назад

Finally!! Well put

@travischaddock4826 3 года назад

She helped me cross my T and dot my I's. 2 months in, doing well in business repairing golf carts. Started as sole proprietor and made a really good release of liability until I get to the llc stage in a few months.

@gustavolopez117 4 года назад

THANK YOU SO MUCH! YOU HAVE A NEW FAN!

@oloscarlopez8 4 года назад

uc youtube

@tringuyen4565 3 года назад

hello! I find your videos so helpful and easy to understand! I recently started my business as a sole proprietorship ( 2 weeks ago). Now i want to switch to an LLC. Do i need to file the quarterly tax for that 2 weeks? Any additional information would be greatly appreciated! Thank you so much in advance!

@DreamFirms 3 года назад

Informative video!

@uccoskun 3 года назад

Hello: I have a related question. Does LLC pay taxes on the goods it buys as a retailer. I'm not talking about office supplies but more about the items that it purchases to manufacture things and resell the product later? IF so how it works? A good example is restaurants. They do not pay tax for the groceries they purchase to prepare meals.

@jdhshs12 3 года назад

Thanks for this video!

@brayhillhouse2049 4 года назад

Great Video!

@manishkesharwani1351 3 года назад

Thanks for sharing your knowledge

@eboneenails 4 года назад

This helps so much

@manniesreactionchannel3808 3 года назад

Thank you i greatly appreciate it.

@PointmanOps 3 года назад

This the second video I watched on LLCs and taxes. The last one was a lawyer who encouraged his viewers to file taxes as an S Corp claiming that it will saved you an additional 15k out of 100k on average. Even though I'm confused now 😂, I am really glad you explained it the way you did. I'm definitely a new sub and the other guy just lost one 😂

@businessfinancecoach 3 года назад

People don't know what they are talking about (especially lawyers since this is a tax things - but they cause so many people problems by telling them to form this)... it's a LOAD of bull crap all over the internet BECAUSE they know people want to know what to do "to save taxes," and they want to think they found a true and simple solution. Taxes are not simple. That doesn't mean the s-corp CAN'T save you money, but it's not something to worry about when getting started and it costs many people MORE money... check out my other videos on this where I go into detail. ..Social Security tax ends at 117,000 and then there's only medicare to save -- so "saving 15k out of every 100k" shows a minor level of understanding our complex system.... check out my other videos!! Save yourself time, headache and money! :)

@anthonyjarrell4278 4 года назад

Thank you! Now, I understand the LLC application too.

@7008aspen 3 года назад

I think I understand she said there are no tax breaks with an LLC ?

@edwarddoucet3348 3 года назад

Very informative, thank you

@LooseJointhiphopdance 3 года назад

This information I definitely needed to understand. You explained it so clearly that I know I need to start an LLC as soon as possible.

@abstractspheres 3 года назад

Should I be making a certain amount of earnings to form llc,as in dont unless I make 50,000 a year?

@tyjameson7404 3 года назад

Great vlog 👍🏼☑️👏🙌🏼Thank you

@rosadelgado8747 3 года назад

Super informative thanks 😊

@nalignmentwlifehealinglife 4 года назад

Love your channel. Thank you.

@ericdavid8282 4 года назад

This website has not been reachable due to the pandemic Covid -19 but You can reach out to this dude on instagram he helped me with mine I got like 5 soft pulls out from Him and some inquiries removed got his referral from a friend and he did a good job i must say ,he also deals with sale of authorized trade lines his handle on Instagram is andrewhacks247 my 1st car I bought was with his CPN and he did for 2 others I must recommend this Dude I met on Instagram is so professional and legit.reach out at +1(281)783-4167

@johndriggers6876 3 года назад

I thought this was going to be one of those videos that misconstrue what LLCs and S Corps can do for you. But NO! You are spot on about all the ‘myths’. Very well done.

@businessfinancecoach 3 года назад

THANKS John!!!! great comment :)

@RoodmyPoulard 3 года назад

hi how i can pay tax every month for my LLC

@ashutoshrai213 3 года назад

I have a question, I am asking to many people who have the videos on youtube. I created a single member llc and got the ein and business account. Am I allowed to hire the people as a contractor? And what will be the process? Please let me know if any specific video you have about it.

@tinsoldier5317 3 года назад

Good Info. Thanks.

@relaxmood6595 3 года назад

Thank you so much. So can I have a payroll to my daughter for our LLC? An will this benefit us?

@ginusfarfelle4499 4 года назад

Hello, First of all, thank you for the great videos filled with information. I have some doubts about my situation and hopefully you can help me. I am a day trader living in Spain and I am considering opening an LLC in the U.S.A. I would eventually be opening an account as an LLC with a us based broker that is located in New York City (lime brokerage). If I opened my LLC in the state of Delaware for example and traded using the services of the broker located in New York state,would I have to register as foreign LLC in the state of New York and eventually pay taxes in the U.S. or is that not necessary and I must only pay Delaware's annual tax fee plus spanish income tax on whatever salary I received from the LLC as a Spanish resident? Thank you for your time and attention to this matter.

@tvbuu 3 года назад

Thank you !

@rexwarfield7775 3 года назад

I'm thinking about opening up a photography LLC in Texas which will give me in-state residency for tuition purposes. I need to get it done before 1 Oct. '21. After graduating undergrad in Texas (as well as high school), I moved to New York for work. Now, my parents still live in Texas... How should I approach this?

@youlose0513 3 года назад

I will be self employed for 2021, what about the child tax credit or owning a home or any donations i make during the year, will I be able to add all of those items to my self employed tax return for 2021?

@BusinessRebel 3 года назад

Great Content and easy to follow. Be the R3BEL 😎

@calebomardiazaragon4548 3 года назад

Good video!!

@clekea8326 3 года назад

When Is It Time to make a business or just make sales? I have never made a sale online but i want to generate income to provide for myself outside my job. Yet I have several potential avenues to generate extra income and in order to generate that income do i just start selling and make a business l8r or do i need to in the work up from to protect my cheeks from potential bs down the road.

@susanhorton9492 3 года назад

good info. thanks

@panuwatarumsart4161 3 года назад

Very helpful thanks

@joshuacepeda3714 4 года назад

Great content thank you for making this video. I am confused about one thing though. When you say it is illegal to collect dividends or a distribution from your S-election, do you mean that in the context of the wage you are paying yourself, or did you mean that in general? I’m other words, if I am paying myself a “reasonable income” according to the IRS and paying all associates taxes (FICA etc.), can I then collect dividends from my business? Just asking for more clarity, not quite sure what you meant

@darknightrider 4 года назад

You'll be looking at more of a distribution (depending on your basis). In most cases you can take a distribution as an S corporation but you do need to pay yourself a reasonable compensation

@rickeyhughes7380 5 лет назад

Hello, Miss Amanda. My name is Rickey Hughes. I have just watched your most recent video. It was encouraging. I do have a small business in Bookkeeping and Accounting. It is also a home based business. I hope you do have more videos coming up. So far, my business has not been too successful. However, I am doing business as a sole proprietor. I would like to learn more about the self-employment tax, and how to get more clients and grow my business. I would like to hear from you if possible. I would like to do my business in the right way. In the meantime, I think you are doing well as a business coach. Keep up the good work. Please let me hear from you at the earliest convenience possible. Thank you so much. I do have a desire to do well with my business. I thank you again, and look forward to seeing more of your upcoming videos if possible, and I also look forward to your response. Thank you again.

@ellbdotmusic3521 4 года назад

I highly suggest you get on RU-vid and do the same thing. This will create subscribers. Some not all but some subscribers may turn into clients. You can also over free tips and paid online classes for your knowledge. In addition, you can offer cheap downloadable forms, cheat sheets etc. Hire me, and I can help or learn on your own by watching videos, books etc on branding, marketing, etc. Last thing about scorp, I am not an expert so please seem legal advice but based on this video it sound like an old (single member) maybe best that way you can file self employment taxes weave a few dollars. Blessings to you. He sure to subscribe.

@surname037 3 года назад

Thanks for having your channel. I like learning from a bunny 🐰

@juniordedios3919 3 года назад

If you are the only member of an LLC do you need an EIN # or with your SSN # it’s totally fine?

@martinnavarro9547 4 года назад

I’m considering starting a tax preparation side business. I’m wondering if I want to simplify my taxes and protect my assets would a sole proprietor or LLC structure be more beneficial?

@jojotheweirdone 4 года назад

Martin Navarro LLC

@ellbdotmusic3521 4 года назад

Thank you for your time. Your video was great. My question to you is as a single member llc, do I pay taxes quarterly or annually/ the same time as regular taxes? Thanks for sharing. I just subscribed.

@jameshoiby 4 года назад

Your tax forms are due annually, but if you expect to have a tax liability in general you must make quarterly estimated tax payments starting Jan 15 and continuing through the full year.

@chrislee6958 4 года назад

ReelVanLife Living You should make estimated payments every quarter, otherwise you will be assessed penalty and interest. (Both Fed and State). When you file a tax returns, most programs will calculate this and generate vouchers for you. Follow the instructions on the vouchers.

@goodsamaritanpeacefulworld5960 3 года назад

Good morning, Does this apply for New Jersey?

@whatwrld4207 3 года назад

What would be the best place to go to file your taxes for your llc

@oconnellec 3 года назад

Is it true that you can have a solo 401(k) in a sole proprietor ship and invest up to $19,000 ?

@HardDie 3 года назад

You are incredible.

@jackkerouac8439 4 года назад

Great video! Question: My business is in my name. My wife and I file jointly. If I form an LLC, will my wife have to single file even though she works at my business and we share profits?

@businessfinancecoach 4 года назад

Hi Jack Kerouac!!!!!!!! A married spouse can NEVER file as single, ever.

@chrislee6958 4 года назад

Jack Kerouac Jack- you can file as a married file separate.. in some cases, even though rare, it makes better sense to file separately. I recommend talking to your local CPA.

@WIZ56575 3 года назад

I'm Lloyd Stovall from media library we have a question, if you are on welfare or food assistance and you have a Nonprofit self employed LL see what are the benefits

@efr625 3 года назад

Very helpful video. But did I miss what Benefit #3 was?

@Adam-qt6qq 3 года назад

What about workers comp. Because when you are self employed. Insurance companies wont insurance you. So if you add S corp. Then are you able to get workers compensation for yourself

@trevorderrheim4053 4 года назад

Great content!! Do you offer your services professionally? I have an LLC and some specific questions that need to be answered. Thanks!

@clint8u 3 года назад

Very helpful .. love your nails ... I’m still confused as a multi member LLC can I pay myself 1099 income which would be separate from the 1K net income distribution?

@businessfinancecoach 3 года назад

Great question! No 1099 needed (or allowed)! Check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DZ6KKdtdfAo.html Yes, the money you take out (draws/distributions) and the money you put in (contributions) are tracked in accounts in effect your BASIS. Generally, they aren't taxed, unless you withdraw more than your basis (which only happens if you have a bunch of members and money is being moved around). Separately, is the net income from the business. You are always taxed on your share of this income!

@jewishboi3384 3 года назад

Oh wow I was about to break the law...thanks !

@drshockter2158 3 года назад

There is so much misinformation out there about LLCs and taxation, but this is correct. LLCs give you no tax benefits at all, the only thing that would give you tax benefits is electing to be taxed as an S Corp and paying yourself a W-2.

@jamesscudieri1439 4 года назад

Hi Amanda, Enjoyed watching your videos. I started out as a sole proprietor and was talked into forming an s-corp to save on taxes (ie: SE taxes). It's been a rough 1.5 yrs trying to learn all the procedures, accounting, etc. Can't say how much I'm saving really or if it's worth the hassle. You make it seem like I should reconsider. I would love to have a consultation. I believe you offer a virtual consultation?

@businessfinancecoach 4 года назад

Hi James! I do offer meetings from within have a spreadsheet & training that walks you though using a spreadsheet to calculate the tax situation under each business scenario. It's part of 5-course program/training that will be available next week. Let me know if your interested! You can learn more here: www.amandarussell.mba/30dayaccounting

@chrislee6958 4 года назад

Business Finance Coach this is just wrong...

@Fitnessdealnews 4 года назад

Thx. Really helpful. Question, if you run multiple businesses even as an individual. Let’s say you own Airbnb and a Sw business and invest in other ventures. Would then an s Corp make sense ?

@ericeandco 4 года назад

You should be talking to a CPA or a good enrolled agent with experience in your situation, especially if your businesses span different states.

@darknightrider 4 года назад

I'm an enrolled agent and it depends on your situation. One entity doesn't fit a specific business model. It all depends on your goals for the business and what you're trying to achieve

@ericdavid8282 4 года назад

E Randco his website has not been reachable due to the pandemic Covid -19 but You can reach out to this dude on instagram he helped me with mine I got like 5 soft pulls out from Him and some inquiries removed got his referral from a friend and he did a good job i must say ,he also deals with sale of authorized trade lines his handle on Instagram is andrewhacks247 my 1st car I bought was with his CPN and he did for 2 others I must recommend this Dude I met on Instagram is so professional and legit.reach out at +1(281)783-4167

@JuneBugginTrucking 3 года назад

I’m a Truck Driver, and a lot of companies are offering to pay me as a 1099 Contractor. However, I have an LLC (single member LLC), and I wasn’t sure if I should get paid through my LLC or as a 1099 Contractor (which would be through my social security number)? The reason why it’s confusing me so much is because as a 1099 Contractor I will only make $70k-$80k a year and I wasn’t sure if it would make sense for me to be paid through my LLC (oh and I’m married too by the way). Any advice is greatly appreciated.

@dalisavage9278 3 года назад

Thank you

@dwaynenero535 4 года назад

Thank you for being awesome with your clear explanation and of course your very pretty face :) Thanks again I know which way to go now!

@Wrldmadehbk 4 года назад

can i have a cosigner on a sole proprietor

@bm773 4 года назад

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? Thanks and great video!

@darknightrider 4 года назад

Hey! There is a lot that goes into it and can depend on other factors. Did you find the answer to your question?

@nojokeauto 5 лет назад

Hi, so if I had a rental house in an LLC produce $10,000 a year in rent money. Would there be any benefits of electing a S-Corp?

@bobsmith6953 4 года назад

Other than maybe some legal protection, the short answer is no.

@ericeandco 4 года назад

LLC is usually plenty.

@elizabethcarrasco2737 4 года назад

Hi! I am opening my own business doing lash extensions and microblading. But I was debating on doing a soul proprietor or LLC. I was wondering if you could give me some further information to help me make my decision. I understand this is what your video was about, but some of it is just foreign language to me. Sorry if this is a dumb question, but I hope you can help! Thank you

@citlalie9791 4 года назад

Great question.

@ericeandco 4 года назад

If you are a single member LLC you are considered a disregarded entity(another words you are treated as a sole proprietor for tax purposes). You also have the option to be treated as corporation or partnership should you elect to do so. This would mean in addition to your individual return you would need another separate and costly return. It might be worth it but not usually when you’re just starting out. The reason people select an LLC status is to protect their personal assets. There’s usually an annual fee to be an LLC. It’s pretty easy to set up. Since you work with the public the first thing you want to do is get adequate and proper business insurance. Get quotes and talk to a couple of agents then decide.

@7008aspen 3 года назад

Is it right that you don't get no tax breaks with an LLC

@leewells1324 3 года назад

How can I contact you to ask a few questions about taxes?

@imdoc7872 3 года назад

FYI. In FL single member LLC does not protect the purchased assest

@lifeastierra 4 года назад

Can you start off as an LLC then convert to an S-Corp.? How long and the best to convert over?

@businessfinancecoach 4 года назад

These videos answer your questions: 1) How Businesses Are Taxed: Legal business types & Tax business types ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-8qzQop2xPZY.html 2) Sole Proprietor vs. LLC vs. S-corp: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-tCiv1p0__JI.html

@thomasconcannon5954 4 года назад

LifeAsTierra yes

@zer05tar 3 года назад

How do you write off boat trips and dinner with clients?

@davidd34 3 года назад

Curious if I can set up my one man business as both an LLC and For Profit Ministry? Pay myself decently and with the goal of profits so I can gift other worthwhile ministries with funds they need for whatever?? I'm physically disabled, pretty much live in a recliner (that's Not mine, nor is the house I live in. Also, I don't have a vehicle, as I have no sense of direction from one of my car accidents that caused me a Traumatic Brain Injury & concussion for which Nothing can be done in America unfortunately.

@alexiafrazier8915 3 года назад

Very helpful, but I believe I've already jumped down the rabbit hole with issuing myself a W2.

@johnwalter5875 4 года назад

OMG, Thanks for making it plain! So many Tax Professionals & Strategists gives these "Gray" answers....I'm a Fan : - )

@ericdavid8282 4 года назад

@donnaryan7598 4 года назад

Great content ... air quotes -drink

@silverbison88 3 года назад

Thank you so much for the information. I thought I was right about LLC and it being better for my Small business then a corporation. One question if I was sued can they take my Home?

@DanielDTUBWeinberger 3 года назад

You have to properly set up documents with the LLC and stuff to make it difficult for others to take your home. (I personally am a little confused as well, but there was good video somewhere explaining all the 'musts' for your LLC to keep it running properly and safely protecting you)

@simplycleanpressurewashing758 3 года назад

@@DanielDTUBWeinberger it doesn’t offer full protection, once LLC is bankrupted they can come after you. It’s called, “Tort” is the Norman word for “wrong.” There are three main types of legal wrongs: criminal wrongs, contractual wrongs, and tort wrongs. Usually get sued for tort or negligence. LLC won’t protect you from these, so it can be a false sense of protection. You’re not totally protected. I would get at least a million dollar GL policy and umbrella policy to protect you just in case of a lawsuit. Just my thought.

@YaManA51 4 года назад

What if my initial investment is from my paycheck and I don’t make profit i want to invest in supplies to start but getting my name is going to cost money is it okay to deduct that or write it off. Because then it’s worth the risk.

@YaManA51 4 года назад

If so everyone should try to be there own boss. Can’t be that easy 🤔

@bigjermini 3 года назад

Your initial investment from your paycheck, is how majority of people start. Can't make money, without spending money. Anything you start off with, even from your personal paycheck into the the business bank account would be Starting Capitol. Supplies and all.

@bigjermini 3 года назад

@@YaManA51 Everyone could be their own boss, but trying to get that initial investment cash, and actually have a viable product(physical or service) is a whole nother story.

@ninad.9612 4 года назад

Can i file a 1099 independent contractor under LLC business EIN?

@ericeandco 4 года назад

Yes.

@brother2thenight885 3 года назад

I’m a tax attorney and a financial advisor. Thank you so much for making this video.

@pokerworldofstars 4 года назад

How to you file on a corporation on tax return? Do you give them a 1099 mics. If not how do you file on your taxes if they worked for you? They will not give us they W9

@ericeandco 4 года назад

If you hire a corporation to do work for you, you don’t need to issue a 1099. However, that isn’t necessarily true for an LLC. Typically I would give them the W-9 and a letter informing them no payment will be issued until the W-9 is received. Even a corporation should be able to fill out a W-9 if requested with no problem. You are required to withhold a certain percentage of payments as tax and remit it for vendors or subcontractors that you don’t have valid social security or ein numbers for. 1099s are a separate filing apart from the company . The subcontractor expense is an expense on your company return like any other expense. You should check out the enrolled agents an CPA’s for tax prep. If you find one you like and can afford it’s well worth it.

@daiz519 4 года назад

I’ve heard a benefit of LLC or scorp is that if someone sues you, they can’t go after your home. Is that true?

@marshellepayne4020 4 года назад

Yes from what I understand

@MarcMrWeber 4 года назад

@@marshellepayne4020 Unless you pierced the corporate veil

@bigjermini 3 года назад

That only works if your LLC has a separate bank account(legally it should, it the whole point). AND , it actually has enough in the bank to cover the lawsuit. So either way tip toe with customers, try your very best not to be sued in the beginning. Then hopefully that method lasts for life.

@tommygraddy5490 3 года назад

Are you coming to Orlando any time soon

@DBmusicKing 4 года назад

You are so smart. Thank you for a such thorough breakdown. I will definitely be hiring you whenever I need help. 🙌🙌

@darknightrider 4 года назад

I would highly recommend giving her or a tax professional a call sooner than later. Usually the sooner you can the more time there is to plan and make changes before its too late!

@MaximusSeneca 3 года назад

Go straight to the point

@nadatodavia2936 4 года назад

This Edgar hi I been look at your videos and tips a have a huge question I’m just open my account as S Corp. can I change to llc

@ericeandco 4 года назад

You can’t open an account as a Sub S. You either filed with the state as an LLC and made a timely election to be treated as a sub S or you filed with the state as a corporation and filed an election to be a sub S. If you didn’t do either of those things you are just a sole proprietor. If you are a sole proprietor your can file with the state to be an LLC.

@darknightrider 4 года назад

What making you want to change your entity?

@cameronjames4875 4 года назад

I need your help. How can I request your help and expertise

@chandlercatron352 4 года назад

You say the IRS doesn't acknowledge the LLC, but don't you have to register for an EIN with the IRS once you have formed your LLC? I guess I'm asking what's the difference between having an EIN, and being a separately taxable entity altogether, and what purpose does the EIN serve if not to establish a new taxable entity?

@businessfinancecoach 4 года назад

ah, no. LLC is a legal entity. The IRS classifies it as "Disregarded entity". Every business has two types - legal and then tax. Tax type is based on the legal type. .... Employer Identification Number (EIN) -- so you only need it if it is your tax type doesn't use a SS (mmllc, p-ship, etc.) or if you hire employees. Otherwise, a SMLLC does not need an EIN. Check out the videos links in the description below the video for this explained in far more detail!

@charlesfleury6150 3 года назад

1) If trading as a business, which is better, LLC or S-corp? 2) does it matter if trading Stocks v trading Forex?

@cleanhabitats 3 года назад

I am setting up an LLC - my wife is going to be helping as secretary / bookkeeping. Although technically a partnership, would it be better to be single member and pay her as an employee?

@fly4u570 3 года назад

Employers pay state employment tax, FUTA, FICA, SS tax. Depending on the payroll you may have to pay these taxes monthly or quarterly. Make these payments on time to avoid excessive penalties. Check with your accountant.