Hi There, here's my question, we are preparing a new LLC taxed as a C Corp (since we don't want any additional income to show up in our personal tax returns for the next 2 years). Can we keep all profits inside the LLC for the next 2 tax returns without any salary or distributions? Thank you for this video, it's great!
If the owner works in the business they must be paid as a W-2 employee, and you could follow "Reasonable Compensation" rules as a guide... depends how big the profits are... As I mention in the tax strategies for owner pay video (linked below or at the end) -- Corporations can be fined a 25% tax for trying to do exactly what you are saying. It's called Accumulated Earnings & Profits.... but you have some leeway it's 250k so depends on the business situation
@@businessfinancecoach Thank you for the reply, hahaha, that's a target now for me, once we reach that amount in earnings, we will definitely have the "Reasonable Compensation." Thank you for giving us a new milestone goal! In two years? Hopefully so! All the best, thank you again for these wonderful nuggets - very useful keep up the great work!
Around 15:30 into the video when talking about the S-Corp you mention it is not advantageous because of the 20% deduction. Are you talking about the QBID ?
You are super welcome! Get the free basic Business Spreadsheet Template: www.amandarussell.mba/getthebusinessspreadsheet Or get the Complete Auto-Accounting Spreadsheet & LIVE program here starting Saturday! www.bizschool.coach/myatspecialprogram ▼
Trust is usually not for profit type as it is made for the benefit of some one other than the trust adminstrator/s, whether single member or multi member are determined for profit organizations. Please don't mix the concepts.
@@BusinessCoachp thank you for your response. So, are you suggesting not to make the trust be the only member of the llc. Can I have you email so we cN discuss this further. I'm getting ready to start my real estate investment/development company. Thank you.
Thank you for the great knowledge and the great science of facts coming through your spirit I didn't know anything about when you do the contribution that you can set up that account thank you again God bless
I did a B to B sale recently and they paid me with a 1099 but my single member LLC does not require a tax form. Would I categorize that as part of my net income??
Alabeano this is a bit of a confusing sentence my dear! What do you mean your SMLLC doesn't require a tax form? Schedule C attached to your personal business (unless the biz hasn't started yet). If the 1099 was for YOU, not the SMLLC, and it has amounts in box 7; then they filed it as you WORKED for that money and it's business income. (unless you should have been paid as an employee or an owner of the business - then you should dispute how it was filed). You can have multiple schedule Cs for different business activities
I have a question if anyone can answer that will be great I did LLC single member but when i apply for EIN the IRS considere my self has a sole proprietor so which one should I follow
I explain this in this video when I show the cheat sheet and say - FIRST we have to know how your business is taxed.... check it out, it will answer you better than I can here :) The short answer is that the LLC is disregarded for taxes and the SMLLC is taxed like a sole proprietor, which is self-employed... so that's why you'd select that.
Hi! I was hoping you could help me answer this question. I just got through watching you turbo tax video on deducting miles. I have been door dashing for about 9 month and have kept track of my miles perfectly but when I watched your videos I had an epiphany. The vehicle I've been using this whole time to door dash with is in my moms name. If I have her transfer the vehicle over to my name before January, and I somehow end up getting audited after I file my taxes this year, do you think my entire mileage deduction will still be fine since I've been using a car that wasn't even in my name this entire time but then had it transferred over to my name before I filed??? ughhh I can't believe I didn't think about this when I started driving. I think I forgot is wasn't in my name lol
Yes, technically it should be in your name, yes you've got it right! but transferring it into your name asap would be great... in the event that you were audited, and asked if you owned the vehicle, you would confidently be able to say YES! :) While probably not technically legal, you could write up a document pre-dated for when you MEANT to transfer the vehicle too ;) ... typically they just ask for the mileage log...
Maybe it will just add up. Because before I had my company I had to do 1099 and w2 and they just add up for example if you made 10,000 on you’re w2 and another 20,000 on you’re company at the end you made 30,000 on total taxes and you’ll just have to pay taxes if you’re Required.
If you haven't been struggling with these questions, than it will take some getting used too... I covered a lot fast! People are at all different levels of knowledge
I have no idea what you are talking about most of this video! It’s as clear as mud! Seriously! You might as well be speaking French... and I don’t speak French! I am a single member LLC as of May 2020 and my CPA told me to file a 2553 with the IRS and I understood that to mean that I was an LLC but filing my taxes as an S-Corp. Now, that’s all I really understand or know. I have been too broke to pay me on any kind of regular basis and have just transferred money from the business account to my personal to barely pay sone of my personal bills. I was never aware that I needed a W-2 with myself or that my paying myself should be a specific amount at least each month. I was only recently aware that because I was filing as an S-Corp, I needed to file payroll quarterly, which I haven’t been able to afford to do yet. I was a DBA sole proprietor before I became an LLC in May. This has been a difficult year and my bookkeeper and CPA says that we will catch up on the payroll filings and we will make sure I have paid my payroll taxes that I’m required to pay before the end of the year. I’m struggling to survive, as many are these days due to covid, but I am up to date on my income tax filings. As you are talking about S-Corps as opposed to a single member LLCs, you are losing me. I am completely in a fog as you talk about S-Corps and all the forms you are talking about! I thought it was a pass through type of pay but now I need a W-2 and all these other forms you are talking about. I can’t even keep up or understand what forms for what that you are talking about. I am sufficiently stressed now and completely din’t understand what I thought I understood now. I can’t listen to anymore. I might have to cry! Gotta go. Will need to talk to my accounting firm in the morning. This video did NOT educate me... only upset snd confused me!
You are right to the extent of mixup of both type of business, I am also confused to listen that both (sole proprietor and S Corporation) use same forms. Actually it is not the case. I have been providing bookkeeping services to my global clients since 2017 but never see this thing. I am MBA Finance graduate with over 17 years of diverse experience of different industries, banking, education, consultancy etc. By definition sole proprietor carry unlimited liabilty, while S Corp has also unliabilty to the extent of assets it own but liability of its Sinle member is limited to the extent of its share in the company/corporation and hence has to pay extra tax for enjoy status of separate legal entity as S Corp.
You might want to get out of S CORP as I had to pay myself as W2 and I ended up getting double taxed. Just revert your company back to sole proprietor and it’s very simple way where you are only reporting what you are taking from the business as profit / salary. And with Biden increasing the taxation to 28%, save yourself from double taxation
Thank you for sharing this video about "How To Pay Myself In My Business." I look forward to more of your upcoming videos about this if you will have any. Thank you, again, so much.
Good information. But you're misusing air quotes. Air quotes are used as a way to show satire, sarcasm, irony or if you're using a phrase in an unusual way. The majority of the time, you air quoted words that were not used in an unusual way and I don't think you were trying to convey satire. For example, you used air quotes when you said "organizational document" -- that's the name given to those legal documents so there is no need to use air quotes unless you meant to insinuate that they are not organizational documents. The same is true when you air quoted "members". That IS the name given to owners of an LLC. Unless you were trying to hint to your viewers that they really aren't called members. It's like air quoting the word "homeowners" when you state that a person who buys a home is called a "homeowner". That would insinuate that there is something unusual about that term or you were trying to insinuate that they aren't called "homeowners". An instance of when you might use air quotes would be to air quote the word "easiest" when you mean to imply that there really isn't an "easy" way. I liked your video for the content. I just wanted to give you feedback since you are trying to present yourself as a business professional who has a certain level of overall knowledge. No hate. Just friendly advice that you can take or leave. 😉
![4 TAX SAVING STRATEGIES--How To Pay Yourself From Your Business [Part 2] LLC vs. S-corp vs. C-corp](http://i.ytimg.com/vi/vb8O6K9XoeU/mqdefault.jpg)
There would be a strong demand for a video on llc’s for day traders
Very well explained. Need to watch it multiple times to grasp all the information. Thank you Coach !! 🙏
You are an amazing person for helping business owners like myself with all of this information. Thank you so much!
Really appreciate this. Thank you so much.
Hi There, here's my question, we are preparing a new LLC taxed as a C Corp (since we don't want any additional income to show up in our personal tax returns for the next 2 years). Can we keep all profits inside the LLC for the next 2 tax returns without any salary or distributions? Thank you for this video, it's great!
If the owner works in the business they must be paid as a W-2 employee, and you could follow "Reasonable Compensation" rules as a guide... depends how big the profits are... As I mention in the tax strategies for owner pay video (linked below or at the end) -- Corporations can be fined a 25% tax for trying to do exactly what you are saying. It's called Accumulated Earnings & Profits.... but you have some leeway it's 250k so depends on the business situation
@@businessfinancecoach Thank you for the reply, hahaha, that's a target now for me, once we reach that amount in earnings, we will definitely have the "Reasonable Compensation." Thank you for giving us a new milestone goal! In two years? Hopefully so! All the best, thank you again for these wonderful nuggets - very useful keep up the great work!
Around 15:30 into the video when talking about the S-Corp you mention it is not advantageous because of the 20% deduction. Are you talking about the QBID ?
Thank you so much for sharing! This really simplified "how to pay yourself" for me. Turns out, I was on the right track!
Thank you business Finance Coach for such detail breakdown explaining the different kinds of options to consider while opening a Business accounts
Amanda can you explain to me the concept of LEGAL TYPE...vs TAX TYPE
Hello Thanks For the great information, I have question how can I find spread sheet for accounting ?
You are super welcome!
Get the free basic Business Spreadsheet Template: www.amandarussell.mba/getthebusinessspreadsheet
Or get the Complete Auto-Accounting Spreadsheet & LIVE program here starting Saturday! www.bizschool.coach/myatspecialprogram
▼
Thank so much
Love your videos. I always noticed you're not wearing a ring on left hand. Any chance you reside in Arizona? Ha Ha
Can a trust be the ONLY Member of a Single-Member LLC? If, then how would the LLC be taxes as?
Trust is usually not for profit type as it is made for the benefit of some one other than the trust adminstrator/s, whether single member or multi member are determined for profit organizations. Please don't mix the concepts.
@@BusinessCoachp thank you for your response. So, are you suggesting not to make the trust be the only member of the llc. Can I have you email so we cN discuss this further. I'm getting ready to start my real estate investment/development company. Thank you.
Thank you for the great knowledge and the great science of facts coming through your spirit I didn't know anything about when you do the contribution that you can set up that account thank you again God bless
PS 2 hours in on the video congratulations God bless you
I did a B to B sale recently and they paid me with a 1099 but my single member LLC does not require a tax form. Would I categorize that as part of my net income??
Alabeano this is a bit of a confusing sentence my dear! What do you mean your SMLLC doesn't require a tax form? Schedule C attached to your personal business (unless the biz hasn't started yet).
If the 1099 was for YOU, not the SMLLC, and it has amounts in box 7; then they filed it as you WORKED for that money and it's business income. (unless you should have been paid as an employee or an owner of the business - then you should dispute how it was filed). You can have multiple schedule Cs for different business activities
@@businessfinancecoach I believe I understand now. I will look into it thank you very much for your quick response. Have a wonderful New Year's.
I have a question if anyone can answer that will be great I did LLC single member but when i apply for EIN the IRS considere my self has a sole proprietor so which one should I follow
I explain this in this video when I show the cheat sheet and say - FIRST we have to know how your business is taxed.... check it out, it will answer you better than I can here :)
The short answer is that the LLC is disregarded for taxes and the SMLLC is taxed like a sole proprietor, which is self-employed... so that's why you'd select that.
One question 🤔 can you go from llc to corporation?
I presume you are saying the LEGAL business type.... generally, you need to DISSOLVE the LLC and then form a corporation
I want to join you, on linkedin, facebook, please suggest how?
Hi! I was hoping you could help me answer this question. I just got through watching you turbo tax video on deducting miles. I have been door dashing for about 9 month and have kept track of my miles perfectly but when I watched your videos I had an epiphany. The vehicle I've been using this whole time to door dash with is in my moms name. If I have her transfer the vehicle over to my name before January, and I somehow end up getting audited after I file my taxes this year, do you think my entire mileage deduction will still be fine since I've been using a car that wasn't even in my name this entire time but then had it transferred over to my name before I filed??? ughhh I can't believe I didn't think about this when I started driving. I think I forgot is wasn't in my name lol
Yes, technically it should be in your name, yes you've got it right! but transferring it into your name asap would be great... in the event that you were audited, and asked if you owned the vehicle, you would confidently be able to say YES! :) While probably not technically legal, you could write up a document pre-dated for when you MEANT to transfer the vehicle too ;) ... typically they just ask for the mileage log...
Really great content, please add context of US/Canada to capture from those countries
Hello~ will there be tax complications if I am currently working for the employer as w2, and also create my own business to work as self employee?
Maybe it will just add up. Because before I had my company I had to do 1099 and w2 and they just add up for example if you made 10,000 on you’re w2 and another 20,000 on you’re company at the end you made 30,000 on total taxes and you’ll just have to pay taxes if you’re Required.
@@marcelaibarra7667 thank you!!
Great video I think it's just me bcuz I'm soooo lost!!
If you haven't been struggling with these questions, than it will take some getting used too... I covered a lot fast! People are at all different levels of knowledge
I have no idea what you are talking about most of this video! It’s as clear as mud! Seriously! You might as well be speaking French... and I don’t speak French! I am a single member LLC as of May 2020 and my CPA told me to file a 2553 with the IRS and I understood that to mean that I was an LLC but filing my taxes as an S-Corp. Now, that’s all I really understand or know. I have been too broke to pay me on any kind of regular basis and have just transferred money from the business account to my personal to barely pay sone of my personal bills. I was never aware that I needed a W-2 with myself or that my paying myself should be a specific amount at least each month. I was only recently aware that because I was filing as an S-Corp, I needed to file payroll quarterly, which I haven’t been able to afford to do yet. I was a DBA sole proprietor before I became an LLC in May. This has been a difficult year and my bookkeeper and CPA says that we will catch up on the payroll filings and we will make sure I have paid my payroll taxes that I’m required to pay before the end of the year. I’m struggling to survive, as many are these days due to covid, but I am up to date on my income tax filings. As you are talking about S-Corps as opposed to a single member LLCs, you are losing me. I am completely in a fog as you talk about S-Corps and all the forms you are talking about! I thought it was a pass through type of pay but now I need a W-2 and all these other forms you are talking about. I can’t even keep up or understand what forms for what that you are talking about. I am sufficiently stressed now and completely din’t understand what I thought I understood now. I can’t listen to anymore. I might have to cry! Gotta go. Will need to talk to my accounting firm in the morning. This video did NOT educate me... only upset snd confused me!
You are right to the extent of mixup of both type of business, I am also confused to listen that both (sole proprietor and S Corporation) use same forms. Actually it is not the case. I have been providing bookkeeping services to my global clients since 2017 but never see this thing. I am MBA Finance graduate with over 17 years of diverse experience of different industries, banking, education, consultancy etc. By definition sole proprietor carry unlimited liabilty, while S Corp has also unliabilty to the extent of assets it own but liability of its Sinle member is limited to the extent of its share in the company/corporation and hence has to pay extra tax for enjoy status of separate legal entity as S Corp.
You might want to get out of S CORP as I had to pay myself as W2 and I ended up getting double taxed. Just revert your company back to sole proprietor and it’s very simple way where you are only reporting what you are taking from the business as profit / salary. And with Biden increasing the taxation to 28%, save yourself from double taxation
If your broke - don't file a 2553... you may also want to fire your CPA and STUDY my videos!
Biden isn’t increasing anyone’s taxes except those that make over $400,000. You’re just stressing me more! I will talk to my CPA, not you.
Thank you for sharing this video about "How To Pay Myself In My Business." I look forward to more of your upcoming videos about this if you will have any. Thank you, again, so much.
Your are lovely and aeesome beside great communication skills
Pardon, but I don't see the aforementioned template s
Yea it's not in her description, maybe she will update it.
Good information. But you're misusing air quotes. Air quotes are used as a way to show satire, sarcasm, irony or if you're using a phrase in an unusual way. The majority of the time, you air quoted words that were not used in an unusual way and I don't think you were trying to convey satire. For example, you used air quotes when you said "organizational document" -- that's the name given to those legal documents so there is no need to use air quotes unless you meant to insinuate that they are not organizational documents. The same is true when you air quoted "members". That IS the name given to owners of an LLC. Unless you were trying to hint to your viewers that they really aren't called members. It's like air quoting the word "homeowners" when you state that a person who buys a home is called a "homeowner". That would insinuate that there is something unusual about that term or you were trying to insinuate that they aren't called "homeowners". An instance of when you might use air quotes would be to air quote the word "easiest" when you mean to imply that there really isn't an "easy" way. I liked your video for the content. I just wanted to give you feedback since you are trying to present yourself as a business professional who has a certain level of overall knowledge. No hate. Just friendly advice that you can take or leave. 😉