Thank you for watching! I just announced a new FREE training that reviews the exact 10 Step Process I use for starting an Online Business: www.obfoundations.com/10steps
Your videos are very informative and straight to the point. Thank you so much for helping us small business owners, I also appreciate the simplicity of your explanations. I never leave your sight wondering... and for whatever reason if I do have a question, guess what? You made a video for that too
Wow, Jim, I'm very glad that I chose your video. You are very informative. I might have a few questions. Here maybe within a few days or so. But I am trying to start my own LLC Business.
3:44 to 4:37 I'm quite confused. So, let's say I earn $1,000 in a month in a single member LLC, disregarded entity. Should I not set aside 15.3% of that for tax, which would be $153? Even with Profit First?
Got an LLC for a t shirt business, I’ve been too busy to get started. Since I’ve bought the equipment little by little and I work 70 hrs a week. I don’t know what to file since I’ve actually not made any money yet.
Thank you for making these videos. I'm in the process of buying a bunch of books (including Small Business for Dummies), watching a bunch of videos and generally informing myself to the best of my ability in preparation to form a business. This type of content really helps me. I gave the thumbs up!
Thank you so much for all your great information! I will definetly consider booking a call with you as your fee is very reasonable, and you are knowledgeable and sincere. I just formed a single member LLC and yes its for ECommerce.
talk to a local CPA as soon as possible. You will probably have to collect sales taxes on the sales in your state. That means you need to register and file sales tax reports.
So I've set up an LLC, paid the fees to the state, paid for checks, paid a lot of mileage traveling to potential customers, etc. etc. but the LLC has not made any money yet. How do I handle the money that I am "advancing" to the LLC to get it up and running? Do I need to put funds of my own into the LLC's bank account to pay myself those expenses back? How do I best handle this?
So for an LLC, since LLC has to pay self-employment tax of 15% on gross income, with the way you allocate money into 4 separate accounts described in this video, which I think is a great way to do it, besides allocating that 20% of 30% of your Expenses account for paying tax, shouldn't we add another 15% for self-employment tax? Thank you.
This is probably a really stupid question, but please forgive me. Let’s say you create a business, put 25% down and finance the remainder. Will the loan institution allow you to pay yourself or family a salary? I didn’t know if the loan had to be paid off first or not. Thank you!
What if you start up a LLC in a specific state, then move to another state in the future? Do I then have to re do it according to the state that o currently reside in or where it was founded??
Hi. So when I write a check from my business to me for some spending money in the note section of the check I just write member distribution? Correct? Now I use Quicken to keep track of everything. What would I list paying myself as in Quicken? Would be considered an expense to my business? What do I put for the memo and category. So confused :-(
I am a single member LLC for a rental property. When the rental income goes to my business checkings and I write a check to myself, will I get taxed for that at end of year?
Hey thanks so much for these videos. I am starting a Epoxy countertop and Table business and I'm using Legal Zoom to get my paperwork completed. But I have no idea how to pay myself or how much. Also, my expenses will largely be materials from Home Depot and an online distributer. Should I get a business credit card and then pay from my business account every month?
I've learned a lot and I recently am a new subscriber. I noticed a lot of times in your videos you talk about S corporation and LLC I'm not sure what really those mean or if they're any different from regular incorporation or regular proprietorship.. I would like to have more details on what these letters and types of businesses are.
Question regarding a potential alternative to paying yourself via check. Between your business and personal checking accounts, is there any aversion to taking a member distribution from your LLC by performing an electronic funds transfer from business->personal and noting in the transaction memo that this is a member distribution? What, if any, are the gotchas?
A good infomation. Thanks. I have a question. I incorporated my LLC at Michigan state but EIN have an address at Illinois state. Where should I pay taxes?? MI or IL??? I'm so confused
what if host 2 events per year (as a single member llc) january & july. when would i have to file my taxes? quarterly or is there a once per year "at the end of the year" option? since i'll have a 6 month gap without no income // 8 overall months without business income.
I dont have a business credit card yet for my llc, so should I pay my personal credit cards directly from my llc bank account or do I have to pay myself to my personal account and pay cc’s from there?? Pls help
Couldn't you do an ACH transfer instead of writing a check? I'd rather not wait 5 business days for the check to process when I can just immediately transfer it. Let me know. Thanks.
Is it weird that I understood you and got lost at the same time? So the “taxes” account, should I create a new bank account for that or can it stay in my business bank account? Or could I allocate it to my business savings account for the end of the year?
Ok, so let me see if I get this correct. For my company, let's say company A. So A's taxable income is ONLY what is left AFTER expenses. To include, paying the single member. So let's say 20k gross, -13k operating expenses (which includes paying the single member) leaving 7k which will get taxes at the end of the year?
I formed a llc to become a independent contractor with a company that outsources work from home. However, applied for my ein as a sole member. I could not select this on the W9. I could only select llc with S Corp status . What should I do with the IRS regarding sole member... Will I have to have another ein assigned?
I don't know what version of a W-9 you were looking at, but here is the one from IRS.GOV www.irs.gov/pub/irs-pdf/fw9.pdf It clearly has a choice for sole prop/SMLLC and another choice for regular LLC.
What if they do away with checks cause personally I don't have checks can't I just transfer payment to myself from my business account to my personal account???
For a single member LLC do you have to pay the 15% self employed tax and is creating a s-corp the only way to get out of paying that. Does the self employed tax only tax profits or losses as well
Hi, I just started a brick and mortar opening today. I have an LLC...it just literally hit me about paying myself. so over 35k I should form an S corp?
Hey Jim, thank you explaining in details. I just formed my LLC in my home state in Delaware. I am an independent contractor, but some of my employers insist on paying me directly, and not my company. They say they hire me and some my company. Would it be okay to deposit my check into the LLC account? Thank you.
Hi Jim I do have an LLC and I do pay myself and my wife with Payroll, This is my last payroll fee: Auto Payroll successful! Employees to be paid Jun 05. No. of employees 2 net pay $5,299.15 taxes $1,166.19 deductions & contributions $0.00. My question is why I can pay myself and my wife with payroll and pay those fees when I can invest those fees and no salary, I can spend the money with business cards if I need to.. Can you explain to me please? Thank you
Hello - so you recommend a S Corp after 35-50k of revenue… does that mean start with an LLC until you figure it out… or are you advocating for S Corp to start.?
Thank you for this video it reminded me of back in 1992 when I began working in the computer industry I wanted to incorporate and looked around at various ways to do that. I was at a meeting with the IRS where a fellow engineer had formed a K Corporation and it was the worst thing he could have done for various reasons, mainly Healthcare options. I then began to do research for the companies that I would work for and I found some striking similarities that Intel, Oracle, IBM, Microsoft, McAfee, all of the Silicon Valley companies except Hewlett-Packard back then were C corporations based in Delaware. I found a place that would incorporate me as a C corporation for $300 and I Incorporated. It was a great learning experience I will also never forget the day that Intuit threatened to sue me when I reverse-engineered their QuickBooks Pro database to fix a bug in their program regarding employee training tax! The other humorous moment that sticks in my mind is when my contract at Intel had finished and I went to collect unemployment at the local EDD office she asked me what happened I said those horrible corporate moguls let me go! We then commiserated for a few minutes I didn't have the guts to tell her I was talking about myself! Even though I realize now there was some minor double taxation which I minimized it was still a great ride!
@Evil Ghandi I understand free market and that's why this dude on youtube giving free advice quicker and better than what a scheduled in person, and potentially unhelpful appointment is. I want more market competition with lower prices and better service so that would be a no for Biden. Nothin for nothing. Don't worry I'll still be paying my competent accountant a nice fee for his expertise this april. Not trying to discredit but there are some situations where free UA-cam is better and others where you need the pro no doubt.
Hello I belong to a club IE train club, it has a store connected that has volunteer workers. No one accepts wages, how does or what would be a way to set up the store to be an LLC, with no wages for the members.
I am currently a freshman in college receiving a lot of financial aid. My major is business administration. I am also self-employed. the principal work that I do is Lawn Care, automotive repair, and snow plowing. what type of business should I form so that I can declare income and expenses, stop working just for cash and start advertising while also minimizing my personal liability?
If you have no assets to protect you need not form an entity, just file as a sole proprietorship on your 1040. LLC are only there to separate personal assets from business in case you're sued.
I want to open a us brokerage account as a us non resident(which is easy and have done it as an individual). However i can only trade shares not options trading. Will opening llc allow me to do this and also save me tax.
hello, i have an LLC company in Delaware and i want to close it. So i filled required forms and sent it. My question is, i wrote 10 of July to closing date, but my forms sent there in 7 of July and now the date was past and nobody do anything my forms. Is this a problem? I really don'T know what to do i'm worried. Thanks..
Question if provide a service also working with my team of contractor - do I pay my self like the other contractor or after profits of any are left over ? Some guidance is very much appreciated
If you're single memeber LLC, you can't pay yourself salary according to the IRS tax code. Because you are considered a disregarded entity and so you're automatically a sole proprietor. Basically to answer your question you could use your business debit card for personal stuff since you're considered sole proprietor in the IRS eyes, but if you were to get sued you could lose the protection that comes with a limited liability if the court can determine your identity and your entity are one and the same not separate. Hence why it's called "limited liability"
DO NOT co-mingle funds. You can use the BUSINESS debit card to pay for BUSINESS expenses. Taking a client or customer to lunch is a business expense. Ordering in a burger and fries to your office is not, usually. Example: During tax season we order food in for the staff. Keeps up productivity, and discourages long lunches. That is a business needs expense. Do not save the step, just because you don't want to transfer money from the business to your personal account just to pay your home cable bill. Keep the Chinese wall up between your business banking and your personal banking.
Hi, thank you all your information, very knowledgeable. I learn so much. I am from Cleveland Ohio and and I am look for e-commerce CPA. Could you please recommend a person for our community. We are LLC now, but we have to search to corporation next year. Thank you
In an LLC can I set up a separate "contingency" account with, say, 2 months of operating expenses in case of an emergency? Would the LLC be forced to distribute those funds or the member(s) pay taxes on them at the end of the year? I am really trying to start this next venture right...
Thanks. You make me feel better. I thought I was ripping myself off on my taxes by not having a s corp for all these years. 35k to 50k net income is reasonable salary at the minimum. Nobody else has that answer. 👍🏻
Hi Jim, My son and I started our LLC partnership in Feb 2019. We will be making 50k+ year. Should we be S Corp? Is it within 75 days of getting LLC. Or can we become S Corp later? And do we need a lawyer to write something up for partnership? We both work for company and have one employee. Do we pay ourselves certain amt or just hours we work? Lot to know. I appreciate your advice. Joyce
I am 63 and receiving benefits. I work full time and they are withholding 3 months of benefits. My full time job may be in question, so I would like to start a side business in case the job goes away. I read on the internet that if you start a single member LLC that you could withdrawn money as a distribution of assets in stead of a wage, it would not show as gross income on your w2 form. Is this true?
Can't answer legal questions in UA-cam comments, unfortunately. There are lots of reasons that someone may or may not file taxes.Income or losses from the LLC are reported on a schedule C with your 1040. Most people have income from a job or somewhere else that they would need to report on their 1040.
I'm confused by your explanation in this video and perhaps you just misspoke and meant another word? From 1:55 - 2:20 you said that you have to consider your income, your expenses, and your taxes in single member LLC and after you take all of your taxes from the pot, the pot you have left over "that's what you're going to get taxed on" could you please clarify? It sounds as if your saying your going to be taxed and then after you've taken your taxes out you're going to be taxed again....? That doesn't sound right, what do you mean? You are taxed twice?
Starting my own towing business, just myself. Does this qualify for single person LLC? Or would an s Corp better? It's just myself until I can grow bigger.
Hi there, l just formed an LLC and added my 2 adult children and my husband as members. JUST MEMBERS. l am a newbie as a Real Estate Investor and do not know much. Is this advisable? Please help.
Awuramma Parry are they members or beneficiaries??? I have my own LLC and I plan on making my kids beneficiaries simply because I want them to have a piece of my hard work if I so happen to die on the job. If I had them as members I would essentially be required to pay them percentage of profits at the end of every fiscal yr mines being mid April since that's when I opened my LLC
By default your husband is a member regardless, your kids being members is not beneficial to you as the tax payer as an llc more then likely will pass through to you return and if there are losses it will reduce your taxable income. If you pass through the losses to kids with no income they will become suspended and useless until they are earning income, If you have gains then yes it could be advantageous if you set it up to where there income is less the 6300 a year.
LLC is considered a separate entity. If you're using your personal bank account and EIN for the LLC, the corporate veil will be pierced which defeats the purpose of having the LLC.
@@heinaye3594 so just to confirm, If I have a business account with and EIN and LLC, then I can pay myself into my personal act 2/month. I only need ONE EIN right?
@@yocreason if you're asking if you only need one EIN for each LLC, then yes. You can pay yourself any number of times you like, just make sure that the income from the business doesn't go to your personal account directly.
No - S-Corp is a "taxing status", not a legal entity. I recommend that people start as an LLC and then when they are making enough money to justify the added complexity of an S election, they make that election with the IRS (you will need to file a separate tax return, pay yourself a salary, etc.) LLC's are a lot easier to manage when you are getting started.
Thank you for watching! I just announced a new FREE training that reviews the exact 10 Step Process I use for starting an Online Business: www.obfoundations.com/10steps
Can you create a LLC when you are a stock market trader?
Aw man very good video thanks
Can you go over how you pay yourself in an "S Corp" scenario?? I know you did a talk for the Single Member LLC.
Thanks!
Hawthorn Law In a single member LLC are you tax on gross sales or,
after all business expenses, net sales?
If your LLC gets a fine, and it bankrupts it, what is your personal liability?
Your videos are very informative and straight to the point. Thank you so much for helping us small business owners, I also appreciate the simplicity of your explanations. I never leave your sight wondering... and for whatever reason if I do have a question, guess what? You made a video for that too
Wow, Jim, I'm very glad that I chose your video. You are very informative. I might have a few questions.
Here maybe within a few days or so. But I am trying to start my own LLC
Business.
Glad it was helpful!
3:44 to 4:37 I'm quite confused. So, let's say I earn $1,000 in a month in a single member LLC, disregarded entity. Should I not set aside 15.3% of that for tax, which would be $153? Even with Profit First?
Got an LLC for a t shirt business, I’ve been too busy to get started. Since I’ve bought the equipment little by little and I work 70 hrs a week. I don’t know what to file since I’ve actually not made any money yet.
did your biz succeed?
How has your business performed?
thanks for your video I just switch my company from S-Corporation to Llc . I was told Llc is better.
I really appreciate you speaking about Profit First, I think it's a book/syster everyone should know about.
Awesome videos!!! Quick, clear, and to the point. Really appreciate this advice! Especially from an attorney!
Thank you for making these videos. I'm in the process of buying a bunch of books (including Small Business for Dummies), watching a bunch of videos and generally informing myself to the best of my ability in preparation to form a business. This type of content really helps me. I gave the thumbs up!
I'm confused, under a Sole Member LLC, wouldn't you get taxed on all profits, not just those you put into an "expense" Account?
Thank you so much for all your great information! I will definetly consider booking a call with you as your fee is very reasonable, and you are knowledgeable and sincere. I just formed a single member LLC and yes its for ECommerce.
talk to a local CPA as soon as possible. You will probably have to collect sales taxes on the sales in your state. That means you need to register and file sales tax reports.
1:30 that's a check. Slow down I'm taking notes...
I am still waiting on you finishing the notes
I’m still confused. 🤪
MAN, I COULD HV LISTEN TO U ALL DAY ON DAT NOTE !¡
Excellent informative video. I like how you mentioned a threshold for S corp netting etc. Many people will start to learn from this video.
Due to your recommendation, I purchased Profit First. Thanks for this great info, and the solid book recommendation.
Yeah - it's a good one!
So I've set up an LLC, paid the fees to the state, paid for checks, paid a lot of mileage traveling to potential customers, etc. etc. but the LLC has not made any money yet. How do I handle the money that I am "advancing" to the LLC to get it up and running? Do I need to put funds of my own into the LLC's bank account to pay myself those expenses back? How do I best handle this?
Kurt Mohnsam great question.
The mony you have "invested" is your capital. You need an accountant NOW.
Could you make a video about LLC file taxes? such as payroll taxes? thank you
Hong Sok There is no need for payroll taxes if you're paying yourself in a single member LLC.
they better not have a c corp lol that would be horrible haha s-corp would be good though
Honest Sok
If you elect S-Corp status you may need to pay yourself a salary.
Hong Sok I would like to know as well
Thank you. You just confirmed that I need an accountant
good answer.
You mention member distribution, does this also apply to if one chose the manager managed type for their LLC? 🤔
So for an LLC, since LLC has to pay self-employment tax of 15% on gross income, with the way you allocate money into 4 separate accounts described in this video, which I think is a great way to do it, besides allocating that 20% of 30% of your Expenses account for paying tax, shouldn't we add another 15% for self-employment tax? Thank you.
This is probably a really stupid question, but please forgive me. Let’s say you create a business, put 25% down and finance the remainder. Will the loan institution allow you to pay yourself or family a salary? I didn’t know if the loan had to be paid off first or not. Thank you!
how much money do you leave in your operating expense account typically? does that account usually stay close to empty to just cover expenses?
What 4 bank accounts would you recommend for single member llc?
1)personal checking (already have)
2)?
3)?
4)?
Would greatly appreciate your feedback
1. Operating
2. Owner Pay
3. Tax
4. Profit
What if you start up a LLC in a specific state, then move to another state in the future? Do I then have to re do it according to the state that o currently reside in or where it was founded??
Hi. So when I write a check from my business to me for some spending money in the note section of the check I just write member distribution? Correct?
Now I use Quicken to keep track of everything. What would I list paying myself as in Quicken? Would be considered an expense to my business? What do I put for the memo and category. So confused :-(
I’m so glad I found you! Thank you so much for your videos! They’re very helpful
I am a single member LLC for a rental property. When the rental income goes to my business checkings and I write a check to myself, will I get taxed for that at end of year?
Hey thanks so much for these videos. I am starting a Epoxy countertop and Table business and I'm using Legal Zoom to get my paperwork completed. But I have no idea how to pay myself or how much. Also, my expenses will largely be materials from Home Depot and an online distributer. Should I get a business credit card and then pay from my business account every month?
So DBA/LLC (sole proprietor) is pretty much the same. Which do you suggest to save on taxes?
Thank you for this super helpful video! I'm doing research on LLC's. Your video popped up on my home page.
I've learned a lot and I recently am a new subscriber. I noticed a lot of times in your videos you talk about S corporation and LLC I'm not sure what really those mean or if they're any different from regular incorporation or regular proprietorship.. I would like to have more details on what these letters and types of businesses are.
Hello what about foreign-owned LLC operate outside of USA? do we need to pay taxes as well? thank you
Question regarding a potential alternative to paying yourself via check. Between your business and personal checking accounts, is there any aversion to taking a member distribution from your LLC by performing an electronic funds transfer from business->personal and noting in the transaction memo that this is a member distribution? What, if any, are the gotchas?
I think you can do that - but in my experience most banks won't let you link a business and personal checking account. But I suppose it is possible.
@@jimhart PNC Bank does. I just completed the process.
A good infomation. Thanks. I have a question. I incorporated my LLC at Michigan state but EIN have an address at Illinois state. Where should I pay taxes?? MI or IL??? I'm so confused
what if host 2 events per year (as a single member llc) january & july. when would i have to file my taxes? quarterly or is there a once per year "at the end of the year" option?
since i'll have a 6 month gap without no income // 8 overall months without business income.
Every situation is different. I would talk to an accountant.
I dont have a business credit card yet for my llc, so should I pay my personal credit cards directly from my llc bank account or do I have to pay myself to my personal account and pay cc’s from there?? Pls help
So, this is why I was having to file quarterly. Thank you for the education. Great video!!
Couldn't you do an ACH transfer instead of writing a check? I'd rather not wait 5 business days for the check to process when I can just immediately transfer it. Let me know. Thanks.
Is it weird that I understood you and got lost at the same time? So the “taxes” account, should I create a new bank account for that or can it stay in my business bank account? Or could I allocate it to my business savings account for the end of the year?
Ok, so let me see if I get this correct. For my company, let's say company A. So A's taxable income is ONLY what is left AFTER expenses. To include, paying the single member. So let's say 20k gross, -13k operating expenses (which includes paying the single member) leaving 7k which will get taxes at the end of the year?
great stuff man. thanks. as a newly LLC i will definitely consider this as well as your business.
I formed a llc to become a independent contractor with a company that outsources work from home. However, applied for my ein as a sole member. I could not select this on the W9. I could only select llc with S Corp status
. What should I do with the IRS regarding sole member... Will I have to have another ein assigned?
I don't know what version of a W-9 you were looking at, but here is the one from IRS.GOV
www.irs.gov/pub/irs-pdf/fw9.pdf
It clearly has a choice for sole prop/SMLLC and another choice for regular LLC.
What if they do away with checks cause personally I don't have checks can't I just transfer payment to myself from my business account to my personal account???
For a single member LLC do you have to pay the 15% self employed tax and is creating a s-corp the only way to get out of paying that. Does the self employed tax only tax profits or losses as well
Check out today's video where I talk about this a bit more... ua-cam.com/video/m_LftgIO3vQ/v-deo.html
Can you have the goods produced overseas and imported here to sell via Ecommerce platform. How will you pay your employees overseas ?
Hi, I just started a brick and mortar opening today. I have an LLC...it just literally hit me about paying myself. so over 35k I should form an S corp?
On payroll check we don’t deduct taxes for an llc company owner?
Hey Jim, thank you explaining in details. I just formed my LLC in my home state in Delaware. I am an independent contractor, but some of my employers insist on paying me directly, and not my company. They say they hire me and some my company. Would it be okay to deposit my check into the LLC account? Thank you.
Great question. I sure hope he or somebody answers... Sure would be nice to know.
Can you send the money electronically instead of writing a physical check to yourself?
Thank you Matt Damon
I guess they cut out the fighting seen.
Hi Jim
I do have an LLC and I do pay myself and my wife with Payroll, This is my last payroll fee:
Auto Payroll successful! Employees to be paid Jun 05. No. of employees 2 net pay $5,299.15 taxes $1,166.19 deductions & contributions $0.00.
My question is why I can pay myself and my wife with payroll and pay those fees when I can invest those fees and no salary, I can spend the money with business cards if I need to..
Can you explain to me please?
Thank you
thank you for speaking clearly and staying on point, you're awesome at explaining this. keep it up :)
Hello - so you recommend a S Corp after 35-50k of revenue… does that mean start with an LLC until you figure it out… or are you advocating for S Corp to start.?
Thank you for this video it reminded me of back in 1992 when I began working in the computer industry I wanted to incorporate and looked around at various ways to do that. I was at a meeting with the IRS where a fellow engineer had formed a K Corporation and it was the worst thing he could have done for various reasons, mainly Healthcare options. I then began to do research for the companies that I would work for and I found some striking similarities that Intel, Oracle, IBM, Microsoft, McAfee, all of the Silicon Valley companies except Hewlett-Packard back then were C corporations based in Delaware. I found a place that would incorporate me as a C corporation for $300 and I Incorporated. It was a great learning experience I will also never forget the day that Intuit threatened to sue me when I reverse-engineered their QuickBooks Pro database to fix a bug in their program regarding employee training tax! The other humorous moment that sticks in my mind is when my contract at Intel had finished and I went to collect unemployment at the local EDD office she asked me what happened I said those horrible corporate moguls let me go! We then commiserated for a few minutes I didn't have the guts to tell her I was talking about myself! Even though I realize now there was some minor double taxation which I minimized it was still a great ride!
Wow. I paid a guy $300 for this info a few months ago. Smh 😩
br3wskee 🤫🤫🤫🤫🤫
Yeah that's accountants for you every minute is billable.
Evil Ghandi dude why are u mad
@Evil Ghandi Well they might as well be fast food employees cause they just got this info for free. So the $300 might not have been worth it.
@Evil Ghandi I understand free market and that's why this dude on youtube giving free advice quicker and better than what a scheduled in person, and potentially unhelpful appointment is. I want more market competition with lower prices and better service so that would be a no for Biden. Nothin for nothing. Don't worry I'll still be paying my competent accountant a nice fee for his expertise this april. Not trying to discredit but there are some situations where free UA-cam is better and others where you need the pro no doubt.
Hello I belong to a club IE train club, it has a store connected that has volunteer workers. No one accepts wages, how does or what would be a way to set up the store to be an LLC, with no wages for the members.
I am currently a freshman in college receiving a lot of financial aid. My major is business administration. I am also self-employed. the principal work that I do is Lawn Care, automotive repair, and snow plowing. what type of business should I form so that I can declare income and expenses, stop working just for cash and start advertising while also minimizing my personal liability?
I plan on operating this business in Florida for all intensive legal purposes.
If you have no assets to protect you need not form an entity, just file as a sole proprietorship on your 1040. LLC are only there to separate personal assets from business in case you're sued.
I want to open a us brokerage account as a us non resident(which is easy and have done it as an individual). However i can only trade shares not options trading. Will opening llc allow me to do this and also save me tax.
If I have 2 business do I need an LLC for each one, or is there a way to convert them into one LLC?
Thanks for the video. Question. Can I start S corporation without ssn. I have only ITIN number.
hello, i have an LLC company in Delaware and i want to close it. So i filled required forms and sent it. My question is, i wrote 10 of July to closing date, but my forms sent there in 7 of July and now the date was past and nobody do anything my forms. Is this a problem? I really don'T know what to do i'm worried. Thanks..
Question if provide a service also working with my team of contractor - do I pay my self like the other contractor or after profits of any are left over ? Some guidance is very much appreciated
So the LLC needs to have 3 business accounts: Expense, Taxes and Profit. To avoid a high tax on all profits, what is needed?
Lots of actual expenses. Taxes are taxes. Don't avoid. Just make sure you never miss the payment.
What if you have a business debit card. Can you use it to eat on when working on a job?
If you're single memeber LLC, you can't pay yourself salary according to the IRS tax code. Because you are considered a disregarded entity and so you're automatically a sole proprietor. Basically to answer your question you could use your business debit card for personal stuff since you're considered sole proprietor in the IRS eyes, but if you were to get sued you could lose the protection that comes with a limited liability if the court can determine your identity and your entity are one and the same not separate. Hence why it's called "limited liability"
DO NOT co-mingle funds. You can use the BUSINESS debit card to pay for BUSINESS expenses. Taking a client or customer to lunch is a business expense. Ordering in a burger and fries to your office is not, usually. Example: During tax season we order food in for the staff. Keeps up productivity, and discourages long lunches. That is a business needs expense.
Do not save the step, just because you don't want to transfer money from the business to your personal account just to pay your home cable bill. Keep the Chinese wall up between your business banking and your personal banking.
Hi, thank you all your information, very knowledgeable. I learn so much. I am from Cleveland Ohio and and I am look for e-commerce CPA. Could you please recommend a person for our community. We are LLC now, but we have to search to corporation next year. Thank you
Do all the members have to sign the operation agreement in CT, 4 members
One of the member refuse to sign?
all members have to sign. make him an employee.
Any advice about insurance for a business?
Love the videos keep them coming, just joined the notification squad
Thanks Tammy! I’ve been taking some time off this summer but will be back at it when kids go back to school!
Do you have one bank with multiple accounts or different banks. No one mentions this.
I have one business bank with multiple accounts for my business.
Amazing video… Thank you so much for this really insightful information! God I needed to hear this❤️💯👍
Is there a problem with paying yourself from your LLC with a direct bank transfer, and what should the memo/notes say for that kind of transfer?
EFT is fine. memo should read "income distrib"
Thank you for the help!
In an LLC can I set up a separate "contingency" account with, say, 2 months of operating expenses in case of an emergency? Would the LLC be forced to distribute those funds or the member(s) pay taxes on them at the end of the year? I am really trying to start this next venture right...
Thank You, Mr Jim
What's the music at the beginning of your video?
Thanks. You make me feel better. I thought I was ripping myself off on my taxes by not having a s corp for all these years. 35k to 50k net income is reasonable salary at the minimum. Nobody else has that answer. 👍🏻
You're welcome Jeff! Thanks for the comments.
Hi Jim, My son and I started our LLC partnership in Feb 2019. We will be making 50k+ year. Should we be S Corp? Is it within 75 days of getting LLC. Or can we become S Corp later? And do we need a lawyer to write something up for partnership? We both work for company and have one employee. Do we pay ourselves certain amt or just hours we work? Lot to know. I appreciate your advice. Joyce
Let me know if you would like to schedule a call to discuss. www.hawthornlaw.net/contact-us/
Can I please email you for advice on your situation?
Very useful Info. Direct to the point.
thank you for taking your time and sharing this information I do appreciate it.
#hawthornlaw what software do you recommend using when you have LLC for accounting and tax purpose?
Great video! Thank you so much for the break down of accounts! Love the sip at the end too lol
You're welcome!
I am 63 and receiving benefits. I work full time and they are
withholding 3 months of benefits. My full time job may be in question,
so I would like to start a side business in case the job goes away. I
read on the internet that if you start a single member LLC that you
could withdrawn money as a distribution of assets in stead of a wage, it
would not show as gross income on your w2 form. Is this true?
It's true, but it shows up on Schedule C. Still taxable income on Form 1040, just different line.
im a single member LLC but Im not online yet, therefore I have no income from my business. So my question would be will I still need to file taxes?
Can't answer legal questions in UA-cam comments, unfortunately. There are lots of reasons that someone may or may not file taxes.Income or losses from the LLC are reported on a schedule C with your 1040. Most people have income from a job or somewhere else that they would need to report on their 1040.
I'm confused by your explanation in this video and perhaps you just misspoke and meant another word? From 1:55 - 2:20 you said that you have to consider your income, your expenses, and your taxes in single member LLC and after you take all of your taxes from the pot, the pot you have left over "that's what you're going to get taxed on" could you please clarify? It sounds as if your saying your going to be taxed and then after you've taken your taxes out you're going to be taxed again....? That doesn't sound right, what do you mean? You are taxed twice?
Starting my own towing business, just myself. Does this qualify for single person LLC? Or would an s Corp better? It's just myself until I can grow bigger.
Osbon Channel
LLC then s Corp
Why not just write a payroll check with self employment taxes for LLC? Use the employment taxes as a business expense write offs?
Awesome videos and info. You have a new subscriber!
Wondering if it can be an automatic deposit??
Can't you have a single LLC but file S-Corps? Are there differences from doing this rather than just being an S-Corps?
thanks for the valuable information!! may you consider doing a video on How to Operate a small business as a veteran owned business??
Hi there,
l just formed an LLC and added my 2 adult children and my husband as members. JUST MEMBERS.
l am a newbie as a Real Estate Investor and do not know much. Is this advisable?
Please help.
Awuramma Parry are they members or beneficiaries??? I have my own LLC and I plan on making my kids beneficiaries simply because I want them to have a piece of my hard work if I so happen to die on the job. If I had them as members I would essentially be required to pay them percentage of profits at the end of every fiscal yr mines being mid April since that's when I opened my LLC
Awuramma Parry I would not do that, but u should be fine
By default your husband is a member regardless, your kids being members is not beneficial to you as the tax payer as an llc more then likely will pass through to you return and if there are losses it will reduce your taxable income. If you pass through the losses to kids with no income they will become suspended and useless until they are earning income, If you have gains then yes it could be advantageous if you set it up to where there income is less the 6300 a year.
Hawthorn Hacks.... that’s a good name for your show
Have you ever done a video on integrating personally owned assets into an LLC or S-Corp?
I want to be a wage earner in my business. How does the LLC(single member. Me.) file taxes, is it a information return only?
I lost you when you said that I need another bank account to pay myself and I need another eim number for that. I appreciate your videos
LLC is considered a separate entity. If you're using your personal bank account and EIN for the LLC, the corporate veil will be pierced which defeats the purpose of having the LLC.
@@heinaye3594 so just to confirm, If I have a business account with and EIN and LLC, then I can pay myself into my personal act 2/month. I only need ONE EIN right?
@@yocreason if you're asking if you only need one EIN for each LLC, then yes. You can pay yourself any number of times you like, just make sure that the income from the business doesn't go to your personal account directly.
Why can't I pay personal debts like student loans from my business account, but I can pay business bills from my personal account.
Did you explain why there's 2 days payment?
Thanks for this great information it’s really helpful. God bless you 🙏😊❤️
Hi. Any updates for 2020? Particularly surrounding COVID, start-ups and anything you think is relevant! Thanks!
So are you saying start off as an LLC and change to an SCORP?
No - S-Corp is a "taxing status", not a legal entity. I recommend that people start as an LLC and then when they are making enough money to justify the added complexity of an S election, they make that election with the IRS (you will need to file a separate tax return, pay yourself a salary, etc.) LLC's are a lot easier to manage when you are getting started.