Tax Differences EXPLAINED: LLC, S Corp, Partnership, Sole Prop
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- Опубліковано 1 лют 2023
- In this video, I explain the tax differences between a sole proprietorship, LLC, S Corporation and Partnership. I also explain how much tax you might owe for each entity type, how to make those tax payments and when those payments are due so you don’t have to worry about late payment or filing penalties.
Links to websites used in video:
Federal Income Tax Calculator: www.ameriprise.com/financial-...
State Tax Information: taxfoundation.org/publication...
When to Pay: www.irs.gov/faqs/estimated-ta...
How to Pay with Direct Pay: www.irs.gov/payments/direct-pay
How to Pay with EFTPS: www.eftps.gov/eftps/direct/Ef...
🔗Useful Links:
🌐 Website: navimarajcpa.com/
📋 Enroll In My Course - Small Business Taxes: From Knowing Nothing to Savings Thousands: navimarajcpa.com/learn/
📁 Setup your LLC or Corporation for FREE:
FileYourBusiness.com: www.fileyourbusiness.com/
Inc Authority: bit.ly/incauthoritycoupon
IncFile: bit.ly/incfilecoupon
ZenBusiness: bit.ly/zenbusinesscoupon
If you learned something from this video, please like and subscribe and follow me on my various social media handles below. If you would like to contact me with a specific question, please visit my website or leave me a comment.
Website: www.navimarajcpa.com
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This video was created for informational purposes and it is not to be construed as legal and tax advice specific to your unique situation. Some of the links above are affiliate links which means that if you purchase a product or service with the provided link, I may receive a commission with no additional cost to you.
© Navi Maraj CPA PLLC. All rights reserved.
#scorp #llc #taxes #explained
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This is by far the clearest explanation of this topic I have yet run across. Very well presented, having apples to apples examples in a clean spreadsheet format, as opposed to the random whiteboard scribblings that some others do that are really hard to follow.
Great video! It helps understand the basics I’m going to keep watching at the more complex topics!
If i want to open my own behavioral health/ mental healthy therapy practice and I am a Licensed Clinical Social worker in California can I do a partnership? I am told I cannot do an LLC.
I’m more than happy to discover this channel. I need to thank you for your time for this, particularly a fantastic watch!! I liked every little bit of it and I have subscribed you to look at new posts all the time.
Hi Navi. This video is great. I have tried to find a video with an expatiation like this one you just did and I have not found anything like this. You are great. Thank you so much!!!
I'VE WATCHED A LOT OF VIDEOS BUT THIS ONE WAS VERY UNDERSTANDABLE. THANKS
This is exactly the kind of video I was looking for, super basic but thoroughly explained, thank you!
Thank you so much!! Your video was so helpful in gaining a clear understanding of the different business models, how the taxation flows, and the importance of each part. Very Informative, thank you
Best video online. Please keep up with the visuals of your explanations. It helps visual learning a ton.
This was excellent and helped me decide to open an s corp vs LLC as an independent contractor
Thank you for helping with taxes and your visuals were spot on , also keeping taxes interesting.
You did a great job, explaining how each entity pays their taxes and what is required but you didn’t explain to me any advantages of what each one offers so you just wasted like an hour of my time and now I’m super convinced on why it’s just good to pay so I wanna do your taxes. Thanks.
Would like to see more of these types of videos where small business owners can get educated on how to understand financials and use them to improve their business
Super clear explanation. Setting the numbers up like that gave me a visual idea of how I should set up the business
Excellent job! You explained very clearly with a clean easy understanding spreadsheet. Really appreciate it.
Outstanding!! I agree with Roger below. You provided the clearest explanation to date!!
Very well explained, I’m CPA in Puerto Rico and is very important get an advisory from a CPA.
This is incredibly helpful! Thanks so much!
Thanks for the feedback!
☑ I don't leave a lot of reviews, but this video and another one in your list completely lifted the scales from my eyes. I was blind and now I see! You helped me make a decision about whether to go the S-Corp route and saved me from making a huge mistake. Thank you for bringing free content that is completely useful on its own. I have you bookmarked. I definitely want to take your course once I get my business up and running.
Same as you. I’m started by own business and this has definitely saved me lots of money before starting.
Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This UA-cam channel is very informative and effective.
Thank you so much, Navi! This video is GOLDEN!!!
Great explanation! Thank god I came across this video. Looking forward to watching the rest of your information. Thank you!
Excellent video! Thanks for being so precise with your explanations. You are really taking the stress out of the entire process.
Thank you so much. This knowledge is invaluable and I better understand Sole vs. LLC and not as freaked out!
Great to hear! Thanks so much for the feedback and glad you're understanding things better.
@@NaviMarajCPA❤❤❤
Navi, this was an absolutely phenomenal explanation compared to everything else I’ve seen on YT. I appreciate the disclaimers regarding QBI and SE deductions, since many people leave these out and don’t mention it. Your clear ability to share knowledge makes me want to use your course. Thank you!
Thank you so much... this is very helpful. I am a freelancer and I need to learn more about US taxes.
Navi!! I see many videos and feel like yours are the best to learn!! Hope to find you soon and would love to learn more from you
Great video! You do a nice job explaining a complicated topic. Thanks!
Best video on tax differences !! thank you for taking the time to do this video 👏🏻👏🏻👏🏻👏🏻
extremely clear about all three categories. thank you.
I rearly leave comments but you are great!
This is EXACTLY what I have been looking for so long. I graduated from financial university in Europe but now I live in the US and I need to understand your microeconomy regulations work. Your video is just a great example of top notch teaching, it helped my to obtain more clear vision on how to run my own company and what type of entity to choose. I didn't even know about QBID. I'm going to comple your whole course. Thank you again!
Rarely.
@@ashburnconnecttv7860 I wish I had someone who would correct me since I’m trying to improve my spelling. Thank you for noticing!
You are phenomenal. Thank you for what you do!
This was very helpful!! Thank you!
thank you for taking the time to share your knowledge on this
new LLC and this is exactly what i need to know, i am going to the s corp after watching this video.
Thank you. Very helpful content and well explained.
You're welcome! Thanks for the feedback.
Thanks for explaining I enjoyed following along the visuals and website.
Very clear and educational video, thank you
Best video on tax differences.
We are thinking about converting from a LLC to an S Corp. This was extremely helpful. Thanks!!
Navi, you do an excellent job teaching the layman !
😊
Great video I really liked the visual chart. Thank you.
Thank you for this video. It's exactly what I was looking for. I found your spreadsheet and will definitely adapt it into mine. I appreciate it. I subbed for you.
This was very helpful! Thank you so much!
You're welcome. Thanks for the feedback!
Great video, very informative and well explained/structured. Only problem is that I need a Canadian version of this channel!
amazing video!!! WOOOW. I AM IMPRESSED!
Excellent presentation!! 🎉❤
Amazing video , well explained
Super helpful and clear! Thanks!
Very helpful! I will implement your advise
Thanks for the video. Nice Fastback in the background ;). I once had a 66' Coupe.
My favorite comment by far!!!!
Fantastic content, I will absolutely 100% come back
Great video. Thank you!
this was really helpful, Thank you.
Very informative. Thank u!
THANK YOU THANK YOU VERY MUCH… 🙏🏽
I just subscribed 👌🏽👍🏽
Spot on, exactly what I was looking to learn. Thank you for your time in helping everyone!
I am new to forming an LLC and learned a lot through your videos.
As an S-Corp, when exactly can you withdraw the "distribution" amount (60k in your example). You pay taxes on 88k anyways - is there a reason to leaving that distribution amount there?
At the end of your video, you suggest that over 60k can go to a Roth. What about Pre-tax retirement contributions? SEP IRA not an option for S-Corp?
This is a great question. I would like to know this as well.
excellent presentation!
Thanks so much!
Taxes should not be this confusing…
Agreed but hope I was able to make it a little easier for you.
Agreed. Also, taxation is theft. They literally tax you 2x literally every direction you go. But then they say, no dollar can be taxed twice. It’s bologna
He actually explained it so smoothly in my opinion. Plus he giving good examples with easy to understand numbers and this is my first time learning about business taxes. Only part I don’t completely get is where the $88,000 came from when at first it was $100,000 then the QBID made it $80,000. I’m just confused where the other $8,000 came from.
@@vikkifairchild9858How?
It's not, since the governments number one mandate is keeping the nation safe. Also a nation has clearly defined borders that requires people to go through a process to enter. Since the USA doesn't have those things currently all federal taxes are invalid and shouldn't be paid.
Thank you so much very informative.
Great info, thanks so much.
Ok I am going to learn this stuff come heck or high water..... Thanks for your help. Great Channel!
Awesome info you broke down simply thanks and a pay roll company seems the way to go
This was awesome Navi!
Thanks for the feedback! 👍🏼
Really good video. Thanks
Fantastic info and great pacing. This is hard stuff for most people to wrap their head around and you did a great job. The only thing that would make it marginally better and might not be worth the time is to put together some slides you can show occasionally during the presentation, but I understand if it isn't worth it.
This was so helpful! I’m trying to decide llc or S corp for my business salon in California
I'm trying to understand business taxation and this video helped me to understand the differences. I'm a visual person; listening and reading don't help me. Thank you.
Thanks for sharing!
Thankyou. This was a good video.
Thanks so much! 👍
Very informative. Thank you! How do you switch from an LLC to S Corp?
thanks mr.meraj ... thumbs up from Pakistan
Great video. The social security tax is more nuanced then described. There is a max amount that is held per year. I think you want to max that out as many years as possible to get max social security benefits at the end of the day.
Man i need me a powerball jackpot because this is exhausting 😂😂😂 great video
Everything you explained was very helpful! Thank you for sharing!
You're welcome. Glad it was helpful for you!
Happy I found you! Great info New Sub
Glad you’re here! 👍🏼
Great info!
Amazing!!!!!!!!!!!!!
thank you for the video
You're welcome!
Great breakdown. Thank you for sharing!
You're welcome. Thanks for the feedback and taking time to comment.
❤good information!!!!
Great Video! Thank you. If anyone knows in the S corp case there was 40k of Income and the rest Business Income 60k. The employer paid Medicare and Social security on 40k but didn't pay anything on the Business income of 60k for medicare or social security?
thank you!
Hi Navi! I am very impressed with your teaching style and videos so I'll be investing in your course. Do you have an affiliate program for those of us that want to share you course with others? If YES, you can respond here so others know the answer and I will ask again once I locate how to ask questions inside your course. Great work!!
Thank You for explaining these terms so lucidly. I hope you make a video on different Corporations ELIGIBILITY criterial as an individual business owner . Can a individual file a S corp or C corp by himself managing all the business ?
I'm not sure what state you reside, but in Ohio, I was able to file for any type of business entity he discusses in this video as well as a c-corp by myself, it just took some knowledge of which Ohio's gov websites I needed to visit. I did everything online without the help of a service/third party.
Thank you!
You're welcome!
This was extremely clear, thank you!
You're welcome and thanks for the feedback! 👍
Amazing!😊
Thank you!
This is awesome. Thank you from a small business owner!
You're welcome and thank you for the feedback!
Thank you so much! Extremely helpful!
As sole owner LLC, are the quarterly payments mandatory?
Yes but they're based on prior year tax due, so it's possible they're not mandatory given your situation. Search safe harbor estimate payments and that's the calculation to determine the requirement.
Excellent Video! Glad I got an S -Corp!
Thanks for the feedback! Glad to hear the S Corp is working out for you.
Great video...very informative. Do you have recommendations for a payroll company for beginner in NYC?
Do you have a link to that spreadsheet? Amazing video, I watched it at 1.5x speed and didn’t need to rewind it was that straight forward ❤
You’re the man bro!!! Great information bro!!! Is it a bad idea to ask if I could get 12:00 min of your time ? If so how ?
greate video am gonna like this video
Thanks so much for the like and comment!
You are hired!!!
Fantastic breakdown, one question. If you have W2 income not related to the business, does the business income get added to the W2 income flow through the tax brackets or do they flow through the brackets separately?
Thanks champ
Hi Navi, can you please share the tax estimate Excel file template?
Thanks for this... I will like to know if this is also available for business registered by a non US resident?
Great video! Quick question, is the 40k w-2 salary for john a tax deduction/expense for the Scorp?
Great video! very well explained. had one question. if you do a s corp and using your example .. if john is married.. does he file that 60K held in s corp on his joint filing with his wife or does he file that separately. trying see if you can reduce your combined income bracket in paying taxes by doing an s corp. thank you!