Tax Differences EXPLAINED: LLC, S Corp, Partnership, Sole Prop

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  • Опубліковано 13 січ 2025

КОМЕНТАРІ • 382

  • @rogersmj
    @rogersmj 11 місяців тому +55

    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.

    • @alansanchez3560
      @alansanchez3560 8 місяців тому +1

      Great video! It helps understand the basics I’m going to keep watching at the more complex topics!

    • @lorapalacios8088
      @lorapalacios8088 8 місяців тому

      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.

    • @whyrag2023
      @whyrag2023 24 дні тому

      Great Video ! Thanks !

  • @tracykapteyn754
    @tracykapteyn754 9 днів тому +2

    This was a great explanation and the best resource I have found online that helped me understand the tax differences for Sole Prop / LLC and S Corp. Love how you simplified and broke it all down.

  • @gummibearscrime
    @gummibearscrime Рік тому +11

    This was excellent and helped me decide to open an s corp vs LLC as an independent contractor

  • @MelissaLewis-g3c
    @MelissaLewis-g3c 5 днів тому

    Very clear presentation.. You talk at a level that I'm able to BETTER understand

  • @parleygentry5008
    @parleygentry5008 9 місяців тому +2

    Super clear explanation. Setting the numbers up like that gave me a visual idea of how I should set up the business

  • @adamkalon7584
    @adamkalon7584 11 місяців тому +5

    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!

    • @ashburnconnecttv7860
      @ashburnconnecttv7860 9 місяців тому +1

      Rarely.

    • @adamkalon7584
      @adamkalon7584 9 місяців тому

      @@ashburnconnecttv7860 I wish I had someone who would correct me since I’m trying to improve my spelling. Thank you for noticing!

  • @MrElvin026
    @MrElvin026 10 місяців тому +1

    Very well explained, I’m CPA in Puerto Rico and is very important get an advisory from a CPA.

  • @vebaharris5421
    @vebaharris5421 3 місяці тому

    Thanks! Very educative presentation. The visuals really made it clear. 👏

  • @anitacobb1973
    @anitacobb1973 10 місяців тому +2

    Outstanding!! I agree with Roger below. You provided the clearest explanation to date!!

  • @cathyjohnchang9812
    @cathyjohnchang9812 10 місяців тому +2

    Excellent job! You explained very clearly with a clean easy understanding spreadsheet. Really appreciate it.

  • @xpress-notary-pro
    @xpress-notary-pro Рік тому +21

    ☑ 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.

    • @cynthiagarcia2784
      @cynthiagarcia2784 Рік тому +2

      Same as you. I’m started by own business and this has definitely saved me lots of money before starting.

  • @shaunquilty8201
    @shaunquilty8201 11 місяців тому

    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.

  • @islandst.maarten7081
    @islandst.maarten7081 Рік тому +3

    I'VE WATCHED A LOT OF VIDEOS BUT THIS ONE WAS VERY UNDERSTANDABLE. THANKS

  • @lunamorris2091
    @lunamorris2091 11 місяців тому +9

    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

  • @TXRoeJogan
    @TXRoeJogan Рік тому +3

    This is exactly the kind of video I was looking for, super basic but thoroughly explained, thank you!

  • @rebecanelson207
    @rebecanelson207 Місяць тому

    thanks for being so detailed oriented and having it all clean and organized--and for answering all these important questions.

  • @carlosgarcia4012
    @carlosgarcia4012 Рік тому +3

    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!!!

  • @josephinebardot8403
    @josephinebardot8403 Рік тому +4

    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.

  • @alihakim8680
    @alihakim8680 8 місяців тому

    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!

  • @briemalagarie223
    @briemalagarie223 6 місяців тому +1

    Great job explaining this! I have used this video to help so many people understand these differences!

  • @finalflare2049
    @finalflare2049 Рік тому +3

    Best video online. Please keep up with the visuals of your explanations. It helps visual learning a ton.

  • @pazsugarspice
    @pazsugarspice 4 місяці тому

    Your videos are excellent. You have a dedicated agenda without jibber jabber, clear video and audio, and speaks to people who are not CPAs. I've seen a few other videos and you mention about book royalties may not be taxed as self employment, as it is intellectual property and not a service. I would love to hear more about this topic. I have set up my business as an author as a SMLLC, but was considering being taxed as an S corp if I do exceed $40k.

  • @mtmetzger
    @mtmetzger 11 місяців тому +1

    Excellent video! Thanks for being so precise with your explanations. You are really taking the stress out of the entire process.

  • @bluedreamkush2392
    @bluedreamkush2392 4 місяці тому

    By far the best explanation on youtube. And the excel layout helps tremendously.

  • @ronaldoquiroz1023
    @ronaldoquiroz1023 6 місяців тому

    This was so helpful. Its my first video from you and i'm definitely gonna try to binge watch the rest of your videos. good job brother!

  • @Narski6
    @Narski6 5 місяців тому

    Excellent explanation. Big big thank you for clarifying the differences and giving a detailed example for us!

  • @RacerX-M5
    @RacerX-M5 4 місяці тому

    Thank you - this is exactly what I was looking for in the way of S-Corp tax savings explained and broken down!

  • @nasariosantos1117
    @nasariosantos1117 9 місяців тому

    Navi, you do an excellent job teaching the layman !
    😊

  • @Trader_Father
    @Trader_Father Рік тому

    new LLC and this is exactly what i need to know, i am going to the s corp after watching this video.

  • @amyroberts3922
    @amyroberts3922 11 місяців тому +7

    We are thinking about converting from a LLC to an S Corp. This was extremely helpful. Thanks!!

  • @Mukimuki28
    @Mukimuki28 9 місяців тому

    Best video on tax differences !! thank you for taking the time to do this video 👏🏻👏🏻👏🏻👏🏻

  • @EvangelineNavarra-p7r
    @EvangelineNavarra-p7r 4 місяці тому

    I am from the Philippines and want to understand more about this topic. Thanks for the knowledge.

  • @GabrielYeager
    @GabrielYeager 5 місяців тому +1

    Really helpful and great resources. Thank you!

  • @xcalybur75
    @xcalybur75 7 місяців тому

    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.

  • @garlictoastreviews
    @garlictoastreviews 5 місяців тому

    In another video I saw the guy said only SCorps get the QBID so I’m glad I found your video

  • @emmanuelcovingtoable
    @emmanuelcovingtoable 5 місяців тому

    Thank you for this information! You simplified a very confusing topic.

  • @RobertCF428
    @RobertCF428 8 місяців тому +2

    Thanks for the video. Nice Fastback in the background ;). I once had a 66' Coupe.

    • @NaviMarajCPA
      @NaviMarajCPA  8 місяців тому +1

      My favorite comment by far!!!!

  • @dsmtnr95
    @dsmtnr95 4 місяці тому

    Thank you for this clear concise breakdown. Really made it all make sense. Thanks!

  • @fromjaxflorida
    @fromjaxflorida Рік тому

    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.

  • @TripleLRusticDesigns
    @TripleLRusticDesigns Рік тому +2

    This is incredibly helpful! Thanks so much!

  • @fixitfredhandyman
    @fixitfredhandyman 10 місяців тому

    extremely clear about all three categories. thank you.

  • @nickoliwade
    @nickoliwade Рік тому +1

    Thank you for helping with taxes and your visuals were spot on , also keeping taxes interesting.

  • @Rico-ns5dt
    @Rico-ns5dt 9 місяців тому +2

    Man i need me a powerball jackpot because this is exhausting 😂😂😂 great video

  • @lavadog13
    @lavadog13 11 місяців тому

    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.

  • @jocoll75
    @jocoll75 Рік тому

    Best video on tax differences.

  • @katiehoponick1141
    @katiehoponick1141 Рік тому +1

    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

  • @yanamiakshyla8498
    @yanamiakshyla8498 7 місяців тому

    Thank you so much, Navi! This video is GOLDEN!!!

  • @mariabell8320
    @mariabell8320 Рік тому

    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.

  • @denbestenmathchannel4180
    @denbestenmathchannel4180 11 місяців тому

    Great video! You do a nice job explaining a complicated topic. Thanks!

  • @nandakumars2845
    @nandakumars2845 Рік тому +18

    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?

    • @cynthiagarcia2784
      @cynthiagarcia2784 Рік тому

      This is a great question. I would like to know this as well.

  • @TL-pe4jv
    @TL-pe4jv Рік тому +4

    This information was very informative. You broke it down so that the ordinary guy makes sense of it. The supporting websites tied it all together. I appreciate all the effort you put into your presentation.

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      Thanks so much for the feedback. Appreciate you!

  • @lucasmidas77
    @lucasmidas77 2 місяці тому

    Awesome video! Thank you for making this clear!

  • @RuthannAlterado
    @RuthannAlterado Рік тому

    Great explanation! Thank god I came across this video. Looking forward to watching the rest of your information. Thank you!

  • @chilizchilizz3905
    @chilizchilizz3905 2 місяці тому +1

    Appreciate the information and I don't think it's boring at all, exactly what I want to know. You mentioned paying your own taxes at quarters, from what $ account is paying from, personal business account? Appreciate the information

  • @wittyk8581
    @wittyk8581 7 місяців тому

    Fantastic content, I will absolutely 100% come back

  • @kuromifit
    @kuromifit 10 місяців тому

    thank you for taking the time to share your knowledge on this

  • @joser08rodriguez
    @joser08rodriguez Рік тому +1

    Great video I really liked the visual chart. Thank you.

  • @n.trs1788
    @n.trs1788 Рік тому +5

    Thank you so much. This knowledge is invaluable and I better understand Sole vs. LLC and not as freaked out!

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому +1

      Great to hear! Thanks so much for the feedback and glad you're understanding things better.

    • @shamszaynreacts1993
      @shamszaynreacts1993 9 місяців тому

      @@NaviMarajCPA❤❤❤

  • @IrvingBatista
    @IrvingBatista Місяць тому

    Great explanation. Thank you!

  • @maxinegizelle
    @maxinegizelle 3 місяці тому

    This was amazing! Thank you for the clear explanation 😅

  • @kasiwilliams5927
    @kasiwilliams5927 Рік тому

    Thanks for explaining I enjoyed following along the visuals and website.

  • @edentajas1624
    @edentajas1624 Рік тому

    Thank you so much... this is very helpful. I am a freelancer and I need to learn more about US taxes.

  • @AnasKhan-uw7vf
    @AnasKhan-uw7vf Рік тому

    thanks mr.meraj ... thumbs up from Pakistan

  • @riazgomez8100
    @riazgomez8100 Рік тому

    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

  • @rociozamora877
    @rociozamora877 8 місяців тому

    Excellent presentation!! 🎉❤

  • @christopermontez6109
    @christopermontez6109 Рік тому

    Awesome info you broke down simply thanks and a pay roll company seems the way to go

  • @bichli
    @bichli Рік тому +2

    excellent presentation!

  • @nickp8
    @nickp8 Рік тому

    You are phenomenal. Thank you for what you do!

  • @reneeholzbach7269
    @reneeholzbach7269 6 місяців тому

    Lots of great information 👍🏾

  • @TheBookOfJane
    @TheBookOfJane 11 місяців тому

    Ok I am going to learn this stuff come heck or high water..... Thanks for your help. Great Channel!

  • @saheruddin06ify
    @saheruddin06ify Рік тому

    Amazing video , well explained

  • @Quentyn73
    @Quentyn73 6 місяців тому +2

    Nice explanation, thank you. Just one clarifying question - the SP is eligible for 50% deduction of the SE tax, which I don't see reflected on your spreadsheet.

  • @mariesafaite-antoine20
    @mariesafaite-antoine20 10 місяців тому

    Very helpful! I will implement your advise

  • @nellycaldeira4145
    @nellycaldeira4145 11 місяців тому

    amazing video!!! WOOOW. I AM IMPRESSED!

  • @corystheboss
    @corystheboss Рік тому +173

    Taxes should not be this confusing…

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому +31

      Agreed but hope I was able to make it a little easier for you.

    • @TengoWiskeyFoxtrot
      @TengoWiskeyFoxtrot Рік тому +28

      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

    • @savageazzligee5970
      @savageazzligee5970 Рік тому +11

      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.

    • @nextgenerationsshow
      @nextgenerationsshow Рік тому

      ​@@TengoWiskeyFoxtrotHow?

    • @jamisonmunn9215
      @jamisonmunn9215 Рік тому +6

      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.

  • @justinleomartin
    @justinleomartin 9 місяців тому +1

    can you please upload that excel sheet and can you do a video comparing C Corp

  • @yyvvy
    @yyvvy Рік тому +4

    Hi Navi, can you explain why @9:17 the S-corp contribution for medicare & social security would come from the employee earnings rather than the employer earnings?

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому +3

      The amount of social security and medicare taxes paid is derived from the amount of payroll issued. It doesn't have anything to do with the S Corporation's earnings.

  • @munchkinm6929
    @munchkinm6929 Рік тому

    Very clear and educational video, thank you

  • @freddycuevas6595
    @freddycuevas6595 9 місяців тому +1

    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?

  • @thunderbomb501
    @thunderbomb501 8 місяців тому

    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 ❤

  • @dipalir130
    @dipalir130 11 місяців тому

    this was really helpful, Thank you.

  • @jahmenj
    @jahmenj 7 місяців тому

    THANK YOU THANK YOU VERY MUCH… 🙏🏽
    I just subscribed 👌🏽👍🏽

  • @nextgenerationsshow
    @nextgenerationsshow Рік тому +1

    @14:34 shouldn't the filing status be married filing jointly since you're adding the spouse's income? That would change everything below that.

  • @MariaRosales-uv2ls
    @MariaRosales-uv2ls Рік тому +1

    Thank you. Very helpful content and well explained.

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      You're welcome! Thanks for the feedback.

  • @831richram
    @831richram 10 місяців тому

    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 ?

  • @Crys_M1229
    @Crys_M1229 Рік тому +1

    Thankyou. This was a good video.

  • @ChrisGreen-fp3jd
    @ChrisGreen-fp3jd 10 місяців тому

    Thank you so much very informative.

  • @RedDragonProtection
    @RedDragonProtection Рік тому

    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.

  • @reneeholzbach7269
    @reneeholzbach7269 6 місяців тому

    You did great 👍🏾

  • @Jay-es3vm
    @Jay-es3vm Рік тому +1

    This was very helpful! Thank you so much!

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      You're welcome. Thanks for the feedback!

  • @WendiMontano1986
    @WendiMontano1986 6 місяців тому +1

    Whether or not you take the money from q C corp do you have to pay the taxes on your personal return? The dividends?

  • @falgunipatel5776
    @falgunipatel5776 Рік тому

    Very informative. Thank u!

  • @wongjuan1
    @wongjuan1 Рік тому +1

    thank you for the video

  • @Furygasm
    @Furygasm Рік тому

    Great video, very informative and well explained/structured. Only problem is that I need a Canadian version of this channel!

  • @mogotsi_
    @mogotsi_ 2 місяці тому +2

    If you asked the government to write instructions on how to ride a bicycle, it would end up being a 300-page manual.

  • @sedtaylor
    @sedtaylor 5 місяців тому +1

    I'm just seeing your video, which is very informative. Three of my co-worker are going into business together and from your expertise, which one of the formations would be best for us to form?

  • @TheSoldierBarberLife
    @TheSoldierBarberLife 2 місяці тому

    Great video, thank you

  • @karleenaudibert35
    @karleenaudibert35 Рік тому +3

    Everything you explained was very helpful! Thank you for sharing!

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      You're welcome. Glad it was helpful for you!

  • @budgeting4u932
    @budgeting4u932 Рік тому +5

    Hi Navi, can you please share the tax estimate Excel file template?

  • @QValpo
    @QValpo 8 місяців тому +1

    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?