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

Поділитися
Вставка
  • 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
    Email: navi@navimarajcpa.com
    Instagram: / navimarajcpa
    LinkedIn: / navimarajcpa
    Twitter: / navimarajcpa
    Facebook: / navi-maraj-cpa-pllc-10...
    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

КОМЕНТАРІ • 319

  • @rogersmj
    @rogersmj 4 місяці тому +28

    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 Місяць тому

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

    • @lorapalacios8088
      @lorapalacios8088 Місяць 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.

  • @josephinebardot8403
    @josephinebardot8403 9 місяців 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.

  • @lunamorris2091
    @lunamorris2091 4 місяці тому +4

    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

  • @carlosgarcia4012
    @carlosgarcia4012 11 місяців 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!!!

  • @katiehoponick1141
    @katiehoponick1141 9 місяців 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

  • @melittlelad
    @melittlelad 5 місяців тому +3

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

  • @finalflare2049
    @finalflare2049 11 місяців тому +3

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

  • @cathyjohnchang9812
    @cathyjohnchang9812 3 місяці тому +2

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

  • @alihakim8680
    @alihakim8680 Місяць 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!

  • @islandst.maarten7081
    @islandst.maarten7081 10 місяців тому +2

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

  • @mtmetzger
    @mtmetzger 4 місяці тому +1

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

  • @nickoliwade
    @nickoliwade 10 місяців тому +1

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

  • @parleygentry5008
    @parleygentry5008 2 місяці тому +1

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

  • @shaunquilty8201
    @shaunquilty8201 4 місяці 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.

  • @mariabell8320
    @mariabell8320 5 місяців 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.

  • @gummybears-n-crime1317
    @gummybears-n-crime1317 4 місяці тому +6

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

  • @user-iq3xk4xu9b
    @user-iq3xk4xu9b 5 місяців тому

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

  • @anitacobb1973
    @anitacobb1973 2 місяці тому +1

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

  • @Mukimuki28
    @Mukimuki28 2 місяці тому

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

  • @denbestenmathchannel4180
    @denbestenmathchannel4180 4 місяці тому

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

  • @xpress-notary-pro
    @xpress-notary-pro 8 місяців тому +18

    ☑ 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 5 місяців тому +2

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

  • @MrElvin026
    @MrElvin026 3 місяці тому +1

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

  • @riazgomez8100
    @riazgomez8100 11 місяців 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

  • @kasiwilliams5927
    @kasiwilliams5927 5 місяців тому

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

  • @edentajas1624
    @edentajas1624 11 місяців тому

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

  • @amyroberts3922
    @amyroberts3922 4 місяці тому +7

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

  • @adamkalon7584
    @adamkalon7584 4 місяці тому +3

    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 2 місяці тому +1

      Rarely.

    • @adamkalon7584
      @adamkalon7584 2 місяці тому

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

  • @nandakumars2845
    @nandakumars2845 11 місяців 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 5 місяців тому

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

  • @TripleLRusticDesigns
    @TripleLRusticDesigns Рік тому +2

    This is incredibly helpful! Thanks so much!

  • @RedDragonProtection
    @RedDragonProtection 6 місяців 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.

  • @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 2 місяці тому

      @@NaviMarajCPA❤❤❤

  • @fixitfredhandyman
    @fixitfredhandyman 3 місяці тому

    extremely clear about all three categories. thank you.

  • @Furygasm
    @Furygasm 10 місяців тому

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

  • @hot.alaska
    @hot.alaska 3 місяці тому

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

  • @nasariosantos1117
    @nasariosantos1117 2 місяці тому

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

  • @Trader_Father
    @Trader_Father 10 місяців тому

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

  • @nickp8
    @nickp8 5 місяців тому

    You are phenomenal. Thank you for what you do!

  • @joser08rodriguez
    @joser08rodriguez 11 місяців тому

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

  • @roberts7363
    @roberts7363 29 днів тому +2

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

  • @munchkinm6929
    @munchkinm6929 8 місяців тому

    Very clear and educational video, thank you

  • @user-by7lo6zl5l
    @user-by7lo6zl5l Рік тому +1

    Very informative. Thank you! How do you switch from an LLC to S Corp?

  • @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.

  • @nellycaldeira4145
    @nellycaldeira4145 4 місяці тому

    amazing video!!! WOOOW. I AM IMPRESSED!

  • @freddycuevas6595
    @freddycuevas6595 2 місяці 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?

  • @margaritagordon3142
    @margaritagordon3142 Рік тому

    This was very helpful!! Thank you!

  • @christopermontez6109
    @christopermontez6109 6 місяців тому

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

  • @TheBookOfJane
    @TheBookOfJane 4 місяці тому

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

  • @xcalybur75
    @xcalybur75 26 днів 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.

  • @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!

  • @jocoll75
    @jocoll75 5 місяців тому

    Best video on tax differences.

  • @lavadog13
    @lavadog13 4 місяці 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.

  • @wittyk8581
    @wittyk8581 19 днів тому

    Fantastic content, I will absolutely 100% come back

  • @jlopez821able
    @jlopez821able 10 місяців тому

    This was so helpful! I’m trying to decide llc or S corp for my business salon in California

  • @mariesafaite-antoine20
    @mariesafaite-antoine20 3 місяці тому

    Very helpful! I will implement your advise

  • @jahmenj
    @jahmenj 5 днів тому

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

  • @rociozamora877
    @rociozamora877 Місяць тому

    Excellent presentation!! 🎉❤

  • @dipalir130
    @dipalir130 4 місяці тому

    this was really helpful, Thank you.

  • @MasterYourBooks
    @MasterYourBooks 11 місяців тому +3

    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!!

  • @jukestaposition
    @jukestaposition 3 місяці тому

    Super helpful and clear! Thanks!

  • @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!

  • @corystheboss
    @corystheboss Рік тому +129

    Taxes should not be this confusing…

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому +25

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

    • @vikkifairchild9858
      @vikkifairchild9858 9 місяців тому +22

      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 8 місяців тому +7

      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 8 місяців тому

      ​@@vikkifairchild9858How?

    • @jamisonmunn9215
      @jamisonmunn9215 6 місяців тому +5

      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.

  • @saheruddin06ify
    @saheruddin06ify 6 місяців тому

    Amazing video , well explained

  • @Sam-fz3mx
    @Sam-fz3mx 8 місяців тому

    Great video. Thank you!

  • @fromjaxflorida
    @fromjaxflorida 5 місяців 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.

  • @ChrisGreen-fp3jd
    @ChrisGreen-fp3jd 3 місяці тому

    Thank you so much very informative.

  • @Rico-ns5dt
    @Rico-ns5dt 2 місяці тому +1

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

  • @falgunipatel5776
    @falgunipatel5776 6 місяців тому

    Very informative. Thank u!

  • @MrMeli504
    @MrMeli504 2 місяці тому

    Great info, thanks so much.

  • @kareemaestrada6734
    @kareemaestrada6734 Рік тому +1

    This was awesome Navi!

  • @bigstar111
    @bigstar111 11 місяців тому +5

    Thank you so much! Extremely helpful!
    As sole owner LLC, are the quarterly payments mandatory?

    • @taxleverage
      @taxleverage 5 місяців тому +1

      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.

  • @jatinranjan7954
    @jatinranjan7954 11 місяців тому

    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 ?

    • @cwright272
      @cwright272 10 місяців тому

      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.

  • @bichli
    @bichli Рік тому +2

    excellent presentation!

  • @thunderbomb501
    @thunderbomb501 Місяць 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 ❤

  • @Crys_M1229
    @Crys_M1229 Рік тому +1

    Thankyou. This was a good video.

  • @831richram
    @831richram 3 місяці 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 ?

  • @Osalikioficial
    @Osalikioficial 5 місяців тому

    Really good video. Thanks

  • @erikdong
    @erikdong Рік тому +1

    Great breakdown. Thank you for sharing!

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      You're welcome. Thanks for the feedback and taking time to comment.

  • @pasolero
    @pasolero 2 місяці тому

    Great video...very informative. Do you have recommendations for a payroll company for beginner in NYC?

  • @adriandiaz5688
    @adriandiaz5688 Рік тому +2

    This was extremely clear, thank you!

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      You're welcome and thanks for the feedback! 👍

  • @milesvaniglia7854
    @milesvaniglia7854 Рік тому +3

    Excellent Video! Glad I got an S -Corp!

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      Thanks for the feedback! Glad to hear the S Corp is working out for you.

  • @AnasKhan-uw7vf
    @AnasKhan-uw7vf 5 місяців тому

    thanks mr.meraj ... thumbs up from Pakistan

  • @QValpo
    @QValpo Місяць тому

    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?

  • @TheBookOfJane
    @TheBookOfJane Рік тому +1

    Happy I found you! Great info New Sub

  • @sergiolozano5116
    @sergiolozano5116 7 місяців тому

    Thanks for sharing!

  • @tharas-merch-llc
    @tharas-merch-llc 5 місяців тому

    Thanks Navi Maraj, I enjoyed learning with you. I have some questions though: If a person is a non resident single member LLC(also called as disregarded entity), can he/she no have to pay social security and medicare? Since those benefits is not for foreigner/non resident. If so, how is it done?🌎

  • @ElementalWildfire
    @ElementalWildfire Рік тому +1

    This is awesome. Thank you from a small business owner!

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      You're welcome and thank you for the feedback!

  • @lyricsdaddy9494
    @lyricsdaddy9494 Рік тому +3

    This was great. I like the way you explain it and tie things together so it's understandable.

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      Thank you. Yea, I try to put myself in the viewer's shoes when explaining things.

  • @vincentjohnson7786
    @vincentjohnson7786 10 місяців тому

    Great info!

  • @jeffkayode
    @jeffkayode 8 місяців тому

    Thanks for this... I will like to know if this is also available for business registered by a non US resident?

  • @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!

  • @emmanuelmorales9402
    @emmanuelmorales9402 3 місяці тому

    Great video! Quick question, is the 40k w-2 salary for john a tax deduction/expense for the Scorp?

  • @wongjuan1
    @wongjuan1 Рік тому +1

    thank you for the video

  • @shawndisho7378
    @shawndisho7378 2 місяці тому

    Amazing!!!!!!!!!!!!!

  • @kunalmandal2447
    @kunalmandal2447 5 місяців тому

    Thanks for the video. If I am already maxing out on my social security taxes from my fulltime job , do I still have to pay social security taxes on my side hustle LLC ( Sole Prop ) ?

  • @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.

  • @letsonjackson1251
    @letsonjackson1251 4 місяці тому

    Hello thank you for such a detail video. I have one question. fro the Scorp, if the 40K already paid SEP @ 15.3 % do we still need to add the 40k to the 60k for the Fed taxes why not just the 60K

  • @mila_myart
    @mila_myart 2 місяці тому

    ❤good information!!!!

  • @budgeting4u932
    @budgeting4u932 Рік тому +5

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

  • @odehzedan
    @odehzedan 10 місяців тому

    What if you have a w-2 job filing jointly and then do independent contracting on the side. What do you recommend s-corp or SMLLC?

  • @Money-_-Matters
    @Money-_-Matters Рік тому +6

    Thank you for the value of the information you've provided. That was an excellent breakdown in how to structure a business for tax purposes. 😊

    • @NaviMarajCPA
      @NaviMarajCPA  Рік тому

      Thanks for the feedback. Appreciate you! 👍