Did you do the paperwork yourself? I'm towards the end of the process and it's fascinating yet so confusing. Technically I exist but only on paper and since I didn't know that C Corps could choose their due dates (until this video), my first official tax return is an extension 😂 that 1120 is a beast!
Excellent content. I’m starting a tech company and had a tax lawyer try to shame me for not founding the firm as an LLC. We proceeded as a C Corp in DE. Want to be ready for investors!
Just keep in mind that opening in a different state doesn't prevent you from needing to open in your own state. You're actually doing some harm in some ways because you'll have to keep 2 states up to date lol Regardless you still have to register and pay the same amounts in your home state (or whatever you're doing business) Better to just open direct in your home state
Thabks for making thus video, I was trying to explain to someone how a C Corp is a better fit for my business down the line (not today) and I couldn't do it justice. This was perfect to send to them and I'll likely use your accounting firm in the future.
MAN OH MAN. I was sooooooooo concerned about my income and taxes through a C-corp. I was suggested I file as a C-Corp but COULD NOT UNDERSTAND WHY Until this very video. Thank you so so so much.
You can borrow from the corporation & it wont be treated as taxable dividend. However the lrs might investigate the transaction to ensure its not a "disguised" dividend. This may require the loan be paid back at a reasonable interest rate.
In the last screenshot “If you are anticipating a need to rise A LOT OF CAPITAL along with an anticipation that you will earn a lot of profit (at least $400k per year)? We need to have at least $400k profit to start an C corp?
LLCs are just liability protection but still self employment. Same with S Corps (and LLCs electing S Corp). Thats why investors don't care about them The fees are all the same, just go C Corp (which is default if you're a corporation) There's plenty of ways to avoid double taxation and anyone who says otherwise just lacks knowledge.
Can you make videos about the different options if any for small business on health care. What is it required or helpful for a small business or sole proprietor?
What are your thoughts on ROBS 401k business startups? I know they have to be a c-corp, but does it make sense for someone to do that if they will be the only employee of that business?
To make sure I understand a c corp. You are taxed at a corporate of 21%, then taxed on the dividends but you are not required to take dividends if you are a owner/shareholder, correct? Now are you required to pay yourself a reasonable salary like an s- corp?
I watch your videos and I am learning about taxes. Thank You so much. I have a question that I am hoping that you can answer please. I started a business a few years ago and purchased equipment, business cards, po box address and products to sell. However I didnt keep up with my website and literally made a few sales from my friends in the past 4 years. Not even $50.00. I had so much going on in my life. I am determined to get back on track this year and include my business when I file my taxes in 2023. So can I write off the equipment that I purchased, my business cards, products etc, anything I purchased for my business if I purchased it a few years ago? Im not sure how it would work for me. Or do I just include anything that I have purchased for my business this year 2022. I would really like your expertise advice. Thank You.
I believe It's separated from you but when ur talking marriage and prenuptial l wud put that corp in a trust to really seperate & protect what's yours. Talk to a tax attorney or advisor tho.
🤔 Would you suggest a sole preparator if my product is sold in farmers markets and there is little risk of me being sued. When I expand I will have workman's comp. Thanks
You can take loans out from your c-corp too at nearly any interest rate and term you wish. If you don't have outside shareholders with a say in the matter. Say for a family run business. Unless your wife votes it down lol.
No, you normally wouldn't pay any taxes on loans or credit lines unless it was converted into a grant or something, like what happened with the PPP loans
I had a long talk with my CPA and decided to become a c corp. A lot of what cpa said you mentioned. Thank you
Did you do the paperwork yourself? I'm towards the end of the process and it's fascinating yet so confusing. Technically I exist but only on paper and since I didn't know that C Corps could choose their due dates (until this video), my first official tax return is an extension 😂 that 1120 is a beast!
This is the best video explaining c-corporation & llc what I’ve seen so far
I’m glad to hear that, I put alot of effort into it
My thoughts exactly. Best explanation. I listened to many other videos, they give me a headache. I wish UA-cam would bring this up first
Well done Lyfe! Perfect explanation and super easy to follow with clear define statements and facts over the C-Corp. Beautiful!
Excellent content.
I’m starting a tech company and had a tax lawyer try to shame me for not founding the firm as an LLC.
We proceeded as a C Corp in DE.
Want to be ready for investors!
Great movie, I had to convert my LLC to c corp
@@chefhakYou didn't have to convert it if lm not mistaken. You could have formed a c corp & js put the baby (llc) underneath it 😊
Just keep in mind that opening in a different state doesn't prevent you from needing to open in your own state. You're actually doing some harm in some ways because you'll have to keep 2 states up to date lol
Regardless you still have to register and pay the same amounts in your home state (or whatever you're doing business)
Better to just open direct in your home state
Thabks for making thus video, I was trying to explain to someone how a C Corp is a better fit for my business down the line (not today) and I couldn't do it justice. This was perfect to send to them and I'll likely use your accounting firm in the future.
MAN OH MAN. I was sooooooooo concerned about my income and taxes through a C-corp. I was suggested I file as a C-Corp but COULD NOT UNDERSTAND WHY Until this very video. Thank you so so so much.
Thank you for the video.
Please make a video about taking money out of your C Corp without being subjected to double taxation.
Can't happen, if you don't want to be double taxed you need to do an S corp or LLC taxed as S corp but you can't do a lot of the stuff C Corps can do
You can borrow from the corporation & it wont be treated as taxable dividend. However the lrs might investigate the transaction to ensure its not a "disguised" dividend. This may require the loan be paid back at a reasonable interest rate.
Take the salary which is tax deductible for C corp
Dropping a line to show some support. Thanks for sharing your knowledge 📈
In the last screenshot “If you are anticipating a need to rise A LOT OF CAPITAL along with an anticipation that you will earn a lot of profit (at least $400k per year)? We need to have at least $400k profit to start an C corp?
Can you do a video that differentiate briefly all the entities that are available for business and which one is best for you !!
Great suggestion! I'll add it to the idea list
LLCs are just liability protection but still self employment. Same with S Corps (and LLCs electing S Corp). Thats why investors don't care about them
The fees are all the same, just go C Corp (which is default if you're a corporation)
There's plenty of ways to avoid double taxation and anyone who says otherwise just lacks knowledge.
Very helpful information
This information is so valuable. Thank you for sharing.
Can you make videos about the different options if any for small business on health care. What is it required or helpful for a small business or sole proprietor?
But by being an LLC you can choose how to be taxed. So by being taxed as a C corp is not the same?
Correct. This video is meant to just breakdown the tax benefits between the default LLC tax rules and C corp tax rules
What are your thoughts on ROBS 401k business startups? I know they have to be a c-corp, but does it make sense for someone to do that if they will be the only employee of that business?
What would happen if the C-Corp is owned by a LLC 100% ? How does the tax status effect the structure ?
Nothing.
Hello, is there a way to take a one on one class with you ?
To make sure I understand a c corp. You are taxed at a corporate of 21%, then taxed on the dividends but you are not required to take dividends if you are a owner/shareholder, correct? Now are you required to pay yourself a reasonable salary like an s- corp?
Yes you pay youself a salary receiving your own w2 with taxes taken out.😊
You made several references to a company’s physical year. Did you mean fiscal year?
that was really weird lol
I watch your videos and I am learning about taxes. Thank You so much. I have a question that I am hoping that you can answer please. I started a business a few years ago and purchased equipment, business cards, po box address and products to sell. However I didnt keep up with my website and literally made a few sales from my friends in the past 4 years. Not even $50.00. I had so much going on in my life. I am determined to get back on track this year and include my business when I file my taxes in 2023. So can I write off the equipment that I purchased, my business cards, products etc, anything I purchased for my business if I purchased it a few years ago? Im not sure how it would work for me. Or do I just include anything that I have purchased for my business this year 2022. I would really like your expertise advice. Thank You.
Do I need to sign a prenup to protect my C Corp from divorce? Or is it completely separated from me?
I believe It's separated from you but when ur talking marriage and prenuptial l wud put that corp in a trust to really seperate & protect what's yours. Talk to a tax attorney or advisor tho.
So if I filed self employed but also have a llc thats registered to be taxed as a c corp how would I go about filing it?
Question if you have an llc can you just use the c crop to just run it how does that work
thank you.
🤔 Would you suggest a sole preparator if my product is sold in farmers markets and there is little risk of me being sued. When I expand I will have workman's comp. Thanks
Hey April, so what kind of product is it?
I had a similar thought, but wanted to see if the risk level of the product.
Bro really Asserting that C hard
You can take loans out from your c-corp too at nearly any interest rate and term you wish. If you don't have outside shareholders with a say in the matter. Say for a family run business. Unless your wife votes it down lol.
Say physical year one more time
Pretty informative bro. Check out how to pronounce “fiscal” 😉
Not all the income is taxed with 37% there are tax brackets.
Me too
Can a holding company be taxed as a c corp?
Yes, of course
Your Calculation is wrong. Under Personal Tax you follow a Tax Slab and you are taking a big number to calculate.
9:55
Just a question can I change from sole to corporation even if I just have my license as sole proprietor?
Yes you can. Call a lawyer a lot of times they give free info
As a C Corp. do you pay taxes on loans
No, you normally wouldn't pay any taxes on loans or credit lines unless it was converted into a grant or something, like what happened with the PPP loans
Thank you so much for this information. I needed guidance.
Well done thank you
do you have video explaining how to switch S corp to C corp? thank you !!
You file a change with the IRS
Do I need to pay myself as ceo/owner of a corporation?, corporation is not making a profit yet.
If you are actively working as the CEO, then should consider paying yourself when you are profitable using the 60/40 salary rule
Great content!
Talk to much get to the point