How to Hire Yourself as an Employee || Owner-Employees in California
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- Опубліковано 12 вер 2024
- If you have an LLC or Corporation, you may be required to hire yourself as an employee if your business is taxed as an S Corp. In this video I explain the requirement and how to go about hiring yourself and paying yourself a salary.
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Legal Disclosure: I am licensed to practice in the state of California and before the United States Patent and Trademark Office. Information contained in this video is not legal advice - please seek advice of counsel. This video and description may contain attorney advertising.
Disclosure: My videos may contain reviews, recommendations, testimonials, or endorsements of other businesses, individuals, events, materials (such as books), products, services, or websites. At this time I do not receive any monetary compensation or affiliate revenue for such content. I occasionally receive free access to a service, product, or program in order to provide a review; if so, I will clearly disclose this in the video.
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#scorp
Thank you 😊. I just started and I’m scared. Haha. Just started in October (last month). Legal advice is sooo helpful again thank you!
What does that mean paying yourself? 😳😫
When your business make a profit, and you take it out of the business checking account and pay yourself
@@ElizabethPW thank you so much. I have asked my sister to help me understand all this 🤣 she is the brains pretty much. I will be sure to make note of your advice. Much appreciated!!
I love that I have found this page it is answering so many questions 🙌🏼 I have been operating as sol prop for the last 15yrs averaging over 150k a year and have gotten in quite a bit of tax trouble wish I would of know this before but better late than never 😂
Glad you found this helpful!
Always like your style doing a video. So much info but so clear!
Great to hear!
I have also used Gusto for years and I love it for the same reasons you do.
Great to hear!
Can you do a distribution every month or quarterly?
"Distribution of profit"
Yep you can pick, whatever makes sense for your business
Can you do a video on how to enroll for your CA EDD number as a new company? I have been loving all your videos FYI. I just discovered your youtube channel.
Ah I'll look into that!
Thank you 🙏 you are great!
Thank you so much for your videos. Very helpful!
I had 1 question.
What if the address for my business is my home but I sell the home in 2 years can I change the address?
Yep!
Great video, thanks! Question... does an owner/officer of an S corp need to add themselves to the California New Employee Registry? Or is that just for new and rehired employees other than the owner? Thanks!!
If the S Corp owner is working in the business (not just a passive investor) then yes they add themselves as an employee just like any other employee
@@ElizabethPW Thank you so much, and apologies for the long delay in responding. Your time and is much appreciated!
just found your channel last night and watched several videos. my cpa is a complete moron and he told me he would set up s corp but when I questioned him about how to run payroll, how to pay myself, how i would be missing out on a bunch of deductions (he made it sound like it's all roses and rainbows, without mentioning all the other hassle that comes with it), he stopped answering my emails. I was so confused and depressed but after watching your videos I am less confused. is there like a flow chart that tells me "on this date, do this. on that date, do that" so I am sure I am not missing anything? because it seems like there are many forms you have to fill out and many taxes you have to pay on different dates. also, most people recommend llc for s corp but this website lawinc recommends corporation. which one do you recommend and why?
Hm I don't have a checklist overall for S Corp stuff, but I am developing that for my Patreon members. As far as LLC vs Corp for S Corp, LLCs have fewer admin requirements versus a Corporation (for a corp you must do annual shareholder and director's meetings with minutes, etc.) so most people find them easier to run.
@@ElizabethPW ok thank you, once you have it ready I will gladly pay for it.
most sources that I have seen agree with you regarding llc, but this website lawinc says:
Because of self-employment taxes associated with LLCs, they are recommended only in certain situations:
Businesses operated or invested in by non US residents
Real estate ventures with anticipated revenues less than $250,000; or
Businesses with other entities (corporations, LLCs, trusts, estates) as investors.
hi, I was wondering what documents I need to gather from a sole proprietor working for my nonprofit.
Will I need the W-9 and I-9 forms?
Do I need a written contract and if so, who drafts it. The self-employed individual proving me with a service or me as the ED hiring them?
Either person can draft the contract but I’d recommend you do it so it says what you want. From an independent contractor you get a w-9 and then later issue a 1099
Does payroll once a month work with armored national security industry I request urgent help get operating
You can do payroll on any schedule, if it works for your particular business
I hope to start a furniture making and clothing making business. But I'm a little afraid to do it. That is, imagine that I usually create about 7 pieces of furniture and 25 pieces of furniture per day. What should I do if I receive about 50 pieces of furniture per day? . Should I accept only the first 7 orders and reject the rest? Doing so will customers whose orders are rejected take legal action against me?
Ah I recommend you use a shopping cart system where you can have a maximum number of orders. Then it will say "sold out" once you hit that number of orders
What if the business doesn't make any profit?
The idea is you pay yourself out of profit -- you don't have to pay yourself a salary if there is nothing to pay yourself with
I am doing dropshipping and I live in California. I have Shopify store and I connected with CJdropshipping in which I receive orders then it ships from Chaina directly to the customer.
My question is do I have to collect sales tax or Shopify will do it or I am not responsible for sales tax?
It will be your kindness to give answer to my question.
Thank you!
You’ll be responsible - my understanding is that Shopify doesn’t do it
When I file my llc tax return, if I am filing my first yet also my last tax return due to terminating my llc. Am I able to choose both initial and final? Would I be required to pay the 800$ fee? Should I only choose final? Thank you for your time.
There's a special rule that just ended, where the first tax year you don't pay the minimum tax www.ftb.ca.gov/file/business/types/limited-liability-company/index.html#Annual-Tax