@ Toby: what is your assessment of the cost of the accumulated earnings tax and the personal holding company tax on closely held see corps? It would seem to me that these two taxes eliminate many of the income tax benefits of having a C corporation.
I am sure that Toby will give you a more complete answer, but personal holding company tax applies in a set of circumstances that you should not encounter with an active business. The accumulated earnings tax normally takes years to become a problem, and I think can be managed with timely distributions.
Toby, First and most importantly, Thank You for all of the education. You, Clint and Staff have gone above and beyond in educating people. Question, If you were going to start a HoldCo with initial vision of holding small businesses, maybe doing some syndications and/or LLP Funds, and possible some securities, would you do an LLC with C Election or Corp with C Election? Or ???????
I appreciate that you would take the time to map this out Mr. Mapthis. All kidding aside your content is outstanding and much needed. Love and prayers from Florida.
There are differences in when you need to file without a penalty. Sole Prop & Partnership & S-Corp: Every year by March 15th even if you had zero income/profits. C-Corp after you earn a profit.
Thank you. The demistification of finacial topics is always the first hurdle and you did that in spades. Strait forward and highly informative without being condescending. QUESTION: With regards to an S Corp, since so much of personal overhead can be written down as biz expenses, could I pay myself a real modest salary to stay in a low tax bracket, pay the 21% fed biz tax, then in lieu of paying out dividends to extract profits simply keep those profits as capital reserves and have the Corp put that money to work or at least shelter it? Part B: Can an S Corp have only one shareholder? (That being Myself?) 🙏👍☘️
Completely different information from what I've been hearing on C-corps. I have a C-corp, an LLC, and Self directed IRA for my real estate holdings. Thanks for the information.
Toby, After seeing this video, and several others by Spencer C., Andrew H., and talking to several tax attorneys, I am beginning to think that I am missing something in my planning or that my attorney/firm is not telling me something.
I recommend speaking with one of our advisors for any legal advice. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
this is great information. i currently have 2 LLCs functioning where one is an active business making less than 30k (for now) and another which is passive collecting rental income on property. the property is not in the LLC, but is in my personal name. basically it's a property management company. would it be wise to 1. place the rental property into the LLC, 2. create a separate company that holds the rental property out of my personal name, 3. leave it alone, or 4. something else?
Hi, I recommend speaking with one of my advisors for any legal advice. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
This is some great information. I am trying to understand business taxes better and this was very helpful. There is just so much to learn about. I appreciate how many topics you cover.
Thanks Toby! Very helpful. From a tax standpoint, is there any significant advantages/disadvantages of owning an LLC versus a traditional Corp assuming both entities have the same S or C tax election? Also, is there a certain dollar amount in net income where it makes more sense to choose C-corp election over S? I heard you say you did the math on it. A video comparing the two would be extremely helpful! Thanks again for all the hard work and great content you and Clint provide us!
Thank you for your insightful question! The decision between an LLC and a traditional corporation can have significant tax implications depending on various factors. To provide you with personalized advice tailored to your specific situation and goals, I recommend scheduling a free strategy session with our team. Sign up here: aba.link/tobyss
@@TobyMathis @TobyMathis Thanks Toby. But if you were starting a Wholesaling company and a real estate brokerage business, would you prefer a traditional corp or LLC taxed a S/C Corp?
Hello Toby. I have learned some valuable things again in this video, as with all of yours. The company types may be different to those in my home country, but the differences and similarities, I can figure out by myself. I am really grateful here. During watching this video, i was wondering, what your take is on insurance policies as investment vehicles. Whole Life Insurances and so on. There's a lot of chatter out there about it. You may have already discussed them in an earlier video and I am yet to rummage through your channel's library, but if not, then this might be a good topic for you to eloborate on. Giving it your authentic objective take, as you always do.
I am familiar with Infinite Banking, Bank on Yourself, and the use of whole life and Universal life for investing. I have an ex-partner who left the legal profession to focus on executive compensation using such policies. He wrote a book called The Private Vault. I am sure there are videos in my site with him. His name is Greg Boots. Basically, the concept is sound and can provide unique benefits (ie tax-free loans, long-term care, etc.), but with all things, not all policies are the same. Find a good agent and crunch the numbers - they can be an excellent tool for both asset accumulation and legacy planning.
@@TobyMathis Thank you very much for this information. I had already searched through your channel, but didn't find Greg Boots. I am going to look him up and keep his book in mind. Very appreciated.
Hi Toby, I am so looking forward to the seminar this coming Sat Aug 26! For real estate businesses where we have "passive" income from rental would you recommend an LLC? The idea is to reinvest the cash flow from the rental into the property as well as to acquire new property. Or should I consider an S-Corp? Thank you for your response!
41:42 Toby, this was great! Thank you!
Would you start a business right off the bat as an S-corp or is there a profit target you would like to see the client/company hit first, then elect?
Start as llc and convert to scorp if you're making over 30k a year.
Good afternoon coach Toby!!!
@ Toby: what is your assessment of the cost of the accumulated earnings tax and the personal holding company tax on closely held see corps? It would seem to me that these two taxes eliminate many of the income tax benefits of having a C corporation.
I am sure that Toby will give you a more complete answer, but personal holding company tax applies in a set of circumstances that you should not encounter with an active business. The accumulated earnings tax normally takes years to become a problem, and I think can be managed with timely distributions.
I’m in the same boat with rental properties, with income paying for repairs, taxes ect.
I need to put them into a LLC or S corporation or something
As rental real estate is not subject to payroll taxes, there is no tax benefit from using the S Corp.
@@jamescrenshaw5097yes isn’t it considered a non taxable asset?
Toby,
First and most importantly, Thank You for all of the education. You, Clint and Staff have gone above and beyond in educating people.
Question, If you were going to start a HoldCo with initial vision of holding small businesses, maybe doing some syndications and/or LLP Funds, and possible some securities, would you do an LLC with C Election or Corp with C Election? Or ???????
I appreciate that you would take the time to map this out Mr. Mapthis. All kidding aside your content is outstanding and much needed. Love and prayers from Florida.
Much appreciated! Thank you for watching and I hope all of those in Florida are staying safe.
Was just watching coach Clint Wyoming holding company videos
Hi Toby, thank you. Can you make a video on allocating shares for your C-Corp.
Great suggestion!
There are differences in when you need to file without a penalty. Sole Prop & Partnership & S-Corp: Every year by March 15th even if you had zero income/profits. C-Corp after you earn a profit.
21:04 That would lower any future Social Security distribution, yes? If that’s right, then one must be cognizant of the amount taken for that purpose?
TOBY: It would have been better if you had included a straight LLC on your chart for comparison.
Thank you. The demistification of finacial topics is always the first hurdle and you did that in spades. Strait forward and highly informative without being condescending. QUESTION: With regards to an S Corp, since so much of personal overhead can be written down as biz expenses, could I pay myself a real modest salary to stay in a low tax bracket, pay the 21% fed biz tax, then in lieu of paying out dividends to extract profits simply keep those profits as capital reserves and have the Corp put that money to work or at least shelter it? Part B: Can an S Corp have only one shareholder? (That being Myself?) 🙏👍☘️
Hi Toby, thanks for the education. Do you have a talk on PMAs (Private Member Associations) as a business structure?
Completely different information from what I've been hearing on C-corps. I have a C-corp, an LLC, and Self directed IRA for my real estate holdings. Thanks for the information.
Great info keep up the good work, thanks
Thanks for watching!
Toby, After seeing this video, and several others by Spencer C., Andrew H., and talking to several tax attorneys, I am beginning to think that I am missing something in my planning or that my attorney/firm is not telling me something.
I recommend speaking with one of our advisors for any legal advice. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
this is great information. i currently have 2 LLCs functioning where one is an active business making less than 30k (for now) and another which is passive collecting rental income on property. the property is not in the LLC, but is in my personal name. basically it's a property management company. would it be wise to 1. place the rental property into the LLC, 2. create a separate company that holds the rental property out of my personal name, 3. leave it alone, or 4. something else?
Hi, I recommend speaking with one of my advisors for any legal advice. Here is the link to schedule a free strategy session: aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
This is some great information. I am trying to understand business taxes better and this was very helpful. There is just so much to learn about. I appreciate how many topics you cover.
Glad it was helpful!
Thank you for a great educational video, wish I had learned about it when I was 20. Like and sub!
I'm glad you found the video educational. It's never too late to learn, and I appreciate your support with the like and sub!
Great video! Will you please make a video with business structure & passive business. Thank you!
Great idea. On it.
Thanks Toby! Very helpful. From a tax standpoint, is there any significant advantages/disadvantages of owning an LLC versus a traditional Corp assuming both entities have the same S or C tax election? Also, is there a certain dollar amount in net income where it makes more sense to choose C-corp election over S? I heard you say you did the math on it. A video comparing the two would be extremely helpful! Thanks again for all the hard work and great content you and Clint provide us!
Thank you for your insightful question! The decision between an LLC and a traditional corporation can have significant tax implications depending on various factors. To provide you with personalized advice tailored to your specific situation and goals, I recommend scheduling a free strategy session with our team. Sign up here: aba.link/tobyss
@@TobyMathis @TobyMathis Thanks Toby. But if you were starting a Wholesaling company and a real estate brokerage business, would you prefer a traditional corp or LLC taxed a S/C Corp?
Hello Toby. I have learned some valuable things again in this video, as with all of yours. The company types may be different to those in my home country, but the differences and similarities, I can figure out by myself. I am really grateful here.
During watching this video, i was wondering, what your take is on insurance policies as investment vehicles. Whole Life Insurances and so on. There's a lot of chatter out there about it. You may have already discussed them in an earlier video and I am yet to rummage through your channel's library, but if not, then this might be a good topic for you to eloborate on. Giving it your authentic objective take, as you always do.
I am familiar with Infinite Banking, Bank on Yourself, and the use of whole life and Universal life for investing. I have an ex-partner who left the legal profession to focus on executive compensation using such policies. He wrote a book called The Private Vault. I am sure there are videos in my site with him. His name is Greg Boots.
Basically, the concept is sound and can provide unique benefits (ie tax-free loans, long-term care, etc.), but with all things, not all policies are the same. Find a good agent and crunch the numbers - they can be an excellent tool for both asset accumulation and legacy planning.
@@TobyMathis Thank you very much for this information. I had already searched through your channel, but didn't find Greg Boots. I am going to look him up and keep his book in mind. Very appreciated.
Awesome!!!
Hi Toby, I am so looking forward to the seminar this coming Sat Aug 26! For real estate businesses where we have "passive" income from rental would you recommend an LLC? The idea is to reinvest the cash flow from the rental into the property as well as to acquire new property. Or should I consider an S-Corp? Thank you for your response!