Hello, What if the business is going to be in real estate investing for both buy and hold and flipping... Which entity would be preferable, can both LLC and S-CORP be used or just LLC?
Does an S Corp have to pay out all of its earnings to shareholders as a schedule K or can it retain that profit in its bank account for future expansion expenses?
I am just starting to research this a bit. I will be working in the state of CA soon and will get paid a fair amount more per hour. I would be the sole owner of either my LLC or S-corp. Do the CA taxes affect my decision at all? If I can get taxes as an S-corp with a single owner LLC, why not go that route? Would it matter? Thanks!!!!
Well - S-corp is not a legal business type so that's what you need to choose first. Usually, it's not best for a self-employed type business owner to elect S-corp status because they actually loose self-employed tax deductions. This is a HUGE myth and there's a lot of bad information out there. There's also a lot more work to an s-corp, you would never want to do s-corp taxes diy. Let me ask you this, will the dump truck be used 100% for business? I'd have a lot more questions to ask to be able to give you a good answer. Usually, you shouldn't worry about s-corp when getting started as a solo business owner. Check out some of my other videos --- if you search "LLC" I'll link some above too!
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Hello,
What if the business is going to be in real estate investing for both buy and hold and flipping... Which entity would be preferable, can both LLC and S-CORP be used or just LLC?
Does an S Corp have to pay out all of its earnings to shareholders as a schedule K or can it retain that profit in its bank account for future expansion expenses?
I am just starting to research this a bit. I will be working in the state of CA soon and will get paid a fair amount more per hour. I would be the sole owner of either my LLC or S-corp. Do the CA taxes affect my decision at all? If I can get taxes as an S-corp with a single owner LLC, why not go that route? Would it matter? Thanks!!!!
This was very informative, ty :)
I'm starting a dump truck company with only 1 dump truck.
From what I understand the best is to open a S Corp. company.
That's correct?
Thank you
Well - S-corp is not a legal business type so that's what you need to choose first. Usually, it's not best for a self-employed type business owner to elect S-corp status because they actually loose self-employed tax deductions. This is a HUGE myth and there's a lot of bad information out there. There's also a lot more work to an s-corp, you would never want to do s-corp taxes diy.
Let me ask you this, will the dump truck be used 100% for business? I'd have a lot more questions to ask to be able to give you a good answer. Usually, you shouldn't worry about s-corp when getting started as a solo business owner. Check out some of my other videos --- if you search "LLC" I'll link some above too!
@@businessfinancecoach yes I'll be the only owner for the company. I'll drive the truck.
I'm think open a s-corp because I save money on taxes I guess
Great video! thumbs up.
do you still the pay $800 LLC fee if you are a single member?
YES... everyone must pay, income or not