How Do I Pay Myself in a Single-Member LLC or S Corporation? | LLC vs S Corp & LLC Taxes Explained
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- Опубліковано 31 тра 2024
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llc vs s corp limited liability company can a single member llc pay themselves single member llc operating agreement llc vs sole proprietorship llc taxes explained - Навчання та стиль
You have my side hurting 🤣🤣 “you can tell they are business owners because they are carrying briefcases and are thinking about money.” 😂. Funny and informative. I love it!💜
OMG!! I died laughing when you held that picture up!!
I know right!!😆😅🤣😂
@@miekam9675 Same! I wil say...it's so much easier learning from graphics, even if they are stick figures with briefcases!
This video was so informative and straight to the point. You gave me so much more clarity in 8 min, than a 1 hr video I watched. I cant thank you enough for this info.
I am SO happy to hear that 🥰 You’re welcome, and thank you for watching!
8 minute video saved me a semester in college ;) thank you
And it costs much less a semester's tuition! :-)
HAHAHAHAHAHA!! NICE!
Yes great video, love the sense of humor added.
for real. fuck school
180 Law Co. LLC Aiden great video. Now, how hard is it to switch from an LLC to an S-Corp? I just formed a single member LLC last week and after watching this i def don’t want to pay all those taxes so how can would i go about switching?
"You can tell they're business owners because they're carrying briefcases and thinking about money." HAHAHA this was gold!
girlllll.... i like the normal people talk and killer graphics. but seriously thank you for this non 'super serious' explanation. this helps.
but seriously, what forms do i need to fill out on either the biz or personal end?
I hired ADP to do my payroll, for a monthly pay schedule it's 70$ + your pay, you do it all online and submit, they also pay the taxes that get withheld for you.
It's looking easy so far
"You can tell they're business owners cause they're carrying brief cases and they're thinking about money"
lmao Subscribed!
Great advice. You really have a very fresh approach to your videos. They keep the viewer engaged .
Hallelujah! This was the simplest and most delightful video I've seen on the subject. I've spent too much time reading dry articles, I wish I had come straight here!
Amazing. I love to hear that!! 🥰 Thank you
I have watched several videos on this and your video is the only one that really breaks everything down in simple terms. Thanks
Aiden you're a blessing.Thank you. I appreciate your "unique" sense of humor.
This lady is awesome. I am just starting my own real estate business and I'm in the process of getting my L.L.C. Thank you so much for these vids. Very helpful.
This was so helpful! Thank you for being so concise and to the point 👌 and for shelling out the money for those amazing graphics 😆 really though, visuals always help me learn. Thanks again!
Hi There Aiden, greetings from Arizona! Saw your video today in an effort to prep myself for a llc class I am taking, needless to say it was an awesome ice breaker/ introduction for me! Thanks for sharing!
Thank you. I like the trip, wine, and all the other good stuff that comes too. Thanks for being so plain and clear with your explanation. Blessings
OMG, you are truly a blessing and for sharing sure amazing knowledge to use newbies!!! Thank you for breaking down how the whole business entity , taxes, LLC, S-Corp works! Thank YOU!
You've cracked me up a few times. Well done!
Thank you for sharing this information. It is helpful to small business owners who are new to business rules and regulations. I have an S Corp and I was unsure about paying myself, but this video answered my question. What you are doing is a blessing!
I just figured out why people don't take me seriously as a real business person...I don't have a briefcase. Great vid, still useful in 2020 and super entertaining.
Boom! 😂 Thanks for watching!
This was FANTASTIC!!! Thank you for this video, and may money flow your way in abundance!
This is an amazing explanation. You are truly a lifeline for all of us newbie business owners trying to merge successfully into the business game. THANK YOU!
I love this video. Lol thank you so much for this super clear information with lovely graphics
I joined because I appreciate the information, you're down to earth, and freakin' funny! I look forward to learning more from you!!
Thanks for the clear information and the light-hearted presentation!
You explain like a teacher...in a very simple manner no complexation...method...💖💖💖💖💖💖💖💖💖💖💖💖
I just stumbled upon this and find your videos to be very helpful!
you are amazing! im so stubborn when it comes to asking for help about these things and you explain everything with ease :D thanks girl!
The best source of information I've seen in business related ideas, and free. Also, amazing graphics.
I really thank you for this information, you were very clear and precise along with being very specific about how you can use the LLC. and then you gave an example how you use your LLC account which was very very helpful.
Thanks so much for watching and for the kind words. So glad to hear you found it helpful!
I agree
Thumbs up for the great Graphics..
dirtypimpbird Seriously, even I took the screen shot the graphic. xoxo
They were VERY expensive!! She's not just smart and informative, she's funny too!
Thanks! Appreciate you taking the time to post these.
I'm here in colorado just starting a cleaning biz. Thankyou so much for your kind helpful words of advice. Theres so many laws younger folk dont learn in school etc. Real easy .... just thanks so much for your time
Thank you, I have friends in Denver area and will pass your info on to them. I feel like I am stealing from you because of the knowledge you share and the way it is presented! I wish you success!!!
It's not stealing if I am giving it away! :-) Thank you so much for watching!
lmao wow you fooled me...I was literally prepared to witness some amazing graphics.
Alex Charles lol me too that was hilarious
Alex Charles
We must have watched different versions of this video. Those graphics were amazing!
Maybe she should have done it topless
This was awesome, straight forward and answered the question straight on. I really appreciate this. Thank you for sharing your gift!
This was the BEST explanation I have yet to see regarding LLC's...Thanks!
Holy crap, this video was so informative. Keep it up. You got yourself a new sub.
I created an LLC (single member) and I’m about to start my business with in a week and this question was troubling to me: How do I pay myself in a single member LLC?
Well thanks to you I absolutely appreciate your explanation! Extremely helpful video! Thank you so much!
Mrs. Kramer, Your video answered so many questions that I had! Very informative and not to mention the awesome graphics. Thank you for taking the time to share information like this for free, it really helps people like me that are in the process of starting up a new LLC.
Have a great day!!
Love how you explain things, and your high resolution graphics 👍🏼
I really appreciate your knowledge and transparency! Thank you very much!
haha "you can tell they're business owner because they're carrying briefcases and they're thinking about money"
Just like I can tell a welfare baby by the color of its skin, right?
That alone made me like the video
@@pantherplatform .. Yup 😂 black and brown= welfare babies
@Rollo Larson &
Panther Platform .. the HECK do welfare babies have to do with business people holding briefcases!!? knock it off, people
Oh, OK! I'll sign up for some college courses tonight, so that I can see this thread clearly.
There were things I did not know when creating my own LLC. Your videos provided me with very valuable information. I just want to say your are doing an amazing job with this UA-cam Channel, and thanks for your help/advice!!!
Your video series helped me understand the process of running my single member LLC and taught me more than reading 2 books I bought. Great work Aiden and I hope you are doing great in your practice.
Great information. Thanks for sharing!! :)
This was perfect!!!!!
Great video, the graphics were very comprehensive and you were great at explaining this issue. You are a great help, thanks.
Thank you very much for answering all these questions that I did actually have . Great graphics Aiden !
This is still helpful in November 2019. Lol. Thanks!
When she was talking about the graphics.. Internally I was saying.."oh please let it be stick figures" that was just awesome.. made my day
Thank you so much for sharing this information! Your video was so informative. I feel like I really learned something. I am glad I held off on registering and opted to learn more instead.
Thanks for making that so easy to follow especially with your high -end graphics department working tirelessly on the visuals. Appreciate that ;D
1) When you're filling out form 2553 do you use your home address or the mailing address for the company. We don't have a physical address for the company, but we do have a mailing address for the company ?
2) Where it says in Part 1,B date incorporated. Do you put the date your LLC started if you're not a corporation?
We're gonna have to have a talk with the company that did those graphics...
JasenStl I think they are over charging me... :-)
+The Law Office of Aiden H. Kramer, LLC hello i have a question can i have multiple business under one llc
nets1984 within one llc umbrella you can run multiple business as DBA.
LOL
OMGGGGG I am so happy I found you, so funny and clear when explaining all this extremely complicated and boring stuff.
Great video. Love your humor and your graphics are great! Thanks for sharing.
lol wine, great video, thanks!
Thank you so much for all of your insightful information, I'm so glad that i found you and I really appreciate all of your help with the tips, ideas and information. I have a question, are you planning to do any videos on paying state taxes, who has to pay, when and ho?. I live in NJ and just started an LLC, and was wondering what are your thoughts about the subject? I really would appreciate it.
You are a LIFE SAVER!! Simplistic and easy to understand. I love the "High End" graphics as well. Lol.
Aiden Love
What an awesome video. Thank you so much for taking the time to teach everyone in a way we can understand and can relate to.
Waits to appreciate expensive graphics: ya know what? 😂😂😂 (you’re great!)
Hahaha! Gorgeous, mega-smart and has a sense of humor too. Wow! Love these videos. Thanks.
So glad to hear it. Thanks so much for watching and for the comment!
Thank you for making this easy to understand, one of the best videos on the subject!!!!
Short and Clear. It answered all my questions. Great video.
Thank you, Aiden! I love that you are sharing your knowledge openly and willing to help others in their business efforts. You have already assisted me in your videos and I'd love to ask you a couple questions. I have just formed my own in-home single-member LLC focusing on personal training and fitness education. As far as I can tell I have every legal area covered except for how to handle taxes. Could you provide insight on what a business in my position needs to do to get started and keep track of taxes throughout the year? Do you think someone who is new to taxes can learn to do it all on their own or would hiring a tax consultant or accountant be inevitable?
It's probably best to at least consult with an accountant and a bookkeeper in the beginning. They should be able to provide you with some basic information & guidance that might help you do it yourself. But it can still be overwhelming and very time consuming. If you've used programs like TurboTax to do your own taxes before, it is not too difficult to do it as a single member LLC since all the income is taxed as your personal income anyway. It's just an additional schedule that you file with your tax return. But you should be somewhat familiar with taxes so you know what you can & cannot deduct. So while it is certainly possible to do it yourself, it might be easier & smarter to just hand it over to a professional. Save yourself the stress and time! Thanks for watching and for the great question!
Ok when you pay yourself where to place this in the form schedule c?
You have an INCREDIBLE way of explaining things... Thank you so much for sharing your knowledge and helping me. I learned more from this video than I have all the other videos I’ve watched.
That’s amazing. So glad to hear that!! Thanks so much for watching!
Thank you for this information and for being so transparent!
Great video Aiden, I have one question, crossing my fingers you answer. I work full time for a company and will be starting an online business. I don't want to claim extra income into my personal taxes, would an LLC S-Corp be my best bet? Thanks...
What's the contact information for that graphic design company? Impeccable work!
Love the humor! Thank you for breaking this down 💗
I just subscribed because you break it down so easily & you have a sense of humour.
This is good stuff, how do I know? The Attorney did not bill me for this video.
this saved us all $250
THAT'S funny!
Ummmm, You're ridiculously adorable and super helpful!
Good explanations and love the graphics.
Glad I found your channel. Thanks for the info!
hows the weeed there! oh yea great vid
+GAINGREEN33 ha! I don't partake but I've heard rumors that it's pretty good. Thanks so much for watching!
I figured I should comment since the "comment total" is at 666. Great video, btw. My attorney charges me $800 every time I look at him.
Thank you! Yes short and concise. Very helpful
You are absolutely amazing and a true GODSEND!!! Thank you so much for every minute you've invested in explaining such a daunting topic in such an easy to understand way. I pray that life blesses you as much as you are blessing everybody with your valuable time.
I just started an LLC as a sole proprietor. If I decide not to pay myself do I still pay self employment tax? I'm funding the startup but don't want to mix money with my personal bank account.
Yes, unfortunately. An LLC is considered a "disregarded entity" which means that the profits are taxed as income to the member, even if the member does not take any distributions.
Unless of course you can show a bunch of business related expenses and avoid paying taxes on the full amount XD
If you are a single member LLC, and your business grosses $300,000, when you apply for a loan such as a mortgage, and the bank request your tax return, does it appear that you have a $300,000 salary to the bank?
+Jodie Wilson, IANAL or anything but I would guess that the answer is "no." The $300K isn't a "salary", it would be "income".
I just ran across this. Nobody seems to know (laywers think they know, but won't tell me without paying them first)
No, your income is whatever you pay yourself. I highly doubt you paid yourself all 300,000, so that would not be considered your income.
Really glad I found you today!
Thanks for the help
It's 2022 and your videos have been helping me start my LLC! Thank you !
As a single member LLC, should I pay taxes quarterly or once at the beginning of year? Is it up to me? Thanks
If it is your first year in business it would be hard to estimate quarterly payments. By your second year, I would definitely pay quarterly tax payments just to avoid any attention from the tax man.
@@mikenotta7079 what if you're seasonal. for example,: i host 2 events 1 in january, another in july...6 months apart. how would i file quarterly taxes in this scenario?
Question... if I form an single member LLC and I elect not to be taxed as a S-corp am I able to switch in a few years and elect to be taxed as a S-corp?
Yes you can.
Actually no benefit in leaving it as LLC. No brainier to just file form 2553 and make s-Corp selection to irs. However only us residents can elect as sub Corp.
Thank you so much for these video's, you are so nice and sweet to encourage us to ask questions.
This made me feel sooo much better about understanding my taxes youre my favorite
Starting around 6:15, you begin the example of how you do things. But here's what confuses me.
If, in an non-SCorp LLC, it's 100% treated like personal (taxable) income (according to your fancy graphic). But you said you pay yourself around 50%, and set aside some of that for taxes. "Whatever is left after that" you use for things like food, clothing, wine, etc... I'm assuming you mean "whatever is left" from the 50% you paid yourself minus whatever you said aside for taxes.
But, then, what about the OTHER 50% that you didn't pay yourself? Does it just sit in a bank account untaxed UNTIL you "pay yourself" with it? What about if the money is used to reinvest in your business (buy a new computer to be used for the business, for example?). Is that then treated as taxable income BUT subject to a deduction?
+Garrett C. I always like to use round numbers to work things out. So let's say that your SM LLC earned $120,000 in a year, or $10,000 a month. Half of that ($5,000) is taken as a distribution per month, and the other half of that (also $5,000) is left in the LLC's business bank account to handle any business expenses, for reinvesting in the business, etc.
Of the $5,000/month taken as a distribution, you'd set aside $2,000 (40% of $5,000) for taxes, and have $3,000 (60% of $5,000) left over for the important stuff like wine, chocolate, clothes...
If at the end of the year, somehow the $24,000 you set aside for taxes (12 months * $2,000 every month) isn't enough to pay your taxes, that's where the money you left in your LLC's business bank account comes in. Since you set aside half of your $10,000/month in there every month, you should have at most $60,000 (12 months * $5,000 every month) to be able make up the difference. Practically since you'd used part of that to pay for business expenses you won't have $60K available but you'd still have a hefty portion of it.
YMMV
jalabi99 omg! Thank you for finally explaining what none of the videos I've watched has explained. They keep saying "leave money is business account" and "set aside money from distribution payments for taxes" but they don't explain that regardless of distribution amount you take, you are going to be taxed self employment for the entire amount. So the amount you withdraw and put into taxes needs to be the same amount as the sum of gross income you made with your LLC business by years end. (However you want to work out the percentage.) Thank you again for the clarity!
+aangita glad I could help.
You are so awesome because I was confused, as well. Do you live in Pennsylvania or the tri-state area? Are you an accountant? Thanks!
Who, me? Nah. Not an accountant, not a tax professional, not a lawyer. I'm just a person who's been looking into stuff like this for so long I can explain certain things pretty clearly now. :) Glad I could help.
do ppl in other countries have to go thru all these shenanigans? lol I just wanna make money man sheesh lol
P B I’m no business guru but I think it’s possible to dislike both red tape and illegitimate businesses.
very easy to learn from.. like the way you explain and make things simple to understand
Great Video. Thanks for sharing the information Aidan !!
I see you arent wearing a ring, can we get some coffee one of these days?
+TheManFromTheMoon I appreciate the invitation, but I will have to kindly decline. But thanks for watching! :-)
Thanks for answering, somehow I felt you would. I really appreciate the videos! They have helped me a lot :3
+TheManFromTheMoon dude is the thing at the end of ur sentence a penis or What...?
***** oh! is that so? no wonder all the girls reject u creep, sorry ass...lmfo
*talking like that.
you know it was funny ;)
Love the graphic cards,you are a great teacher, thanks
Another mega enlightening video. Thank you Aiden!!!
Excellent video. Very informative and fun! THANK YOU!!
Great video! Very easy to understand. Thank you for posting 🙏🏻
Thank you for the information, I like how you explained it, two thumbs up!
Thank you for making this video. You explain things well. I appreciate that you break things down in simple terms. Your graphics are amazing. You should give your graphic designers a raise.
Awesome video. Clear, concise and precise to the point. Thanks for doing this.