When NOT to Choose S Corp Taxation for Your Business

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  • Опубліковано 21 вер 2024

КОМЕНТАРІ • 29

  • @NaviMarajCPA
    @NaviMarajCPA  8 місяців тому

    💰 Ready to save THOUSANDS in taxes? Enroll in my course here 👉
    navimarajcpa.teachable.com/p/smallbusinesstaxessale

    • @Trump2024-b3r
      @Trump2024-b3r Місяць тому

      MY husband had a W2 income ~91k till August. A on going 1099, close to 100k. New vendor (same 1099 assignment) he plans to work with starting in October has two options either C2C (no 1099) or W2. Should he create a LLC/Scorp this late in the year considering two form of insurance will cost approximately $1200 and other costs you have mentioned in this video? He plans to use the the S-Corp in 2025.

  • @Nicopasta85
    @Nicopasta85 27 днів тому

    This video really helped me from making a big mistake. Really genuinely appreciate this.

  • @letsgoviral777
    @letsgoviral777 8 місяців тому +1

    Your information and delivery are phenomenal. Thank you!

  • @ScottJLetourneau
    @ScottJLetourneau 7 місяців тому

    Great points, Navi. Why not either form an S corporation or file form 2553 for your single-member LLC disregarded.

  • @katietarr4564
    @katietarr4564 5 місяців тому +1

    Hey there! Thank you for the videos! This is great info to have and I’m learning a lot! Thankful to have found your channel. If I am a SMLLC and opted to be treated as s corp can I un-do it? Is there a form or something to do?? After watching your videos and doing more research the puzzle pieces are beginning to come together in my mind … I think I’m better off staying at sole proprietor tax versus s corp. I am somewhat newly self employed and have had a very difficult and frustrating time getting my accountant to explain anything to me so I’m figuring things out on my own.

  • @DSparkOffice
    @DSparkOffice 4 місяці тому

    I have a question, how does the irs knows if the owner is in the payroll? What about if someone is an S-Corp but is not paying them self in payroll? would a 1099 be good for that?

  • @MoneyStruggleSuccess
    @MoneyStruggleSuccess 8 місяців тому +2

    Your course - Will you be available to answer questions as well since these are recording?

    • @NaviMarajCPA
      @NaviMarajCPA  8 місяців тому +2

      Yes, there is a section checking after each phase of the course for students to ask questions and I typically answer them within a week or so.

  • @AlekseyYermolenko
    @AlekseyYermolenko 6 місяців тому

    I have a question. In the first reason you gave, you suggested the "Reasonable Compensation" is $35,000, which is just about half the total revenue, and over half the profit. I heard others suggest that you can say 1/3 of total revenue can be considered reasonable. In that case would the money savings be more?

  • @BorselinoThadchack
    @BorselinoThadchack 8 місяців тому +3

    i sort of agree with you, in theory. But here s why I went thru S-corp. I was getting older and I was not saving enough for my retirement. In order to catch up, I wanted to be able to put the maximum, which at the time when I started the S-corp was $24,000. Up until that point i could put away...maybe...maybe $11,000. Then California went crazy and the moronic governor scared a lot of businesses into not taking Sole Proprietor. * yes, I am freelance * , So I HAD to go S-corp for these two reasons. What do you think?

    • @NaviMarajCPA
      @NaviMarajCPA  8 місяців тому +3

      I don't know enough about your specific situation to provide an opinion. I will say that today (wasn't always this way) a sole proprietor can have a solo 401(k) and contribute a large amount of money into a retirement plan. For example, a sole proprietorship with $40,000 in Schedule C Net Income could contribute almost $30,000 into retirement with $22,500 being the elective deferral amount and $7,337.00 being the "employer contribution" amount.

    • @BorselinoThadchack
      @BorselinoThadchack 8 місяців тому

      You are right. And that is why I have a solo401k. But the reason I had to go S-corp is because California threatens business that employ 1099 contractors. Hence why they tried to pass AB5 that was trying to force Uber to qualify the drivers as employees. I m happy with the solo 401k and I am happy that I found your channel @@NaviMarajCPA

  • @thee.blue.orchid
    @thee.blue.orchid 4 місяці тому

    When is the deadline each year to elect this tax strategy?

  • @jrkallini
    @jrkallini 4 місяці тому

    Hello, do you go over roughly calculating your tax savings if already have an S-Corp but do not want to put all of your earnings under the S-Corp umbrella? In particular, if you have a choice to earn W2 from one of your employers versus 1099 as a contractor?

  • @yerandysilva4815
    @yerandysilva4815 8 місяців тому +3

    Hello.
    I am S corp owner. I have a solo 401 K. My payroll company dont put my contribution pretax employee in my w2 box 12 code D. Can I still report this contribution in my 1040 in the schedule 1 line 16 as self-employed qualified plans to take the deduction. Thanks

    • @NaviMarajCPA
      @NaviMarajCPA  8 місяців тому +1

      I would just ask your payroll company to do a payroll correction and issue you a corrected w2 (w-2 c).

  • @PeteSan-c6v
    @PeteSan-c6v Місяць тому

    If you're already a S-Corp, can you convert to C-corp?

  • @shoaibrao8811
    @shoaibrao8811 2 місяці тому

    Wonderful video.

  • @srinir4288
    @srinir4288 7 місяців тому

    I have watched many of your videos and they are very informative. Suppose I have an LLC without an S-Corp election, can that LLC be able to setup a Cash Balance pension plan to save higher amount towards retirement by deferring the taxes

  • @dross0123
    @dross0123 8 місяців тому

    If I am a SMLLC w/ S-corp tax status, do I follow the requirements for an LLC or an S-corp? For example, meeting minutes - requirement or no?

  • @onyshiaharris5449
    @onyshiaharris5449 8 місяців тому +1

    Hi! Can you do a video for Turo Hosts?

    • @NaviMarajCPA
      @NaviMarajCPA  8 місяців тому +2

      Hi there! That is not something I plan on specializing in or creating a video about. Do you have a specific question about taxes related to being a Turo Host?

    • @onyshiaharris5449
      @onyshiaharris5449 8 місяців тому

      @@NaviMarajCPA Good Afternoon Sir. Yes, I do. I wanted to know which method is best to claim the purchase of the vehicles.
      Would it be a S Corp, or a 1099 and rent the vehicles to the business?

  • @juansantana7407
    @juansantana7407 8 місяців тому +1

    Would you be able to charge me for a telephone conversation? Not a business owner yet, just learning everything I can before I begin.

    • @NaviMarajCPA
      @NaviMarajCPA  8 місяців тому +1

      Hi there! There was a time where I would do paid 30-minute and 60-minute consults but I don't have the capacity to do those any longer. I really don't want to sound too salesy here but my course might be a great way for you to start learning for when you're ready. You'll get way more value out of the course, than a 60-minute consult with me. The course has over 11 hours of video content.

  • @gwiszitstaxtime7293
    @gwiszitstaxtime7293 8 місяців тому +1

    my man