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.
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.
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?
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?
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
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?
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
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?
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.
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
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?
@@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?
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.
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navimarajcpa.teachable.com/p/smallbusinesstaxessale
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.
This video really helped me from making a big mistake. Really genuinely appreciate this.
Glad I can help!
Your information and delivery are phenomenal. Thank you!
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.
Great points, Navi. Why not either form an S corporation or file form 2553 for your single-member LLC disregarded.
Wonderful video.
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?
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?
Your course - Will you be available to answer questions as well since these are recording?
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.
When is the deadline each year to elect this tax strategy?
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
I would just ask your payroll company to do a payroll correction and issue you a corrected w2 (w-2 c).
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?
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
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?
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.
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
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?
Hi! Can you do a video for Turo Hosts?
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?
@@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?
If you're already a S-Corp, can you convert to C-corp?
my man
Yo! Hope all is well!
Would you be able to charge me for a telephone conversation? Not a business owner yet, just learning everything I can before I begin.
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.