It is amazing how you can watch so many videos and still be confused because other creators try and cover too much. I just wanted to know about single owner LLC. Nothing more.. and this video was the first one that make it clear and simple.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
@WilliamEthan00 Alice Marie Coraggio her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy...
I’m on Social Security and Medicare. The thing that happens is yes we got a three point whatever percent increase last year but my Medicare part B payment also went up by $60 a month more than my cola so I actually took a $60 a month cut. I literally made best decisions when i started working with an advisor
Totally agree. A good financial adviser is a game-changer. My portfolio is balanced for all market conditions, and it has returned 120% since early last year. My adviser and I are now working toward hitting a seven-figure goal, which could take another year.
Over the years, I’ve worked with a few, but I’ve stuck with “Julianne Iwersen Niemann” for the last five years. Her performance has been consistently impressive. She’s well-regarded in her field-look her up.
My CFA Julianne Iwersen Niemann, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
With around $120k invested in Palantir stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.
Prioritize two goals: strategically buy stocks to limit losses and maximize gains, and be prepared to capitalize on market shifts. Consult a financial advisor or professional for personalized guidance.
@@SorensensHiersas The issue is people have the "I want to do it myself mentality" but are not equipped enough for a crash and, hence get burnt. Ideally, advisors are reps for investing jobs, and at the first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
@@KheroFrei The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
Finally someone makes it easy and understandable for all us single LLC entrepreneurs. Hiw many videos i had to go through to get to one that finally lays it out clearly. Can't thank you enough, huge cheers.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
oh my god this is the best explanation and most simplistic example that you could use. I really learned a lot and appreciate how easy you make it for us new business owners to understand !
Love this explanation! I can’t tell you how many videos I’ve watched & this is only 9 mins too. You kept my attention & taught me something valuable & extremely needed & helpful thank you 🙏🏼😎👍🏻
Thank you so much for this! I made myself an "employee" with my single member LLC and was paying myself as an employee and having taxes taken out that way. Thank you for this explanation!❤❤❤
Well - if you are taxed as a sole proprietor - not an S Corp - I’d ask your tax professional to assess this. Owners of single member llcs are not employees and cannot receive a w-2 paycheck!!!
Great video, had to just watch once (at 1.25x) and I already have much better understanding on how to manage payments and taxes as a single member LLC. Thank you so much!
Thank you so much. This gave a great template to look at. I was more or less gifted my dream business very suddenly and I’m trying to figure it all out. Thank you again
Hello, I am a Corporate Accountant with 30+ years of experience, and now I'm launching my own online business. Your straight-forward approach is greatly appreciated!
Thank you for making this so easy for me to understand. I have paid taxes for the entire 5 years I have been operating but NO ONE has explained this part. Thank you
@@ChadPavelcpa Ok so your gonna pay quarterly taxes on your LLC profits? And at the end of the year you file and do a pass thru-so schedule c to 1040? Does that sound about right?
You pay taxes with your schedule c, and the IRS extracts from that single payment a state income tax, medicare tax, federal income tax and social security tax. Use an llc tax calculator online to find your taxes per state and net income amount.
Thank you so much for putting this out and not taxing people for the info. God bless you keep going there are only roughly 650,000 CPAs in the country. Your a rare breed and in high demand.
How would I pay myself in a structure with a single-member holding LLC (S-Corp) that owns my operating LLC, of which I’m the only owner and employee? How can this be done without piercing the corporate veil and losing asset protection, while still seeing the tax benefits of an S-Corp? Which LLC would handle payroll and how would dividends be distributed? Thanks!
If only I had watched this before deciding to use a payroll processor. While all along thinking I was doing the right thing, filing 941s each quarter, little did I know the 1040 Schedule C side of the IRS would have no visibility of these filings or payments...it appears the choices are to either not use the payroll processor (which results in 941s) or continue doing that and file a completely separate tax return instead of showing the business income on 1040 Schedule C. Does this seem correct?
Funny, I was thinking about that. Why not filed a 2553 form under the llc as a s corp and pay yourself. Also, am little puzzled about the 100k net is he saying is not taxed bc is a passive income🤔 or you do have to pay federal taxes?
This is extremely helpful for UA-camrs, Streamers, and other creatives that make a steady income and open an LLC for the liability protection. Would love to hear you talk more about how to do quarterly estimations, actually pay taxes, and how to reduce tax payments.
So I'm confused. My CPA said I should form an LLC to help me with taxes. I'm currently buried in taxes and it's my single largest expense every month. She said that the income that I pay myself from the LLC would be tax deductible instead of paying myself as a sole proprietor. But now I'm hearing that it won't make any difference. So which is it?
I had an accountant tell me to write myself a physical check or use to use zelle, but to not simply transfer money from business checking to personal checking, that doing so could pierce the veil.
Thank You, Thank You for this video!! I still barely know what I am doing. I am going to watch the next video now. I am not great with numbers at all. My husband and I just started an LLC and my job is the “books”. He’s not getting paid until I figure this out 😂😂. He might be homeless soon lol!! Thanks again!
He said you put 200k in your business account, you spent 100k to run the business and you left with 100k profit… How is that “profit”?? It’s not profit if it’s not extra money from what you initially put in, that’s the same 100k you initially put in how is it profit? Somebody please explain
Pay yourself / transfer / draw, all same thing. Pay yourself every day, week, month, doesn't really matter. Just remember your pay (draw, transfer, etc.) is not an expense. Do not include it on the profit and loss.
My buddy told me. When a church is tax exempt. The gov is paying for the pastors expenses. Car insurance, car payment, gas, etc. Hes telling me if the pastor files all those expenses, he gets 100% of it back when filing taxes. So hes basically telling me the gov is paying for his vehicle payment. This doesnt seem accurate to me.
I don’t know much about church taxes but tax exempt entities don’t pay income taxes. So it’s not like the government writes a check to tax exempt entities like churches but since they pay no tax then they get the benefit of collecting a ton of money from donations without paying any tax on it. If a business owner pays 30% tax on their income but a church pays 0% then I see the point he was making.
I am confused. I made about 52k, most of that got paid directly to me. I spent less than 2500 on the business. How does this reflect on my Schedule C because right now it's showing I owe 11k.
I am not sure what you mean here. Here is an update video with more details Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!) ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
As an SMLLC, can I charge my customer by the hour for engineering design work, much like an attorney would invoice at an hourly rate for legal services? I would submit a weekly or bi-weekly log.
great video. however, didn’t answer my question. wanted to know how to take out taxes BEFORE the end of the year so i can be paying all along 😩. like if you pay yourself a set amount based on your monthly profit. how to calculate and withhold ahead so you don’t have to pay a bunch at the end of the year.
Hello, I started a cargo van transportation business 2month ago by buying a new van. and however, i learned in one of your videos that I need to register my business in the state where i live. but my question is what should I do for the time I work with out registaring my business ???? and when i register The LLC which Tax filing status is good for the time being.please help me or guide me on how to fix this??? Thank you for all your wonderful and very informative video.
You don’t actually need an LLC to do business in this case you are probably operating as a sole proprietor. LLC adds legal protection when set up and run properly. So your current tax status is likely sole Proprietor. Totally OK.
For a more realistic scenario, what if your in business for a couple of years and the first year you declared a loss and the second year you broke even. Do you not pay yourself anything in those 2 years?
Is there a section on the schedule C where we write how much of a distribution we took? In other words, are we required to declare our distributions to the IRS?
so if your business is brand new, started in the last quarter of the year, and you didn't have other wages... is this still going to work out ok? Meaning you may show a loss instead of a profit. Also, I'm surprised you haven't mentioned choosing a tax structure. As an LLC, you can apply for an s-corp tax structure for tax benefits - ECE (Entity Classification Election). LLCs are by default, taxed as a sole prop if the owner doesn't do this ECE... and that's a LOT more tax paying! It has to be done within 75 days of starting the LLC, but there are ways to do it late too.
Good points - not the focus of this video. But S Corps are overused and over marketed for most small businesses. You can always elect s corp anytime in the future. It’s usually best to form single member LLC then once the business reaches an income level where there would be significant tax savings moving to an S corp your accountant can help you make the switch. Otherwise the costs of maintaining an S corp are extra. Payroll, S corp tax return, state filing fees, and many states charge S corps pass through taxes.
@@ChadPavelcpa as a single member LLC, if you don’t choose a tax structure, the IRS will choose one for you, and it’s not in your favor. You can stay a SM LLC and still choose an S Corp. tax structure… or you can pay double self-employment taxes with the tax structure the IRS assigned you, if you want to pay more. 💁🏼♀️ If your biz grows enough revenue, with employees and all, yeah sure, become an S Corp, meanwhile, there’s no need stay with a tax structure that pays 50% more in self employment taxes, which “paying yourself as a SM LLC” is what this video is about. IRS Form 2553.
Basically it doesn’t matter how much distribution you take out at the end of the year you have to pay for the entire net profit. Even if you haven’t taken it out yet. Good video!!
See update video here hot off the press! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!) ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
Great video! I have scenario to add to this....what if I want to take those profits and put them in a savings accound FOR the business, not myself....how would taxes work for that? Taxes still paid the same?
Great summary many thanks. Can you use that payment to yourself as a business expense so as to minimize taxes on the 100K you have ? (since you are spending time on the business and instead of hiring someone you are hiring youself). So if I have an employee and pay him/her 50K then the left is 50K. hence taxes due at the end are lower. Is that correct is incorrect ?
@@testsubjectone9494 Some more details here on LLC taxes, and brief review of estimated taxes. But, now that I see this, I'll make another video specifically for estimated taxes. Here's everything I have for now! ua-cam.com/video/jx8FrNHYcmQ/v-deo.html
It is amazing how you can watch so many videos and still be confused because other creators try and cover too much. I just wanted to know about single owner LLC. Nothing more.. and this video was the first one that make it clear and simple.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
@WilliamEthan00 Alice Marie Coraggio her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy...
I’m on Social Security and Medicare. The thing that happens is yes we got a three point whatever percent increase last year but my Medicare part B payment also went up by $60 a month more than my cola so I actually took a $60 a month cut. I literally made best decisions when i started working with an advisor
Totally agree. A good financial adviser is a game-changer. My portfolio is balanced for all market conditions, and it has returned 120% since early last year. My adviser and I are now working toward hitting a seven-figure goal, which could take another year.
That sounds interesting! Could you share the details of your adviser? I'm urgently in need of one.
Over the years, I’ve worked with a few, but I’ve stuck with “Julianne Iwersen Niemann” for the last five years. Her performance has been consistently impressive. She’s well-regarded in her field-look her up.
My CFA Julianne Iwersen Niemann, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I just looked her up, and her credentials are impressive! I've already reached out and scheduled a call for some guidance. Thank you!
With around $120k invested in Palantir stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.
Prioritize two goals: strategically buy stocks to limit losses and maximize gains, and be prepared to capitalize on market shifts. Consult a financial advisor or professional for personalized guidance.
@@SorensensHiersas The issue is people have the "I want to do it myself mentality" but are not equipped enough for a crash and, hence get burnt. Ideally, advisors are reps for investing jobs, and at the first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
@@DarnellsStevenses I will be happy to get assistance and glad to get the help of someone, but how can one spot a reputable one?
@@KheroFrei The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
@@DarnellsStevenses I will give this a look, thanks a bunch for sharing.
Finally someone makes it easy and understandable for all us single LLC entrepreneurs. Hiw many videos i had to go through to get to one that finally lays it out clearly. Can't thank you enough, huge cheers.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
pls how can I reach this expert, I need someone to help me manage my portfolio
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I was dreading how complicated this could be....but conceptually, you made this pretty understandable. Thank you.
Glad to hear!
oh my god this is the best explanation and most simplistic example that you could use. I really learned a lot and appreciate how easy you make it for us new business owners to understand !
Thank you sir. Recent LLC business owner and trying to figure things out, this helped alot. Thank you!!
Love this explanation! I can’t tell you how many videos I’ve watched & this is only 9 mins too. You kept my attention & taught me something valuable & extremely needed & helpful thank you 🙏🏼😎👍🏻
One of the best and simplified videos Ive seen on this topic. Thanks Chad. keep putting out good info.
You just cleared up so much for me, literally wrapping up 1st year and you answered so many questions I had thank you
I am glad this helped - check out my 2022 video update on schedule C too. Thanks and good luck 👍
Thanks!
There is the answer i was looking for ,not only paying yourself but filling taxes
My three favorite channels: Charlie Chang, Stock Brotha, & How Money Works. Make my week complete!
This was the most simplistic explanation I have seen on paying yourself from an LLC. Thanks!
Glad it helped
Thank you for taking your time to explain in such a simple and easy way to understand.
You've clearly made this video for lil ole me. Thank you!
😍
Great@
Thank you so much for this!
I made myself an "employee" with my single member LLC and was paying myself as an employee and having taxes taken out that way.
Thank you for this explanation!❤❤❤
Well - if you are taxed as a sole proprietor - not an S Corp - I’d ask your tax professional to assess this. Owners of single member llcs are not employees and cannot receive a w-2 paycheck!!!
@@ChadPavelcpaso can u write yourself checks if it is S corp as W2?
This is the BEST, most straightforward explanation that I needed! Thank you!
Glad this helped.
Your video presentation was not only informative but engaging as well. Thank you for providing such valuable guidance!
Great video, had to just watch once (at 1.25x) and I already have much better understanding on how to manage payments and taxes as a single member LLC. Thank you so much!
Thank you so much. This gave a great template to look at. I was more or less gifted my dream business very suddenly and I’m trying to figure it all out. Thank you again
Glad it is helpful to you. Good luck with the new business!
Hello, I am a Corporate Accountant with 30+ years of experience, and now I'm launching my own online business. Your straight-forward approach is greatly appreciated!
Congratulations on launching your business!
Thank you for making this so easy for me to understand. I have paid taxes for the entire 5 years I have been operating but NO ONE has explained this part. Thank you
very clear and to the point , you are the first video of many I have watched that gave it to us straight (Just the Fact) , Many thanks
Finally , I can understand this , simple but very very informative.. did not exaggerate once or try to flex “big words”. Thank you bro .
Glad this helped!
I have been looking all over for this information thank you for making it so clear.
Glad it was helpful!
@@ChadPavelcpa Ok so your gonna pay quarterly taxes on your LLC profits? And at the end of the year you file and do a pass thru-so schedule c to 1040? Does that sound about right?
This video is amazing. You answer my question so simple. Thank you! Finally after going through so many videos
This was amazing! Very easy to understand for beginners the way you broke it down… THANK YOU
Thank you!
Thanks Chad, LLC newby here, your video was clear and easy to understand.
Chad. Your excellent man. You made it very simple and saved me from unnecessary headaches. You are awesome. Good luck
Thank you glad this is helpful
You pay taxes with your schedule c, and the IRS extracts from that single payment a state income tax, medicare tax, federal income tax and social security tax. Use an llc tax calculator online to find your taxes per state and net income amount.
Calculator always a good idea. You pay state taxes on your state return 1040. But yeah it’s all the same format and similar calculations. Thanks.
Thank you, I have been saying for a while now that someone needs to explain this like I was 5 years old. I think I understand now.
Thank you so much for putting this out and not taxing people for the info. God bless you keep going there are only roughly 650,000 CPAs in the country. Your a rare breed and in high demand.
Thank you Get more help here: pinewoodtax.com/
2022 tax update for you!! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
How would I pay myself in a structure with a single-member holding LLC (S-Corp) that owns my operating LLC, of which I’m the only owner and employee? How can this be done without piercing the corporate veil and losing asset protection, while still seeing the tax benefits of an S-Corp? Which LLC would handle payroll and how would dividends be distributed? Thanks!
Quite helpful and easy to follow. Love that you added the visuals. Cheers!
Thank you!
See 2022 update video: Single Member LLC Taxes, Estimates, and How to Pay Yourself
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
If only I had watched this before deciding to use a payroll processor. While all along thinking I was doing the right thing, filing 941s each quarter, little did I know the 1040 Schedule C side of the IRS would have no visibility of these filings or payments...it appears the choices are to either not use the payroll processor (which results in 941s) or continue doing that and file a completely separate tax return instead of showing the business income on 1040 Schedule C. Does this seem correct?
Funny, I was thinking about that. Why not filed a 2553 form under the llc as a s corp and pay yourself. Also, am little puzzled about the 100k net is he saying is not taxed bc is a passive income🤔 or you do have to pay federal taxes?
Single member LLC owners are not employees so should not be on w-2 payroll for a number of reasons.
@@ChadPavelcpa Lesson learned!
Brilliant video. I'm doing the "side hustle" setup, and your explanation and sketch of the forms made everything clear. Thanks so much!
Jackson I am glad this helped! All the best to you!
See update video here Single Member LLC Taxes, Estimates, and How to Pay Yourself
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
Wow, just write yourself a check...thanks for clarifying how easy it is to pay yourself from a sole proprietor LLC!
This is extremely helpful for UA-camrs, Streamers, and other creatives that make a steady income and open an LLC for the liability protection. Would love to hear you talk more about how to do quarterly estimations, actually pay taxes, and how to reduce tax payments.
Thank you! We have more content coming that addresses these items, coming soon!
Great question!
You need to do some more research my brother…
Phuong tran
So I'm confused. My CPA said I should form an LLC to help me with taxes. I'm currently buried in taxes and it's my single largest expense every month. She said that the income that I pay myself from the LLC would be tax deductible instead of paying myself as a sole proprietor. But now I'm hearing that it won't make any difference. So which is it?
Awesome! Thanks for making this so simple. I was having a hard time getting that simple answer elsewhere
Most informative video ive come across on this subject. Thank you.
I had an accountant tell me to write myself a physical check or use to use zelle, but to not simply transfer money from business checking to personal checking, that doing so could pierce the veil.
Interesting position. I am not an attorney. But with proper bookkeeping documentation I don’t see issues with how one pays themself.
THANKS, VERY CLEAR AND EASY TO FOLLOW
Great video, thanks for help. I just started my own llc and freaked out about this topic but you explained it well
Glad to help!
This is a fantastic video. It's clear and easy to understand your explanations. Thank you for providing this information.
This is an amazing video man, thank you. .Simplicity is king
Glad this helped! More on the channel and updates coming soon.
Or you have to transfer it on monthly basis
Pay yourself / transfer / draw, all same thing. Pay yourself every day, week, month, doesn't really matter.
Thank you just beginning to form. I want to have all my operations in order.
Good luck to you.
Amazingly easy to follow. Thank you for the information!
Awesome great information! Thank you so much and also make a video for foreigner owned single member llc tax planning 😊
Thank you, this topic is on my list!
Well explained and easy to understand. Super helpful! Thank you!
So let’s say of the $100,000 you made in profits, you pay yourself $20,000 through owner draws. You don’t have to pay additional taxes on the $20,000?
Thank You, Thank You for this video!! I still barely know what I am doing. I am going to watch the next video now.
I am not great with numbers at all.
My husband and I just started an LLC and my job is the “books”. He’s not getting paid until I figure this out 😂😂.
He might be homeless soon lol!!
Thanks again!
Hope the videos help!
😂🤣😂🤣
See 2022 update: Single Member LLC Taxes, Estimates, and How to Pay Yourself
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
Thank you, Chad. Great information. Very helpful.
Thanks glad to help!
Simplest explanation that I was able to follow
He said you put 200k in your business account, you spent 100k to run the business and you left with 100k profit… How is that “profit”?? It’s not profit if it’s not extra money from what you initially put in, that’s the same 100k you initially put in how is it profit? Somebody please explain
$200k is from customers in this video. Revenues.
@@ChadPavelcpa got it! Thanks !
Awesome explanation!! (the music was very distracting for me.... had to try really hard to tune it out) But really, Thanks for the education!
Amazing video. Explained every question I had
Great video ! Clear and to the point !!
What if I don’t normally file a 1040 tax return because my income isn’t taxable. What would I do? Can someone help??
Love the white board, it made everything so simple. Thank you!
Glad you enjoyed
See 2022 update! Single Member LLC Taxes, Estimates, and How to Pay Yourself
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
How do you take check is it monthly or randomly
Does it make a difference
Pay yourself / transfer / draw, all same thing. Pay yourself every day, week, month, doesn't really matter. Just remember your pay (draw, transfer, etc.) is not an expense. Do not include it on the profit and loss.
Great content and way to stay on topic. Very good! Also, your penmanship is somehow worse than mine, didn't think that was possible! 😉
Better yet is to file as S-corp and lower paycheck and take rest as profit distribution. Any reason you didn't include that option to save like 8%?
Literally asked everybody I knew in business how this process works and never got this clear of an answer. Thank you so much ✌
Glad this helped!
That's true talk unhelpful
2022 update for you! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
My buddy told me. When a church is tax exempt. The gov is paying for the pastors expenses. Car insurance, car payment, gas, etc.
Hes telling me if the pastor files all those expenses, he gets 100% of it back when filing taxes. So hes basically telling me the gov is paying for his vehicle payment.
This doesnt seem accurate to me.
I don’t know much about church taxes but tax exempt entities don’t pay income taxes. So it’s not like the government writes a check to tax exempt entities like churches but since they pay no tax then they get the benefit of collecting a ton of money from donations without paying any tax on it. If a business owner pays 30% tax on their income but a church pays 0% then I see the point he was making.
Vey information video. Thank you so much for posting!
I am confused. I made about 52k, most of that got paid directly to me. I spent less than 2500 on the business. How does this reflect on my Schedule C because right now it's showing I owe 11k.
This information is gold! Thank you for sharing.
Glad it was helpful!
The one thing he needed to go into was making regular tax payments on profit. How often, when, how?
Great explanation. Thank you!
Thank you hope it was helpful
What happen you don't have bank account in your cash the check at there bank?????
I am not sure what you mean here. Here is an update video with more details Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
You are the man! Thanks so much for the great explanation.
Thank you glad it helped
See 2022 update video: Single Member LLC Taxes, Estimates, and How to Pay Yourself
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
Good video but unless I missed it, there is the Self Employment piece of the tax return that wasn't addressed. Thanks
Thank you! Exactly what I needed to know.
Glad it helped!
Could you advise on single member Texas LLC, where member is non USA citizen/ resident.
As an SMLLC, can I charge my customer by the hour for engineering design work, much like an attorney would invoice at an hourly rate for legal services? I would submit a weekly or bi-weekly log.
Absolutely! Invoice as many clients as you want to.
great video. however, didn’t answer my question. wanted to know how to take out taxes BEFORE the end of the year so i can be paying all along 😩. like if you pay yourself a set amount based on your monthly profit. how to calculate and withhold ahead so you don’t have to pay a bunch at the end of the year.
Thank you for making it so simple to understand.
Glad it was helpful!
Hello, I started a cargo van transportation business 2month ago by buying a new van. and however, i learned in one of your videos that I need to register my business in the state where i live. but my question is what should I do for the time I work with out registaring my business ???? and when i register The LLC which Tax filing status is good for the time being.please help me or guide me on how to fix this???
Thank you for all your wonderful and very informative video.
You don’t actually need an LLC to do business in this case you are probably operating as a sole proprietor. LLC adds legal protection when set up and run properly. So your current tax status is likely sole
Proprietor. Totally OK.
See 2022 update video here Single Member LLC Taxes, Estimates, and How to Pay Yourself
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
@@ChadPavelcpa Thank you so much. Do you give consultation service? IF so, How can I contact you??
This was very informational and answered a lot of questions I had.
Great! Good luck build your legacy!
You made this so simple! Thank you:)
Glad it’s helpful.
What awesome information. Thank you!!!
Glad it helped!
Lets say on the first year the LLC incurred a loss of $50K, no other income on 1040, how would that affect taxes?
For a more realistic scenario, what if your in business for a couple of years and the first year you declared a loss and the second year you broke even. Do you not pay yourself anything in those 2 years?
Is there a section on the schedule C where we write how much of a distribution we took?
In other words, are we required to declare our distributions to the IRS?
so if your business is brand new, started in the last quarter of the year, and you didn't have other wages... is this still going to work out ok? Meaning you may show a loss instead of a profit. Also, I'm surprised you haven't mentioned choosing a tax structure. As an LLC, you can apply for an s-corp tax structure for tax benefits - ECE (Entity Classification Election). LLCs are by default, taxed as a sole prop if the owner doesn't do this ECE... and that's a LOT more tax paying! It has to be done within 75 days of starting the LLC, but there are ways to do it late too.
Good points - not the focus of this video. But S Corps are overused and over marketed for most small businesses. You can always elect s corp anytime in the future.
It’s usually best to form single member LLC then once the business reaches an income level where there would be significant tax savings moving to an S corp your accountant can help you make the switch.
Otherwise the costs of maintaining an S corp are extra. Payroll, S corp tax return, state filing fees, and many states charge S corps pass through taxes.
@@ChadPavelcpa as a single member LLC, if you don’t choose a tax structure, the IRS will choose one for you, and it’s not in your favor. You can stay a SM LLC and still choose an S Corp. tax structure… or you can pay double self-employment taxes with the tax structure the IRS assigned you, if you want to pay more. 💁🏼♀️ If your biz grows enough revenue, with employees and all, yeah sure, become an S Corp, meanwhile, there’s no need stay with a tax structure that pays 50% more in self employment taxes, which “paying yourself as a SM LLC” is what this video is about. IRS Form 2553.
Basically it doesn’t matter how much distribution you take out at the end of the year you have to pay for the entire net profit. Even if you haven’t taken it out yet.
Good video!!
Correct - thanks!
See update video here hot off the press! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
Great video! I have scenario to add to this....what if I want to take those profits and put them in a savings accound FOR the business, not myself....how would taxes work for that? Taxes still paid the same?
You are still taxed on the profits of the biz. Whether the $ stays in the biz or not.
What about self employed taxes 15.3% which we have to pay? Did you miss that part. Am sorry am new to this llc business
Very good, easy to understand video. Thank you!
Given this example, how much would the person have to pay back to federal and state?
This is now my favourite video. :)
Thanks!
See update video here! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
Great information! 👍🏾
See 2022 update Single Member LLC Taxes, Estimates, and How to Pay Yourself
ua-cam.com/video/lLwZ6VAttpQ/v-deo.html
Great summary many thanks. Can you use that payment to yourself as a business expense so as to minimize taxes on the 100K you have ? (since you are spending time on the business and instead of hiring someone you are hiring youself). So if I have an employee and pay him/her 50K then the left is 50K. hence taxes due at the end are lower. Is that correct is incorrect ?
Could u do a video with someone who has a single person llc but they are single work full time and have a side business
Chad, could you make a video for people with a single Member LLC living outside the US? For lots of us that would be awesome! Thanks!
how do i pay the expected taxes? what form do I fill and send in during the tax year?
This is exactly what I want to know. No one ever goes into these details. He made a great video so let's hope he see's this!
@@testsubjectone9494 Some more details here on LLC taxes, and brief review of estimated taxes. But, now that I see this, I'll make another video specifically for estimated taxes. Here's everything I have for now! ua-cam.com/video/jx8FrNHYcmQ/v-deo.html