sachmo omhcas - Our team also has LLC's and we have a 7 year plan of no pay to the team/owners/investors. They are humble LLC's but we want to reinvest and not take any profit so we can maximize the company's return back into the businesses. We live minimally but it still feels good 👍
Can you do a video on best practices to handle your LLC money (i.e. how much to keep it capitalized, what bank accounts to have for the biz [one for operational, one for taxes, etc.] That sort of thing) thanks!
You answered one version of the question but I believe the question that was actually asked was if you can keep the money in the LLC to delay paying taxes. For example if you invested 10K into it and at the end of the year 100k was left do you have to pay taxes on the say 90k. What if the person wanted to use that extra 90k to grow the business instead of taking a distribution
Doesn't matter. You are taxed on the income of the LLC, not how much you take out. If you have no interest in taking the money out, then a C-Corp might be an option, because there you are only taxed when you take a salary or dividend from the corporation. But you also are taxed at the corporate level. That's why they say corporations are "double taxed".
@@jimhart then to clarify, the way to delay or reduce the tax burden would be to invest immediately and take either the deduction or start the process of depreciation. If the person wanted to delay that process to the following year then they would be liable for the 90k of income from the present year.
What do you mean you do not have to pay yourself a salary? How do you document taking out the money from the LLC to pay your personal expenses? How do you use the profit for yourself?
Can you do a Video on the logistics of contributions to solo 401k for single member LLC? How to maximize contributions when you have owner’s draw and thus no formal salary compensation? Thanks a lot!
With an llc, does any money that you personally put into the business count as income for the llc? And if it does how do you fund your business without having to pay tax for essentially just giving yourself your own money
Started watching all your videos and love them all. Quick question can I start a LLC with no company like to get a jump on it and paying myself anything with a LLC is that the same in Texas if I want to do hotshot freight hauling? Thanks for all the knowledge you give.
Thank you. Awesome content. If someone wanted to register an S Corp as an umbrella organization for an already existing LLC, what are some pitfalls to be aware of?
I'm getting back into the pro photography business and start-up costs are very high as equipment, advertising, travel are high. I also have to hire a CPA which is expensive. A reasonable salary is $200.00 per hour. I just don't see how one can pay that and then pay taxes on that and also keep money in the businesses account to start. How does one eat and pay bills and stay out of debtors prison until the business shows an actual profit? How long does a business have to show a profit? I have to buy my equipment little by little over a year and a half just to get started before I can afford to start my business. Are those purchases deductable even if I'm not a business for that period...once I do become a business? I would literally have to keep my business account drained just to live for the first few years until my business matures. I lost everything, became homeless, and now just getting back on my feet. Do I go to debtors prison if I can't show a profit because I have to live?
As a sole owned LLC, it doesn't matter what you get for a salary, because you own the LLC, and will pay Individual taxes at your level, on every dollar your company makes.
LLC - - - - topic ideas: not sure if you can cover it since you specialize in the southeastern US. One, there is a loophole many people use to avoid paying license fees on expensive cars. They start an LLC in Montana then register the car to the LLC. Never have to set foot there. I wonder if those doing this have to go all out on their Montana LLC or if they can simply register the LLC, register the car and that's it. Also... I'm reading that many people start their LLC in Delaware for business because of their business friendly laws. Curious of your thoughts on this practice and if its worth it. Thanks
Hmm. Never heard of that. In North Carolina, if you live here for three months and get pulled over with an out of state tag, it's a misdemeanor I believe.
LLC, Clarksville TN Good video, thank you One question. I started my first LLC this year, I run it almost completely alone,but occasionally get some help. What are the rules for paying part-time help as a single member LLC?
Claim those you paid as contractors on your tax bill so you account for that. That way you won’t get hit with paying taxes on all that money you’re making paying them
hey i would like to talk to you via phone or email i cant to get aome ideal of how to set up my LLC and what exactly am i getting taxed on when i make money and pay myself ?
Say I receive a W2 from my day job, can a depreciate 100% of a fixed asset in year 1, even if my LLC doesn’t generate enough revenue to cover that expensive?
If you keep the money in the llc and pay tax as the llc, will you also have to pay tax when you take the money for yourself therefore making you pay tax twice?
@@jimhart thanks. Is it smarter to pay yourself/take money from the llc to pay yourself weekly rather than leave all the money in the llc so if ever one runs into a lawsuit he will not be stuck into losing everything
If you draw a salary tax is paid, no different than if you had a regular job. You pay tax on the net income that the business makes also whether or not you took money out of your bank account or not.
I just form an LLC as a single owner this past January 2019. Do I have to file a tax return this month? Or I’ll wait at the end of the year? Thank you.
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Can you do a video on keeping all the receipts and how that works at tax time?
Just added it to the list!
Thank you!
Id love to see that
Yes. I am launching my LLC soon and I need to know how to pay myself a salary and how it all works when it comes to filling taxes. So confusing!
Very helpful. Answered all my questions about not drawing a salary as an LLC. Thanks
sachmo omhcas - Our team also has LLC's and we have a 7 year plan of no pay to the team/owners/investors. They are humble LLC's but we want to reinvest and not take any profit so we can maximize the company's return back into the businesses. We live minimally but it still feels good 👍
Thank you for mentioning Profit First book. Great read! Take care.
LLC...your videos are very helpful
Thank you Marco!
LLC, thanks for all your help!
Can you do a video on best practices to handle your LLC money (i.e. how much to keep it capitalized, what bank accounts to have for the biz [one for operational, one for taxes, etc.] That sort of thing) thanks!
Great idea for a video! Thanks!
You shouldn't need multiple bank accounts unless you're larger, instead keep your books and categorize the taxes as accrued taxes on the balance sheet
Clear and great information
Such a useful channel!
Does anyone else think of Community whenever they hear Hawthorne?
Thank you Mild Soup!
You’re awesome, man! Thanks for the LLC info.
Thank you!
Llc..thank you. Great content.
LLC, great break down.
I'm glad I'm making sense!
Thank You, makes sense! Very helpful
Info much appreciated
You answered one version of the question but I believe the question that was actually asked was if you can keep the money in the LLC to delay paying taxes. For example if you invested 10K into it and at the end of the year 100k was left do you have to pay taxes on the say 90k. What if the person wanted to use that extra 90k to grow the business instead of taking a distribution
Doesn't matter. You are taxed on the income of the LLC, not how much you take out. If you have no interest in taking the money out, then a C-Corp might be an option, because there you are only taxed when you take a salary or dividend from the corporation. But you also are taxed at the corporate level. That's why they say corporations are "double taxed".
@@jimhart then to clarify, the way to delay or reduce the tax burden would be to invest immediately and take either the deduction or start the process of depreciation. If the person wanted to delay that process to the following year then they would be liable for the 90k of income from the present year.
Ćan you make a flow chart of this information? Visuals really help.
Much appreciated
LLC Thank you! 🙏
I love your videos I wish I had the confidence you have in front of the camera, it isn't as easy as it seems
Very open and informative video!!!👍👍👍
What do you mean you do not have to pay yourself a salary? How do you document taking out the money from the LLC to pay your personal expenses? How do you use the profit for yourself?
Whether to pay yourself a salary depends on how you choose to have your business taxed.
Great Info. Thank you!
You are very welcome Keisha!
Extremely helpful. Thank you.
These videos had been really coaching me on our new business. Clear as water. 👍🏻
Great info.
Thanks!
LLC. Very helpful - thank you!
How are distributions for an SCorp taxed?
They get added to taxable income, but are not used to calculate self-employment tax.
@@jimhart thank you!
Can you do a Video on the logistics of contributions to solo 401k for single member LLC? How to maximize contributions when you have owner’s draw and thus no formal salary compensation? Thanks a lot!
With an llc, does any money that you personally put into the business count as income for the llc? And if it does how do you fund your business without having to pay tax for essentially just giving yourself your own money
Great info‼️
Thank you Rahim!
If you are a single member LLC could you refer to yourself as the CEO or your title could only be a member?
Started watching all your videos and love them all. Quick question can I start a LLC with no company like to get a jump on it and paying myself anything with a LLC is that the same in Texas if I want to do hotshot freight hauling? Thanks for all the knowledge you give.
LLC
LLC Great Info
Thank you Andy!
Thank you. Awesome content. If someone wanted to register an S Corp as an umbrella organization for an already existing LLC, what are some pitfalls to be aware of?
I'm getting back into the pro photography business and start-up costs are very high as equipment, advertising, travel are high. I also have to hire a CPA which is expensive. A reasonable salary is $200.00 per hour. I just don't see how one can pay that and then pay taxes on that and also keep money in the businesses account to start. How does one eat and pay bills and stay out of debtors prison until the business shows an actual profit? How long does a business have to show a profit? I have to buy my equipment little by little over a year and a half just to get started before I can afford to start my business. Are those purchases deductable even if I'm not a business for that period...once I do become a business? I would literally have to keep my business account drained just to live for the first few years until my business matures. I lost everything, became homeless, and now just getting back on my feet. Do I go to debtors prison if I can't show a profit because I have to live?
This is epic
As a sole owned LLC, it doesn't matter what you get for a salary, because you own the LLC, and will pay Individual taxes at your level, on every dollar your company makes.
What if a family member has a LLC and wants to employ a family member with a disability and if the government will pay for it?
Engagement!
Thanks for watching ontario39212! I appreciate it!
Can you conduct online trainings on Offshore Trusts and Foundations?
LLC - - - - topic ideas: not sure if you can cover it since you specialize in the southeastern US. One, there is a loophole many people use to avoid paying license fees on expensive cars. They start an LLC in Montana then register the car to the LLC. Never have to set foot there. I wonder if those doing this have to go all out on their Montana LLC or if they can simply register the LLC, register the car and that's it. Also... I'm reading that many people start their LLC in Delaware for business because of their business friendly laws. Curious of your thoughts on this practice and if its worth it. Thanks
Hmm. Never heard of that. In North Carolina, if you live here for three months and get pulled over with an out of state tag, it's a misdemeanor I believe.
Here's a video explaining how it works if you're interested. ua-cam.com/video/hDxoHdqnfRU/v-deo.html
Hey Hawthorne Law. Question?
As an LLC, can you recieve donations and or, sponsors? 😀
LLC, Clarksville TN
Good video, thank you
One question.
I started my first LLC this year,
I run it almost completely alone,but occasionally get some help.
What are the rules for paying part-time help as a single member LLC?
Pay them as 1099 independent contractors.
Claim those you paid as contractors on your tax bill so you account for that. That way you won’t get hit with paying taxes on all that money you’re making paying them
@@Vohskeestylee
So ,as independent contractor I don't have to deduct FICA and social security?
@@cristopherfistunenko272 far as i know you do not. 1099 workers take care of their own taxes and pay self employment tax
Shouldn’t you keep your personal account and money separate in a single member LLC?
Yes!
I need Info on multi member llc. Example my wife and me as the two members. I need info on filling tax return
llc
Is 25%-30% a good percentage to set aside for taxes & will that cover all the taxes in a (typical) case?
For an LLC it’s 15% of your net.
I am on disability, so if, if, I make 50,000 LLc, would I use my s s d, ssi?
Brenda Smith sounds like fraud
No, I a musician, and in the music you can have o, 1 day and be rich the next. Dreams don't give up. People do
Is there a difference between being and LLC and PLLC?
Not really. A PLLC is for a professional such as a doctor, lawyer, accountant, etc.
Are you in Colorado?
hey i would like to talk to you via phone or email i cant to get aome ideal of how to set up my LLC and what exactly am i getting taxed on when i make money and pay myself ?
LLC.
Say I receive a W2 from my day job, can a depreciate 100% of a fixed asset in year 1, even if my LLC doesn’t generate enough revenue to cover that expensive?
Hi Eli - That's a great question. I'll try and address depreciation in a future video.
You seem to imply "tax avoidance" is illegal. I've always been told that tax avoidance is legal and tax EVASION is what is illegal.
What are the attorney fees for these business procedures?
Depends on the attorney and the scope of the work to be done. Many attorneys will charge a flat fee or monthly retainer for ongoing legal work.
LLC ? If you don’t take money but my money is taxed at 15.3% on my net income?
Correct - all of the net income of your LLC is subject to self-employment tax, even if you leave all the money in the business.
If you keep the money in the llc and pay tax as the llc, will you also have to pay tax when you take the money for yourself therefore making you pay tax twice?
No - an LLC is a flow through entity so the income from the LLC flows through to your 1040.
@@jimhart thanks. Is it smarter to pay yourself/take money from the llc to pay yourself weekly rather than leave all the money in the llc so if ever one runs into a lawsuit he will not be stuck into losing everything
LLC!
What happens in a S corp if you don't pay yourself a reasonably? Thanks
It's possible the IRS could come looking for their money.
Are you required to pay social security with an llc?
Thanks for watching ken! Yes - it is paid through your self-employment taxes.
So at the end of the year they will tax me or my LLC or both?
You will be taxed based on the net income from your LLC
So the LLC doesn't get taxed at all even if it has profit? Just you get taxed for any money disbursed you from LLC?
New sub here like the video
Is the salary taxed as well or just the LLC's profits? If I leave it all in my business how do I take money for myself then?
If you draw a salary tax is paid, no different than if you had a regular job. You pay tax on the net income that the business makes also whether or not you took money out of your bank account or not.
Llc
I just form an LLC as a single owner this past January 2019. Do I have to file a tax return this month? Or I’ll wait at the end of the year? Thank you.
On April 15th, taxes are due for the 2018 tax year.
Thank you
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@@jimhart :
With all due respect, No, thank you. We need sound "not legal advice, information for entertainment purposes." 😉👍🏿
Llc