LLC vs S-corp! | Why You Need To Know This!

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00:00 Intro
01:07 Topic Overview
02:54 LLC: Best Starter
03:34 S-Corp: Saves Taxes
04:28 LLC: Convert to S-Corp
04:53 LLC and S-Corp: Middle Ground
07:54 S-Corp: Require Paperworks
08:13 LLC: Audit Risk
08:50 LLC: Two-member LLC
11:18 S-Corp: Minutes Paperwork
13:52 LLC and S-Corp: Set Up
15:02 S-Corp and LLC: Partnership Flaws
16:32 S-Corp and LLC: Work Together
17:26 LLC: Name Does Not Change
18:43 S-Corp: Self-Employment and Solo 401K
21:31 S-Corp and LLC Tag Team Against C-Corp
22:48 Dynamic of S-Corp, LLC, and C-Corp
25:37 Main Take-Away
27:05 Last Words
29:28 Outro

[sppro]

I've started a snowcone and Smoothie business in Philadelphia since 2018 and finally about to formed my first LLC. As a small business owner you don't always makes profits your first few years and it true. It take time to built your brand like Adidas and Nike guys. Self Motivation and dedication will take you a long way in life (in general).

[clearviewproducts]

I always asked my professors I'm business school for these details between entities. They had nothing other than corps get double taxed, do an llc. Your info is rad. Cheers.

[ScottJLetourneau]

Great video on why business owners should consider starting off sooner than later as a single-member LLC disregarded and later making the S election if necessary for the current year to save on SE taxes. Plus, the LLC formation is a better marketing message and will start you down the path to separate your personal and business credit.

[greggriffin]

I made a huge mistake of not keeping track of all the work and expenses I did for the 2 years leading up to signing a lease for my first business. Tons of travel expenses, home office expenses, equipment expenses, meeting expenses, etc. I should have started by watching videos like yours or taking a basic class on this stuff, but instead it cost me over 50k in mistakes. After 7 years in business, we are finally converting to an S Corp.

[mikemarino-pilotrealestate]

Love the action packed, pull no punches format!!

Side note for the editor. There is 16 minutes of dead space after the episode. I almost didn’t watch because I didn’t have 45 minutes available. After discovering that it was only truly 30 minutes I watched and glad I did.

[teeieahughes]

I loved this and I could follow every sing word loll Thank you so much

[keemafarrow]

You guys are great! Thank you for the education. 😊

[radicalaccounting]

That joke about "9 out of 10 accountants ask you to do minutes and the 10th one is a moron" is the first joke I've really laughed at. Good call.

[MadOldMan-ckwq]

Excellent information you can both earn $500.00 along with a viewer in April per Schedule A to Z Interdiction Trust, with Schedule F for pink slip defense and Schedule L for LLC and life Insurance defense.

[willharrison]

great video/podcast, really learned a lot. Thanks!

[erickfuentes]

What do you guys means by doing minutes on my LLC annually???

[monamelte]

Solo 401K?? What about a whole-life insurance policy with an infinite banking concept, aka, private banking??

[WallStreetIceCream]

Live in California. I wanna buy real estate in another state. Should I form an LLC? should I form in the state I end up buying ?

[cguertin]

What about a Canadian who invests in U.S. real estate? LLCs don't work for us (I believe). What entity or entities do we need?

[ramzee]

Excellent as always !! Love your videos and attitude!
I started my LLC 2 yrs ago; 1st yr we made $50k, last yr we made $200k and it looks like we owe a of taxes !! Can we save that ? Can we switch to S-Corp to save last yrs taxes or even if we change now, last yrs’ taxes will be treated as an LLC?

[victoriastathis]

Only a natural persons can hold shares in an S-Corp. LLC membership can be with a corporation. This could potentially reduce the K-1s to your personal returns, which might apply if you are a real estate investor that uses loans.

[cesarnavas]

The best reason to use an S corporation is that rental losses become a Net Operating Loss which can't reduce your tax liability to Zero even if the Net Operating Loss reduces your personal taxable Income to Zero, the Net Operating Loss will automatically generate an Alternative minimum Tax and the Net Operating Loss has no benefit to offset against any other positive income that you report on your 1040 tax return.

The s corporation allows 100 % of the net operating loss to reduce your taxes to zero

[roaldrealtornews]

Mark..Iam in Austin Texas...whi can i call to see.about your services here in Austin Texas...
👍

[reecet]

You said that you don’t have to have a llc or s corp to start business and that you do sole proprietorship. I am independent contractor with multilevel marketing company and have bought digital software assets where I earn crypto rewards daily. How can I get tax deductions on the nodes I bought? Do I need llc or what type business do I need?

[j.a.terranson]

ALWAYS do your annual meetings/minutes! This is the #1 way to really get yourself screwed: no minutes will get your head removed by the IRS when they get around to you!