Tax Differences EXPLAINED: LLC, S Corp, Partnership, Sole Prop

In this video, I explain the tax differences between a sole proprietorship, LLC, S Corporation and Partnership. I also explain how much tax you might owe for each entity type, how to make those tax payments and when those payments are due so you don’t have to worry about late payment or filing penalties.

Links to websites used in video:

🔗Useful Links:

📁 Setup your LLC or Corporation for FREE:

If you learned something from this video, please like and subscribe and follow me on my various social media handles below. If you would like to contact me with a specific question, please visit my website or leave me a comment.

This video was created for informational purposes and it is not to be construed as legal and tax advice specific to your unique situation. Some of the links above are affiliate links which means that if you purchase a product or service with the provided link, I may receive a commission with no additional cost to you.

© Navi Maraj CPA PLLC. All rights reserved.

#scorp #llc #taxes #explained

[rogersmj]

This is by far the clearest explanation of this topic I have yet run across. Very well presented, having apples to apples examples in a clean spreadsheet format, as opposed to the random whiteboard scribblings that some others do that are really hard to follow.

[lunamorris]

Would like to see more of these types of videos where small business owners can get educated on how to understand financials and use them to improve their business

[xpress-notary-pro]

☑ I don't leave a lot of reviews, but this video and another one in your list completely lifted the scales from my eyes. I was blind and now I see! You helped me make a decision about whether to go the S-Corp route and saved me from making a huge mistake. Thank you for bringing free content that is completely useful on its own. I have you bookmarked. I definitely want to take your course once I get my business up and running.

[adamkalon]

I rearly leave comments but you are great!
This is EXACTLY what I have been looking for so long. I graduated from financial university in Europe but now I live in the US and I need to understand your microeconomy regulations work. Your video is just a great example of top notch teaching, it helped my to obtain more clear vision on how to run my own company and what type of entity to choose. I didn't even know about QBID. I'm going to comple your whole course. Thank you again!

[gummybears-n-crime]

This was excellent and helped me decide to open an s corp vs LLC as an independent contractor

[parleygentry]

Super clear explanation. Setting the numbers up like that gave me a visual idea of how I should set up the business

[alihakim]

Navi, this was an absolutely phenomenal explanation compared to everything else I’ve seen on YT. I appreciate the disclaimers regarding QBI and SE deductions, since many people leave these out and don’t mention it. Your clear ability to share knowledge makes me want to use your course. Thank you!

[pazsugarspice]

Your videos are excellent. You have a dedicated agenda without jibber jabber, clear video and audio, and speaks to people who are not CPAs. I've seen a few other videos and you mention about book royalties may not be taxed as self employment, as it is intellectual property and not a service. I would love to hear more about this topic. I have set up my business as an author as a SMLLC, but was considering being taxed as an S corp if I do exceed $40k.

[amyroberts]

We are thinking about converting from a LLC to an S Corp. This was extremely helpful. Thanks!!

[MrElvin]

Very well explained, I’m CPA in Puerto Rico and is very important get an advisory from a CPA.

[carlosgarcia]

Hi Navi. This video is great. I have tried to find a video with an expatiation like this one you just did and I have not found anything like this. You are great. Thank you so much!!!

[islandst.maarten]

I'VE WATCHED A LOT OF VIDEOS BUT THIS ONE WAS VERY UNDERSTANDABLE. THANKS

[cathyjohnchang]

Excellent job! You explained very clearly with a clean easy understanding spreadsheet. Really appreciate it.

[TXRoeJogan]

This is exactly the kind of video I was looking for, super basic but thoroughly explained, thank you!

[briemalagarie]

Great job explaining this! I have used this video to help so many people understand these differences!

[ronaldoquiroz]

This was so helpful. Its my first video from you and i'm definitely gonna try to binge watch the rest of your videos. good job brother!

[shaunquilty]

You did a great job, explaining how each entity pays their taxes and what is required but you didn’t explain to me any advantages of what each one offers so you just wasted like an hour of my time and now I’m super convinced on why it’s just good to pay so I wanna do your taxes. Thanks.

[finalflare]

Best video online. Please keep up with the visuals of your explanations. It helps visual learning a ton.

[nandakumars]

Spot on, exactly what I was looking to learn. Thank you for your time in helping everyone!

I am new to forming an LLC and learned a lot through your videos.

As an S-Corp, when exactly can you withdraw the "distribution" amount (60k in your example). You pay taxes on 88k anyways - is there a reason to leaving that distribution amount there?

At the end of your video, you suggest that over 60k can go to a Roth. What about Pre-tax retirement contributions? SEP IRA not an option for S-Corp?

[josephinebardot]

I’m more than happy to discover this channel. I need to thank you for your time for this, particularly a fantastic watch!! I liked every little bit of it and I have subscribed you to look at new posts all the time.