S Corporation for Dummies

All the basics to an S-Corporation.

00:00 Intro
00:37 What is an S Corporation?
01:08 Why S Corporation?
01:29 How do S Corporation tax work?
06:48 How to pay myself with S Corporation?
08:00 Tax Deadlines for S Corporation
09:15 Importance of Bookkeeping
10:19 Additional Costs of an S Corporation
11:18 Why did I get taxed on money that is still in the business account?

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EA Tax Resolutions Phone Number: 800-245-0596
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

#IRS #smallbusiness #tax

[lewiegun]

Oh my goodness, this is the breakdown I've been looking for. This needs to be the first video on search results for contractors looking to understand the benefits & how-to of setting up an S-Corp for their work.

[sophiafoust]

I love the way you breakdown everything so simple

[jesusramos]

Very helpful. Enjoyed the presentation and using blank tax documents to walk through the examples. Thanks!

[sophialorenzi]

this was the most helpful video explaining S-Corp taxes THANK YOU

[arrlos]

This was a great video. Wish I had seen this first before all the articles/blogs I read all freaking weekend

[NinaCornelison]

so incredibly helpful and well explained! thank you

[JuniperSalon]

this was so helpful! the breakdown was simple and I really really appreciated it!

[Simonjose]

An LLC is a tax entity, and an S-Corp is a filing status you elect. As far as the IRS is concerned, you're either a sole proprietor, a partnership, or a corporation. Now, they want to see what you're doing with your LLC, too. That used to be between you and the state.

[bobg]

Disadvantages of a sole proprietorship is No liability protection

[laryebabe]

Do you have a tax course on learning Corp/Partnership returns? The way you explain works very well for me! Lol I’m also a new Tax Preparer!

[allenzhu]

but we will get taxed on the personal side if i distribute the profits?

[allenzhu]

how many times can do i distribution ? is there a limit or rule of thumb on how many times we can do?

[eataxresolutions]

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[wisdomwise]

Do you recommend an S or C corp or LLC? I want to pay the least amount of taxes. Do you offer consultation?

[MasonDeruelle]

Very curious, am I required by the state of California to provide myself with workmans comp as a general contractor if I am an employee of the S Corp? If so- this would add quite a bit to the cost of placing yourself on payroll. Its almost $1 per $1 for workmans comp as your earning wage, so technically that would be an expense that seems you would avoid as a sole prop. I wonder if anyone else has had this same question.

[alexmerino]

I’m a new booty at this, but at the end of the video you said distribute the profits into your personal account before you continue to get taxed on it…so does this mean you have to get taxed on the profit AGAIN!!! When you distribute the profit to your personal account ?

[Simonjose]

Yeah, but the profits pass through to your income taxes where you have to pay federal and local taxes. The only difference is that there's no FICA tax. The Feds just don't directly tax the corporation on the profits like they would with a C-Corp. You're saving money on paying less FICA and potential deductions and expenses a corporation can take. [With the K-1, a partner's earnings can be taxed at an individual tax rate versus the corporate tax rate. The tax rate an owner/shareholder pays on S corp profits is determined by their individual income-tax rate, which can be anywhere from 10% to 37%, depending …]

[ExquisiteBossin]

Can we take further deductions on our own personal tax returns (schedule C) that was passed down from the payroll or K1 income

[Simonjose]

6:08 At your marginal tax rate between 10-37%. You're not just paying state and local like you just said a minute ago. You're just not paying FICA.

[park]

thank you for the helpful info - one question. In your example SP had profit of 100k, S-corp withheld taxes on payrole, but theres still the 60k that you keep referencing gets taxed. So where exactly is the tax savings? arent you just paying the same taxes but in the s-corp you pay quarterly on the 60K? slightly confused. Thanks!