No one ever mentions the tax responsibility from the S Corp by issuing a W2. The corporation must also pay its fair share of payroll taxes to the IRS and local tax authority, in addition to the taxes paid by the W2 recipient. Most people just think, oh, I'll just issue a W2 to my 'employee' and that's that. Nope, not that cut and dry. The corporation must also pay all the federal and state taxes, which is equal to the same amount the employee deductions to those same entities. So please make sure you have enough capital to account for payroll... Which in addition includes state and federal workers comp, unemployment, and even local municipality taxes like we pay here in NYC.
@danawaldrop4930
7 ай бұрын
Consider that by 'paying' a business owner's taxes that means the tax you think are "paid" are actually withholding taxes. If an employee is paid then the tax is withheld from that person's earnings so yes - the business has to then give it (or as you call it "pay" it) to the gov. If withheld from the owner, that is tax paid-in on his 1040. But if you're in NYC it's even more ridiculous I'm sure! My explanation is monies paid by your business on behalf of your employee (withholding). It's not a tax the business is paying. I hope that made sense!
@zmcleod
3 ай бұрын
Yeah … payroll taxes suck
@youngprince716
6 ай бұрын
Hey, thank you for the video. Very well put together. I'm just wondering around the 16:00 mark, when you were talking about filing s Corp and the more you make the less you pay on taxes as pay roll decreases, what is that other money classified as? The money that isn't payroll. And theres.. just.. no self employment tax on that portion? Interesting! Thanks for the video again. I need to look into your tax advisor network you mentioned. I'm just starting off
@ogolden8315
5 ай бұрын
Don’t know if you ever got the answer, but for S-corp, after you take into account all the expenses (which the payroll taxes are part off) … the Net Profit or Loss flows through from the S-Corp to you the individual(s) to your personal return as distribution and usually taxed at the individual income tax rate.
@Urla..
10 ай бұрын
2023 been a challenging year, but I managed to make $250,000 before taxes as the sole breadwinner and head of household. It's a good starting point, but I'm always looking ahead on how to improve.
@clintscott3300
10 ай бұрын
You might want to consider starting with a different approach, like the snowball method. Focus on one loan, usually the smallest one, and direct all your resources to pay it off while maintaining payments on the others.
@MimaLopez-jt4vq
10 ай бұрын
Another option is to work with a money coach or investment advisor. While an investment adviser focuses on the long term, a money coach can help pay off all your debts, maximize cash flow, and create systems for proactive money management.
@Vinyvasquez
10 ай бұрын
A financial adviser could also provide a holistic plan for your money, addressing both short and long-term goals. I've been consulting with Monica Mary Strigle from WA, and it's been transformative. Making $662k in the past 8 months from barely $400k gives me high hopes for 2023.
@clintscott3300
10 ай бұрын
That's impressive! Who is Monica Mary Strigle, and how can I reach her? I've tried finding a good adviser around me, but it seems impossible without exorbitant fees. Can you share her fee structure as well?
@Vinyvasquez
10 ай бұрын
Monica Mary Strigle is highly ranked and renowned among investors in WA. I was referred by a friend at the Washington Post. You can find her online, and her fee structure is reasonable considering the invaluable guidance she provides.
@EconomicNinja
11 ай бұрын
I think we should meet
@MarkJKohler
11 ай бұрын
Hey there! Yes let's connect. Please reach out to my assistant at kirbi@markjkohler.com - thank you!
@CrissyDrill
9 ай бұрын
I feel like such a scholar to have traveled the financial business channels comments to discover this gem! The official connect of these two amazing channels. What a treasure 😀
@AF_1892
11 ай бұрын
Love your pitch mark. I am struggling through my sole proprietor taxes from 2022. I'm a MD and being a sole prop is killing me. I will def get set up with y'all. I'm in WI. It took the pandemic for me to realize I already spend 3k-5k a year on malpractice. I don't HAVE to just contract for a place. Sorting through the cashapp payors, all my 3rd party pay is out of wack. I think I only started to move beyond my rent and have 1k a month, was due to spending money to make money. My addiction patients get better, but then they don't need me anymore (BC I ROCK) and don't rip patients off. Looking forward to some aggressive tax pro to help me! Will call. The taxes must be done by Oct 31.
@futurekron
6 ай бұрын
Oh HALLELUIAH! Someone who finally outlined why I should go S-Corp instead of LLC. I'm running up against those pesky self-employment taxes, and want an entity that I can use for investments, etc. Thank you!
@eliasesteban6805
11 ай бұрын
Thank God for this man and his team! 🔥🔥🔥 Awesome content. 👌
@-Jason-L
7 ай бұрын
You aren't paying self employment tax on side hustles if your w2 job maxes out your social security contributions.
@bunnyandbeyond
12 күн бұрын
I loved this 🎉 my concern is that I travel full time and although I have a home address, it’s really just my family’s residence and I don’t reside there. They usually forward things to my current addresses and I pay them for it. I don’t have an llc, I have so many financial boundaries bc of where my income comes from, I don’t even know where to start filing for a biz license. Help please?
@ramoscollege
10 ай бұрын
Should I just start with a s corp? If not at what money mark would I transfer
@devinhulse667
Ай бұрын
Mark, I love the video. I do have one question though, I own a Wyoming LLC for my real estate because it can be anonymous when people look up the property. I believe Delaware is the same way, when you say different state LLCs don’t matter do you mean from a state tax perspective or just in general? Because there may be some qualitative reasons to be in some of these states from what I’ve learned. Let me know your thoughts if you see this, thank you!
@peery2008
11 күн бұрын
My accountant charges 1500 for a tax return, then if you have a business, an add-on charge of 2000 is required.
@lenitaramossunshinerealty6606
2 ай бұрын
I am learning so much with your video, thank you for taking the time and teaching me how to be more profitable.
@danawaldrop4930
7 ай бұрын
It would be a good idea to do a video explaining what to do when the SCorp has losses. (I haven't listened to it yet.) A video on calculating Basis would get watched a lot too!
@eoliverjdmba
4 ай бұрын
SCorps are pass-through entities and losses flow thru to the W-2 pre-AGI
@fixapony
11 ай бұрын
Love you guys and all your content, but the new video clips and animations and stuff are SO distracting it's hard for me to watch... 😢
@adamf8964
26 күн бұрын
S-corp sounds great, what are the disadvantages of an S-corp to a LLC?
@EAster33
9 ай бұрын
10:50 I have zero idea what you are talking about but LOVE the passion
@brianmaloney45
10 күн бұрын
This video is literally word for word the same as others on the same topic....
@TheGregPerry
10 ай бұрын
All your info is SO great, Mr. Kohler. Thank you for everything you do here. I'm a single-owner Sub Chapter S Corp. I *think* I must take all of 2023's K-1 income, but I won't know what that is until into 2024 when all accounts are settled and my Accountant finishes December. But I heard that I must withdraw all my 2023 K-1 earnings in 2023. How is that possible with the reporting lag?
@josephinebardot8403
7 ай бұрын
Thanks for sharing such a video. Much needed. It was so convincing. Nice work.
@meikamolly
11 ай бұрын
My business is an LLC taxed as an S-Corp. It saved me tons in taxes last year. But you say you must pay state taxes where you sit your butt in your seat. What if you are a military spouse and your home of record legally is elsewhere other than where you sit making your money. Per the Military Spouse Residency Relief Act, I should be able to maintain legal residence in the state where we used to live. My online business still operates out of that state. My EPA says this is okay per the Servicemember's Civile Relief Act. He says once we change our domicile with the military we will need to do the business state switch at that time. But now I worry after watching this video. This is all very hard to navigate when you move ever 2 years and have a successful business that you operate out of the home.
@ramoscollege
10 ай бұрын
You should be fine. I'm in the military and my wife works in one state but get tax states from my home of record but I'm exempt from state taxes, so she pays no state on her employment and if she does we get it all back when we file taxes.
@iamanovercomer3253
11 ай бұрын
Using joe biden as an example is like using hilter as a saint ‼️🤣😂
@chinodadawg8709
6 ай бұрын
Great video dude but ur lowkey had me laughing 😂
@SophyTiffany-r7g
17 күн бұрын
Martinez Matthew Johnson Donna Johnson Eric
@GetPublishedForever
17 күн бұрын
Thanks for sharing Mark! What if we live outside the USA and are American. Does that change how we choose what state to have our business based in? I'll be watching and reading more of your content from now on. Thanks again!
@maryfrenger4539
8 ай бұрын
Thank you for making my mind clear regarding LLCs I’m planning to start a business
@RhondaFike-se8vk
13 күн бұрын
Got a cpa at my other 2 farm business
@landdolphin9969
25 күн бұрын
750,000/13,000,000=0.057 which is 5% salary.
@armendshaqiri7621
23 күн бұрын
Thank you for explanation. Im opening a construction business getting up to 8 million in funds. Before having an llc or anything I got a 150k contract signed. I called an insurance they told me itd be 50% cheaper on filing as a scorp and be 2 weeks faster to start up. I was worries if operating as an scorp would screw me on taxes looks like its the opposite.
@RaceSkin
2 ай бұрын
I tried calling but the call drops
@donaldbermudez7771
2 ай бұрын
Hey do you have a team or connections in Philadelphia Pennsylvania specifically? Philly has a draconian and unforgiving tax system, so it must be a CPA in the city, not near, because you have to be a damn near expert to deal with the municipal system of Philadelphia. I imagine there are similar nightmares for small business in NYC, Chicago, LA, Phoenix, Miami.....you get the point.
@jaimeabello5208
3 ай бұрын
Thanks for your video. I live and pay taxes in Canada. Can I open a company in the US? Which state? Thanks!
@henryjonesphotography4934
5 ай бұрын
Is there a minimum amount you should make before you change to a s corp from a LLC?
@Funtimes900
5 ай бұрын
This guy is awesome thank you 🙏🏾
@alxandra-q1r
5 ай бұрын
Can I start with a Scorp instead of an LLC? I am starting my new business. I always hear that you need to do a LLC first and later Scorp.
@The_OG_JZ
6 ай бұрын
Couple questions say I’m starting a business that has to run for a few months then can get a higher certification and do more business with that cert, but if I change the the entity type I lose the cert and have to start over should I just start out as an s corp. also if I’m trying to start a business in ca but my license is in nv should my llc be in nv or in ca ? And if my llc is in nv can I register my city business licen in to that nv llc ? Or does the llc have to be in ca as well?
@luisrolon6421
11 ай бұрын
My "SAUL". do not change.
@EAster33
9 ай бұрын
What is “ too much money” amount to switch from llc to scorp?
@MiyaJeanLaroii
5 ай бұрын
Great question. I’m wondering the same thing. I’m so torn on which one to get still bc the “amount” is never specified.
@ogolden8315
5 ай бұрын
@@MiyaJeanLaroiiI worked for an accounting tax firm that did business taxes. Usually once a sole-prop/small business starts making about $40-50 thousand in Net Profit and we are there is going to be continuity……we start advising them to elect for the S-corp.
@MiyaJeanLaroii
5 ай бұрын
@@ogolden8315 Understood! So if you are not in the bracket of approx $40-$50 income, you shouldn’t consider the S-corp. Thank you!!
@taxkingusa
11 ай бұрын
Please note that once you make over $160,200, Social Security Tax is no longer applicable.
@jimross2101
11 ай бұрын
No, that's the cap. You still pay into the fund.
@DefinitelyNotRin
7 ай бұрын
no you don't lol. perhaps you're misunderstanding. You will pay social security on the 160,000, but the money made past that won't. So let's say you made 200,000. 160,000 of that money will be taxed by social security while 40,000 will have no social security taken from it@@jimross2101
@CraigK5thGen
7 ай бұрын
The annual SS wage base changes year to year, but the MEDICARE part is paid on every dollar of wages from $1 to infinity.
@onetapmindset
8 ай бұрын
I’m excited to use these guys create my trifecta just put in an offer that was excepted for a business in Chandler Arizona going to create an S Corp.😅🎉
@naomiortega7468
5 ай бұрын
Very informative thank you! Does this all work the same way for starting a non profit?
@d.s.8733
6 ай бұрын
That was a Priceless Dumb and Dumber statement starting @ the 4:45 minute mark :)
@ericdoheny9108
11 ай бұрын
H&R Block and other chain tax “professionals” are sooo useless. Thanks Mark
@zahirkhan778
9 ай бұрын
Is it still beneficial for a single member LLC to elect S-corp tax status?
@manuellopez504
10 ай бұрын
I need help!!😂😂
@nathanhoang9665
6 ай бұрын
You provide exceptional lesson and advices. Coming from an accountant
@Genovia816
11 ай бұрын
Mark where have you been all my life 😍 Your passion is going to help me be a profitable business owner
@CryptoQueen8888
7 ай бұрын
Are business loans from a 3rd party such as a lender guaranteed by me as a 100% shareholder in my SCorp contributions that can be added to my basis????
@CraigK5thGen
7 ай бұрын
Only shareholder loans to an S Corp will give you “loan” basis (different than “stock” basis). In a partnership (the default treatment for a multi member LLC) you get debt basis for recourse debt and qualified nonrecourse debt.
@trevorl1099
5 ай бұрын
Not worth even opening up a business in the US, yet alone California...crazy smh
@Serg-mo3ge
5 ай бұрын
Do you know from experience?
@chechegriffin2047
7 ай бұрын
At what amount earned I need to transition to the S-Corp?
@HugeGains
5 ай бұрын
Where should I go to get a my first s.corp
@Healyouradrenalfatigue
8 ай бұрын
Do you need an LLC for property you own for 250K if it's your primary residence or only if it's a rental property?
@KAGVE84
7 ай бұрын
Putting it in a revocable trust will make more sense if it's your primary residence and not a rental property.
@JohnOfthepeace
11 ай бұрын
Is it worth changing my Regular LLC partnership for a S Corp. It will only make $1000
@I_have_Aquestion
11 ай бұрын
Buy $1,000 worth of bitcoin with that every year, and historically speaking, it will appreciate +/- 135%/year. Do the math on that while considering the $1,000 will depriciate ~7-14%/year and that $1,000/year is definitely worth it.
@antoinetteokeefe3749
10 ай бұрын
what does k1 mean?
@markwegner6100
3 ай бұрын
Googlable
@dapingzheng8016
7 ай бұрын
But s Corp in NYC, you pay 8.85% NYC general corporation tax?
@RqLpz-ei6uf
4 ай бұрын
I FELT THAT ROCKSTAR TALKING TO ME 🤣😭
@VictoryH
2 ай бұрын
Appreciate the information!
@markrmgliberia4548
5 ай бұрын
S-corp requires more accounting and reporting however if you are paying yourself more than $80k per year it is worth it
@brianehardin2901
5 ай бұрын
I need the clean up system and In compliance
@PlanMotiff
8 ай бұрын
i dont understand this yet but im saving it for later.
@laurak9472
7 ай бұрын
I have a LLC business without employees (providing design services) with Scorp Status. I pay myself and get a W2. My partner is retiring and removing himself as a member leaving me as a single member ownership. I plan on revising members to include my spouse with 51% (me), 49% (spouse). Spouse and I also have an LLC with an S-corp election status for a rental company (50/50 member split myself & spouse). I know I know, it shouldn’t be an scorp!. We have not used the LLC yet because we have not purchased a rental yet (in the works though). Planning on reversing the S-corp election on that LLC before acquiring a rental and quitclaiming property to the LLC. Am I on the right path here….?!?!
@CraigK5thGen
7 ай бұрын
Terminating the S election would typically result in that LLC then becoming a “C” corp. just save or scrap that LLC and incorporate a new one and LEAVE it as a default partnership if the intent is to hold real estate in it.
@brewdog8568
4 ай бұрын
You said you have an LLC, but pay yourself and get A W2. Are you saying you give yourself A W2? Because you can't do that an LLCs is a pass-through for taxes so your just creating more taxes.
@craigkish8522
4 ай бұрын
@@brewdog8568 You're wrong. If an LLC makes an S-election, an owner-employee is actually REQUIRED to draw a W-2 salary for reasonable compensation. And they're not creating more taxes, they're lessening them. The remainder of the profit the LLC earns escapes payroll taxes (SS/Medicare) as the owner's distributive share is no longer subject to SE tax as it otherwise would have been had the LLC remained taxed as either a disregarded entity (if owned by a sole member) or a partnership if multi-member. Also, @laurak9472 terminating the S-election is considered a taxable event. If there's no appreciated property within the LLC yet, likely not any concern. I'd recommend discussing with your CPA first (or finding one if you don't already have one...) before you do anything. It might be worth closing that LLC and just starting a new one. Again, discuss with your CPA and possibly attorney too.
@brewdog8568
4 ай бұрын
@craigkish8522 I no that. They made it sound like they where paying a w2 our of just an llc. Or I understand what they said wrong
@cbbcbb6803
5 ай бұрын
What to do about about FinCin?
@sifounsoumetho9815
5 ай бұрын
Mark I need CPA who knows this stuffs.
@MarkJKohler
5 ай бұрын
We got you! Head to our Main Street Tax Pro Network who help clients nationwide and would love to help you - please get connected to one of them here: taxadvisornetwork.markjkohler.com/
@whymindsetmatters
11 ай бұрын
Should my holding company be an llc taxed as a c-corp and my operating llc be taxed as a s-corp? The operating llc is for my real estate interior design business. Thanks!
@unbelievable9750
11 ай бұрын
Stop making things difficult for yourself. Forget about holding companies and c-corps and all that crap. Get one entity that’s an LLC and start from there. Most importantly you have to make money before you can even think about these types of strategies. And even if you are making money, you rarely need holding companies. They provide no tax advantages unless we are talking about SEP retirement plans. They provide some asset protection, but not much else. Then you need to file two tax returns and have two sets of accounting books, which will cost you $1k in tax filings plus accounting fees. Stop making business so difficult.
@ScottJLetourneau
10 ай бұрын
Typically, you only need one LLC for your business (unless you have others with partners or multiple successful enterprises). If you have other significant safe assets outside of a retirement plan or real estate investments, that would be in a separate entity. Most have too many entities, but everyone's situation and risk tolerance differ. These guys in the video are great to follow and learn more from.
@MadamT_
10 ай бұрын
Thanku!
@Unknown-pv6fr
2 ай бұрын
God bless you Sir
@bryantgambrell8209
11 ай бұрын
Great content.
@eliaslawnandpainting
11 ай бұрын
wow!!!🎉🎉 Thanks so much Mark. Your awesome
@BruceMcKeever
7 ай бұрын
Do you recommend an s corporation for a owner operator truck driver?
@Mr_unstoppable_1804
2 ай бұрын
I am a truck driver myself and yes an S corporation is better
@MonaLisasApple
Ай бұрын
Thank you
@chadbrambers8346
5 ай бұрын
Gold
@PatentFinance
5 ай бұрын
12:35
@frankylo_4802
5 ай бұрын
AWSOMEEEEE
@ikechicoreralation
10 ай бұрын
🔥🔥🔥
@johnpennington9770
4 ай бұрын
Thank you sir 🙏
@johnpennington9770
4 ай бұрын
Sir, I'm in the Los Angeles area, and I want to get a LLC. What office should I get in touch with? KKOS or Mark J Kohler?
@johnpennington9770
4 ай бұрын
One more thing, for books that I want to put on Amazon and supplements. LLC or S-CORP?
@rlind3549
7 ай бұрын
what about us who use a w-8 ben form? those of us who got out of the corporation called "UNTIED STATES" !!
@Freedomridingcompany
10 ай бұрын
I have two commercial rental properties and both are currently LLC's. Is it possible to file for "S" Corp status for 2023 and can this be done now before the end of 2023 or do I have to file it for 2024?
@unbelievable9750
11 ай бұрын
Mark, for the love of god can you please explain to people that they need an accountant before they think they can just file to be an scorp. It’s astonishing how many business owners don’t have an accountant and they watch some trash videos online by individuals who have no knowledge on taxes or accounting and they do everything wrong.
@RichAyers
11 ай бұрын
In Florida, Realtors can’t incorporate as an Scorp. Only LLC. Can I just file as llc and elect to be taxed as scorp?
@unbelievable9750
11 ай бұрын
@@RichAyers yes. Don’t worry about incorporating. It’s no difference than starting an LLC. Then elect to be taxed as an scorp. LLC is a business structure/entity and scorp are not business entities. An scorp is a tax election created by the IRS. Let me know if you need help. I’m in the Florida area as well. St Pete to be exact. I have my own accounting and tax firm. We can swap contact info if you’re interested.
@NFTMule
11 ай бұрын
@@unbelievable9750I'm a handyman in St Pete. I'm looking for a good accountant to help me get all my deductions. I'd love to meet up and chat.
@unbelievable9750
11 ай бұрын
You save 50% on self employment taxes through an LLC?
@beezytalkingshit9319
7 ай бұрын
What if you're a full time day trader trading stocks making 500k. S-corp is the way to go? I heard if you have an S-corp 40k is the least amount you can pay yourself. Idk if that's true.
@TrevorREOG
5 ай бұрын
You should be scared if you get audited doing that. “Reasonable” compensation.
@beezytalkingshit9319
5 ай бұрын
@@TrevorREOG I found out you have to pay yourself ATLEAST 30% of your profit. So that would be 150k.
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