I'm a sole proprietor and I don't pay any taxes as a result of it. As a corporation even as an LLC I would have to pay taxes. To protect my personal assets I carry liability insurance. My business as a sole proprietor is registered with the State and all of my business activities and finances are done separately from my personal activities. As far as audits go, I look forward to the IRS doing so because I don't fear the government at all. My bookkeeping is even more simple this way than as an LLC. My tax return is now simplified to one page. Here's the kicker, I don't pay any State taxes either. None! No income tax, no property tax, and no sales tax. All of this was made possible by joining The Tax Savers Club.
@e.s.7520
2 жыл бұрын
Would that be the TTARA? Or what state is your business registered in?
@@e.s.7520 I'm registered in Iowa but it works in any state. There is however a fine line between legal and illegal so I would be careful what you do.
@wi_versa9577
Жыл бұрын
@IRS has entered the chat
@ChicagoNicky
Жыл бұрын
@@wi_versa9577 😂
@softcrunchsweets
2 ай бұрын
THank you so much. I am starting my transition from sole to LLC and this video was so helpful. The words you use are easy to understand. THank you again.....
@po_ly7
5 ай бұрын
I have a much clearer understanding of the level of liability of a sole proprietorship compared to an LLC after watching this video. Thanks for the explanation!
@yoursurgerysister
2 жыл бұрын
If you live in California a d get an LLC you have to pay an $800 fee every year nomatter if you make money or not. Keep this in mind
@jleenofficial
Жыл бұрын
T thanks
@naomiwells363
2 жыл бұрын
I absolutely love your videos and you are a great communicator. I have subscribed!!
Best tax content out there for taxes. No shiesty moves just straight up legal tax moves just like the rich
@narutonguyen
Жыл бұрын
holy heck. this video helped so much and I liked how everything was simplified down so easily to understand. def want to work with you in the very near future!
@Hugofmunoz
4 ай бұрын
This was great! Thank you! Trying to figure out when it makes financial sense to get my LLC. I don’t really have high liability and can continue conducting business as is.
@9archer
Ай бұрын
thank you for sharing. nice info as always
@kristycollins5751
Жыл бұрын
😉Excellent content. These videos have really been a tremendous help to me as a person stepping into a entrepreneurship role. I didn’t have anyone around me that would take the time to connect the dots so it all makes sense until I came across this channel. Thank You So Much! 😊 You do a fantastic job at explaining everything! I’ve learned so far that clearly, that’s not everyone’s strong suit.
@CebiGreen
Жыл бұрын
Great info! By the way, I just saw your ad on your own channel. Enjoy both.
@ArghRawrWhoa
2 жыл бұрын
Are you married? What do you think about reporting your business activities on a Schedule C as a Qualified Joint Venture (QJV) with your spouse instead of reporting the business activity as a partnership for federal tax purposes? What do you think about employing your kids?
Thank you for this video. This made me understand the difference clear? So Karlton encourages business owners that makes more than $8k per month in net income not revenue to go to an LLC. This is good for you and for him or accountants. Why? They do more work for you so they make more money but only if you make more than $8k per month you will actually be saving money and you need a good account and having more stress about doing payroll and other bookkeeping stuff.
@grahanfigueroa9033
Ай бұрын
I need help to switch as sole proprietorship
@germelljohnson
2 жыл бұрын
Great video. Your channel has taught me a lot so far
Single member SPs assets are not protected. Check with your state but most work this way. You have to have members in the llc. If you do then you're protected. Was an llc for 10 years and couldn't see the benefits after a few years as a single member. Paid income taxes on business profits and paid income taxes on my wages. Went back to a SP. The only protection you'll be provided is based on debt. If you run up 50k and default as a multiple member llc you and your members assets are protected. If you're a single member llc and you run up 50k in debt and default. The creditor cannot force you to sell your assets to pay the debt but they will lean your assets. If it worked the way most people think then a single member llc could default on debt and never be touched. People also believe as an single member llc you're protected from lawsuits. Not true. If you're gonna llc make sure you have members who are not your spouse. You and your spouse are considered 1 entity in the eyes of the law. Member should be a nonfamily member.
@aaron6516
Жыл бұрын
Very cool tips!!! Thanks for making this!!
@legacyproductions7844
Жыл бұрын
Great information! Wonderful presentation! Very simplistic! I just subscribed.
@mariakayy22
Жыл бұрын
Thank you for the good valuable info.
@MzkrissyBLove
2 жыл бұрын
🙏👏THANK YOU SO MUCH I WAS JUST ABOUT TO PULL MY HAIR OUT AND I REMEMBERED YOU MAKE ALL THESE THINGS PLAIN AND SIMPLE THANK YOU SO MUCH💐 . I AM SO GREATFUL FOR YOU DOING THIS VIDEO .YOUR AWESOME 🙏💐💝 ( WAS ON Sunbiz getting all confused , should I switch from sole proprietor to s-corp or is it LLC to s-corp wait Karlton said LLC s-corp was good but wait what's the process 😖 don't want to pay for the wrong thing . Etc. )
@BwadeReacts
2 ай бұрын
Dude I just created my sole proprietorship then made my trust the owner of the sole proprietorship that eliminates everything you just talked about as far as it being a threat
@a.c6443
Жыл бұрын
Bro this videos are gold
@preggars1plus591
2 жыл бұрын
Your other vid just said switch from llc to sole… wait let me finish watching
@preggars1plus591
2 жыл бұрын
So do I switch from an llc to sole when it’s tax time and then switch back? That part is cloudy
@wealthNmotion
6 ай бұрын
I believe assuming that sole proprietors want things easy isn’t a fair assumption. There are progressive business owners transitioning into operating as a LLC and have a business account under their DBA.
@tinabarnes3923
2 жыл бұрын
I am so happy that I found you, I learn so much within 3 hours of watching you. What is the best website to file for a LLC I live in Maryland.
@bloodclot
7 ай бұрын
Thank you. This helped me make the decision
@blackdiamondrob
2 жыл бұрын
of the videos ive watched of yours, i havent heard you talk about for example out of state entities. Do you use out of state entities to create asset protection?
Just realized that the LLC I set up, most of my business will likely end up being in Texas. Where there is no state income tax! Yay! Should I chunk it and start over and register it in Texas instead? For now I'll be traveling back and forth but I'm foreseeing that I'll probably end up moving completely within a year or 2. Or does it not matter? Is the tax charged based on where the money is earned or where the llc is registered?
@snowzombie86
Жыл бұрын
Wise words
@Headshot-fo8wz
Жыл бұрын
Question relating to the section about S.P. Cannot claim payroll tax deduction- Im interested in being able to convert to LLC and being able to pay myself a paycheck based on hours worked bi-weekly. Im not concerned at this time about mitigating the 15% self-employment tax. Is he saying to be able to give myself a paycheck (not salary) I would have to surpass $8k profit/month? Or would i still be able to pay myself as an employee if profit was less than 8k that month?
@jiggly_emup1122
Жыл бұрын
Hi I just started a junk removal business should I go sole prop or llc all I have is one pick up truck
@KumarKumar-kx4ct
Жыл бұрын
Is it possible to open an LLC to direct passive rental income as business income? If there is no other business income?
@jjpops6198
2 жыл бұрын
Do have experience handling taxes for day traders?
@Poppachino1112
2 жыл бұрын
I need help to jump start my business
@audicruz2954
4 ай бұрын
🔥🔥🔥
@JuanMartinez-if1um
2 жыл бұрын
So In order to avoid a audit as a llc you would have to have a multi member llc? Not a single member llc?
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