I hope this helps those of you who are sole props, or single-member LLCs with no employees. Thanks for liking and subscribing, and sharing your comments! Make sure to watch my videos about completing the loan forgiveness application: kzread.info/dash/bejne/e6mBtsVrfci_aNY.html Part 1 - PPP LOAN FORGIVENESS APPLICATION - Documentation - STEP BY STEP kzread.info/dash/bejne/fZWD0sl9eZrghso.html Part 2 - PPP LOAN FORGIVENESS APPLICATION for Sole Props, LLCs, Self Employed with no employees

@pamelaclawson6283

4 жыл бұрын

Please read my attached comment! Thank you for your good work here! Know that you have provided information here that could not be found until now!! Way to go Brass Horse Studio!

Omg wow you are the first person to cover this thank you so much

@BrassHorseStudio

3 жыл бұрын

Glad to help!

Great n clear information...every question i had has been finally answered..Thank You

@BrassHorseStudio

3 жыл бұрын

Glad it was helpful!

Very clear and easy to understand thanks!

@BrassHorseStudio

4 жыл бұрын

Thank you for watching and commenting. Be sure to check out my other videos on the Forgiveness Application!

Thanks for this video.🙏🏼

Super useful. Many thanks!

@BrassHorseStudio

4 жыл бұрын

Thank you for watching! Be sure to check out my other videos on the Forgiveness Application.

thank you sir. now I see why I was confused. the difference between months and weeks.

@BrassHorseStudio

4 жыл бұрын

Thanks Bobby. I actually made a video explicitly about that too: kzread.info/dash/bejne/mnuJyrOfhM3Ap7g.html. I also just published a few videos about filling out the forgiveness form. Be sure to check them out!

If you already received the money into your personal checking account should you open a new account , transfer the money and then pay and deposit back into your checking account?

Would this apply to me if I just started an llc this month as a single member llc?

I have question I own a LLC since 2018, tax as S CORP, No employees. Can I apply to PPP loan 1st time?

If your net income is low you can instead apply for unemployment and get the additional 600 per week for 17 weeks. This option worked out better for me.

@BrassHorseStudio

4 жыл бұрын

April Cooke Thank you, April. That’s a GREAT point!

@arichardson1311

4 жыл бұрын

Hey. True, for the ones who pays their self with a 1099-MISC can get both PUA & UI benefits. However, the self-employed individual with only a Schedule C can get the PUA not the UI benefits.

Is it possible for an unregistered sole proprietor to get the ppp loan?

Thx for the video....AND attached docs!! I have hours calling or trying contact both the SBA and two different Leander’s to get verification on the PPP eligibility for “self employed sole proprietor with no employees”.......NO ONE could answer my question!!! Until now! With your attached docs I can move forward with a better sense of ease to finalize my ppp thus sign the docs. Prior to the attached docs here I could not confirm that my 1040 and schedule C is all i need. The SBA should be ashamed of its self for not providing and educating its staff to be more informed in a time such as this! Thx!! I have shared this not to mentioned saved and printed the docs! Please sir continue your good works, Pamela

@BrassHorseStudio

4 жыл бұрын

Hi Pamela, you are definitely eligible! Glad this helped!

Thank you! Do you have a sample spreadsheet to help track the funds for an LLC without employee’s? Thanks

@BrassHorseStudio

4 жыл бұрын

Hi Barbara, I'm sorry I don't. I have made some new videos about the actual forgiveness application itself, including one specifically for your situation and filling out the application. While I always want to be able to satisfy my subscribers/viewers, I know that another great channel @Clara CFO Group has a video with a spreadsheet (link in her description here: kzread.info/dash/bejne/mZxt26SxZ7TLcbA.html). Hannah is a CPA and does great work. Let her know I sent you...and keep checking my channel for more resources!

I am a self employed, Schedule C filer without employees. I received the ppp loan based on my schedule C, line 31. I did not pay to myself since I am not an employee. I guess it would be hard for me to get the forgiveness with just my schedule C 2019. Any suggestions what I should do ?

Thank you so much for the information. Very clear! I have a question please. I'm an independent contractor with a Sch C. I keep hearing that the 8-week portion (Owner's Compensation Replacement) of the maximum loan will be automatically forgiven and the rest of the loan has to be for qualified operating expenses like utilities, etc. Is this correct? If so, then the part of the video where you were advising on records keeping is for the non-owner's compensation replacement portion of the loan, correct? My understanding is that the Owner's Compensation Replacement portion could be spent on whatever I want.

@BrassHorseStudio

4 жыл бұрын

Thanks for commenting, Spencer. Sorry for the late reply. Your question has a couple of layers, and I address filling out the loan forgiveness application in this video --> kzread.info/dash/bejne/fZWD0sl9eZrghso.html. You are pretty much correct that on the loan forgiveness application you will claim 8 weeks of your 2019 Schedule C net income as Owner's Compensation Replacement. If you had the PPP loan funds deposited into a separate business account, you should show a withdrawal for that amount some time during the 8 weeks after you got the loan money deposited. Make it easy to show. If your lender did not require a separate business account, then my opinion (please do not take that as financial advice) is that your guess is correct. The safest thing to do is to check with your lender.

Hi. I am a sole proprietor-no employees. I began renting some office space in January 2020. So I wouldn’t have that listed on my 2019 Sched C. But since the lease was in place prior to February 2020, am I understanding correctly that I can still get the amount of my lease/rent payments during the 8 weeks forgiven from my PPP proceeds? Also, is the 8 weeks income replacement part automatic, or do I need to write myself a check(s) with something like Owner Compensation Replacement on the memo line? Thanks for all the great info!

@BrassHorseStudio

4 жыл бұрын

Journey James I am very sorry for the delay...I never got a notice for this great comment. Yes, you should be able to take the lease payments on your loan application (I have a video on that). As for paying yourself, just to be safe I would put that on the memo, although I think for some lenders it may be automatic for the Owner’s Compensation Replacement. Thanks again for the comment and very sorry for the delay.

@JourneyJames76

4 жыл бұрын

Brass Horse Business Ed Thanks for the reply...delay not even noticed! I just happened to log on to YT just now and your reply popped up. So perfect timing! Keep up the great content.

I started a doula business in 2019. I wasn’t able to take clients because of the restrictions from the hospitals. I lost a great potential to earn money. I ended up taking money from my retirement. Can I pay myself back with the PPP loan?

In my understanding this is generally not a good idea to request a PPP loan, it is money that you will still owe back to the Government. As an LLC with a Business partner we have a debt of 5,000 plus possible changes from the IRS adding up to close to 9K in debt and I would like to think that if we qualify for a small amount say 10K at a 1 % payback it would make sense but I think there are loop holes that could put us deeper into debt.what are your thoughts?

Thanks for the great video. If your line 31 on schedule C was just $229 due to write offs, but you had 17K in expenses and made 30K on your 1099. Is your PPP loan amount bere determined using your income made or line 31 on schedule C

@BrassHorseStudio

4 жыл бұрын

Thanks for writing, and great question. The document I referenced stated that the SBA would be releasing further guidance on that situation. I haven't seen that guidance at this time. Unfortunately, the guidance we have so far just stipulates using the 2019 Schedule C Line 31, divided by 12, multiplied by 2.5. I have the same question as you...what if a business was negative in 2019, but was killing it in 2020 until COVID-19 hit? Something seems wrong about that. Perhaps by next week we'll have another stimulus package that addresses this.

What about 1099 independent contractor are they eligible for loan forgiveness please let me know because I have loan as a cab driver

@BrassHorseStudio

4 жыл бұрын

Shaker Ahmed Yes, absolutely! Please see some of my more recent videos about filling out the loan forgiveness application form

I got PPP fund on May 1. So, can I write check to pay myself before MAY 1? Or just apply 8 week after May 1?

@BrassHorseStudio

4 жыл бұрын

The guidance on this is pretty clear at this time: you'll only be forgiven for your expenses during the 8 weeks after you receive the loan.

@dacali2190

4 жыл бұрын

Brass Horse Studio Thank you for answer my question. I’m a partnership 90% with another partner is 10% and no employee. My PPP fund is calculated by K1 1095 2019 form of 2 partner. But who is over 100k income is capped only 100k. So, should I pay myself and my partner base on number of 100k:52*8= weekly or use the actual above more than 100k/52*8= weekly. I still confuse and don’t cut the check yet before I get everything is clear. Or 75% loan is automatic forgiveness that I don’t need to cut the check? Please help me!

Will the ppp loan appear on your personal credit report at any point?

@BrassHorseStudio

4 жыл бұрын

This is a great question, Angela, and I'm not sure of the answer.

How about if i ll just pay back the ppp loan and keep my unemployment. I want the ppp as a loan and not forgive because i want the unemployment. I only got 3k for a ppp im a barber

@BrassHorseStudio

4 жыл бұрын

Hi Joe. I apologize, but I'm not sure what the legal issues are with doing both like that. You'll have to contact your lender and ask them.

Our company does not have any employees, All work are done by freelancers and contractors. Can we consider those payments for loan forgiveness?

@BrassHorseStudio

4 жыл бұрын

If they are 1099 contractors you cannot count them as employees. The guidance on that has been very clear from the SBA and the Treasury.

I applied for this loan..never heard back...and never got a stimulus check either, because someone mistakenly claimed me as a dependent on their taxes. The IRS can suck my blue balls.

As a Uber Driver Can I pay Healthcare Insurance as a Payroll Expense? Or Monthly Car Payment Premium can I pay for that PPP payroll expense?

@BrassHorseStudio

4 жыл бұрын

Jakir Hossain As a sole proprietor/indep contractor you can’t take health insurance as a payroll expense. You might be able to claim a portion of the interest payment on your car loan as interest. You should consult your lender.

@marylanderjakir7484

4 жыл бұрын

Brass Horse Business Ed Can I use Car Maintenance like (Tire Change,Break Pad Change).Is that amount forgivable?

@BrassHorseStudio

4 жыл бұрын

Jakir Hossain These are great questions, and unfortunately the SBA hasn’t given good guidance for drivers like yourself. Your lender might be able to answer these (but possibly not). We’re all hoping for better guidance soon.

Can I apply for PPP if I am a sole proprietor and just opened my business on Jan 2020? Thanks for your helpful videos!

@BrassHorseStudio

4 жыл бұрын

Germaine Gillies The Treasury document I referenced states that the SBA will release further guidance about that. At this time I’m not aware of that but I continue to look. Perhaps in some future stimulus package (soon) there may be more availability for that.

@modernlaw4177

4 жыл бұрын

Mine was formed in December. I was able to apply and was approved.

@bdavis2199

4 жыл бұрын

Scott Forster what documents did you provide being that you didn’t have a schedule C?

Can you apply for UI if you received PPP for sole prop?

@BrassHorseStudio

4 жыл бұрын

A. P. I think at this time the answer to that is no. However, I know there are some changes coming to the PPP program, perhaps as early as next week. I wonder if this will be something that is addressed. To be absolutely sure, I think you should contact your lender and ask them, but I’m pretty sure the answer to this is that you can’t do both simultaneously. I do believe that you can be on PUA (as unemployment) before and after the eight week window that PPP is effective.

@a.p.1074

4 жыл бұрын

Thanks for answer.

Hello, thank you for all of the great videos. As a sole prop, can ppp (just received) be used to provide myself retroactive pay from March15-April 15. I am now on Unemployment, and do not seem to need the ppp for the next 8 weeks. I could sure use the money I missed out on mid March to mid April when I was not getting Unemployment.

@BrassHorseStudio

4 жыл бұрын

I don't think that is an appropriate use. My understanding is that Unemployment/PUA is supposed to be retroactive to the date that you had to be out of work (or significantly down)? With that being the case, you should receive unemployment from that date until you received the PPP money, then you should come off unemployment (unless you make more on unemployment than on PPP), use the PPP money, then go back on unemployment. HOWEVER...there are a couple other possibilities. One possibility is that before the 8 weeks to use your PPP money is up another better stimulus package comes, or one that loosens up the PPP requirements. Another option is that perhaps unemployment/PUA provides you more than you made in your sole prop business. In that case, you should return the PPP money by May 18, and then just remain on unemployment. That is my understanding of how the CARES Act is written. You can't retroactively pay yourself with PPP money, and you can't be on both PPP and Unemployment at the same time.

@draculadracula2414

4 жыл бұрын

Brass Horse Studio is it possible to be on unemployment and use ppp as a regular 1% loan for 2years?

@kylechristensen8970

4 жыл бұрын

Brass Horse Studio thank you very much! I’m thinking return PPP! Thanks again!

@draculadracula2414

4 жыл бұрын

Kyle Christensen totally agree it’s just not making any sense

@BrassHorseStudio

4 жыл бұрын

dennis latay Hi Dennis. Thanks for writing. My understanding is that a person cannot have both unemployment benefits and the paycheck protection program simultaneously.

Hello. Thanks for your information. I have a question: I am a sole prop with no employees. If I put money into my solo 401k plan (calcuation based on my 2019 sch c) and pay health insurance premium on my husband's company group insurance plan, how would they look at these payments when considering loan forgiveness? And what kind of documentation do they need? Thanks, in advance, for your comment.

@BrassHorseStudio

4 жыл бұрын

Hi Pauline. Thanks for watching and commenting. Sorry for the late reply, as I wasn't notified of new comments for some reason. As a sole prop with no employees, your payroll will only be 8 weeks of your 2019 Schedule C net income. There is no consideration for contributions to retirement plans/health policies for sole props. I cover how this is done in my video on the forgiveness application: kzread.info/dash/bejne/fZWD0sl9eZrghso.html

I have a negative schedule c line 31 and I still got $27,500 ppp

@BrassHorseStudio

4 жыл бұрын

This could be because your particular bank looked at other evidence, like maybe you were crushing it in 2020 before all this went down, or if you applied before April 15.

@McFarlanMade

4 жыл бұрын

My line 31 was negative also and I qualified for $13k. I have zero employees, so now I have to figure out what % I have to pay myself.

My PPP loan is for $21K. My schedule C, line 31 was $156k. 156k/52*8=24k. Can all of my $21k loan be forgiven?

@bdavis2199

4 жыл бұрын

.

@chrisblom9

4 жыл бұрын

The max payroll per employee for the loan calculation is $100,000. So if you are a sole proprietor making $156K your max loan would be $20,833.33 (100K/12 *2.5) & you could have $15,384.61 (100K/52 * 8) forgiven for owner compensation replacement (payroll).

@sabrinabohcali5634

4 жыл бұрын

@@chrisblom9 I received $20,832 for "loan amount" and $8,333 for "average monthly payroll", this amounts differs from the $15,384.61, could you explain why so, please?

@chrisblom9

4 жыл бұрын

Sabrina Bohcali Hi Sabrina, there are two formulas! One dictates the total loan amount (Net profit capped at 100k / 12 * 2.5) which is where $20,832 comes from. The other was released more recently by the SBA and says the max owner compensation replacement that will be forgiven (self employed version of payroll) is calculated as Net Profit (capped at $100,000) *8/52 (or 8 weeks of payroll replacement).