You can file your LLC or Corporation for FREE using the links below! If you use the links, you can receive up to $100 off any additional services you may want to add: Inc Authority: bit.ly/incauthoritycoupon IncFile: bit.ly/incfilecoupon Zenbusiness: bit.ly/zenbusinesscoupon Northwest Registered Agent: bit.ly/northwestregisteredagen... BetterLegal: bit.ly/betterlegalcoupon Also, the due dates for when to file the various tax documents have recently changed and I misspoke in this video. The correct due dates are as follows: Sole Proprietorship: April 15th S Corporation: March 15th Partnership: March 15th C Corporation: April 15th

@la_privatechef4530

Жыл бұрын

How can i get a code $100 off for LLC?

@nstv23

Жыл бұрын

If I am building a business to sell it. What’s the best approach to save on taxes at the final sale of the company.

I work at a law firm that specializes in asset protection and business structuring, and you were spot on I am glad you used the different colors for the electives taxation and what is default for new business owners this is hard for people to understand. Thank you for taking the time to do this explanation video.

@NaviMarajCPA

Жыл бұрын

Hi Karen. Thanks so much for the feedback. You’re absolutely right, very hard concept for new business owners to understand.

Man you are an incredible Teacher. Easy to understand and follow. You explain this stuff really well, and even the way you use your hand as brackets to discus a particular structure is super cool. I'm trying to start my enterprises up and spent hours finding the right corporation to file and this was the vid that made it all click for me. Thanks a TON man. So humble and grateful right now.

@NaviMarajCPA

2 жыл бұрын

Thanks so much for the feedback Bronson! Best of luck to you with your new venture.

Thank you SOOO much for this video!! This is super helpful. I am starting a business with a partner that lives in another state and wanted to make sure we set everything up correctly. I have spent hours researching this and this video was THE MOST HELPFUL in breaking down the different types of entities and where to start out. I feel like I finally have some clarification. Thank you again!

Great Video Navi, super informative and I appreciate you mentioning that most people make the switch at about $40k to opt into being taxed like an S-Corp. Super helpful!!

@NaviMarajCPA

3 жыл бұрын

Thank you. I've got other videos in my library breaking down the reason why $40k makes sense. Here is a link to that video if you want to check it out: kzread.info/dash/bejne/g3qNqKmfeLLbp6w.html.

Love the visual and your verbal explanation. It's so true that there is so much bad info out there. I cringe when I hear someone say their company is S-Corp because that's not a business entity and rather a tax structure. Thank you for putting this video together and sharing with the masses! Saving it and will be sharing it with others.

@NaviMarajCPA

3 жыл бұрын

Thanks Joana...appreciate the feedback!

Hey Navi! Thanks for posting this video. I've seen so many of people making these videos and they are so convoluted and hard to follow. My one recommendation is for you to state where you work- a lot of people may want to hire you but if they don't realize you're local or certified in their state, they may not even bother going to your website. Thank you for taking the time to educate us. All the best! Tom Brooklyn, NY -NYC Video Podcast

@NaviMarajCPA

3 жыл бұрын

Thanks for watching and for the feedback! I appreciate it.

Thank you for the visuals! It's so nice to have an idea of all of the options to narrow down what works best for each small biz owner.

This was the single best explainer video of the different Corp types I needed to learn about. Thank you!

This was a great video, straight to the point. Makes me a little more secure about getting my llc started thank you.

@NaviMarajCPA

2 жыл бұрын

Thanks for the feedback Alejandra! Glad it was helpful. Don’t forget to check the links in the description to form your LLC for free if you’re ready.

Super helpful, Navi. Thank you. Such a great, concise explanation that I haven't found anywhere else!

I've been researching information all day. your video was straightforward and very helpful. Thank you.

@NaviMarajCPA

2 жыл бұрын

You’re welcome Whitney…glad it was helpful!

Thank you so much! I have been trying to decide how to structure my business for a very long time. You helped me finally make the decision.

@NaviMarajCPA

3 жыл бұрын

You’re welcome! Glad you found the video helpful.

Excellent video! Short, to the point, with easy to understand illustration. Thank you!

I cannot overstate how helpful this video was. Thank you!

@NaviMarajCPA

Жыл бұрын

Thanks so much Sheena! Really appreciate the feedback.

This is excellent - coming from a tax attorney / CPA! Looking back through your videos to see how you got into doing this!

Thank you! Your videos are most informative and very easy to listen to. The best!

@NaviMarajCPA

3 жыл бұрын

Thank you for the feedback John - means a lot!

Thank you so much this video was exactly what I needed!!!

@NaviMarajCPA

3 жыл бұрын

Thanks Cru - glad you found it helpful. Please share with others if you think it will help.

Thank you so much for not having an accent, this was extremely pleasant to watch.

Just subscribed to your channel. That was an awesome vid. Simple, and straight to the point! Thanks

@NaviMarajCPA

2 жыл бұрын

Thanks for watching and subscribing Edgar! Glad you learned and found it helpful.

Thank you! it was so hard to find this information. You got right to the point

Excellent video! Thanks for sharing! I have shared with others studying for the CPA.

Navi I appreciate you for making this video! I feel like I have a much better understanding now.

@NaviMarajCPA

3 жыл бұрын

That’s great to hear Neal! Thanks for watching!

Very helpful man! Thanks! Even wrote down all these notes since I am going to have to start doing taxes for my business and side business. Once again thank you very much for this!

@NaviMarajCPA

3 жыл бұрын

Thanks for the feedback. You're not the only one who has told me they take notes while watching!

Sir, you explain in a way that an average person like me can understand. Thank you.😇😇😇

Thank you. A team discussing with me my Financial Reporting course.

I appreciate you mention the SM LLC, no others yet have.

Thank you so much for this valuable information! Be blessed!

I didn’t even know about PLLC.. this video was so helpful and necessary

Amazing information. Easy to follow and understand. Great presentation.

@NaviMarajCPA

3 жыл бұрын

Thanks for the feedback @Bd Manus!

Short and to the point - much appreciated!

@NaviMarajCPA

3 жыл бұрын

Thanks Rinaldo!

Thanks for the easy explanation. Subscribed ! 👍

Really good video. Cleared some things up in my head since I am a noob.

Excellent diagram and explanation. I haven't seen anything explained this well. These KZread attorneys just throw out terms like "schedule c" and "1065" like your supposed to know without ever explaining what's what.

@NaviMarajCPA

3 жыл бұрын

@Braden Souder Thank you for the feedback! Glad that you found it helpful and informative.

Thank you, good Sir! Wonderful video and please make more!

@NaviMarajCPA

3 жыл бұрын

Thank you baba black for the feedback!

Thanks. I've been meaning to change to S-Corp from C-corp

@NaviMarajCPA

4 жыл бұрын

You’re welcome Ben. Consult with your tax professional to make sure it is the correct thing to do based on your specific situation.

SO helpful and very effective at explaining. Thank you!

@NaviMarajCPA

3 жыл бұрын

Thank you for the feedback Lesly...glad you found it helpful!

Thank you so much for making this video. It is very helpful.

@NaviMarajCPA

2 жыл бұрын

You’re welcome Kushagra!

Thank you, awesome explanation!

Thank you Navi. Grateful.

Very well put together. Thank you.

@NaviMarajCPA

2 жыл бұрын

You’re welcome…let me know if there is anything else you need help understanding.

Thank you so much! This clarified so much for me!

@NaviMarajCPA

2 жыл бұрын

You’re welcome…glad you found it helpful!

Amazing explanation! thank you so much!

@NaviMarajCPA

3 жыл бұрын

You're welcome Joseph! Glad you found it helpful!

Thank you for this breakdown.

Thanks Navi! Very helpful information

Thank you so much, I'm currently researching the best option for a brand new small business.

@NaviMarajCPA

3 жыл бұрын

Great - glad the videos are helpful!

Thank you.You are a great teacher.

You are so clear thank you so much. You got a new subscriber 😊🤓👍🏾

@NaviMarajCPA

3 жыл бұрын

Appreciate the feedback Cocoa...thanks for subscribing!

Nice content. I found this very helpful.

Very useful video! I'll recommend it to my colleagues

@NaviMarajCPA

3 жыл бұрын

Thanks for the feedback Anastasiya. Hope your colleagues find it helpful as well.

Great video as always, Navi! You explain things so much better than others. Do you do tax filings for small business owners or just consults? I’d love to work with you!

@NaviMarajCPA

2 жыл бұрын

Thank you @A Self Guru....my clients outsource all of their accounting and tax to me. What I mean by this is I help them with their bookkeeping, tax planning, payroll (if necessary), tax filings etc. In other words, although I do prepare tax returns, I only do it for businesses where I handle everything else for them as well.

@aselfguru

2 жыл бұрын

@@NaviMarajCPA thanks for the information, Navi! My business is already setup as Florida LLC with S corp and payroll is also outsourced, so I just need help with tax preparation and filing. So sounds like you don’t handle just that? What would be the best way to get in touch with you?

Thank you for simplifying this

@NaviMarajCPA

3 жыл бұрын

Hi Angela - you're welcome! Not sure why it isn't explained like this more often.

Keep up the videos boss, the community needs more information from qualified individuals!

@NaviMarajCPA

Жыл бұрын

Will do!

Easy to follow, well done.

Mr Navi this was great information as a novice beginner

Thanks for the video! Question. If I set up an LLC initially (say Jan 1, 2022), do I have some time to determine if I'd want to be taxed as an S-Corp? If I start getting customers on Jan 1, I wonder, would I have some time to assess how well my business is doing in order to determine if I'd want to be taxed as an S-Corp? You elude to tax filing, which would be March 2023, is that deadline by when I have to decide? That would give me the entire year to see if I can make a profit of $40k+. Thanks!

Wow, just a fantastic explanation.

Hi Navi, I have a question. What if I accidentally filed for corporation (in California) rather than llc and didn't realize until they approved it, is there a way to change it? Would I be paying double tax for the year?

Navi one of the missed information that most all of us don't received is that we have to pay $ annually to our Estate if we decide to file and articles or be treated as S Corp if we want to save money on taxes.

Thank you Navi, you explained so clearly! I’m starting a new business about heavy equipment rentals ( mini excavators, skid steers) I’ll have a foreign partner that doesn’t have a SSN. What type of entity do you think will fit for us ? Thank you so much for this video!

@NaviMarajCPA

3 жыл бұрын

You're welcome. I can't give specific advice here but just a general note that an S Corporation cannot have shareholders (owners) that are nonresident aliens. Hopefully that gives you some guidance on how to proceed.

Good information, thank you 🙏🏻

Thank you. That was very helpful.

@NaviMarajCPA

3 жыл бұрын

You’re welcome Sean! Glad you found it helpful!

I'm learning so much from your videos. I realize that we need to hire an accountant because our tax agent has not been advising us well enough. However, when I hear "consult with your accountant or lawyer", I think that I'm just a small company (or planning to be) and I can't afford those professionals. In other words, what options does the "small business owner" have who can't afford a lawyer or accountant?

Thanks for the great overview!

@NaviMarajCPA

2 жыл бұрын

You’re welcome Dennis! Thanks for watching.

Very informative vide, thank you for posting! I own a single-member LLC on the side and just filed it as an LLC mid this year. For the beginning half of this year, it was a sole proprietorship. For my upcoming tax return, do I need to file both a 1040 Schedule C for the first half of the year and the S Corp Form 1120S for the second half? I'd like to file my LLC taxes separately as I do not want to mix it in with income from my regular W2 day job.

@NaviMarajCPA

3 жыл бұрын

Hi Kathy...thank you for the feedback. I don't think I have enough information to answer your question. I'm going to assume you formed an LLC on January 15, 2020 and then in July of the same year you made the S Corp election. The answer to your question depends on how you completed the S Corp election paperwork. There are ways to make the S Corp election effective as of January 15, 2020 (the date your LLC was formed)...the average person (and even the average accountant) does not know how to do this. If you were able to make the S Corp election effective as of January 15, 2020 then you would be filing an 1120S for the entire year. Also, S Corporations are considered "pass through" entities so even though you'll file a separate tax return for it, the income from the S Corporation will still end up on your individual tax return to determine the amount of taxes you will pay. Hope that makes sense but I know it is a little confusing. Get with an accountant now to make sure there are no surprises at the end of the year for you.

Navi, thank you for this content. I have a question I hope you could answer. I see a lot of KZread videos with the title “LLC vs Sole Proprietor” I believe I understand that you could be a sole proprietor without forming an LLC. However the IRS doesn’t recognize the LLC anyways for tax purposes, correct? So if I form an LLC for my side business in addition to my w2 full time job. I would be better off forming an LLC and filing as a Sole Proprietor, as long as by business profits don’t exceed 40k. In that case I would file my normal w2 tax return but would file an additional form that cover the business profits and then pay taxes accordingly? And a follow up question, lol, as far as LLC goes my understanding is you are separating the business from you and your personal assets. But if you have an LLC and file as a sole Proprietor could that not be an issue if the business were to get sued? It seems sort of like an oxymoron if all the business profits are going through a sole Proprietor instead of the profit staying in the business and wages being paid to the owner like in a S Corp. Maybe I’m just super confused.

@NaviMarajCPA

3 жыл бұрын

Don't be too hard on yourself...sounds like you have a good handle on a lot of this stuff. Your first paragraph seems like you're on the right track with everything you mentioned. The answer is Yes and Yes. For your 2nd paragraph, I'm not a business attorney but my understanding (which is not legal or tax advice) is by forming the LLC to separate yourself from the business for legal purposes but it is disregarded by the IRS for tax purposes. Definitely consult with a competent business attorney to make sure your LLC is giving you the legal protection you think it is. You may need an operating agreement, meeting minutes, a separate business account, etc. to prop up the corporate veil that you are trying to obtain with the LLC.

Navi, thanks for the video. Can a sole proprietor file taxes as married filing jointly? or should it be married filing separately?

your a legend, thank you for the info

Nice video, my friend. Thank you

Really Helpful.. Keep Up The Gud Work Bruh✅❤

@NaviMarajCPA

3 жыл бұрын

Thank you - appreciate your feedback and support!

Thank you so much for this information. My mom wants me to register her cleaning business and I’m learning all this new stuff. I’m going for LLC 😅

@NaviMarajCPA

2 жыл бұрын

You're welcome!

Great information. Thank you !

@NaviMarajCPA

3 жыл бұрын

Thanks Thandie!

Thanks for the useful video.

@NaviMarajCPA

2 жыл бұрын

You’re welcome! Thanks for watching.

Thank you for sharing your knowledge.

@NaviMarajCPA

2 жыл бұрын

You’re welcome! Thanks for watching.

Thanks I replayed this too many times

@NaviMarajCPA

2 жыл бұрын

You’re welcome!

Awesome video Navi! I recently started a print-on-demand shopify business. However, I haven't created an entity for it yet. I'm making less than 40k a year from the business. This is a side business for me as I have a separate full-time job. Would you suggest for me to create a SM LLC entity and to be taxed as a Sole Prop?

@NaviMarajCPA

3 жыл бұрын

Hi Sualah! Thanks for the feedback. Tough to comment on without knowing more information though. Depends on what your concerns are...form the LLC for legal reasons, not for tax reasons if the side business will produce less than $40k in profit. You may need to watch some of my other videos for my response to make sense.

Very helpful. Thank you!!

@NaviMarajCPA

3 жыл бұрын

You're welcome Ang L! Glad you found it helpful.

Navi, the IRS says c corp tax returns are typically due 4/15. Would this be a recent change? You are amazing and this video is very informative thank you

This video is a life saver

@NaviMarajCPA

Жыл бұрын

Thanks! I wish it was around when I was first learning about these concepts. 👍🏼

Great video! Thank you so much! I have a question if it’s possible for you to give me some guidance, I filed my 1120S and I deducted my car expenses (gas, maintenance, insurance) but I also do delivery driver jobs for Amazon and Walmart for my 10099-NEC can I deduct mileage on schedule C of my 1040 for those jobs? I use the same car for everything my LLC. Delivery driver jobs and personal

Thanks so much for this video. I have some questions: Is an S-corp just a tax perspective or a legal entity as well? In other words, If I have an LLC, do I need to do any paperwork with the IRS to change my LLC to an S-corp? Or can I just keep my LLC and do taxes as an S-corp?. Also, what is the difference between a salary and a distribution? In what category do those two fall, income tax or employment tax? Thanks so much!

@NaviMarajCPA

4 жыл бұрын

Hi Daisy - thank you for the feedback. An LLC is a legal entity and an S Corporation is a tax classification. You can elect to have your LLC taxed as an S Corporation by completing Form 2553, Election by a Small Business Corporation and submit it to the IRS. I would not recommend making the election until you speak to a tax professional - it may or may not be right for you. The answer to your questions about salary and distribution are quite long and probably not best for me to answer here to prevent confusion by other readers. At a high level, when you form an S Corporation you are required to pay yourself (per the IRS) a reasonable compensation. That reasonable compensation is your salary and would be paid to you as if you are an employee of your business. You will receive a paycheck, W-2, incur payroll taxes, etc. When I say "distribution" I am talking about another way to extract the profits from your business other than paying yourself a reasonable compensation. This is typically done by transferring money from your business account to your personal account.

@daisyvargas9834

4 жыл бұрын

@@NaviMarajCPA Thanks so much! This information helps greatly as I am trying to understand legal entities and tax classifications. I have an appointment with an accountant but I want to know/understand some things before meeting with him. Your reply really cleared things out for me. Once again, THANK YOU!

We just started a single member LLC. We would like to open a business credit card but we have to choose between corporation, partnership, and sole proprietorship for the company structure on the credit card application. Which should we select?

Great content!!! My question is, does it apply in Canada?

Great video, thank you very much. Could you please write a work about 5472 form. And maybe about SM LLC owned by None resident. Thanks again

Thank you so much!

Great video. My wife and I are nurses. We work as self employed 1099. I could open a single member LLC and do S election. And they both work in the same LLC as an S corp. And that the 1099s are reported from both of them through the S Corp. Then the S corp generates w2 for each one and the dividends pass through K1 to the owner. Or each would have to open their own LLC and make S election. thanks

Great video! For the S-Corp, you mentioned that one should consider forming it if the profit of the business exceeds about $40,000 or so. Are you referring to this number on a monthly basis or yearly?

@NaviMarajCPA

2 жыл бұрын

Hey Christian! Thanks for the feedback. The $40k I’m referring to would be on an annual basis. Be sure to watch the video related to when does an S Corp make financial sense to further your understanding.

@Isme35

2 жыл бұрын

@@NaviMarajCPA Will do! Thank you so much.

It's kinda important to mention WHERE you are and which jurisdictions oversee that!

Love this break down on Business entities. A little confused here. I'm a realtor and have my single member LLC. Before my LLC generated close to $50,000 and now it's over 100K. Should I consider switching to C-Corp. ? Why or Why not?

@NaviMarajCPA

3 жыл бұрын

In my opinion, if you're consistently going to making over $50k in profit (not revenue) then you should consider making the S Corp tax election for your single member LLC. I do not recommend C Corps for the overwhelming majority of small businesses. You can learn why in the the following videos: 1. What is an S Corp and is it right for your business: kzread.info/dash/bejne/nJ57uK6QgNPcmbQ.html 2. When does an S Corp make financial sense: kzread.info/dash/bejne/g3qNqKmfeLLbp6w.html

Thanks for this great video. Are there any restrictions on forming an LLC? Do you have to be a citizen to form an LLC?

@NaviMarajCPA

3 жыл бұрын

Yes, there are restrictions but you should be able to find that information online. S-corporations have more restrictions as it relates to non-resident aliens of the United States.

Thanks. So helpful

Thank you for the good info!

@NaviMarajCPA

3 жыл бұрын

You're welcome @Johnny Sav. Thanks for watching and subscribing!

super helpful thank you!

@NaviMarajCPA

3 жыл бұрын

Thank you Shijia! Glad you found it helpful.

Very informative!

I just started my LLC. Thanks for the info.

@NaviMarajCPA

3 жыл бұрын

You're welcome Daniel...best of luck to you and your new business!

@tiffanycraddock9426

3 жыл бұрын

@@NaviMarajCPA to

@jimross2101

3 жыл бұрын

Daniel, why?

so if you haven't started your business yet, would you recommend getting a llc before you start? I'm plan to start my tattoo business and was wondering should I or shouldn't I?

@NaviMarajCPA

3 жыл бұрын

Hi Tiffany. My response to that question depends on a few factors that are unique to each business. In general, I think it’s a good idea to form your entity if you know for sure you’re moving forward with starting a business.

This is very helpful Navi. And you are correct, there is some confusing info in KZread land. You say that an MM LLC can file taxes as an S-Corporation. I've also heard that it can file as a C-Corporation. Is that accurate?

@NaviMarajCPA

3 жыл бұрын

Hi Leva...thanks for the feedback! Yes, a MM LLC can also elect to be taxed as a C Corporation by filing Form 8832 with the IRS.

Very helpful thank you

Thanks for the info

So if I open a llc should I start as being treated as an s Corp ? I know your said 40k but is it easier to just start there so you don’t have to do paperwork later ?