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I love how you use actual scenarios with real numbers and walk the viewer through the calculations. Your explanation and emphasis on the key drivers are great. Thank you!

@NaviMarajCPA

Ай бұрын

You’re welcome and thank you for the feedback!

You nailed it!! I loved this comparison it’s very easy to understand. What happens to owners draws how are they reported? are they counted in the K1? Thank you Navi for the answer.

@NaviMarajCPA

Ай бұрын

Thank you. S Corporation shareholder distributions are reported in a few different places on Form 1120S, one of which is the K-1. They are taxed at ordinary income tax rates and are not subject to social security and Medicare taxes.

Thanks brother for making this valuable content. More power to you.

@NaviMarajCPA

Ай бұрын

You’re welcome!

Great presentation with simplicity

@NaviMarajCPA

Ай бұрын

Thank you. 👍🏼

Navy, thanks for another great video. I recently got interested on becoming a SB Owner, and looking for info on this matter I came across some of your videos. They had been a great source of information. So thanks for the incredible help you have become to me. I was wondering where could I get acces to the spreadsheet where you compare the taxes due between the diferent tax clasification you could set for your entity. In advance thank you for the help again and for you great work

@NaviMarajCPA

Ай бұрын

Thank you for the feedback. The spreadsheet is not available because it’s not 100% formula based and there are some hard keyed numbers.

Great. S-Corp owner doesn't pay state income tax [SIT]? It's not in the calculation above. Also, how about workers compensation for s-corp owner?

Why has the conclusion changed from your previous video stating that at 40 K profit s corp makes the most sense?

How about the distribution from the s corp. how is that taxed on the personal taxes? At what tax rate?

@NaviMarajCPA

Ай бұрын

The distribution is accounted for in my examples. To answer your question more specifically though, distributions from an S Corp are taxed at ordinary income tax rates.

@enamoradoyessenia

Ай бұрын

@@NaviMarajCPA thank you. I love your videos

Great video. Last year I hired a tax accountant for the first time and he files as soon as s-corp. What do I have to do to go back to self pro for 2024? Thank you!

@NaviMarajCPA

16 күн бұрын

It’s a bit complicated to explain here. If you think your business will be profitable enough within the next couple years, then you may want to stick with the S Corp election. You can revoke the election but if you do so, you can’t elect to be an S Corp again for another 5 years.

@edcruz2706

15 күн бұрын

@@NaviMarajCPA The can’t elect to be an S Corp again for another 5 years is an essential consideration. I will likely stick with S-corp but hire a new tax accountant and probably a bookkeeper to take this off my hands more, but it is so hard to find good help these days - thank you!

Is payroll only if I have employees?

@NaviMarajCPA

Ай бұрын

When you’re a sole proprietorship or partner in a partnership, payroll is for W-2 employees (not the sole proprietor or partner). When you’re taxed as an S Corp or C Corp, the owners themselves are typically on payroll (in addition to non-owner employees who are on payroll).