This was EXCELLENT. Thank you so much for this information! You helped to bring immense clarity to the confusion I was having about this💯 New Subscriber 😊
Did you know that in the IRS regulations, any money stolen or made through illegal means still has to be taxed. They dont care if it’s blood or drug money just as long as you pay them.
Hello! Thank you for this information. As an S corp can you please explain the benefit of an owner’s distribution if I’m paying myself as a W2 employee?
You're welcome. Sure, it is very simple. Your S-Corp distributions are not subject to payroll taxes like your W-2 salary is. Those payroll taxes can amount to 15.3% or more of your paychecks.
Nice video but i am confused. You said S corps don't pay the 15.3% self-employment taxes. I thought the 15.3% SE tax would still be applicable but only on the W2 wages? i.e. business makes 100k...i pay myself W2 wages of 40k...60k is distribution. 40k is subject to 15.3% SE tax correct?
You are essentially correct. The tax on wages is technically “employment tax”. When the tax is assessed on business income it is considered “self employment” tax. S corps do not pay self employment tax, but shareholder-employees do pay payroll tax.
So I am an LLC and I just withdraw money from my business account into my personal account. However when I pay on my taxes, do I file quarterly or yearly and do I file with my business EIN number or with my social security number?
Most of llc file tax returns yearly. Sometime you have to file another tax quarterly or monthly, such as payroll tax withholding, sale tax, etc. EIN or SSN? Depend on what to file.
@@mycpacoachI am in the same boat , we are a general partnership. Currently we have been withdrawing money and depositing into our accounts ( the exact same amount to keep it all fair and 50/50)
In general, you only run into a basis issue when your distributions exceed net income earned by the business. I've only seen people run into basis issues when they withdraw loans / assets in excess of profits. For ex: if the business received a loan, and the owner withdrew the loan (and all profits) for personal purposes, then you'd have a basis problem. Here is a more complicated answer from the IRS: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis
Apparently I had the wrong setting enabled on my camera at the time I shot this. I never realized it at the time 🫣but our newer uploads are much better now.
This man is a one of the people who will give you call when you want to ask a question about this business
Was that English? 😂
This was EXCELLENT. Thank you so much for this information! You helped to bring immense clarity to the confusion I was having about this💯 New Subscriber 😊
Thank you! I am glad you found it helpful and appreciate your feedback. Welcome aboard!
You explained this sooooo well!!
First off, I’d like to say FUCK THE IRS AND THE GOVERNMENT.
Secondly, thank you for this video.
what a moron
Did you know that in the IRS regulations, any money stolen or made through illegal means still has to be taxed. They dont care if it’s blood or drug money just as long as you pay them.
CALIFORNIA:
We like you! 👊😄😚😎💞🇺🇸
I'm only hearing you talk about the taxes that you're going to have to pay where are the benefits of holding of having an LLC
Can you do a video about non-profits and paying yourself from a non-profit and how that works at tax time?
Most of our experience is in for-profit businesses, so its unlikely we'll be able to create one for that.
@@mycpacoach Okay. Thanks anyway. Enjoying the channel
Well Done 👍🏽
Wow! You help me out a lot
Hi Sherman - As a single member LLC when you pay yourself can you add on the check memo: (Owners Monthly Payroll Draw)
Hi, yes you can.
Great video! Subscribed!
Thanks for the video..
Can someone explain the basis with an s Corp and distribution amounts?
Hello! Thank you for this information. As an S corp can you please explain the benefit of an owner’s distribution if I’m paying myself as a W2 employee?
You're welcome. Sure, it is very simple. Your S-Corp distributions are not subject to payroll taxes like your W-2 salary is. Those payroll taxes can amount to 15.3% or more of your paychecks.
Nice video but i am confused. You said S corps don't pay the 15.3% self-employment taxes. I thought the 15.3% SE tax would still be applicable but only on the W2 wages? i.e. business makes 100k...i pay myself W2 wages of 40k...60k is distribution. 40k is subject to 15.3% SE tax correct?
You are essentially correct. The tax on wages is technically “employment tax”. When the tax is assessed on business income it is considered “self employment” tax. S corps do not pay self employment tax, but shareholder-employees do pay payroll tax.
So I am an LLC and I just withdraw money from my business account into my personal account. However when I pay on my taxes, do I file quarterly or yearly and do I file with my business EIN number or with my social security number?
Most of llc file tax returns yearly. Sometime you have to file another tax quarterly or monthly, such as payroll tax withholding, sale tax, etc. EIN or SSN? Depend on what to file.
Me and a friend started a business, 50/50. How should we pay ourselves draw or salary?
I just purchased Intuit as well. Can you help please.
Are you an S-Corp or a General Partnership?
Just tell them both so we can all know. @@mycpacoach
@@mycpacoachI am in the same boat , we are a general partnership. Currently we have been withdrawing money and depositing into our accounts ( the exact same amount to keep it all fair and 50/50)
As an S Corp. how do I know or determine what my basis is so that I do not go over and pay capital gains taxes
In general, you only run into a basis issue when your distributions exceed net income earned by the business. I've only seen people run into basis issues when they withdraw loans / assets in excess of profits. For ex: if the business received a loan, and the owner withdrew the loan (and all profits) for personal purposes, then you'd have a basis problem.
Here is a more complicated answer from the IRS: www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis
If I’m an s-corp in Nevada, can I pay myself with a 1099 instead of putting myself in payroll?
Unfortunately not. Here’s a good guide on this: ruclips.net/video/QuOGs-sWem8/видео.htmlsi=mYBmcpBp5P9KIPCS
Yo what is going on with the camera shake? Was someone jackhammering while you were filming? lol
Apparently I had the wrong setting enabled on my camera at the time I shot this. I never realized it at the time 🫣but our newer uploads are much better now.