Paying Yourself with an LLC - What to Know in 2020

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  • Опубликовано: 15 ноя 2024

Комментарии • 141

  • @jimhart
    @jimhart  2 года назад +3

    Thank you for watching! I just announced a new FREE training that reviews the exact 10 Step Process I use for starting an Online Business: www.obfoundations.com/10steps

  • @sabrinamorfa1345
    @sabrinamorfa1345 4 года назад +20

    I get a kick out of your little side notes when you stop and comment about the A/C. LOL Makes my day! Not only informative but a little playfulness of how easy some things can be. Coming from an Accountant / Bookkeeper, you nail down all of the details and explain it for those who don't know the everyday in and outs of payroll. Great job!

  • @BRMidwestRoadRescue
    @BRMidwestRoadRescue 3 года назад +1

    Hair looks great! Awesome video!

  • @christellejean513
    @christellejean513 3 года назад +5

    I love how you simplify everything when your explaining things

  • @PatriciaAndreaFL
    @PatriciaAndreaFL 2 года назад +1

    You’re super entertaining and informative! Could you please go over what options if any different for new LLC for a voice over type business?

  • @kevinwhelan9014
    @kevinwhelan9014 2 года назад

    You're awesome. So clear and straight forward. Haircut looks great too.

  • @sion9611
    @sion9611 4 года назад +34

    This is literally a sign for me to start my own business already

    • @cactusbeach8294
      @cactusbeach8294 4 года назад

      Good luck! What kind of business are you going to start? :)

    • @adminmobile6975
      @adminmobile6975 4 года назад

      Come on with it Joel! Start that business TODAY!

    • @kronk358
      @kronk358 3 года назад

      I don't think you know what literally means.

    • @randomrealestateinvestor1694
      @randomrealestateinvestor1694 3 года назад

      Business is tough and you gotta have the mindset or the money

    • @synshaker9895
      @synshaker9895 3 года назад

      @@kronk358 lit·er·al·ly
      /ˈlidərəlē,ˈlitrəlē/
      adverb
      in a literal manner or sense; exactly.
      "the driver took it literally when asked to go straight across the traffic circle"
      INFORMAL
      used for emphasis or to express strong feeling while not being literally true.
      "I was literally blown away by the response I got"

  • @Mike-cs9jr
    @Mike-cs9jr 4 года назад +3

    Thank you for the video. As the video went on, one by one of my questions was answered. Looking forward to viewing the others.

  • @markg.1935
    @markg.1935 4 года назад +6

    Can you do a video on LLC's owning other LLC's?

  • @ColorMeMozart
    @ColorMeMozart 3 года назад

    Thank you for this! Helped so much. I had the exact same questions regarding beginning to take a salary.

  • @ketolorabaltimore1843
    @ketolorabaltimore1843 3 года назад +6

    Lol “they are really loud up there, I hope we don’t have mice”. I went out and got a haircut, I was the only one in there, I think I was safe. Lol luv this lawyer. If I have a Enotary online biz do I need legal shield????

    • @BIGGYBROS
      @BIGGYBROS 3 года назад

      Honestly, super chill. Makes boring laws sound chill haha

  • @karlinwilliamson9329
    @karlinwilliamson9329 4 года назад +9

    Thank you for your willingness to share valuable insights. Great info 😊

  • @LegoBeto
    @LegoBeto 3 года назад

    This is some great information. Your videos will save people so much trouble.

  • @LauraOfVermont
    @LauraOfVermont 3 года назад +1

    You crack me up with your ad-libs!😂🙌🏻

  • @daves2590
    @daves2590 3 года назад

    Very Simple and easy to understand my lawyer. Keep it up good job !

  • @darylreed803
    @darylreed803 4 года назад +1

    all of your content is outstanding!!

  • @glennmehl5244
    @glennmehl5244 4 года назад +3

    I like what he is saying and sharing. I just had To pause it because the cameraman was panning in and out too much.
    I just have to listen and not watch the video. Keep the great content coming. thank you sir.

    • @jimhart
      @jimhart  4 года назад

      Thank you for sharing this. It’s good feedback!

  • @legionofkicks
    @legionofkicks 3 года назад

    You have the best videos in my option. Thank you for sharing. 🙌🏼

  • @a1no1x
    @a1no1x 4 года назад +3

    So the business will not pay taxes on the draw money you took out for the single member, that will get taxed via personal income tax?

  • @KeithSmithMSME
    @KeithSmithMSME 4 года назад +1

    I will bookmark this for review later so I can take notes.

  • @here_to_watch2115
    @here_to_watch2115 2 года назад

    Is the reason for paying yourself with a check for a paper trail ? Im curious if just going to the bank app amd moving the money from one account to the other is ok as long as you make a "note" on that transaction. And record it on the books of course.

  • @kimnguyen2113
    @kimnguyen2113 4 года назад +3

    Great information you gave us . Thank you very much for sharing this . I still have a question if you could help. So basically I pay myself as 1099 form . Is that correct ? Thank you.🙏🏻

  • @machineman6498
    @machineman6498 2 года назад

    Thank you for making this

  • @nogoodbecky813
    @nogoodbecky813 4 года назад +4

    Really needed this! I'm starting a business but I'm not ready to do the LLC or business bank account. Is it wise to still seperate personal income/expenses and my "business" income/expenses until I'm able to get llc and business bank account

    • @rufus5208
      @rufus5208 4 года назад +2

      Yes. Always keep your personal and business money separate.

  • @stephanieg8545
    @stephanieg8545 3 года назад +5

    All these videos just tell me I need to hire someone who knows that they’re doing🙃😂 all of this legal stuff is making my head hurt

    • @FransceneJK98
      @FransceneJK98 2 года назад

      Same here!!!! It is almost making me lose motivation to run a business. It’s better to pay someone who knows what to do and last thing I want is to get flagged by the state or IRS

    • @678friedbed
      @678friedbed 2 года назад

      it's pretty messed up how insane the tax code is. you should vote republican to simplify taxes

  • @sheaorourke5303
    @sheaorourke5303 4 года назад +5

    Why do you recommend doing quarterly taxes if you say you still have to pay them when you do your full tax return at the end of the year?

    • @MichelleAbbott082013
      @MichelleAbbott082013 3 года назад

      From what I've seen it's to avoid the penalties that the IRS will impose if you don't.

    • @KhemBoBeatZ
      @KhemBoBeatZ 3 года назад +1

      @@MichelleAbbott082013 THE IRS is the biggest scam ever

    • @joemeyer2726
      @joemeyer2726 2 года назад

      Because the LAW

  • @PhotoBrad
    @PhotoBrad 4 года назад +14

    Jim, you always give solid advice. But, the editing of this video is so distracting it's hard to watch. About 95% of the cuts are totally unnecessary. Randomly zooming in and out is totally unnecessary. As a professional video producer/director/editor with 30+ years experience, my advice is to keep it simple.

    • @JuanHernandez-ih7lk
      @JuanHernandez-ih7lk 4 года назад +2

      Some of us actually enjoy his quirks. They're entertaining. As someone who is his target audience, his message is more important anyway.

  • @CarolJeanLouis
    @CarolJeanLouis 4 года назад +6

    so, I can write a check for my brother and me (LLC with 2 members, just us as employees for now) and then at the end of the year or every quarter we will get taxed? Does that also mean we don't need a payroll provider? since we can just write a check and taxes will be sorted when they come up...
    thank you!

    • @joemeyer2726
      @joemeyer2726 2 года назад

      Draw monthly one payroll December along with final K1

  • @BimmerBose
    @BimmerBose 2 года назад

    So quick question let's say you have a 2 member llc would those 2 members count as employees of the llc? I ask because when registering your business it asks how many employees you have I wasn't quite sure how to answer that also so I don't have to hire the 2 members with a W2 if I use owners draw?

  • @yasinnabi
    @yasinnabi 2 года назад +1

    Passive income is the only way to become millionaire... work on your passive income streams .... a fellow creator, subbed !

  • @Tryagain657
    @Tryagain657 4 года назад +2

    If I get an LLC on December to I have to pay 800$ for that year and another 800$ on April 15th ?

  • @FransceneJK98
    @FransceneJK98 2 года назад

    If you wanna grow your business, be prepared to not take a salary for a while til you got a steady flow of profit coming in. Don’t make the business bleed cuz you wanna pay yourself 6 figures. Whatever you make, put it back into the business.

  • @sminthian
    @sminthian 4 года назад

    I have exterminator experience (that's one of my side-hussle ideas). You don't hear mice, you just see them or their poo sometimes. If you hear chewing, that's probably rats. If you hear other things...that's something else, probably something bigger.

  • @inadogsworld
    @inadogsworld 2 года назад

    Is a profit account separate from a business account?

  • @strubies
    @strubies 3 года назад +3

    Can you just transfer from business account to personal account with a memo for wages paid?

  • @MrSherod1
    @MrSherod1 3 года назад

    I'm about to start an LLC but my business hasn't started really making any money. When does the government start taking taxes from your LLC. How much money do you need to be making in order for IRS to start taxing it?

  • @desi-usa9001
    @desi-usa9001 4 года назад +7

    How about doing a online transfer from my LLC bank account to personal account (instead of writing a check?). That's what I do now. Is is the same thing, am I good doing this?

    • @jimhart
      @jimhart  4 года назад +4

      Yes if your bank will let you. Sometimes they won’t. But that is fine.

    • @desi-usa9001
      @desi-usa9001 4 года назад +1

      @@jimhart Thanks. Personal and Biz account are both with the same bank, maybe that's why I am able to do it easily.

  • @johnnybayles7412
    @johnnybayles7412 3 года назад +2

    Now I was under the impression that if you don't opt into an S corp that all your owners draws from a single member LLC will not only be subject to your personal income tax but also be taxed with a corporate tax.... or FICA or something. Can you avoid being taxed twice as a non S corp?

  • @analyst1777
    @analyst1777 Год назад

    What is the proper way to fund your business from your personal income when the business first starts?

  • @shannan9280
    @shannan9280 4 года назад +1

    super helpful, thank you.

  • @ondemandtransportlogistics
    @ondemandtransportlogistics Год назад

    Jim can one purchase asset under Personel credit put under expenses , looking buying company truck in December have some deal right now really not going start working until January but wanted to have Equipment ready start year running the question would be if purchases Equipment in December can I expense it in 2024 when Equipment was purchase DEC. 22?

  • @KillianWolf
    @KillianWolf 3 года назад +4

    Thank you for your video! What is the difference between paying yourself via check versus transferring money from your business account to your personal account?

  • @marcspecial
    @marcspecial 4 года назад +2

    Can personal debt like restitution to the government or child support be garnished from the business bank account; if I start an LLC using my social security number to obtain the Business EIN?

    • @mcbc5189
      @mcbc5189 4 года назад

      It all depends on how you set up your business and how separate you keep everything so that there is no room for piercing the corporate veil. Your business and its bank accounts should have been set up with a business EIN from the start. Also, you should have provided the bank a copy of your operating agreement which should outline how you would get paid whether it's distributions only or distributions plus your salary for any of the hired work that you do for the company excluding managing the company. If you stick to operating exactly how the terms of your operating agreement lays out then the company's bank account should be protected from your personal creditors including the government garnishments.

  • @nicolestewart8928
    @nicolestewart8928 4 года назад +1

    Just found the answers here 🙌🏾🙌🏾

  • @randyknecht1
    @randyknecht1 4 года назад +1

    The business I plan on running is "Repair" in nature, I wouldn't expect most of the topics you cover in your videos, in general, to be all that different. Correct, or incorrect?

    • @yungcurry7456
      @yungcurry7456 4 года назад

      Although he is specifically catering to those hoping to start online businesses, I have found that much of his content applies to other types of businesses. He does a great job of generalizing things so that you could apply the same ideals and methods to just about any LLC type.

  • @atlygroup
    @atlygroup 4 года назад +2

    So I started a new business and COVID-19 came. I had no check stubs since I was building my business. It was totally self funded. Because I did that I was ineligible for the EIDL and PPP loans. It bit me in the behind.

    • @TheJonathanGibson
      @TheJonathanGibson 4 года назад

      Did you not receive any income at all yet? Even if you didnt pay yourself from your company, you can still get the EIDL grant if you were in business, you just apply as an independent contractor and use your name as the bussiness name if it's not registered yet and use your social. It's open for application again if you're curious, and it's pretty no questions asked in terms of details. Watch meetkevin's video from a week ago when they opened the application again. He also has an application breakdown video in the description.
      ruclips.net/video/_WitJyGYwBg/видео.html

    • @joemeyer2726
      @joemeyer2726 2 года назад

      Never should have started business, need cash run for year

  • @bryanutility9609
    @bryanutility9609 2 года назад

    Can I just pay off a loan so I don’t pa any taxes?

  • @HowTO-py8rc
    @HowTO-py8rc 4 года назад

    Hello..i'm from a Stripe non supported country.
    So i'm want to form a LLC in wyoming,just to get stripe for my dropshipping business.But i'm kinda confused with the tax situation.I really appreciate if you can answer these question.
    1.Wyoming is the best state to perform a LLC for non-resident.right?
    2.i will be targeting USA citizens to sell physical goods from my store.So do i have to pay taxes?
    3.If so how much will it be?
    4.Which forms do i have to fill and where report and pay those taxes?
    5.Lets say my business will not successful & wont make any money.Do i still have to pay anything?Just to keep my LLC.
    6.Is it possible to cancel the LLC?
    Thank you

  • @Finley0312
    @Finley0312 3 года назад

    How does this "Taxing" work for service disabled veteran owned small business if the veteran is tax exempt? Does that mean the business is tax exempt as well if the business owner is the veteran?

  • @laurachamberlain9591
    @laurachamberlain9591 4 года назад

    Is it better to pay myself more or less when it comes to taxes. Say I could afford to pay myself $3000 or $4000, what would be better tax wise?

  • @joncreatorhustles
    @joncreatorhustles 2 года назад

    Jim I have question. I have a blogging business that's just getting off the ground (Not Profiting yet overall). but I also have a few freelance gigs that are obviously 100% profit and no expenses. Im looking to get my LLC geared towards all my online income. Can I group all of that stuff in one spot? Meaning can I have my freelance income and blogging income go to one business bank account and then do my taxes based on the net profit or net loss overall?

    • @jimhart
      @jimhart  2 года назад +1

      I can’t give legal advice in comments, but I typically group all similar income within one LLC until such time as you have a business that is clearly unique, and in a different niche. Most individual solopreneurs never get to the point where they need multiple LLC’s unless they have rental property.

  • @dalisavage9278
    @dalisavage9278 4 года назад

    Thank you and thank you nice video

  • @katherinetavarez8243
    @katherinetavarez8243 3 года назад

    Do all the bank accounts has to be business bank accounts?

    • @joemeyer2726
      @joemeyer2726 2 года назад

      No, sole proprietor use personal account but only for your business then another account for personal

  • @Foxxxxx96
    @Foxxxxx96 3 года назад

    Are you a registered agent in Delaware?

  • @kronk358
    @kronk358 3 года назад

    So, in the case of the LLC, you are only paying taxes on your draw? Not on the businesses profits?

    • @joemeyer2726
      @joemeyer2726 2 года назад

      No pay taxes on profits before draw, let CPA do it for you

  • @darcelmcintyre3014
    @darcelmcintyre3014 4 года назад +2

    I'm a LLC I pay myself a payroll check but can I still write myself like a bonus ? How would I write it?

  • @crazyfactsoftheworld
    @crazyfactsoftheworld 4 года назад +1

    What about paying yourself twice a month Jim?

  • @RozzB57
    @RozzB57 3 года назад +1

    If I have an LLC and I pay myself each month, when I file my taxes (1040) and I list my LLC on my taxes schedule C and I list my 1099 for my income... how does that work?

  • @abrahamw88
    @abrahamw88 3 года назад

    Does it have to be a literal check? or can it be a bank transfer online?

  • @jessinvests
    @jessinvests 4 года назад

    You’re awesome! ❤️👏

  • @FOODREVOLUTION360
    @FOODREVOLUTION360 4 года назад

    Thank you.

  • @bchad566
    @bchad566 2 года назад

    Can I pay myself direct deposit In stead of a checks?

    • @jimhart
      @jimhart  2 года назад

      Yes, of course. I recommend hawthornlaw.net/payroll as a payroll provider. Use this link at get a $100 giftcard when you run your first payroll. #affiliate

  • @marazulcontreras1446
    @marazulcontreras1446 3 года назад

    ok so i just got my social security work card last year i open my cleaning business as a LLC but i have no idea do i pay my self to start working my ssc number or what can i do???? PLEASE HELP

    • @joemeyer2726
      @joemeyer2726 2 года назад

      LLC was waste of money, get CPA and focus on work

  • @zyzzking31
    @zyzzking31 4 года назад

    can i file a w2 when forming a LLC, or 1099

  • @mattk720
    @mattk720 3 года назад

    Good help, but GREAT haircut

  • @whitneyt3306
    @whitneyt3306 4 года назад

    What this system be sufficient for an at home based medical billing and coding company?

  • @mohamedeldemery1647
    @mohamedeldemery1647 4 года назад

    if i open an offshore llc i the US can i make my personal bank account in my home country ? and as a foreigner do i pay taxes on my llc in the us ? i will have to pay income tax on my monthly salary here in Egypt

    • @89andresp
      @89andresp 4 года назад +1

      I understand not. That you should use the form W8 EN or the appropriate one W8 for a person not in the US

  • @juanitalopez1615
    @juanitalopez1615 4 года назад

    Hi. With this pandemic a lot of business had to close. Can you talk about the consecuencias about it.

    • @joemeyer2726
      @joemeyer2726 2 года назад

      Go get job working for someone

  • @patrickgauvin7548
    @patrickgauvin7548 4 года назад

    LOOKING FOR IDEAS MAKING NEW VIDEO'S ? What about looking at the terms of use for say 5 of the best dropshipping companies for conflicting copyright contracts and licensing for using several stores i want to sell on several stores with my art

  • @Parsa1837
    @Parsa1837 4 года назад +3

    I have a question, so you said pay taxes every quarter to the gov and then again at the end of the year? Isn't sole proprietorship business taxed only quarterly? I'm confused on that part.

    • @seniorquiggles2738
      @seniorquiggles2738 4 года назад

      You are correct in saying tax is due quarterly. I assume he is referring to filing the return at the end of the year and paying the true up amount. If us tax accountants could perfectly predict future earnings to make quarterlies that result in a net zero filing, we would be paid alot more. lol

    • @joemeyer2726
      @joemeyer2726 2 года назад

      Taxes based on calendar year, quarterly is estimated

  • @turbospeed08
    @turbospeed08 3 года назад

    How do I avoid taxes legally?

  • @tloco1529
    @tloco1529 3 года назад

    What happens if I'm a part of a online business opportunity do I still have to get an llc?

  • @VivaLasVegusNervana
    @VivaLasVegusNervana 3 года назад

    The sound is pigeons... so rats with wings. You weren't far off.

  • @cristiansilva4008
    @cristiansilva4008 4 года назад

    After I filing a LLC online I received just an email confirmation. Should I receive anything more?

  • @belojay2850
    @belojay2850 3 года назад

    👍

  • @marcs8395
    @marcs8395 3 года назад +1

    This is what they don’t teach you in school.

    • @joemeyer2726
      @joemeyer2726 2 года назад

      First semester tax accounting

  • @nicholasmoore8115
    @nicholasmoore8115 3 года назад

    Glasses off = down to business

  • @davidmiranda2068
    @davidmiranda2068 3 года назад +1

    Wow! Information related to title :23 seconds.

  • @everythingorganic848
    @everythingorganic848 3 года назад

    Way too much legal jargon in the beginning which dude would have got right to the topic

  • @bmkolb
    @bmkolb 4 года назад

    Bats

  • @Wolframandheart
    @Wolframandheart 4 года назад +2

    I like your videos, but try to keep them professional and focused. Any distractions you can edit out.

    • @JCPFILMS
      @JCPFILMS 4 года назад +10

      I disagree. It makes the video more interesting. He doesn’t have to be super serious.

    • @amaria5751
      @amaria5751 4 года назад +6

      Go watch someone else, if you don't like the way he does his video's.

    • @postingproductions1050
      @postingproductions1050 4 года назад +5

      It’s called you don’t have a sense of humor

    • @JUJU-._.-
      @JUJU-._.- 4 года назад +2

      I personally Like he has random sounds and explains the stuff in a funny light-hearted way that makes the videos entertaining while still educational. if he was too serious and just lectured everyone id get bored hearing 100% textbook information.

    • @mcbc5189
      @mcbc5189 4 года назад +1

      @@JCPFILMS I agree. His videos become annoying and they really aren't entertaining. If he wants to be funny then he should hire a writer and then stick to the lawyering stuff.

  • @Wolframandheart
    @Wolframandheart 4 года назад +2

    You should hire someone to explain your videos

    • @dantehastea
      @dantehastea 4 года назад +3

      Mogul Media nope he is doing great already

  • @Mental-Maniac
    @Mental-Maniac 4 года назад

    If im a franchise owner and own lots of location what should a be in my franchise, A member or manager? Can you help me understand what is best thanks.