When to Use the C-Corporation
HTML-код
- Опубликовано: 23 окт 2016
- Get certified In EVERY strategy I teach! Learn how by booking a FREE 15 minute demo: markjkohler.as.me/
This is about when to use the C-corporation and whether its a good idea for you!
Get your tickets to my BIGGEST event of the year: www.taxandlegal360.com/
To get more details about my NEW certification: markjkohler.com/become-a-cert...
Get My FREE Ultimate Tax Strategy Guide: markjkohler.com/contact/
To Get Started With Any One of My Teams: linktr.ee/MJKRUclips
Visit markjkohler.com for all of Mark's game-changing educational materials, take charge of your ship, and start SAVING thousands in taxes!
If you liked the video, please give it a "Thumbs up!" and please subscribe to see more!
Set up a self-directed retirement account at directedira.com and start saving today!
Visit www.mainstreetbusiness.com to listen to Mark Kohler and Mat Sorensen break down complex Tax & Legal strategies in an easy-to-understand way every week!
I go LIVE almost every week...Don't forget to Subscribe and Hit that bell icon so you get a notification every time I upload a new video or go LIVE
If you liked the video, please give it a "Thumbs up!" and please subscribe to see more!
Follow me on Instagram, TikTok Facebook and Twitter @markjkohler
#Taxes #avoidtaxes #paylesstaxes #tax #realestateinvestment #Markjkohler #KKOSLawyers #markjkohlerLIVE #Entrepreneur #rentalrealestate #taxplanning #smallbusiness #taxlaw
I love this guy mark, great enthusiasm and teacher.
I'm so glad I found your channel! This video was really helpful and I'm seeing a lot of your videos that I can't wait to watch. Thanks!
I am glad you found me!!! Thanks for watching!
Your book "What Your CPA Isn't Telling You" is one of the biggest inspirations in my journey as an entrepreneur. Thank you so much for everything you do, look forward to watching all the rest of your videos!
Thank you, Brian! Your support means a lot!
@@MarkJKohler Need to figure out how to get you to autograph my copy of the book one of these days! :)
Hi Mark,
Thank you for this video! This was my first video of yours that I have seen and I have just bought your book on amazon. You deserve and will get many more subs, best of luck!
Max, I'm so sorry. Just saw this. Please forgive me. Thank you so much for the kind words!! I'm still kicking out videos!! :)
Thank you for making this video!
Thank you so much for making these videos. This is extremely helpful for a dad like myself who is starting to create wealth. Any videos comparing family trusts vs family-owned LLC or Corporation?
Thank you so much for watching! Check out this video! I hope it answers your questions! ruclips.net/video/HZln-xiJmRk/видео.html
I consider Mark to be a mentor. Great video mark!
Thank you so much sir.
Great video, not boring at all
Great content
Enjoy the vids keep em coming I am hooked
Thanks so much! I appreciate it!
Thanks so much!!! Will do. :)
I Love you mark ❤️ great job
Thanks David.
When you compare the taxes on net-income of c-corps compared to the net income that passes through on other entities (s-corp), or that are taxed on personal income (k-1) the effective tax bill is far less on the c-corp, and That's without even looking at the other benefits the c-corp has. show me this law that a small business owner cant have a c-corp and start small and I will definitely shut my mouth.
[Waiting also for this response.]
Also waiting to see if he’ll respond. I was told to do a C-Corp over an LLC for my write offs. The idea is my earned income (since I’m 1099) will instead go through my LLC and through my LLC will pay myself. I was recommended an C-Corporation. A stands corporation. She said I can write off almost everything
You should mention the use of a QSEHRA for an s-corp, especially if there are no employees.
great video....
Incorrect the C-corp has far better protection especially when you consider getting credit and speaking to a bank. Piercing of the corporate veil needs to be defined here.
can you cover how to apply for SBA loans with a Delaware c corp. I have a 2 year company that needs an accountant like you!
Loved the content. Thanks for the wealth of knowledge! Dr. Kay Sobhe, Certified Rug Specialist, Certified Rug Appraiser, Los Angeles
If you want lots of stockholders and other big business benefits, you need a C corporation. If you are 100% destined to become a Fortune 500 corporation, you need a C corporation.
Having compared the two I am not convinced S-corps are as straight forward as you make them out to be.
Loan to shareholder is not deductible it is on Balance sheet and doesn't have anything with tax except interest part
I just started a c Corp I know that I can expand the company and not pay taxes because I made no profit
I would really get a second opinion. You could really be screwed when you start to make profit. Be careful. Consider s-corp.
You have a limited amount of time to elect to s-corp once you a c-corp so I would act fast
@@MarkJKohler can you switch you c corp to an s corp?
Hate tobe 666 but you deserve to get by it.
Great info.
Thanks!
Should I change my llc to a c Corp or leave it an llc in order to create a (very desperately needed/legal) tax shelter for myself?
Very good video. Can I use a 401k rollover in a S-Corp? I'm looking at buying into a franchise and the funding people (FranFund) are telling me if I use my 401k for working capital, then I have to have a C-Corp. They're also saying that I'm required to do this so I don't get penalized when withdrawing money. Is this true? Is there a better way to do this? Thanks for any info you can provide.
This will not work for a 20M/year company right?
What does he mean around 2:11 that Corporate taxes now kick in if we want to take any money out? I thought Corporate taxes on profits ALWAYS apply, and it’s only if they are distributed to shareholders that the profits are taxed again at the shareholder level?
the background music is killing me over here. Good info thanks, but another .001 decibels of music and it would be impossible for me to watch.
Thanks for the music, but the music was distracting.
I got sick went I opened my c corp the lady told me that’s the best. Now I know wasn’t. And I can’t close it either 😭
I want to build and sell the company. What’s going to be the best option to reduce the tax when I sell it. LLC o C Corp
Please explain cuz I was told the c corp is the best way to grow
To start a C Corp does one of the Director/me ever has to have US social security numbers?
I need some clarification on the income of C Corporation 75K out of which 50K given as a loan to shareholder and then tax C Corp will only on 25k is only taxable ? Is that 50k us deductible from Corp net earnings ? Even though IRS will take taxes as dividend later on ? I thought imputed interest on the loan is an income to Corp but not the whole 50K will be treated as deduction from Corp net income of 75K ?
plenty of company's are trading publicly and not paying dividends
Hi Mark, Thanks for these great videos! I'm still confused however, as my new accountant just set me up as a Corporation, to be taxed as an S-Corp. I'm a solo real estate agent and he said that realtors are not allowed to have LLC's - which doesn't seem correct. Should I change accountants?? I'm super nervous I'm going down the wrong path...
Realtors are allowed to be LLCs taxed as S Corp
I've been advised to use a c corp due to the amount of education costs /startup costs that can be written off in a c corp versus a s corp or LLC ? . Additionally I would like to put other businesses inside of the c corp ,what might be best to use ?.The c corp is marketing based and the other businesses would be separate businesses of the marketing type
Larry, it would be hard to give you a straight forward answer when I don't know what your business is used for. I would love for you to call my office to see if we can set you up with an attorney consult. Let's get this figured out. Please give us a call at (800)801-0010
So do a c corp if I want to get big. Got it
Excellent video. Is C-Corp/S-Corp still the right path for a company generating revenues in the US and outside (UK)? Are there extra US taxes to pay myself a salary if I am based outside the US?
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ OR you can head to markjkohler.com/tax-advisor-network/ and get connected with one of our amazing Tax Advisors that can help you dive deeper into your questions. Thank you!
WOW
Waka flaka is the reason im here
😂😂😂 thought I was the only one
Watched
You are the Bees Knees
Great video and explanation. Can I ask you a question, what if I continue to borrow money from the c-Corp until I pass away and I get an umbrella insurance policy to cover the cost of all the taxes that I incurred. I heard an investor mention something about this strategy.
Jose Medina he’s right but technically ONLY if you plan on taking money out but if you’re not planning on taking it out and you plan to continue redeploying your capital to have it reinvested into your business, then dont worry about tax, cuz youre money isnt being withdrawn.
This is exactly what I'm doing. Cash value policy
I'm not an expert, and I know this comment is several years old, but something people forget about this strategy is that this basically requires paying a premium for an insurance policy. It can have its place, but I would definitely make sure I was calculating the cost of the premium. And ultimately you still pay the taxes, you just pay them when you pass away, which you could theoretically do without the insurance. I'm assuming the reason to do the insurance is because you actually care about protecting either the business or your dependents when the tax bill comes due. There definitely could be a place where you break even, but I also wouldn't put it past a financial advisor to not take that expense into account. I have just seen so many people who are bending over backwards to avoid taxes make the mistake of paying $2 in expenses to avoid $1 in taxes. If you have the $2 in expenses anyway, it makes perfect sense to claim them to avoid $1 in taxes, but if you are incurring additional expenses (such as an insurance premium) for the sole purpose of avoiding taxes logically you should never spend more than $1 in additional premium (adjusted for the time value of money) to avoid $1 in additional taxes.
If you pay money into a C Corp that you own to manage your private business, for example as an independent contractor, and the expenses paid in by the individual (you the 1099 contractor) wind up being the amount reimbursed to you by the C Corp rendering the profit of the C Corp as $0.00, then would this still be a good option? In this situation, it appears to remove all of these pitfalls of a C Corp you are speaking of. Thank you.
Great question! Send me an email and we can discuss which would be the best option for you. mark@markjkohler.com. In the meantime, I highly recommend schedule a consultation with one of my associate attorneys. Please reach out to my assistant at 435-586-9366 ext 2024. Thanks!
What if you know the business won’t be small for long. Like if it will legit be a huge business.... would you recommend a C Corp then?
Can you do S-Corp to C Corp?
I would love to know the answer to this as well
What if you have to open a C corp in order to fund your biz through a 401k ROBS? Better to just open an LLC and take the tax hit from the 401k raid?
This is exactly what I'm trying to figure out right now.
Did you do either option? How'd it work out?
If I'm starting as a small business then planning to go franchise like McDonald's did would I stick with an S Corp or then turn C Corp?
Yes. Sounds reasonable. If you are going to franchise meet with a franchise attorney or advisor and map out a plan. Its an entirely unique area of law.
C-Corp, get your DBA, one step closer to freedom from second class citizenship!
2009yale Greetings have you mastered Trust Law?
need more C-Corps INFo
isn't a distribution considered an expense to the c-corp?
Sorry for the delay. Just saw this. The answer is no. The Distribution typically ends up being a dividend. Get a 2nd opinion if someone is really pushing the C-Corp.
Can I have my LLC do the work for the C Corp and then bill the C Corp for work done, so there are no dividends or wages paid. Then my staff are paid out of the LLC
Hi! Thanks for watching! This is a pretty in depth question. To give you the advice you need, please reach out to our firm to schedule a 20 minute paid consultation with one of my attorneys. Call 435-586-9366
On second thought, I should have said this. PLEASE do not use the c-corp for this. I will say it publicly again... The c-corp should RARELY ever be used for a small business owner and their are companies out there selling them to EVERYBODY and charge FAR TOO MUCH to do it. It's bull crap! Don't use a C-Corp to bill yourself. Get a consult with me or one of our tax attorneys. Get a 2nd opinion on this whole C-Corp mess and decide if it really makes sense for you.
People who mix up there and their shouldn't be listened to. I doubt this guy is answering his own comments. If he is, it's worse than I'm already thinking.
Hi, What entity do you consider for stock and crypto traders ??? Trading large amount of capital per day
Thanks
We can help determine what Entity is right for you! Call my Law Firm KKOS Lawyers at 888-801-0010.
have a question. I am opening a company in the states with my partner who is russian and lives in russia. Should I open a C-corporation or S-corporation or LLC with her?
Set up a consultation and we'll get you all started! (435) 586-9366 I'd love to answer your question, but I need more info!
Are you familiar with Roll Over Business Startup (ROBS)? In it you have to be a C corp. What are your thoughts on using ROBS? Also I think it's a great stratgy to attract good employee's as you can offer medical which is a write off to C.
Yes, very familiar. It's a unique strategy when you have a 401k in the mix. Make sure you have attorney/CPA consulting and support from start to finish in the process. It can be a huge liability if you do it wrong. Thanks!
If I want to start a company with 4 shareholders who prefer to leave the profits with the company rather than receiving dividends and who will not draw salaries from the company, a C-Corp is the way to go, right?
Richard, sorry for delay. Just saw this. Yes. The C-Corp could work in that situation, but SOME DAY you will have to 'pay the piper'. There better be a darn good reason you are deferring the income inside the C-Corp because the double tax could be absolutely terrible. I would think we could use trusts and other structures to help in a unique situation.
Absolutely depends on your situation. PLEASE get a consult with a tax or legal professional, keep watching my videos, buy my book, etc... Call my office, we would love to help 435-586-9366.
Don't you have to pay taxes on a C-Corp if you have a profit? The video alludes to not having to pay Corporate tax unless you take a salary. I could be wrong but that's what I got.
Jungle is right. I have a S corp. I have medicare & Tricare for life, I don't have out of pocket medical expenses. I am self employed. I buy & sell RE. I flip properties, any benefits to having a C corp too?
More access to funding options
Hello Mark. I would like to subscribe to your channel. Please keep me updated. Thanks.
if my business is providing software services to other businesses outside of Delaware, will my company have to pay annual corporate income tax? if so how is that tax calculated?
Great question! there is a lot to it! I'd say your best bet is to watch some more of my videos, go to markjkohler.com/blog/ and find an article I have written, and/or give my assistant Rosalie a call at 435-586-9366 ext 2024 and have her point you in the right direction.
You should mention The laws have changed. It's now 21%
I will look into that, thank you Bryce!
I have plan to transfer my 401K money to Roll over business starting ( ROBS) plan, Plan provider suggesting me go for Corporation C, I don't know it's going to work? I will be one man business owner.
Are you asking me a question? I am confused by the context behind your comment.
How do you change from a C Corp to an s corp?
We can help you at our firm KKOS, please schedule a consult at kkoslawyers.com/contact-us/ - thank you!
Can I hire employees if I am a C corp and pay the employee with W2 through that company? And if I am to pay this employee how will they be taxed?
Hi Benjamin! We would need to go a little more in-depth with this so I would suggest calling in and setting up a consult with one of my attorneys! Call 435-5860-9366
@@MarkJKohler Your phone number is 11 numbers?
@@camillemaes7728 Oh my gosh my bad... it's 435-586-9366. Sorry about that!
The C corp employees would pay their normal salary tax rate. I don't know why he couldn't answer that question. You better call him so he can make some money off you. LOLOLOL
@@robertkubrick3738 ya some of the replies by him doesnt seem to be from a native english speaker
what about using a c-corp to qualify for welfare benefits and taxpayer funded medical bills (medi-cal)?
Let me make a few suggestions....for free...subscribe and watch all my RUclips videos. Remember you HAVE a small business. Not an investment. Maximize your write-offs and treat it like a business. Also, start listening to my podcast. Go to iTunes or Sticher and search for 'Refresh your Wealth' or Mark J Kohler. Tons of podcasts there that will help you. Then, consider any of my books or my BOW Workshop recording. Only $99 and over 10 hours of content. Check all this out at my website too: www.markjkohler.com. Thanks!
accountants and attorneys aren't actually business owners they are self-employed. get a second opinion?? lol I agree
Corp tax is caped at 21% now
Which screws small c-corps, because the first $50k of profit used to be taxed at 15%.
I need help please
Call us at 435-586-9366!! We'd be happy to help!
donate the $75000 to your private foundation ?
lol. ever heard of retained earnings or dividend taxable income?
Would love to debate and learn hit me up!
Why did you not mention the fact that C corps can often pay far less tax via reinvestment? If your business is just a job that pays your regular expenses then a C corp makes no sense. If you're planning to reinvest most of your profit then this video is not accurate
My brain she hurts
I def won't be buying your book! Scaring people out of a C-Corp!
Sorry for the delay in responding. I'm sorry. But seriously...What?!??! They only work in a small small small set of circumstances. They have been historically a disaster for small business owners. Please email me a white paper or examples or some support for your argument. I put my money where my mouth is with calculations and examples in an entire chapter in my book. I'll send you that chapter complimentary if you will read it. I seriously am warning people as much as I can and constantly unwinding these structures for clients because they have retained earnings they can't touch and are getting killed with taxes to use their own money. Please study up and/or send me the support you have on this.
@@MarkJKohler I will give you an example. I'm paying an effective 32% in personal income tax anyway. I would be perfectly happy taking a $60k (or less) paycheck for myself for the forseeable future. I own oil and gas property. I could just buy more oil and gas mineral rights with any excess through the corporation. I also have family members who could be employees of the corporation who I have been giving gifts to anyway, I mean real employees, doing real work, like my bookkeeping as they were former business owners themselves and it wasn't their bookkeeping that did them in. Tell me how the F I would be better off as a S corp or just an LLC? Especially as the O&G business ebbs and flows, I made $300+k this year, it might be 100k next year. The C corp should allow me to reinvest the money pre tax, instead of after tax. That's a massive benefit. Putting people on the payroll, for real work done, who I was giving money to anyway would be a massive benefit. I might spend $30k a year on myself. I don't need a fancy house. I already have two new cars, One here and one in the Philippines where I live about half the year. WTF am I going to spend 200+K a year that I paid just about the highest taxes on? You sound like you haven't thought this out, all the various possible moving parts.
During my review I found Mark’s video being an act to gain awareness. In great detail he defines the set ups and opportunities of different options and concepts. Never believed his purpose was to scare or cancel out anything. Thanks Mark for the informative tutorial.
c-corp is fine they way it is don't be scared of taxes and don't run it like an idiot.