Sole Proprietor vs. S-Corp vs. C-Corp (Here Are The Pros & Cons!)

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  • Опубликовано: 21 окт 2024

Комментарии • 83

  • @TobyMathis
    @TobyMathis  4 месяца назад +2

    Have questions about this video? Sign up for a free consultation to get your questions answered by professionals. aba.link/a3f0ff

    • @Trump2024-b3r
      @Trump2024-b3r Месяц назад

      MY husband had a W2 income ~91k till August. A on going 1099, close to 100k. New vendor (same 1099 assignment) he plans to work with starting in October has two options either C2C (no 1099) or W2. Should he create a LLC/Scorp this late in the year considering two form of insurance will cost approximately $1200 and other costs you have mentioned in this video? He plans to use the the S-Corp in 2025.

  • @stacysouthard
    @stacysouthard Год назад +30

    I have never had anyone sit down and explain things like this before. I have asked and asked and asked numerous people how I need to structure my business and all anyone ever says is an LLC. I learned more in 30 minutes from you than I have in years of asking people, including accountants. Thank you for being real and honest!

    • @JamesAutoDude
      @JamesAutoDude 2 месяца назад

      Ikr! Everyone pushes LLC because it's as easy as self employment lol. It still is self employment as an LLC lol

  • @JamesAutoDude
    @JamesAutoDude Год назад +5

    When you're a sole proprietorship: You earn, you're taxed, then you spend
    When you're a business: you earn, you spend, then you're taxed
    This alone has really opened my eyes....
    Also everything else you explained, Literally the best explanation I've ever found
    As for the separate tax return... Not much different then doing a schedule C which is also separate and tax preparers charge more for that too
    Lastly, if you're an LLC, it's still just you with liability protection. But if you're a corporation, that's not you, you're just allowed to make decisions on its behalf lol. So even more protections and separation

  • @Photo66videos
    @Photo66videos Год назад +8

    30+ years in business. Never knew some of this. Pure GOLD!

  • @kevinhynes6325
    @kevinhynes6325 Год назад +7

    Toby, I just want to say you are the bee’s knees man. I’ve never seen anyone else explaining these things to the peons like us. Super helpful. I hope you continue making content for a long time

  • @thepakitrucker6869
    @thepakitrucker6869 Год назад +4

    Thank you so much for explaining this so thoroughly. Everyone says llc and not once I’ve heard of a c corp until my accountant brought it up and now with your explanation this makes so much sense

  • @terenceeans1577
    @terenceeans1577 8 месяцев назад

    As per usual, you killed it!!! So educational I'm implementing every gem that you're passing along and also passing it along.
    I love the fact that you're passing all of this content from your passion of it!!! Has to be from your heart cause you have plenty of wealth, very inspiring!!!
    So I've spoken to my wife and we've decided that we're going all in, based on all of the copious notes 📝 we've been taking from your channel!!!
    Definitely going to I also invest into all of your other workshops 😊😊😊😊😊😊😊😊. We thank you!!!!

  • @Sekona.realtor
    @Sekona.realtor Год назад +4

    Definitely best and clearest explanation I ever listen to thank you so much

  • @EpicenterLLC
    @EpicenterLLC Год назад +2

    I'm always better informed when I listen to your videos. Happy New Year! Missed your cats :)

  • @elguapo3811
    @elguapo3811 Год назад +1

    Lots of valuable information for someone who just started their LLC S Corp. Thank you

  • @Biztalkcontrolcenter
    @Biztalkcontrolcenter Год назад +4

    very clear explanation

  • @michael_house
    @michael_house Год назад +2

    Awesome video. Thanks again!

  • @leahmthompson1987
    @leahmthompson1987 Год назад +2

    Thank you so much for all this great content!!❤

    • @TobyMathis
      @TobyMathis  Год назад

      You are so welcome! Thank you for watching our content!

  • @rhadiem
    @rhadiem 9 месяцев назад +1

    This is gold, Toby. Thank you.

    • @TobyMathis
      @TobyMathis  9 месяцев назад

      Glad you found the video helpful!

  • @bendertechnology
    @bendertechnology Год назад +4

    Awesome video, Toby! This blew my mind. I got a ton of bad advice over the past years and I think this will help me to moving forward. If I plan to use an s-corp or c-corp for an entity, does it need to be in place on January 1 of a tax year? Thanks for sharing your knowledge!

    • @JamesAutoDude
      @JamesAutoDude Год назад

      As far as I know, no it doesn't. As a C Corp you get to choose the closing month, as an S Corp it'll just be December as the last month. And you just file whatever you did from the time it was opened until the close date

  • @lisaevans5843
    @lisaevans5843 6 месяцев назад

    I've listened to this a few times! Thanks so much.

  • @derekcasanares4785
    @derekcasanares4785 3 месяца назад

    I always love watching your videos and I have a gut feeling that I will need your expertise within a year.

    • @TobyMathis
      @TobyMathis  3 месяца назад +1

      Thanks for the support, don't hesitate to reach out to my team. aba.link/a3f0ff

    • @derekcasanares4785
      @derekcasanares4785 3 месяца назад

      @@TobyMathis I'm going to start trading again and want to use your services and expertise but I really need to know what type of daytrading I will be doing. I'm looking at the Forex Indicie again or possibly day trading stocks and I have some special things that need to be addressed.

  • @botanyandboard
    @botanyandboard Год назад +1

    Super helpful - thank you!

  • @efrenestrada2230
    @efrenestrada2230 Год назад +1

    I see the bottle of Petrone, now I know I can trust you hahaha happy new year

  • @takeshi1242
    @takeshi1242 3 месяца назад

    Very good points on liability protection most dont think the worst case!

  • @hugomontano5833
    @hugomontano5833 Год назад +1

    I really appreciate the explanation for the different entities. Wife and I trying to start investing in real estate, we are both W2 employees in the higher end of the bracket. We also do stock investing providing another source of income. We currently don't have a structure, what do you think of having two LLCs (one each of RE and Stocks) being in a holding company LLC taxed at C-corp? Want to avoid any non W2 income to be taxed at the higher bracket and limit it to the 21% corporate rate. Thanks

  • @hrstories2
    @hrstories2 Год назад

    Thank you. Just started a new family trade with zero $ and applying for EIN. I will be choosing S corp.

  • @moneylifetv1754
    @moneylifetv1754 Год назад +1

    great video will like it many people need it

  • @earningscall
    @earningscall Год назад +5

    If someone qualifies for the trader tax status and his/her trading account is under an LLC that's taxed as a C-corp...Would that person pay a 21% flat tax even on short-term capital gains? Thank you

    • @TobyMathis
      @TobyMathis  Год назад +1

      Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby

  • @yvonnesilva7716
    @yvonnesilva7716 Год назад +2

    Geat video. Very informative. Thanks.

    • @TobyMathis
      @TobyMathis  Год назад

      Glad you enjoyed it! Thank you for watching!

  • @hyojinlee
    @hyojinlee Год назад +1

    Thank you so much for this video!! So helpful :)

  • @aaronjaggers3117
    @aaronjaggers3117 6 месяцев назад

    Thank u great advice for the average person who would walk right into trouble . Thank you

    • @TobyMathis
      @TobyMathis  6 месяцев назад

      Glad it was helpful!

  • @roxulerz
    @roxulerz Год назад

    Such a helpful video! I learned so much as an entrepreneur just starting out. Thank you!

    • @TobyMathis
      @TobyMathis  Год назад

      Glad it was helpful! I hope you subscribe for more future videos 👍

  • @cicsrh
    @cicsrh 5 месяцев назад

    Thank you for the info as usual

  • @nolebeeks303
    @nolebeeks303 3 месяца назад

    Wouldn't it be beneficial for the sp to have insurance ? And can they right it off ?

  • @MartyMarz
    @MartyMarz Год назад +1

    Depends. The 21% tax was implemented in 2017 and the c-corp tax rate fluctuates based upon laws passed

  • @matthewsalathe5491
    @matthewsalathe5491 4 месяца назад

    Good stuff Toby! Thanks.

    • @TobyMathis
      @TobyMathis  4 месяца назад

      I'm glad you enjoyed the video!

  • @ellenoir5678
    @ellenoir5678 Год назад

    Happy holidays!!

    • @TobyMathis
      @TobyMathis  Год назад +1

      Happy holidays to you too!

  • @pastormosesmaloney1604
    @pastormosesmaloney1604 Год назад +1

    Thank you so much man. Just helped me decide between s and c. Going with S corp.

    • @TobyMathis
      @TobyMathis  Год назад

      That it was helpful! Thank you for watching!

  • @IrwingMartinez
    @IrwingMartinez Год назад

    great value in this video

    • @TobyMathis
      @TobyMathis  Год назад

      Glad you think so! Thank you for watching my content. 👍

  • @davidpeterson7850
    @davidpeterson7850 3 месяца назад

    I've heard of people layering entities, with an C-corp as a holding company, and an LLC or S-corp as the operations arm that deals in the day-to-day money flow. Is there an advantage to layering like that? For instance, if I'm interested in setting money aside to buy a competitor, or maybe expand my own business if a big contract comes in and I need to hire engineers to get the job done. Thoughts? I'm about to file for something... LLC, S or C within the week [Engineering / AI-ML data company with 5 principles]. Typical contact = 5-6 digits.

    • @TobyMathis
      @TobyMathis  3 месяца назад

      Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation.
      aba.link/a3f0ff

  • @jrgvb
    @jrgvb Год назад

    Thanks for this video. I am starting an online business now with expectations for little net income the first year. I am moving from CA to another state later this year. Can you “move” an LLC in California to the other state when I move so that I no longer have to lay $800 the second year when I don’t live here?

  • @dennisholle1005
    @dennisholle1005 Год назад

    Thanks good info.

  • @mar91942
    @mar91942 Год назад

    I like the c-corp for the no salary requirement

  • @AuGold808
    @AuGold808 Год назад

    What about states like Tennessee that aren't as friendly to s-corps? Single member llc here w roughly 100k gross annual profits looking at a s-corp election possibility.

  • @anandradhakaurthewanderer749
    @anandradhakaurthewanderer749 Год назад

    I am a sole proprietor now, can I switch to an llc now or do I have to wait till the end of the year?

    • @TobyMathis
      @TobyMathis  Год назад

      Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby

  • @huiyuliang-frazier1241
    @huiyuliang-frazier1241 Год назад

    Thank you for the information. We just change our business to S-Corp. We need a good,experienced accountant to help us to prepare our next year tax return. Do you know any experienced, honest and caring accountant at the near centeral Columbus Ohio area? Or do you think we can do our own tax return? We have been filing by ourselves.

    • @TobyMathis
      @TobyMathis  Год назад

      Here is the link to schedule a free strategy session, aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741. Anderson would love to help you file your taxes.

  • @ImRAM428
    @ImRAM428 Год назад

    Hi Toby. I have a question regarding S vs C corp. Our family has a side business which we do not rely on for living expenses. Would a C corp be a better option for us, since we use the money as “fringe benefits “ and paying for incidental expenses (car repairs, insurance deductibles, etc). Our accountant wants to convert our C corp LLC to an S corp LLC.

    • @JamesAutoDude
      @JamesAutoDude Год назад

      In my opinion, stick to C Corp so the losses and incomes don't pass through to you and stays in the business... But I'm not a professional in any manner

  • @HODL-Diamond-Hands
    @HODL-Diamond-Hands Год назад +1

    good stuff.

  • @LeoSS570
    @LeoSS570 Год назад

    Can you offer guidance? I'm considering starting my own enterprise representing various manufacturers in the valve industry (valves, pumps). As a sales representative for multiple companies, I'll solely receive commissions on sales. Given these circumstances, which legal structure would be more suitable for me: an LLC or an S corp?

    • @TobyMathis
      @TobyMathis  Год назад +1

      Hi Sangeet! Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby

  • @intelimoteintelimote7448
    @intelimoteintelimote7448 Год назад

    Can i elect to have Google issue a 1099 to my S corp as opposed to me as an individual creator for YT AdSense revenue? I intend to form a single member S Corp.

  • @NicholasVaccariello-pr2cg
    @NicholasVaccariello-pr2cg 20 дней назад

    3:13 Waivers?

  • @Flossy_Female
    @Flossy_Female Год назад

    If you’re operating under the sole proprietorship and therefore subject to paying your self-employment tax, does that mean that upon retirement, you are able to pull from that?

    • @stevenbastian3882
      @stevenbastian3882 Год назад

      Yes, in the form a social security check and medicare coverage.

  • @willmallory9085
    @willmallory9085 Год назад

    Thanks

  • @hansklauaa
    @hansklauaa 9 месяцев назад

    Hello . I write you from Uruguay ( south america) i am interested to open one company your country . Can can you recommend me for to beginning ? S corp .. or one LLC am so confused. Thank you so much

    • @TobyMathis
      @TobyMathis  9 месяцев назад

      Thank you for reaching out! Opening a company in a different country can be confusing, but our team can help. I would recommend setting up a consultation so we can provide tailored advice based on your specific goals and circumstances. Visit: aba.link/a3f0ff
      Good luck with your venture!

  • @overarmourinc.7783
    @overarmourinc.7783 Год назад

    i would really try to annunciate "S-Corp" from now on. the subtitles make this video go in a very different direction 😅

  • @J2NMP
    @J2NMP Год назад

    I'm from California... can we hire you to do our tax... we just started our business/foundation .

    • @TobyMathis
      @TobyMathis  Год назад +1

      Hello, we have five physical offices located in Nevada, Wyoming, and Washington and we operate virtually in all 50 states. andersonadvisors.com/locations/
      Here is the link to schedule a free strategy session, aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.

  • @valerieleuba
    @valerieleuba Год назад

    I want to protect my property from any tax lien frauds. I am constantly getting post card and calls to sell my house. I want to make the house invisible.

  • @sb9791
    @sb9791 Год назад

    Always appreciate for your videos that are very helpful to me.

  • @AKDisobey
    @AKDisobey Год назад

    Great video!

    • @TobyMathis
      @TobyMathis  Год назад

      Thanks!

    • @AKDisobey
      @AKDisobey Год назад

      Wish i watched this 7 years ago, when i took bad advice from a tax preparer to file as sole prop while having an llc, just to save on 2 filings 🙈