If i made some $ earlier this year as a realtor but form an S corp now, can I ask my broker to give a 1099 to my S corp for the money I made earlier this year even though I did not have an S corp back then?
At 6 min into the video, Mark mentioned of creating a holding company and transfer earnings from scorp to the holding. What is the reason for that? I understand that we get hit by UBIT in IRA account but outside of IRA not sure I understand the reason. The crypto can still stay in scorp and pay capital gain through scorp. Does anyone have a better understanding?
What about having a Metamask wallet for S-corp because i do like going to Uniswap and Pancakeswap to buy my tokens instead of going with Coinbase, Binance etc...Is this type of wallet ok for S-corp? second question is, can i funnel my crypto from S-Corp to IRA without going thru LLC and why if answer is no.
Hey mark, I have a couple of unique questions. First off I’m active duty military with my home of record in NC but currently stationed in HI, I recently got into crypto mining so my first question would be where does my S Corp need to be? Secondly for expenses I live in base housing, technically part of my rent goes to electricity however there is no limit and I don’t pay “directly” for this so I’m curious if there is any way to write off all or part of the electricity used?
Should I have an LLC or S-Corp for my crypto investments? I do not mine at the moment, but I'm thinking about it. Currently I just buy and hold. I have crypto in various wallets and exchanges.
You make wonderful videos! 👏 I’ve got a question: 🤨 I found these words 😅. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I’d be grateful for some help. 🙌
How can you fund your LLC under Roth IRA with all the BTC people mine? Roth IRA contribution limited is 6k per year, even if you transfer BTC from your C Corp into a Self directed Roth IRA that holds an LLC, you are still getting limited by the 6k contribution limit. Am I missing something? Or is he assuming that miner is not going to be mining more than 6k value of BTC/ yr
If you adopt his strategy. Any extra amount more than 6k will seat inside the LLC. It will be tax as short term on an annual basis, you can’t even just hold and go for long term capital gain. Any investment activity gain or loss from security under a LLC is realized at the end of each year regardless whether you sell or not…….. so other than the 6k Roth you did. Everyone over that would be slam with taxes yearly regardless you sell or not.
Hello Mark, My name is Ford, and I am leaving my current company as an IT Manager as W-2 employee. On January 10, 2022, I will be starting with a new company but with a caveat that I will be hired as a CONSULTANT (1099 basis) for a few months, then convert/hire me as a full-time W-2 Employee thereafter!! Note: My Rate will realize between $40K to $50K for those few months in 2022. Question: Is it worth me getting an S-Corp? (i.e. Will my initial cost for setting up the S-Corp + your Service cost for Tax filings (Form 941) etc... worth spending vs me just keeping it as a Sole Prop?) Ford Hanson
I don't understand why the crypto mining strategy needs a secondary LLC for st/lt capital gains. Why not just have the s-corp be taxed with capital gains as well?
I think, from the look of the layout, that it is a separation for liability. If your LLC doing the mining is sued then they can get to the assets in the LLC. If you are moving the coins to another LLC for holding, then the only thing they can get when they sue the LLC is the mining rig itself and not the crypto.
@@GrandpasPlace ah okay so the focus is on the asset protection. If I'm understanding correctly the mined crypto is immediately transferred upon block reward or whatever the reward system is for the mining pool to the subsidiary LLC wallet. Does this happen after a draw has taken place or just immediately after reward from the mining done through the S-corp? If done immediately how do you take the draw?
Nope, not asset protection. When you sell the crypto, you’re going to have to pay FICA and ordinary income taxes on it in an S Corp. if you transfer it to an LLC and you sell it, you get capital gains, not ordinary income it just goes on your personal return and does not get FICA’d. Also S corps limit the amount of passive income you can have flowing through them, the IRS will chop your S election if you have too much passive income in an S Corp. Edit: I’m a programmer not a lawyer, but I believe that the draw would take place immediately after you transfer it to your LLC, you would put down a draw for whatever the price * quantity of whatever coin you just mined at the time of the draw (ex. .42 BTC times $40,000) then at the end of the quarter just take a portion of that fair market value sale and give yourself whatever portion Mark or your accountant recommendeds for a W2.
@@harrychufan That does not sound right, When you transfer it from the S-corp to the LLC you would pay income taxes on the bases. That is what the coin was worth at the time you received it from mining. You pay Capital Gains on the difference between the bases and the sale price. So doing an instant transfer still leaves the bases as income in the S-corp while transferring the funds to the LLC. Im an Cloud Infrastructure Engineer and am crypto mining. Not that I think that makes a difference. ;)
Whether ST or LT capital gain, taxes are the same , because at the end of date, the individual/ shareholder has to pay the capital gains at the same rate. Not sure what is the point to transfer to an LLC.
Does s-corp need to have employees? If I don't have any employees or contractors can the IRS come in and say all income should be self-employment and disallow s-corp?
Nope, (I believe) the IRS actually only really cares about using the S Corp for passive income or having >100 shareholders. I think it’s something like 20% or less of the corporate income needs to be from passive activity’s or they will revoke your S Corp. But no, the minimum number of employees is 1, you. Only a maximum of 100 shareholders, however.
How much do I need to make to start an Scorp? I'm retired military, I have a rental unit and I do crypto mining. I feel like I'm lost and need some help.
Rentals you can't put in an S corp.. but you can charge yourself/rental LLC a property management service using your s corp. I do Airbnb and take out 50% of the gross to my s corp as prop management fees
Question, I work for the Air Force I been creating Airbnbs here in Colorado. I am moving to Japan with the Air Force. I plan to continue establishing airbnbs. I fall under the US Tax law? Thank you
Until you renounce your US citizenship you have to file US tax returns. There are some foreign income differences tho, so talk with an accountant or tax lawyer. Edit: no idea about the Air BNB. Look on his second newest video (I think, I’ve been binging haha) he makes reference to his international tax lawyer if you want to contact her I think her name is Kristie.
@@harrychufan thank you very much for taking the time to answer my question. I will not be surprised is your form also offers international tax law and tax guidance. If so, please let me k ow how I go about it
Ok at what point is it good to get an LLC? Im currently making about $5000 a year (this year) on a side gig, is it worth it to create an LLC at this point or should you wait for a higher income point before creating the LLC?
Depends how cheap the LLC is vs how much you need to protect your personal assets against a lawsuit. If you’re gonna build it up to >40k income in the next year or two, and it doesn’t cost that much to open and maintain the LLC, or you have a lot of personal assets, I would do it. Either way make sure you get a separate bank acct for the business so you can keep track of your books and writeoffs.
LLC is just a title, you need to choose the tax form under it. For example, LLC can tax like a sole proprietorship, partnership, S corporation, or C corporation. If you just do LLC tax like a sole proprietorship then you have no cost. But then again, the reason to set up an LLC is to risk manage any liability you might have from your side gig. If your side gig isn’t anything risky that might get lawsuit, why bother set up an LLC. Just do a sole proprietorship straight up then you are fine. Pretty much just annual schedule C.
Mark, I am interested in your $800 package. Maybe a bigger or smaller package. Your rep called me and wants $450 to explain your packages to me. I told them I need an answer to one question about my trust. My daughter is 15. Since after someone dies, there is 4 years to probate, can i label her as the trustee alternate and let the trust lay dormant for 3 years until she is old enough to take over as trustee, if i die. I asked that and the lady told me $450 to answer that question. 😬
Good Strategies for Payroll
What a time. No clue where I’d get this information from if the internet didn’t existed. Thank you!
I can't believe you relay so much free information to the public. Will definitely look forward to using your services.
Hello Mark, I have a question about 1099-LS.
Where do you recommend setting up an Scorps for someone who is in the military and constantly moving every 1-2 years?
Roth IRAs have to be funded with Cash, no?? not crypto staking rewards, right??
Love this. Confirmed so much of what I've been doing since 2018 and I know I'm going to learn some new stuff here. I'm subscribed now. Thank you!
So i have to open another LLC for my cryptos??
how do we avail of your services ... or whoever you are affiliated with ... ???
Hello Mark,When are you going to start Crypto investing management??
You’re so helpful. Thank you for sharing so much information here ! Hope I’m still on your calendar for a call this month
Do you help people do the the s-corp trust and tax plan? I want to have a strategy put in place for my crypto mining
I am a 100 percent shareholder i took out excess distributions. After reviewing my business account, it appears i took out 3rd party business loans.
If i made some $ earlier this year as a realtor but form an S corp now, can I ask my broker to give a 1099 to my S corp for the money I made earlier this year even though I did not have an S corp back then?
At 6 min into the video, Mark mentioned of creating a holding company and transfer earnings from scorp to the holding. What is the reason for that? I understand that we get hit by UBIT in IRA account but outside of IRA not sure I understand the reason. The crypto can still stay in scorp and pay capital gain through scorp. Does anyone have a better understanding?
If I have multiple S corps do I jave to issue W2 front every single LLC?
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ - Thank you!
What about having a Metamask wallet for S-corp because i do like going to Uniswap and Pancakeswap to buy my tokens instead of going with Coinbase, Binance etc...Is this type of wallet ok for S-corp? second question is, can i funnel my crypto from S-Corp to IRA without going thru LLC and why if answer is no.
Does the S Corp
apply to Canadian citizens too?
Hey mark, I have a couple of unique questions. First off I’m active duty military with my home of record in NC but currently stationed in HI, I recently got into crypto mining so my first question would be where does my S Corp need to be? Secondly for expenses I live in base housing, technically part of my rent goes to electricity however there is no limit and I don’t pay “directly” for this so I’m curious if there is any way to write off all or part of the electricity used?
Should I have an LLC or S-Corp for my crypto investments? I do not mine at the moment, but I'm thinking about it. Currently I just buy and hold. I have crypto in various wallets and exchanges.
Yea me too let me know what you find!
Me too?
Fantastic!
You make wonderful videos! 👏 I’ve got a question: 🤨 I found these words 😅. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I’d be grateful for some help. 🙌
How can you fund your LLC under Roth IRA with all the BTC people mine? Roth IRA contribution limited is 6k per year, even if you transfer BTC from your C Corp into a Self directed Roth IRA that holds an LLC, you are still getting limited by the 6k contribution limit. Am I missing something? Or is he assuming that miner is not going to be mining more than 6k value of BTC/ yr
If you adopt his strategy. Any extra amount more than 6k will seat inside the LLC. It will be tax as short term on an annual basis, you can’t even just hold and go for long term capital gain.
Any investment activity gain or loss from security under a LLC is realized at the end of each year regardless whether you sell or not…….. so other than the 6k Roth you did. Everyone over that would be slam with taxes yearly regardless you sell or not.
Hello Mark,
My name is Ford, and I am leaving my current company as an IT Manager as W-2 employee.
On January 10, 2022, I will be starting with a new company but with a caveat that I will be hired as a CONSULTANT (1099 basis) for a few months, then convert/hire me as a full-time W-2 Employee thereafter!!
Note: My Rate will realize between $40K to $50K for those few months in 2022.
Question: Is it worth me getting an S-Corp? (i.e. Will my initial cost for setting up the S-Corp + your Service cost for Tax filings (Form 941) etc... worth spending vs me just keeping it as a Sole Prop?)
Ford Hanson
You have helped me sooooo much. I'm so thankful.
Love
The content
I don't understand why the crypto mining strategy needs a secondary LLC for st/lt capital gains. Why not just have the s-corp be taxed with capital gains as well?
I think, from the look of the layout, that it is a separation for liability. If your LLC doing the mining is sued then they can get to the assets in the LLC. If you are moving the coins to another LLC for holding, then the only thing they can get when they sue the LLC is the mining rig itself and not the crypto.
@@GrandpasPlace ah okay so the focus is on the asset protection. If I'm understanding correctly the mined crypto is immediately transferred upon block reward or whatever the reward system is for the mining pool to the subsidiary LLC wallet. Does this happen after a draw has taken place or just immediately after reward from the mining done through the S-corp? If done immediately how do you take the draw?
Nope, not asset protection.
When you sell the crypto, you’re going to have to pay FICA and ordinary income taxes on it in an S Corp. if you transfer it to an LLC and you sell it, you get capital gains, not ordinary income it just goes on your personal return and does not get FICA’d.
Also S corps limit the amount of passive income you can have flowing through them, the IRS will chop your S election if you have too much passive income in an S Corp.
Edit: I’m a programmer not a lawyer, but I believe that the draw would take place immediately after you transfer it to your LLC, you would put down a draw for whatever the price * quantity of whatever coin you just mined at the time of the draw (ex. .42 BTC times $40,000) then at the end of the quarter just take a portion of that fair market value sale and give yourself whatever portion Mark or your accountant recommendeds for a W2.
@@harrychufan That does not sound right, When you transfer it from the S-corp to the LLC you would pay income taxes on the bases. That is what the coin was worth at the time you received it from mining. You pay Capital Gains on the difference between the bases and the sale price. So doing an instant transfer still leaves the bases as income in the S-corp while transferring the funds to the LLC.
Im an Cloud Infrastructure Engineer and am crypto mining. Not that I think that makes a difference. ;)
@@harrychufan thank you that was a very helpful explanation
Whether ST or LT capital gain, taxes are the same , because at the end of date, the individual/ shareholder has to pay the capital gains at the same rate. Not sure what is the point to transfer to an LLC.
Thank you for watching do not forget to hit the subscribe button.!
For more guidance hit me up.
+1 (646) 883‑9381....
Which business accounting software do your clients appreciate most?
Mark you have no videos on how to claim passive income on personal rental properties when you are a licensed property manager for others.
Thank you for watching do not forget to hit the subscribe button.!
For more guidance hit me up.
+1 (646) 883‑9381....
You have any in N Delaware?
Does s-corp need to have employees? If I don't have any employees or contractors can the IRS come in and say all income should be self-employment and disallow s-corp?
Nope, (I believe) the IRS actually only really cares about using the S Corp for passive income or having >100 shareholders. I think it’s something like 20% or less of the corporate income needs to be from passive activity’s or they will revoke your S Corp.
But no, the minimum number of employees is 1, you. Only a maximum of 100 shareholders, however.
you can't have a business with no employee, the shareholders are the employee.
How much do I need to make to start an Scorp? I'm retired military, I have a rental unit and I do crypto mining. I feel like I'm lost and need some help.
Rentals you can't put in an S corp.. but you can charge yourself/rental LLC a property management service using your s corp. I do Airbnb and take out 50% of the gross to my s corp as prop management fees
Question, I work for the Air Force I been creating Airbnbs here in Colorado. I am moving to Japan with the Air Force. I plan to continue establishing airbnbs. I fall under the US Tax law? Thank you
Until you renounce your US citizenship you have to file US tax returns. There are some foreign income differences tho, so talk with an accountant or tax lawyer.
Edit: no idea about the Air BNB. Look on his second newest video (I think, I’ve been binging haha) he makes reference to his international tax lawyer if you want to contact her I think her name is Kristie.
@@harrychufan thank you very much for taking the time to answer my question. I will not be surprised is your form also offers international tax law and tax guidance. If so, please let me k ow how I go about it
Ok at what point is it good to get an LLC? Im currently making about $5000 a year (this year) on a side gig, is it worth it to create an LLC at this point or should you wait for a higher income point before creating the LLC?
Depends how cheap the LLC is vs how much you need to protect your personal assets against a lawsuit. If you’re gonna build it up to >40k income in the next year or two, and it doesn’t cost that much to open and maintain the LLC, or you have a lot of personal assets, I would do it. Either way make sure you get a separate bank acct for the business so you can keep track of your books and writeoffs.
@@harrychufan Well an LLC would cost me $300 + lawyer fees and has no annual cost to it beyond paying my accountant to do my taxes.
LLC is just a title, you need to choose the tax form under it. For example, LLC can tax like a sole proprietorship, partnership, S corporation, or C corporation. If you just do LLC tax like a sole proprietorship then you have no cost. But then again, the reason to set up an LLC is to risk manage any liability you might have from your side gig. If your side gig isn’t anything risky that might get lawsuit, why bother set up an LLC. Just do a sole proprietorship straight up then you are fine. Pretty much just annual schedule C.
Seems like this is an old video just reposted. Nothing new I guess.
Thank you for watching do not forget to hit the subscribe button.!
For more guidance hit me up.
+1 (646) 883‑9381....
If you made no income the prior year, you don't have to file a quarterly tax return the next year.
Mark, I am interested in your $800 package. Maybe a bigger or smaller package. Your rep called me and wants $450 to explain your packages to me. I told them I need an answer to one question about my trust. My daughter is 15. Since after someone dies, there is 4 years to probate, can i label her as the trustee alternate and let the trust lay dormant for 3 years until she is old enough to take over as trustee, if i die. I asked that and the lady told me $450 to answer that question. 😬
Remember the too short song F the FCC? Well f the IRS!
Thank you for watching do not forget to hit the subscribe button.!
For more guidance hit me up.
+1 (646) 883‑9381....