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An LLC can be taxed as a sole proprietorship. The IRS doesn’t know that you have an LLC, they only recognize the taxation structure you have chosen for the LLC. So the IRS actually doesn’t even know whether you have an LLC or a simple sole proprietorship. The taxation is the same. A sole proprietorship is usually considered a poor tax shelter. It is ok for situations where all of the income is “passive” income.
Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors." Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner's personal possessions. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business. The term is also often used colloquially (but not by lawyers or by public officials) to refer to a company. A company, on the other hand, is a separate legal entity and provides for limited liability, as well as corporate tax rates. A company structure is more complicated and expensive to set up, but offers more protection and benefits for the owner.
Your comments are interesting, but wobble around a little, as far as I can see. You tend to equate “business” with sole proprietorship and “company” with any other form of doing business. I am not sure business is a way of making a living. Sometimes you don’t make money. For example, I have always heard divorce was bad business, so now I am confused, because you don’t make money in a divorce??
@@Legaleescorp I am only working a regular 9-5 job now, but I have a nice nest egg I've saved and would like to start up a business this year. Just haven't decided which type of business would be best. Looking for suggestions.
Don't take my word for it but look into a S Corp. My business teacher say that's the best business to start. I think b/c you don't get taxed as a Corp and you get Limited liability.
I'm also thinking about leaving a print in the market as well just trying to consider the right route. Been doing a lot of research and everybody is leaning more towards Online gigs.. but good luck to you all and hopefully we all make it!
I'd love to hear you rap on cannabis business structure and tax issues Lee. I appreciate your videos. You have me thinking about things I would never have thought of.
If the business is a sole proprietorship or an LLC taxed as a sole proprietorship, you will use your SS number. If it is taxed any other way, you will need a tax ID number for the business.
Show me a law that saying you must pay taxes
I do need help in my business taxable deductions. Tax preparer has no ideas.
Would any network marketing or car services business. Just as lyft would help for deductions ?
It doesn’t matter what the purpose of the business is, the tax treatment is generally the same. So Lyft should do fine.
Does a business structured as a sole proprietor give the same tax shelter as an LLC? Thank you
An LLC can be taxed as a sole proprietorship. The IRS doesn’t know that you have an LLC, they only recognize the taxation structure you have chosen for the LLC. So the IRS actually doesn’t even know whether you have an LLC or a simple sole proprietorship. The taxation is the same. A sole proprietorship is usually considered a poor tax shelter. It is ok for situations where all of the income is “passive” income.
Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services).
Simply put, it is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors."
Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business.
If the business acquires debts, the creditors can go after the owner's personal possessions.
A business structure does not allow for corporate tax rates.
The proprietor is personally taxed on all income from the business.
The term is also often used colloquially (but not by lawyers or by public officials) to refer to a company.
A company, on the other hand, is a separate legal entity and provides for limited liability, as well as corporate tax rates.
A company structure is more complicated and expensive to set up, but offers more protection and benefits for the owner.
Your comments are interesting, but wobble around a little, as far as I can see. You tend to equate “business” with sole proprietorship and “company” with any other form of doing business. I am not sure business is a way of making a living. Sometimes you don’t make money. For example, I have always heard divorce was bad business, so now I am confused, because you don’t make money in a divorce??
does it apply to US or anywhere in the world? i mean in general.
The concept deals with US tax laws, but taxes are a problem everywhere.
Great video. Thanks a lot!
Beautiful! Self Directed, 501C3, family, etc...
Hahahaha...the first line you spoken was super funny!
Thanks Lee- Good stuff!
Glad you enjoyed it
Are there any business that are better tax shelters than others?
It depends upon how you are making your money and how much money you are making.
@@Legaleescorp I am only working a regular 9-5 job now, but I have a nice nest egg I've saved and would like to start up a business this year. Just haven't decided which type of business would be best. Looking for suggestions.
Don't take my word for it but look into a S Corp. My business teacher say that's the best business to start. I think b/c you don't get taxed as a Corp and you get Limited liability.
I'm also thinking about leaving a print in the market as well just trying to consider the right route. Been doing a lot of research and everybody is leaning more towards Online gigs.. but good luck to you all and hopefully we all make it!
I'd love to hear you rap on cannabis business structure and tax issues Lee. I appreciate your videos. You have me thinking about things I would never have thought of.
I am just not a good rapper. Pot is a good (something tangible to sell), so probably use an LLC taxed under Subchapter S.
How can I get into contact with u ?
Call our office at 801-802-9020, or email info@legalees.com
Does the business need it's own tax ID in order to control my taxes
If the business is a sole proprietorship or an LLC taxed as a sole proprietorship, you will use your SS number. If it is taxed any other way, you will need a tax ID number for the business.
So true!
Only 2.5k views. Wooow
And a satanic bitch singing about fucking anybody gets millions .. thats why this country is going to shit
Thankyou lee im coming to sit with you soon.
Mmmmmm ........ Interesting : / ............ Peace on Earth : ) ........
Give me help i had an ex girlfriend