Man, you deserve a Pulitzer for being able to describe this stuff in very easy to understand terms. I've never seen it done so well even after speaking with many experts in this field. Great work.
This video is something to check out for sure before starting your business and also if you already started watch it because it could save a headache down the line. Thank you Lyfe accounting I’ll make sure to tell people about this one
This is great information! I did not even consider an emergency fund for my business. And preparing to pay someone a salary who will take over managing the business if I choose that route. Great food for thought!
Thanks for the video. I am about setting up a business and the issues touched will help me. What i have learned in summary: -budget for operating expenses and make provision for R&D. -make a balance between taxes and business continuity in terms of salary vs dividends
I am so happy that I found this channel. You and your team does such a decent job. It’s helpful for any regular taxpayer. Also, I am taking Individual income taxes class and all your videos helps me to understand the class better. Thanks a lot 🙏
Thanks for your very informative videos. Just started a Auto paint and body business with my brother. Your videos helped tremendously with some decisions we had to make as far as our filing status. We set up as a LLC but I was sure when we had to choose a filing status. Now I can make that decision and not worry if I am making the right decision. Thanks again
Great I commend you on the auto body shop that’s a very essential business wish you the best of luck in it and also felt the need to inform you of my ability as a financial consultant to help auto body shops obtain funding to the tune of a million dollars no credit check in as little as 48 hours if your interested feel free to reply
This is really helpful information! We are a new small business and navigating the tax world is quite daunting 0_o. Great content! Thank you for sharing!
Sherman, great concise info. I’ve subscribed and looking forward to this content. Will definitely look at your website and check out your services based on how transparent this video was and anecdotal cases you’ve put in. I can’t tell you how many videos I’ve watched on this same topic but still was left with questions. Your gonna kill it man. Keep up the awesome work!
Great thorough content! Only thing I feel everyone forgets to put in these videos is actually HOW to pay yourself as a W2. Who do you go to, can you do it in your own etc etc.
Thank you for this very helpful information! I was kind of thrown into a small biz and never understood how to pay myself. I def don’t have the 3 months expenses saved! That number seems so daunting! As simplistic as you put this video and how nice the points are, would you mind doing a very BASIC video about this for those who need a more vanilla explanation? Thank you!
Do you have any videos (or could you make one) where you walk through step by step the numbers and how a real life business owner would calculate from that? For example if they earned $1000 in a month, spent x amount of dollars in expenses that month … how to calculate from there how much to set aside for taxes, how to calculate how much to save for 3 months of expenses (that could be different in future months), and how much the owner would be paid? I think seeing real numbers would be so helpful to me! Your videos have already been more informative than any I’ve found for paying myself as a sole proprietor, I just would love to see a concrete example to better understand! Thank you!
I purposefully scrolled down to find a Black person speaking on this topic. Love it! Thank you for this. I will definitely be watching more of your content!
I think what I was looking for is a percentage. If I gross 1 million/year and have 10% profit as a restaurant = 100k profit per year - what percentage of that can be paid to ownership. Keeping in mind an owner who owns multiple businesses and does not perform tasks therefore should not be paid for work produced. In short, as a passive investor (owner who builds a business and structures it to operate on its own) what can that owner expect to receive? Thank you. Great video.
Are you asking hypothetically or is this an actual scenario? If actual, I would need to know more about your business to give you a proper answer. Like your business structure and entity type
This video was very timely. We have have a single-LLC and the owner has been paying himself as a w2 employee. None of the professionals we have worked with ever mentioned or explained things to us in these 3+ years as you have done in under 15min. Thank you
I just found this channel and I’m so glad I did. It confirms a lot of things I already thought. Can you do a video on how to handle child support as a sole prop, LLC or scorp? Thanks in advance.
Great info! I would love to see a video for landlords who set up LLC’s. We just grew our business from 5 units to 20, and looking to go to 100. So, a lot of the income has been going back into the property, and the next year’s profits should be going into purchasing more units. I’m afraid of missing out on tax advantages that I’m not aware of.
This was great information, thank you for taking the time and explaining it in detail. I have a holding company that owns a operating company. I'm not sure if I should pay myself through the operating or move the revenue up and pay through my holding.
@@LYFEAccounting i think i found my answers. You deduct the pay but pay the employer half of taxes for the payroll for an LLC which I dont think gets deducted. It did take some digging because most of the info is around owner taking money out and their payroll which has special rules. The tax implications and write offs for each type of business with regard to opersting expenses, disbursments and payroll might make good videos. (Deep dive into each option) I didnt check to see if you have these already though.
If you haven't made past $500 overall after 2 years, when would it be fine to pay yourself??? Most of the funds went back into the business, which is great, but.....when should I be ok to pull?
Your wisdom in these type of matters are extremely important! You have just helped me, with the entire operation of how you cover this issue! Please provide your contact information, so we can sign up with your organization for handling our financial & tax services!
Again - this was great and awesome. What if You have an LLC and have paid yourself via W-2 for the past 7 months? Does it matter? This scenario is a mix of S-corporation and LLC. Thanks in advance for the answer on this.
Thank you for everything you have done for us. I have 3 kids(dependents) and I’m small business owner. And I’m wondering which one is best for me(1099 form or w2 form) for tax file ? Thank you.
Hi! Great video. I'm looking for guidance on how to create a tax plan. I've been in business for 6 months and since I've yet to be taxed for a years worth of profit, I'm unsure how to save/prep for that.. any guidnace??
Very nice and helpful video!Just to be be clear. When deciding to pay myself must it be after the whole year is done if I choose to get what's left of the money once all expenses are cleared?
Thanks great video, I have a question! I will create an LLC to sell on Amazon but I am not a resident of the US, so should I make it a salary or a draw?
My goal is to create my own small online business in which I will be selling legal religious things. I know if I don't pay taxes and spading money soon or later the federal government will ask where am I getting this money from and why I haven't paid no taxes in this amount of time? Once they found out that I'm a business owner they say I own back taxes from the customers an also not paying the yearly taxes.
You mentioned earlier how a sole proprietor should pay themselves but did not give the answer, would that be as a draw? I do freelance work and don’t have a regular income and my expenses are currently more than I bring in in general as I’m practically making the money I need to build my business up. So I’m constantly investing in my business rather than being able to pay myself yet. But I still have to pay taxes on that which sucks lol
Hi, this is so helpful. When do you make withdrawals, as and when you need money or at a specific day of each month? And is it a bad practice to withdraw several times during the course of the month?
Great video and value. My question is about being a multi member managed LLC, selecting an S Corp tax filing. Do you still suggest the S Corp “salary”. Thank you
@@aleanedwashington6040 Hi! I found a video that explained this. My understanding is doing both a salary and a draw. Here's the link: ruclips.net/video/bQx5UNakck8/видео.html ruclips.net/video/gP4omIWLaTo/видео.html If you have not bought their course, you should look into it. Good luck!
Do you recommend having a payroll service issue your salary check and end-of-year W-2 form? Also, how does the w-2 read? I think it would like this: Company Name LLC Address City Zip and then my name in the respective boxes of the form just like any other w-2 if I was employed for another company but since I work for my own LLC then my name would not be part of the Company's name thus showing my name as the issuing w-2 form and the recipient since I am paying myself or how will it show? please comment and thank you!
W-2s are for employees (or shareholder-employees of S-Corporations or C Corporations). If you are not this, then you don't need to use a payroll service at all because you're going to be taxed on your net income - not the amount you distribute to yourself. What kind of entity do you have?
Hello, I am a new sub, learning a lot. I hope you can help me with this ❓❓❓❓❓. I just started my own business LLC, it won't be up and running until February first. I am thinking to make my business an S Corp. I want to pay myself a W2 because I figure if I do, I can buy a car and house with the W2. If not I may have to get a night job which I think will be a lot. Am I correct that I will be able to use my W2 from my business like a regular W2??????
Hi if i do draw money of my business account when i have to pay the medicaid and social s at thi end of the year or each months, how i have to do those payments
Can you please recommend books to learn these money/finance concepts... what am I earning as a business owner...how much do I earn, getting salary from my business, how much I am earning from the ownership of my business,...etc. Thank you.
So I just got my LLC my ein and my duns number I’m trying to build buisness credit to where I don’t need a PG I don’t have any revenue yet what would the best way to be
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
Where has this channel been all of my life? Just started my LLC a week ago and learning.
How’s the business going? Any tips?
Thank you for a professional way of how to pay yourself because these videos on RUclips 🥴Chile don’t break down nothing. Thanks for the content
I appreciate that
I just love how clear and concise you are. The graphics make it fun and easy to follow for beginners. Thanks so much! 😄💫
You are so welcome!
I didn't understand a darn thing. You are too smart for me, man. but I will definitely rewind this video over and over until I gets you. Thank you!
😂 thought I was the only one
Man, you deserve a Pulitzer for being able to describe this stuff in very easy to understand terms. I've never seen it done so well even after speaking with many experts in this field. Great work.
This video is something to check out for sure before starting your business and also if you already started watch it because it could save a headache down the line. Thank you Lyfe accounting I’ll make sure to tell people about this one
I'm learning about stating my own business. This has helped me alot. Thank you, so much.
This is great information! I did not even consider an emergency fund for my business. And preparing to pay someone a salary who will take over managing the business if I choose that route. Great food for thought!
"Any value at all?" I like and appreciate your humble nature.
:)
These videos provide lots of value. Thank you!
@@glendineevans1467 :)
Man, the amount of value you put in these videos is amazing. Thank you!
Learning so much from your videos. Just started, this is my second video, can't wait to get to the rest.
Awesome! Thank you, you got this!
Thanks for the video. I am about setting up a business and the issues touched will help me.
What i have learned in summary: -budget for operating expenses and make provision for R&D.
-make a balance between taxes and business continuity in terms of salary vs dividends
You're already ahead of the game!
The way I always thought about it: pay myself just enough to pay my bills and get groceries, plus a little bit so I can save up.
Good, but make sure you watch our video on estimated tax penalties because if you don't make payments then you could lose between 3-5% of your income.
My teacher justtttt told me this & I’m about to do EXACTLY this. Number give me such anxiety & a headache but I’ll rather do it now then later.
Very beautifully put my bro, first day at my new store, first business, and had no idea how to pay myself. Now, I feel like an expert
Keep it up! So glad to hear that and get this feedback
Great information. Easy to understand and apply. I was confused about how to pay myself by making a "draw" but you've helped me a lot. Thanks.
You're very welcome!
Love this video man! Short, Simple, and to the point!
Appreciate it!
So much value from this video brah. Much appreciated!!!
I am so happy that I found this channel. You and your team does such a decent job. It’s helpful for any regular taxpayer. Also, I am taking Individual income taxes class and all your videos helps me to understand the class better. Thanks a lot 🙏
Thanks, Mary. We’re happy we found you! My individual tax class was soooo confusing lol. Hopefully our videos simplifies taxation for you.
@@LYFEAccountingthank you again veryyyyyy much🙏🙏🙏🙏🙏🙏
Thanks for your very informative videos. Just started a Auto paint and body business with my brother. Your videos helped tremendously with some decisions we had to make as far as our filing status. We set up as a LLC but I was sure when we had to choose a filing status. Now I can make that decision and not worry if I am making the right decision. Thanks again
Thanks for sharing, I’m glad that this video helps you and wish you the very best in your business
Great I commend you on the auto body shop that’s a very essential business wish you the best of luck in it and also felt the need to inform you of my ability as a financial consultant to help auto body shops obtain funding to the tune of a million dollars no credit check in as little as 48 hours if your interested feel free to reply
Very polished video. Clear and concise.
This is really helpful information! We are a new small business and navigating the tax world is quite daunting 0_o. Great content! Thank you for sharing!
Sherman, great concise info. I’ve subscribed and looking forward to this content. Will definitely look at your website and check out your services based on how transparent this video was and anecdotal cases you’ve put in. I can’t tell you how many videos I’ve watched on this same topic but still was left with questions. Your gonna kill it man. Keep up the awesome work!
Thanks so much for the thoughtful feedback David, means alot
Great thorough content! Only thing I feel everyone forgets to put in these videos is actually HOW to pay yourself as a W2. Who do you go to, can you do it in your own etc etc.
Great question. You can use a payroll provider such as Quickbooks payroll that will do this for you automatically.
Thank you for this very helpful information! I was kind of thrown into a small biz and never understood how to pay myself. I def don’t have the 3 months expenses saved! That number seems so daunting!
As simplistic as you put this video and how nice the points are, would you mind doing a very BASIC video about this for those who need a more vanilla explanation? Thank you!
this video was amazingly informative..great job brother..thank you
First video of yours that I watched. Very informative and clear, helpful THANK YOU I subscribed
Welcome aboard!
This was so helpful & easy to understand!
Your information is so invaluable. I let the commercials play all the way through including liking and subscribing.
Wow, thank you!
Great content and perfect execution!
love the videos appreciate the knowledge just started my 2nd business cant say how much your videos have helped salute
I appreciate that!
Thank you, this Video was so helpful! 🙏🏽
Glad it helped, thank you!
What kind of business do you run ?
Do you have any videos (or could you make one) where you walk through step by step the numbers and how a real life business owner would calculate from that? For example if they earned $1000 in a month, spent x amount of dollars in expenses that month … how to calculate from there how much to set aside for taxes, how to calculate how much to save for 3 months of expenses (that could be different in future months), and how much the owner would be paid? I think seeing real numbers would be so helpful to me! Your videos have already been more informative than any I’ve found for paying myself as a sole proprietor, I just would love to see a concrete example to better understand! Thank you!
Nice work explaining in detailed information thank you for the summary! 🙃
Our pleasure, Darrius!
Now this makes alot of sense!
You're welcome!
I litterly watched another video that oddly sounded the same with the info, I see your video skills.. very smart..
I purposefully scrolled down to find a Black person speaking on this topic. Love it! Thank you for this. I will definitely be watching more of your content!
We appreciate you!
This was perfect. Thanks :)
Thank you for the valuable info 🙏🙏🙏
Just getting my business started I’m coming to join your team Asap 😃💯💯🤘🏾
Great video. So as a single person LLC... I should do the owner's draw.
This was gold! Gained a new subscriber.
Thanks for subbing
I think what I was looking for is a percentage. If I gross 1 million/year and have 10% profit as a restaurant = 100k profit per year - what percentage of that can be paid to ownership. Keeping in mind an owner who owns multiple businesses and does not perform tasks therefore should not be paid for work produced. In short, as a passive investor (owner who builds a business and structures it to operate on its own) what can that owner expect to receive?
Thank you. Great video.
Are you asking hypothetically or is this an actual scenario? If actual, I would need to know more about your business to give you a proper answer. Like your business structure and entity type
Thank you for this video
Great Video!! Thanks!
Great Knowledge! Thank you again! 👍
Thanks Andrea!
Useful info definitely, thanks
This video was very timely. We have have a single-LLC and the owner has been paying himself as a w2 employee. None of the professionals we have worked with ever mentioned or explained things to us in these 3+ years as you have done in under 15min. Thank you
you made things very simple keep doing this
Will do! Thanks for supporting the channel.
Super helpful video, thank you!
Glad it was helpful!
Awesome video bro! Helped a lot.
Glad to hear it!
You rocked it in this video. Take Aways: 1. 3-months of Op Exps, 2. $ set aside for Stet Goals, 3. Then PAY yourself. DONE!!
Thank you, Mark!
I just found this channel and I’m so glad I did. It confirms a lot of things I already thought. Can you do a video on how to handle child support as a sole prop, LLC or scorp? Thanks in advance.
Very dope information brother...will be in contact real soon!! Ty kindly
Thanks for watching!
Excellent video!
Great info! I would love to see a video for landlords who set up LLC’s. We just grew our business from 5 units to 20, and looking to go to 100. So, a lot of the income has been going back into the property, and the next year’s profits should be going into purchasing more units. I’m afraid of missing out on tax advantages that I’m not aware of.
Noted, Michael. I'll add this to our list of topic ideas. =)
Where are you located?
If you find a path with no obstacles, it probably doesn't lead anywhere ... A journey of a thousand miles begins with a single step … GOOD LUCK
Great Vid.
Another informative video I need all the help there is I’m not understanding everything said in your video but would to know more
Thanks for watching, glad you enjoyed it
wow great video bro
Thank you, Sharleen!
Thanks so much!!!!!
Great info!
This was great information, thank you for taking the time and explaining it in detail.
I have a holding company that owns a operating company. I'm not sure if I should pay myself through the operating or move the revenue up and pay through my holding.
Great Video hoping to be a great accounting
This brings up questions for me. If a LLC has employees does their pay get taxed as profit or as salaries? Time to go read some more.
Are you trying to determine payroll taxes?
@@LYFEAccounting i think i found my answers. You deduct the pay but pay the employer half of taxes for the payroll for an LLC which I dont think gets deducted. It did take some digging because most of the info is around owner taking money out and their payroll which has special rules. The tax implications and write offs for each type of business with regard to opersting expenses, disbursments and payroll might make good videos. (Deep dive into each option) I didnt check to see if you have these already though.
Great information thanks
Glad it was helpful!
Great video
Thank you very helpful I appreciate it
Glad it helped, we appreciate your view. =)
If you haven't made past $500 overall after 2 years, when would it be fine to pay yourself???
Most of the funds went back into the business, which is great, but.....when should I be ok to pull?
Your wisdom in these type of matters are extremely important! You have just helped me, with the entire operation of how you cover this issue! Please provide your contact information, so we can sign up with your organization for handling our financial & tax services!
I have an LLC (truck owner) what would be the best way to pay myself?
New subscriber to both your channels! I love your editing. Thanks for this!
Again - this was great and awesome. What if You have an LLC and have paid yourself via W-2 for the past 7 months? Does it matter? This scenario is a mix of S-corporation and LLC. Thanks in advance for the answer on this.
Good info
Glad it was helpful!
How do Print On Demand stores fit in here? Are we a business? Or a side hustle?
Thank you for everything you have done for us. I have 3 kids(dependents) and I’m small business owner. And I’m wondering which one is best for me(1099 form or w2 form) for tax file ? Thank you.
Hi! Great video. I'm looking for guidance on how to create a tax plan. I've been in business for 6 months and since I've yet to be taxed for a years worth of profit, I'm unsure how to save/prep for that.. any guidnace??
What about, when you work for a company (W2) and on the side you have a LLC, how the taxes play out ? 🤔
this is a good video
Thanks for watching :)
Very nice and helpful video!Just to be be clear. When deciding to pay myself must it be after the whole year is done if I choose to get what's left of the money once all expenses are cleared?
Thanks great video, I have a question! I will create an LLC to sell on Amazon but I am not a resident of the US, so should I make it a salary or a draw?
My goal is to create my own small online business in which I will be selling legal religious things. I know if I don't pay taxes and spading money soon or later the federal government will ask where am I getting this money from and why I haven't paid no taxes in this amount of time? Once they found out that I'm a business owner they say I own back taxes from the customers an also not paying the yearly taxes.
You mentioned earlier how a sole proprietor should pay themselves but did not give the answer, would that be as a draw? I do freelance work and don’t have a regular income and my expenses are currently more than I bring in in general as I’m practically making the money I need to build my business up. So I’m constantly investing in my business rather than being able to pay myself yet. But I still have to pay taxes on that which sucks lol
Hi, this is so helpful. When do you make withdrawals, as and when you need money or at a specific day of each month? And is it a bad practice to withdraw several times during the course of the month?
Not all heroes wear capes.
Great video and value. My question is about being a multi member managed LLC, selecting an S Corp tax filing. Do you still suggest the S Corp “salary”. Thank you
I also have this question
@@aleanedwashington6040 Hi! I found a video that explained this. My understanding is doing both a salary and a draw. Here's the link: ruclips.net/video/bQx5UNakck8/видео.html
ruclips.net/video/gP4omIWLaTo/видео.html
If you have not bought their course, you should look into it.
Good luck!
Could not find the video on business credit card
thank you
Hello sir
What is good for to take money from own business whose kids are small either w-2 or salary based
Do you recommend having a payroll service issue your salary check and end-of-year W-2 form? Also, how does the w-2 read? I think it would like this: Company Name LLC Address City Zip and then my name in the respective boxes of the form just like any other w-2 if I was employed for another company but since I work for my own LLC then my name would not be part of the Company's name thus showing my name as the issuing w-2 form and the recipient since I am paying myself or how will it show? please comment and thank you!
W-2s are for employees (or shareholder-employees of S-Corporations or C Corporations). If you are not this, then you don't need to use a payroll service at all because you're going to be taxed on your net income - not the amount you distribute to yourself. What kind of entity do you have?
Thanks
Hello, I am a new sub, learning a lot. I hope you can help me with this ❓❓❓❓❓. I just started my own business LLC, it won't be up and running until February first. I am thinking to make my business an S Corp.
I want to pay myself a W2 because I figure if I do, I can buy a car and house with the W2. If not I may have to get a night job which I think will be a lot.
Am I correct that I will be able to use my W2 from my business like a regular W2??????
Hi if i do draw money of my business account when i have to pay the medicaid and social s at thi end of the year or each months, how i have to do those payments
What if you are a llc partnership and decide to be taxes as a s-corp entity...are you still liable to pay Medicare or SSI taxes?
if the business is a s corp.. and the owner is going a w2, do we deduct med, unemployment ss and all the normal deduction
Thank you.
Welcome!
Ho much do I pay myself as an owner that will not put me in a higher tax bracket, or does that even matter?
What tools did you use to create / edit this video, if you don't mind me asking?
Can you please recommend books to learn these money/finance concepts... what am I earning as a business owner...how much do I earn, getting salary from my business, how much I am earning from the ownership of my business,...etc. Thank you.
Maybe we should write one? 😃
So I just got my LLC my ein and my duns number I’m trying to build buisness credit to where I don’t need a PG I don’t have any revenue yet what would the best way to be
Gracias por hacerme caso como soy pobre no les importa