just to make sure I have clear understanding, the % to save is from the Net Profits, and not from gross income, right? is that before or after I do an owner's draw
The way i do it is everything goes into the operating expense account. Anything that flows threw to my personal account is taxed so for every $1 i pay myself i put .50 into a third account(tax account). This is my first full year so I'm sure I'll adjust once tax season is over and i see what i missed but then next year, if i select s status it will be an all new animal
Thank you for this. Im in NYC. How much should I be putting aside from weekly earnings. Lets say I collect $1400/week. I have no employees either. This my first year in business aswell.
One thing strange about this video is he talks about saving 35-45% of Gross Revenue for taxes which is insane to me. There are plenty of LLC calculators out there via Google you can play around with, you'd just need to estimate your net income (so gross - expenses). Some of these calculators also allow you to add W2 income to the calculations as well. But as always, talk to a professional CPA.
it's theivery! what if your LLC is your only income but it's a really low income. I'm trying so hard to go higher but it's so slow. I'm dying here with all the flipping taxes.
If you make very low income, then the taxes you should be paying every quarter should also be very low, and then when you to your taxes at the end of the year you could get a refund. Like if you make $4,000 a month profit, without taking any other deductions you'd owe about $9,000 in federal taxes (Income Tax + Social Security + Medicare), or $2,250 a quarter. which is 18.75%. Throw $300 a month into a IRA and you'd cut that $9,000 by $500. If all your income comes from an LLC and you are making very little money, you are likely doing your taxes incorrectly.
@@andrewshandle thanks. I was doing them wrong. I had my kids before and got money back because of them and that big surprise of oh no more head of household slapped me hard. I don’t know what I’m doing and trying to learn it all fast.
@@splatterdaynightmares it can be really difficult, so don't get discouraged. What's important is to find out what you can deduct as legit expenses to lower that net income a bit to lower the taxes you pay. There are plenty of LLC tax calculators out there, and while none are perfect (and they always seem to conflict a bit on the exact number) they can make a good sanity check if you think the your taxes you calculated yourself seem way too high.
@@splatterdaynightmaresit's really easy to get things wrong, and just sort of snowball from there, so I completely get it. One important thing to do very early is try to find some deductions based on things you are already doing anyway, a big one being the office space one. Even if you can only write of 10% of your rent, that'll still be a few thousand over the year, and if you are just starting out and not making much, that can drastically reduce your taxes. So if you are making 4K a month but can write down even $500 a month for office, savings, travel, etc., your taxable income will be $6,000 lower...and because that $6,000 wiill be taken off the top, you'd be surprised just how dramatically that will change how much takes you'll own by the end of the year. As long as those expenses are things you are doing anyway, it only helps to deduct them.
What if you invest more into your business, since you have to pay > pay yourself first before the government ❗️ The concern about a savings account vs checking account, the bank will use the savings account to invest, where the checking the bank can't Years ago an old Italian man told me partners are only good for 2 things - dancing and making babies, otherwise you don't have partners in business.
Love your vids! Thanks you so much! One question about saving money for taxes.. would it be okay to put 30-40% into investments (such as stocks) that could develop a better return than a typical business savings account? Or would I end up paying more due to investment taxes? Thanks again! Love the content
Hey I would love to mentor under you I want to open a couple LLCs I know what I want as businesses for these LLCs but jus don’t know how I should go about it I study and take notes on your vids and think it would be the best for me
I need help 😭What if some of the bills for my office such as the electric bill is not in my name? Could I still add that to the home office deduction or does each bill have to be in my name and paid from the business account? Any advice will help!
Hey karlton I was curious if I take out a business loan say for $70k and I use it as a down payment for a $130k vehicle and use depreciation and mileage $ gains would that be allowed since it will grow above the vehicles worth and get it back on taxes?
One thing I'm concerned with about an S-Corp is what is considered "reasonable income" for a salary, I run a medical services company and the idea I could use 30K as a salary is kind of begging to get audited by the IRS.
@@Psa354318 that's not the test the IRS uses, it doesn't matter what _I_ think a fair wage is, it matters what the market says it is. There are very few business that generate $100,000 that you'd think the person that runs it should make $15 / hr, which is what $30,000 equates too. If you get audited, the IRS will default to just assuming all income is W2 income, and that'll cost you way more.
![Cody Johnson - I'm Gonna Love You (with Carrie Underwood) [Official Music Video]](http://i.ytimg.com/vi/yy9PuYMU29g/mqdefault.jpg)
![So You’re an S-Corp...Now What? [Essential Tax Tutorial]](/img/1.gif)
Taxation is theft, ugh
just to make sure I have clear understanding, the % to save is from the Net Profits, and not from gross income, right? is that before or after I do an owner's draw
I love the white board. I'm a visual learner and hands on. Thank you. Helped makes everything you said make even more sense.
The way i do it is everything goes into the operating expense account.
Anything that flows threw to my personal account is taxed so for every $1 i pay myself i put .50 into a third account(tax account).
This is my first full year so I'm sure I'll adjust once tax season is over and i see what i missed but then next year, if i select s status it will be an all new animal
Thank you for sharing this info and video with us 🙂💯.
4:21 - what just happened here? 😁
Thank you for this. Im in NYC. How much should I be putting aside from weekly earnings. Lets say I collect $1400/week. I have no employees either. This my first year in business aswell.
One thing strange about this video is he talks about saving 35-45% of Gross Revenue for taxes which is insane to me.
There are plenty of LLC calculators out there via Google you can play around with, you'd just need to estimate your net income (so gross - expenses).
Some of these calculators also allow you to add W2 income to the calculations as well.
But as always, talk to a professional CPA.
it's theivery!
what if your LLC is your only income but it's a really low income. I'm trying so hard to go higher but it's so slow. I'm dying here with all the flipping taxes.
If you make very low income, then the taxes you should be paying every quarter should also be very low, and then when you to your taxes at the end of the year you could get a refund.
Like if you make $4,000 a month profit, without taking any other deductions you'd owe about $9,000 in federal taxes (Income Tax + Social Security + Medicare), or $2,250 a quarter. which is 18.75%. Throw $300 a month into a IRA and you'd cut that $9,000 by $500.
If all your income comes from an LLC and you are making very little money, you are likely doing your taxes incorrectly.
@@andrewshandle thanks. I was doing them wrong. I had my kids before and got money back because of them and that big surprise of oh no more head of household slapped me hard. I don’t know what I’m doing and trying to learn it all fast.
@@splatterdaynightmares it can be really difficult, so don't get discouraged.
What's important is to find out what you can deduct as legit expenses to lower that net income a bit to lower the taxes you pay. There are plenty of LLC tax calculators out there, and while none are perfect (and they always seem to conflict a bit on the exact number) they can make a good sanity check if you think the your taxes you calculated yourself seem way too high.
@@andrewshandle I would be Karlton’s worst tax and accounting nightmare! Lol 😂
@@splatterdaynightmaresit's really easy to get things wrong, and just sort of snowball from there, so I completely get it.
One important thing to do very early is try to find some deductions based on things you are already doing anyway, a big one being the office space one. Even if you can only write of 10% of your rent, that'll still be a few thousand over the year, and if you are just starting out and not making much, that can drastically reduce your taxes.
So if you are making 4K a month but can write down even $500 a month for office, savings, travel, etc., your taxable income will be $6,000 lower...and because that $6,000 wiill be taken off the top, you'd be surprised just how dramatically that will change how much takes you'll own by the end of the year. As long as those expenses are things you are doing anyway, it only helps to deduct them.
What if you invest more into your business, since you have to pay > pay yourself first before the government ❗️
The concern about a savings account vs checking account, the bank will use the savings account to invest, where the checking the bank can't
Years ago an old Italian man told me partners are only good for 2 things - dancing and making babies, otherwise you don't have partners in business.
Love your vids! Thanks you so much! One question about saving money for taxes.. would it be okay to put 30-40% into investments (such as stocks) that could develop a better return than a typical business savings account? Or would I end up paying more due to investment taxes? Thanks again! Love the content
This is a great video, like some of your older videos.. back to basics.. I like it 👍
so how much do you recommend a 1099 worker be making in order to create a LLC and then pay taxes?
Hey I would love to mentor under you I want to open a couple LLCs I know what I want as businesses for these LLCs but jus don’t know how I should go about it I study and take notes on your vids and think it would be the best for me
Very helpful informations thank you 🙏🏾
great information thanks
What if you got an LLC but didn't make no money
3:39
I need help 😭What if some of the bills for my office such as the electric bill is not in my name? Could I still add that to the home office deduction or does each bill have to be in my name and paid from the business account? Any advice will help!
Hey karlton I was curious if I take out a business loan say for $70k and I use it as a down payment for a $130k vehicle and use depreciation and mileage $ gains would that be allowed since it will grow above the vehicles worth and get it back on taxes?
This is absurd
Alaska doesn’t have state income tax. I’m confused by that statement. 🧐
Good information how can I get a 1 on 1 consultation with you.
😢😢
Nice job very informative 👍
One thing I'm concerned with about an S-Corp is what is considered "reasonable income" for a salary, I run a medical services company and the idea I could use 30K as a salary is kind of begging to get audited by the IRS.
How much would you pay an employee to do your job.
@@Psa354318 that's not the test the IRS uses, it doesn't matter what _I_ think a fair wage is, it matters what the market says it is. There are very few business that generate $100,000 that you'd think the person that runs it should make $15 / hr, which is what $30,000 equates too.
If you get audited, the IRS will default to just assuming all income is W2 income, and that'll cost you way more.
So if I’m a contractor and the jobs cost 7000 dollars and I only receive 3000 for labor I have to pay taxes for the whole 7000 bill?
No, i think you take the $4,000 that wasnt for labour and write it off. So you only have to pay for the $3,000 income/profit you made.
These videos are always so well edited. It looks like a TV show
Why does April only have 2 months? My brain!
what do we report these scammers as? youtube is as bad as facebook with their reporting system.
Great vid bro . 💯💯💯
Thank you so much!!!!!😊
What state are you in?
Over pay🤦🏾♂️😳