Make sure you’re making a minimum of 40-60k PROFIT before switching to an s corp. You don’t want to pay 10k to save 5k

I tried to talk to a SCORE mentor that has created and sold 4 companies, and I asked him about switching to an S-Corp and he said there was no reason to, because if you get sued they will still just come after you not your company...and that's all he said. He didn't bother explaining any of this. You made it so clear when and how and why. Thank you. The lucky few who make it to your channel, who, like me, don't have a mentor or parent to teach them any of this; we are grateful that you put in the effort to make this and help the rest of us do better for ourselves. You are doing great work and helping change the lives of people you may never know. THANK YOU

I remember having a consultation with a financial analyst last August, and it was incredibly insightful. Can’t stress enough how helpful experts in this field are!

I have 2 chapter 13’s that are dismissed. The reason I have 2 is bcz I did not use an attorney. I was trying to stop an eviction, but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later, I ended up losing my job. They are scheduled to fall off in January and March 2021. Since I’m looking to purchase a home soon but still there. I am currently enrolled in *850CREDIT RESTORATION* and I m ust say, I am loving it thus far. I’m doubling it up with your podcast videos and learning A LOT! Thank you. I’m ready to join the millionaire club!!!

I have been and llc for ten years and NONE of my CPA’s have ever explained it like that. WELL DONE !!! This information is priceless. THANK YOU !!

IF THIS HAD BEEN TAUGHT IN MIDDLE OR HIGH SCHOOL I CAN'T IMAGINE WHERE WE WOULD BE RIGHT NOW !

As I am setting up a new S'Corp, I have seen a lot of videos to make sure I am accounting for taxes for payroll and distribution correctly. This by far was the most easy to understand and through video.

There's an error here. When you have an S corp, you still have to pay 15.3% payroll tax/SE tax. It's just that as an individual, you pay 7.65% FICA, SS & MC but then the S corp has to pay an additional 7.65% in payroll taxes. Add 7.65% + and 7.65% and you get . . . 15.3%. Plus, as an S corp, you will need to pay unemployment and workers comp insurance as well. And you can't deduct one half of your SE tax. The main advantage to the S corp is that you'll only pay the 15.3% on your wages instead of the entire business income. Also, if you are an Uber or Lyft driver, you do not receive a wage. You receive business revenue which will be used to calculate your business profit or loss on schedule C.

Thank you so much for your inspiration! I have traveled a similar path, 2 college degrees, multiple jobs including credit problems. I am now 65 years old and have found my purpose in life. Currently in the process of starting my own business. May God continue to bless you and May He continue to bless *850 credit restoration* for me for every successful deal we conducted

Thank goodness you brought this up! Truly, :nvesting has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!..

Just a tip. Set-up a SMLLC Subsidiary underneath a SMLLC Parent. Leave the Sub as a natural LLC, and elect to treat the parent as an S Corp. This will help you down the road if the business ever grows enough to take on Private Equity or other co-investment, or even sell outright...nobody wants to co-invest in or buy your S Corp, trust me. Keep all licenses, contracts, assets, employees, and other aspects of your business at the Sub level.

I'm a SCORE mentor and I learned so much from this. I often get asked about the benefits of an S-Corp vs. a LLC. This really laid the figures out well. Thank you.

I just started my business two months ago and started wondering about how the distributions and employment worked. so glad I found these videos, really learned a lot, thanks so much for the advice, will be s corping next year!

I drove my first car in my dad's name and later went to get a truck in mine after I paid off my first one and drove off the lot with the truck I wanted, its mostly about a good credit score and a loan portfolio helps as well...lenders like to see various forms of loans in your name to be less of a risk and yes you might have to put money down but not HALF of the car loan Your exactly right I screwed my credit as a young man now I own a detailing company and can't get anything with out the full amount of cash. I'm working on my credit to get better with *850 CREDIT RESTORATION* , Love the knowledge keep it up

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?

God bless you brother. Im a realtor and Ive been trying to figure this out. Presented very well.

Bro, I gotta tell you that I appreciate the time you take to drop the VALUABLE information freely. Where would we all be if we all helped each other grow like this….

Wealth is not just about finance, but health and wellness is critical especially in our black community! No need to have stuff and money if you don't have your good health? Rick Ross finally understands this truth now! What does it profit a man/woman to gain the whole world if you don't have optimum health to enjoy it all! Let change the mindset about the diet & wealth in the black community so we can all go up together! Above all things... I wish that you be in good health and prosper even as your soul prospers! God bless you brothers! and remember to use *850 credit restoration* for your bad credit and negative credit marks and inquiries removal

Please make more content like this, you are a great teacher, its easy to follow, understand and learning the information because of the simple way you break the information down. I will you also teach about nonfprofit, the steps of how to start one and the tax side of it as well.

Great video. It’s important to note that certain professions are not eligible for QBI deductions, such as doctor, lawyer, accounting, consulting, etc. Please check with accountant to see if you’re eligible

VERY well done ! I say this with 40+ years in mortgage finance & banking working with credit bureaus. Different models and parameters are used by different industries but *850 CREDIT RESTORATION* info is pretty much universal. If you're trying to max your credit scores, there is a happy medium between too many credit cards and none. Too many cards with zero balnce may actually hurt you in some cases. Even if you do not use them, you have a potential. To always pay cash & still have cards doesn't help your scores as well

Fortunately, I had a college economics teacher that taught me a lesson at 18. That lesson was: for every huge, frivoluos purchase you make, you need to have an investment double it's worth, this doesn't necessarily mean you should always invest when you make a purchase, it simply means living within your means. Varied sources of income is wise and especially like i said, living within your means. Whenever you're about to make a huge, dumb purchase that doesn't add value think about taxes and how you get your income. I made $272k combined net last year and paid no Federal taxes.

By far one of the easiest videos to follow. You took away the mystery of LLC vs. S-Corp and broke it down solid!

Excellent info, very concise and easy to understand, and this clarifies a subject that many other videos miss the mark on in their well-intended attempts to educate. I will definitely be watching more of your content. Thank you so much.

This is really really helpful as I start my own business for the first time. I'm grateful to know this in advance. I may have made some REALLY big financial mistakes otherwise.

I've never had a good time learning about taxes haha, solid work man.

I am just finding you and I can't tell you how grateful I AM! You went over and beyond the explanation and that is deeply appreciated! I have no idea if you are even gonna see this message, as it has been 2 years since you posted this! Wow! I subscribed and thumbs up on ALL your content. Thank you Karlton Dennis!

I started working on my credit 2 years ago. I didn't know where to start I had no credit. I started looking up videos and found *850credit restoration* . I followed what you said and started with an secured credit card for 200.00 and mad sure to keep my utilization under 10% and paid on time every month. I now have 3 unsecured credit cards and a 757 fico score. Thank Danielle for all the information and tips. Now we are in a position to buy home.

Bro you’re a life saver just started my trucking business 4 days ago and I run into this video….. now I gotta make some changes thanks a ton!!!!!

You are not accounting for the additional expense when you pay yourself that $30k. The business would incur employer taxes for the other half of FICA taxes (7.65) as well as workers comp, unemployment, paid family medical leave, payroll processing software, etc. It may very well still be advantageous to do it your way but the difference paid would be lower when all employer expenses are taken into account.

This is the first video I encountered that is educational and straight to the point. Finally, someone who produces a video with substantial information that is beneficial to all of us especially new business owners. That’s how you know when a person does it for the viewer’s gain and not for his fame. Thank you!!

This is the first video of yours that I have seen. I don’t even know why I came across my feed I have liked and subscribed to your channel very informational. I plan to binge watch the rest of your videos.

This video was the clearest and most understandable explanation of this topic that I've ever come across. It was truly awesome!

Karlton - I just recently switched over to an LLC. After speaking with my trusted CPA he told me to do EXACTLY what you are taking about in this video. Listening to this video was almost verbatim listening to my CPA. I like your content, I followed it well. I've decided to move to a S-Corp. Thank you very much. It's apparent you are good at what you do. I will be watching more of your content.

“how to pay yourself via LLC” “switch to an scorp” 😁

unsure about this. I followed your math and you did prove you pay less in taxes (excluding the misstake of the payroll tax noted below), however i came up with take home $2 Less. I think ComedorDelrico is right. one thing you said and didn't cover, is WHEN to think about changing to a S Corp.

Hey thanks. This was a good start for me for my 1st video in researching about LLC.

That was very thorough, encouraging and well thought out. Thank you for putting this together and I look forward to what I will watch next.

I’m in the process as we speak of starting my LLC, I love how you broke this all the way down. I appreciate you my guy and I will be subscribing to your KZfaq channel. I will be following you because you have a wealth of knowledge!!!

This IS GOLD!!! Thank YOU!!!!

It's perfect timing to find your channel as I'm starting an LLC. You describe the S-Corp advantage perfectly!

I just started my LLC last year and this is my new favorite KZfaq channel! Perfect timing thanks man! 🙏🏼

This was PHENOMENAL!!! This is why I went to lawschool bc I suck at math!! I will most likely switch to an S-Corp in 2023 now things are picking up!

So helpful and informative. Keep the knowledge flowing and pouring in our minds to our pockets. Thanks for ur diligence and time.

Great information. I especially like the distribution and the one time payroll for the S. corp. I have previously held S-corps, LLCs, & C-Corps, and I can definitively say that the easiest part is having a good accountant.

Thank you for the info I just started my business im not trying to get lost in the sauce

I have a bachelors degree in Business & I feel this video actually taught me more valuable information. & you make it easy to understand. Thanks!! Stay blessed!!!

I just opened my OKC but haven’t started the work yet. I am so glad I came Across your video! I’ve been self employed for a couple of years and it’s a pain! I’m glad I found this before I messed it up! Thanks!

Finally, someone who gets to the point and does not talk down to me.

Dude just solved my exact problem with my business (how to pay myself as an Llc) in 17 minutes! Thanks Karlton, I will definitely be booking a consultation

Mr. Dennis you’ve done it once again! You under sell and over deliver every time...no click bait over here, just PRICELESS CONTENT! Thank you for shining that light and being a beacon for up and coming small business owners, keep doing what you do, this channel will soon blow up 💥

Thank you for this. 2 years old video but it's what I needed.

This is the best information I’ve ever heard about LLC’s.

I don't consider renting passive income unless you have professional property management. Most people who rent don't count their time and effort needed just to make a tiny return on their massive investment. For example, you invest $599,000 to buy a second home and rent it out for $3000 a month. Let assume you are cash flow positive on the property and you make $1000 a month or $12,000 a year. What would your annualized return be? 2 percent on the entire amount. Now, you can argue that your return is much higher since you only put down $120,000 on the property. However, you are on the hook for the full $600k regardless of what the future FMV of the house is. Furthermore, people assume that their home will always appreciate in value however, this is a false assumption you can make. In the best case, you will gain some capital appreciation thanks to the central bank increasing the money supply, however, if inflation heats up, you can see your property actually start to lose money in real terms. This is because there is an inverse relationship between housing and nominal interest rates. The central bank will attempt to slow down inflation with higher interest rates and curb lending. We haven't seen inflation in a big way but we can see all the massive stimulus money that the government is pumping turn into inflation while taxes will be hiked to pay for all the COVID spending, your best choice is to look into support@ *PrismCryptoFunding🪐com* Its more profitable.

This was the best information that I have EVER come across. As a Financial Advisor I am always looking for people to support clients that have these issues and can explain what is going on without them "wasting" money with no results. I will definitely support this recommendation *Discreet Phase Resolution* to all of my clients when I see they have a financial issue. I have been hood winked by so many companies and people in this line of business and I am excited that theyre a team of integrity to actually help people

Watching this, I feel overwhelmed! There's sooooo much that goes into this opening and running a business and my fear of failing or doing something wrong continues to hold me back.

I'm glad this came up in my feed. I've been looking at founding a single person LLC for a while now and this was one of the big questions I had for how finances would work. Thank you for this!

This is Content GOLD!! Ty!!

Wow, you really made it clear to me the difference between LLC and S-Corp. You have saved me. I'm hiring an accountant. Thank you.

I have been looking for this answer for a long time!! Thank you. I just started an LLC. What you did not tell was (1) when to switch over to S corporation and (2) the proper way to give myself a distribution with an LLC. I'm still scared about paying myself and the whole comingling thing.

Finally someone who breaks it down quick and simple. Ty for the info. This is awesome. Great job!

Amazing explanation and thanks for the education on LLCs. I'm about to start my own small biz, and I need to get as much info on LLC forming that's overwhelming because I don't want to make a mistake. Following on IG as well. Keep informing and educating us.

The breakdown here was very smooth and concise. Even when I got lost for a second, he picked me right back up and explained the information to the T. Thanks for this! I’m trying to work these numbers for a business with a smaller revenue in Texas.

Thank you for this truly amazing informational video on this subject. 😊 You've clarified some things I wasn't sure about, and made sense of them. I had to rewatch the last few minutes to be sure I understood you correctly, but I think I got it now. My small business is set up as an LLC, and I see now that if I can successfully grow it next year, that implementing your S Corp strategy will be invaluable. When you said that we can still take distributions throughout the year, BUT we only need to do one payroll payout to ourselves at the end of the year, after we have a better idea on what our net income would be, then it all came together for me. 😊

Sir, thank you! My income fluctuates too much to commit to the S-Corp model, but people ask me all the time how this works. I’m going to share your channel with them because it’s excellent advice. I learned one thing I didn’t know about and that’s that you can do one payroll at year end. It’s always been too scary to get stuck doing that for me. 2020 was horrible. But IF I had a payroll history I could have claimed that unemployment. 😊

So grateful. I'm starting a business and I really don't want to make tax mistakes. This is such great content, easy to understand. Thank you for making this video.

I was able to get a possible judgment dismissed due to the help of credit lord wih the debt collection company saving me over $11,100.

Thank you for this, I would've ended paying more in ignorance, as I intend to start a business someday. I can see why you are so successful; you have deep understanding of tax code and business models.

@ 14:26 "He only paid 7.65% instead of 15.3% in FICA" *The total FICA taxes are 15.3% regardless* because the "one-man" company pays half (7.65%) of the FICA taxes and the owner-employee pays half (7.65%) of the FICA taxes. The company is also going to have to file (pay) those 4x per year. And by providing compensation as an employee, the company will (in most states) also have to file (pay) unemployment & some other taxes 4x per year. In comparison, there are no FICA taxes or unemployment taxes on non-employment income, and if set up correctly, the first $40k (single filer) is exempt from income tax.

It's good seeing a brother providing great financial information to the masses. Thanks!

Thank you, sir, for this explanation. When I decided to start my own business, I did not consult an accountant or other financial expert in the business field, so I STRUGGLED through the process of becoming just an LLC. Now, based on what I'm understanding in this video, I should consider switching to an S-Corp to help me with taxes. My business is new and is not yet generating a huge net profit, but I will talk to a tax guy here locally and ask about switching to an S-Corp. Again, thanks for enlightening me on the pay consequences of both an LLC and an S-Corp.

Bro ur an amazing person 👏🏿 with EXPLANATION TO THE GOT DAMN T! More Love an support to ya homie

My wife owns her own Business, (Salon), and I dread Tax season every year. This information is incredibly helpful and appreciated. Thank you.

This video is great! Everything is broken down simply & clearly. I recently formed a S-corp and have been floundering as to how to pay myself. Thank you!

This is straight 🔥🔥🔥🔥🔥 I formed my first LLC yesterday and this is EXACTLY what I needed to here. Thank you!!!

This was actually uniquely helpful. Most info on YT is pretty standards, but you brought a slightly different perspective. Thanks for that. I'm gonna watch this 15x back to back now. Knowledge is power!

Brother, thanks for the info… I’m teaching myself as I go; trying to run an LLC and understanding when to convert to S-Corp.. Really appreciate the good info you put out..

Our thinking really has an important impact in our lives but many people fail to understand this.

I came here to learn how to invest after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k, somehow this video has helped shed light on some things, but I'm still confused, I'm a newbie and I'm open to ideas.

The point of having an llc is for protection. What if you don’t want to convert to an scorp? You can be taxed as an scorp from my understanding. I wasn’t expecting to have to change the legal structure of the business

I remain amazed and grateful that information this valuable is available for free. Thank you, Mr. Dennis!

I love how you break down things I’m going have every young person in my family watching you!

I instantly subscribed because you are informing business owners with quality content. Thank you.

Oh I'm soo glad to know this here now! Thanks for your educating me on this!

Omg....thank you so much. Seeing my accountant in a few days and needed a clear understanding. Thank you for breaking this down in a very understandable way. Much appreciated 🙏🏻

You had me at 12:19...The LLC vs S Corp, I've been trying to explain and break dow to a few people. You're 1000% correct about people learning things different ways. Thank you so much for putting this info out there. Very much needed and greatly appreciated.

I'm starting my business and this is exactly the knowledge and insight I need. Also like how you break it down into simple terms for the beginners to easily understand. 👍👍

I'm DCAing in *The Encrypt Invest* as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!

This was so enlightening. I am an orthopedic surgeon have made an LLC it makes me realize I need to switch it over to S Corp to fully reap all the benefits

Man as a new business owner this is amazing education. Keep it up man.

Thanks for being upfront and transparent about LLC to S Corp.

Great stuff Karlton Dennis!! You have enlightened me very much this morning. I am going to set up my S Corp now that I have a better understanding of how to pay myself from my LLC.

Man, you just blew my mind! Just started my Llc and I didn’t think about it like that. I need a class!

Thank you for this! Knowing when to switch over to S-Corp is a game changer.

This was the easiest that I’ve understood these concepts after being explained them probably close to ten times

Simple math and it works. I know some buddies are doing this. It's all in understanding the legal tax code. Thank you Karlton. I am going to subscribe.

Thanks, very informative! My question is instead of switching from LLC TO SCORP, Why not just initially just start with S-corp?

Just what I needed to see. Perfect break down of it for me man. I’ve been trying to understand why the S Corp is better, but now I get it.

Thank you for the time and dedication you give in creating informative and comprehensive videos on tax related business matters. I really need to polish up on my bookkeeping skills 👌

I don't know how I made it to your content but I'm kind of excited i did. I have been working my recipes for meads and wines since covid and I'm trying to figure out how to start a LLC so I can get my liquor license to produce my product for sale I already have 2 different ways to move the product 1 a store willing to sell it 2 a not for profit organization willing to let me move it under their license. But my product takes time to age so I need to be careful about how I do this as my LLC will be starting at a loss for the first year or 2. So I need all the knowledge I can gain. I look forward to seeing your videos.