Tax Benefits of a C Corporation: Better Than an LLC?

Рет қаралды 35,604

Күн бұрын

This is an in-depth video on the tax benefits of a C-Corporation, also known as a C-Corp. Today, I'll compare the c-corporation vs llc and other business entity structures.
Subscribe: bit.ly/2HJlq46
Book a Discovery Call: schedule.lyfetaxes.com/discov...
There are still many advantages of Corporation that exists over an LLC, so in this video, what I want to do is cover:
- What is a C Corporation?
- The Advantages of a C-Corporation Entity
- Tax Benefits of a C Corporation
Timestamps:
Intro (0:00)
Liability Protection (0:24)
What is a C-Corporation? (2:25)
Advantage #1 (4:56)
Advantage #2 (6:50)
Important Note (7:45)
Tax Benefit #1 (8:15)
Tax Benefit #2 (11:35)
Tax Benefit #3 (12:48)
Tax Benefit #4 (13:50)
Tax Benefit #5 (15:50)
IMPORTANT NOTE (17:00)
More Popular Uploads:
Single Member LLC, What You Must Know: • Single Member LLC: Wha...
How to Start a Business: • How to Start a Busines...
7 Popular Tax Write-Offs That Could Trigger an IRS Audit: • 7 Popular Tax Write Of...
How to File Your Taxes as an LLC: • How to File Your Taxes...
5 Startup Grants: • 5 Grants to Start a Sm...
Please be sure to give this video a like and subscribe to our channel so you don't miss out on future videos! #corporation #business
///
Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

Пікірлер: 62

@ftruth1905 Жыл бұрын

This is the best video explaining c-corporation & llc what I’ve seen so far

@LYFEAccounting Жыл бұрын

I’m glad to hear that, I put alot of effort into it

@GenieBarlan 24 күн бұрын

My thoughts exactly. Best explanation. I listened to many other videos, they hive me a headache. I wish KZfaq would bring this up first

@businessacc179 2 жыл бұрын

Excellent content. I’m starting a tech company and had a tax lawyer try to shame me for not founding the firm as an LLC. We proceeded as a C Corp in DE. Want to be ready for investors!

@chefhak Жыл бұрын

Great movie, I had to convert my LLC to c corp

@deniawiseone95 9 ай бұрын

@@chefhakYou didn't have to convert it if lm not mistaken. You could have formed a c corp & js put the baby (llc) underneath it 😊

@JamesAutoDude 2 ай бұрын

Just keep in mind that opening in a different state doesn't prevent you from needing to open in your own state. You're actually doing some harm in some ways because you'll have to keep 2 states up to date lol Regardless you still have to register and pay the same amounts in your home state (or whatever you're doing business) Better to just open direct in your home state

@edgarandrade5820 3 ай бұрын

I had a long talk with my CPA and decided to become a c corp. A lot of what cpa said you mentioned. Thank you

@stealydealies Жыл бұрын

MAN OH MAN. I was sooooooooo concerned about my income and taxes through a C-corp. I was suggested I file as a C-Corp but COULD NOT UNDERSTAND WHY Until this very video. Thank you so so so much.

@SimpleAbundance Жыл бұрын

Dropping a line to show some support. Thanks for sharing your knowledge 📈

@Pktk222 Жыл бұрын

Thank you so much bro!! I’m tryna get my stuff together I filed for c Corp lol. I was scared and wanted to go back but this just blew my mind thanks.

@angellkemokai1432 6 ай бұрын

Thank you so much for this information. I needed guidance.

@azizroshid890 Жыл бұрын

Thank you for the video. Please make a video about taking money out of your C Corp without being subjected to double taxation.

@ledfootdude 10 ай бұрын

Can't happen, if you don't want to be double taxed you need to do an S corp or LLC taxed as S corp but you can't do a lot of the stuff C Corps can do

@deniawiseone95 9 ай бұрын

You can borrow from the corporation & it wont be treated as taxable dividend. However the lrs might investigate the transaction to ensure its not a "disguised" dividend. This may require the loan be paid back at a reasonable interest rate.

@FinancialFreedomMadeSimple 2 жыл бұрын

Great content!

@Whichofthefavors 2 жыл бұрын

I watch your videos and I am learning about taxes. Thank You so much. I have a question that I am hoping that you can answer please. I started a business a few years ago and purchased equipment, business cards, po box address and products to sell. However I didnt keep up with my website and literally made a few sales from my friends in the past 4 years. Not even $50.00. I had so much going on in my life. I am determined to get back on track this year and include my business when I file my taxes in 2023. So can I write off the equipment that I purchased, my business cards, products etc, anything I purchased for my business if I purchased it a few years ago? Im not sure how it would work for me. Or do I just include anything that I have purchased for my business this year 2022. I would really like your expertise advice. Thank You.

@user-on2eh3dl1p 6 ай бұрын

Very helpful information

@emiliagamboni6644 2 жыл бұрын

Can you make videos about the different options if any for small business on health care. What is it required or helpful for a small business or sole proprietor?

@MarvillousBeats 7 ай бұрын

Well done thank you

@beaut_ Жыл бұрын

So if I filed self employed but also have a llc thats registered to be taxed as a c corp how would I go about filing it?

@mikejunk4285 Жыл бұрын

What are your thoughts on ROBS 401k business startups? I know they have to be a c-corp, but does it make sense for someone to do that if they will be the only employee of that business?

@samisartawi 2 жыл бұрын

Can you do a video that differentiate briefly all the entities that are available for business and which one is best for you !!

@LYFEAccounting 2 жыл бұрын

Great suggestion! I'll add it to the idea list

@abundant_sy4158 7 ай бұрын

Question if you have an llc can you just use the c crop to just run it how does that work

@johnvaughn7278 2 жыл бұрын

thank you.

@certifiedangels9281 25 күн бұрын

Hello, is there a way to take a one on one class with you ?

@eleonzocaldeeon1131 2 жыл бұрын

Just a question can I change from sole to corporation even if I just have my license as sole proprietor?

@prettyybrwn 2 жыл бұрын

Yes you can. Call a lawyer a lot of times they give free info

@apriltownsend7362 2 жыл бұрын

🤔 Would you suggest a sole preparator if my product is sold in farmers markets and there is little risk of me being sued. When I expand I will have workman's comp. Thanks

@LYFEAccounting 2 жыл бұрын

Hey April, so what kind of product is it?

@LYFEAccounting 2 жыл бұрын

I had a similar thought, but wanted to see if the risk level of the product.

@jastacy16 13 күн бұрын

Can I just have a single member LLC taxed as a C-Corp to lower taxes on retained earnings? If so would I have to pay myself a "reasonable" salary?

@blec.g7522 Жыл бұрын

do you have video explaining how to switch S corp to C corp? thank you !!

@JamesAutoDude 2 ай бұрын

You file a change with the IRS

@mike-ej9hz 2 жыл бұрын

Do I need to sign a prenup to protect my C Corp from divorce? Or is it completely separated from me?

@deniawiseone95 9 ай бұрын

I believe It's separated from you but when ur talking marriage and prenuptial l wud put that corp in a trust to really seperate & protect what's yours. Talk to a tax attorney or advisor tho.

@jayhudson2075 Жыл бұрын

Me too

@1HarlemBarbie Жыл бұрын

To make sure I understand a c corp. You are taxed at a corporate of 21%, then taxed on the dividends but you are not required to take dividends if you are a owner/shareholder, correct? Now are you required to pay yourself a reasonable salary like an s- corp?

@deniawiseone95 9 ай бұрын

Yes you pay youself a salary receiving your own w2 with taxes taken out.😊

@dennis-theguyfromitaly9787 2 жыл бұрын

But by being an LLC you can choose how to be taxed. So by being taxed as a C corp is not the same?

@LYFEAccounting 2 жыл бұрын

Correct. This video is meant to just breakdown the tax benefits between the default LLC tax rules and C corp tax rules

@concernm.1140 2 жыл бұрын

Do I need to pay myself as ceo/owner of a corporation?, corporation is not making a profit yet.

@LYFEAccounting 2 жыл бұрын

If you are actively working as the CEO, then should consider paying yourself when you are profitable using the 60/40 salary rule

@fritzbookman7243 2 жыл бұрын

As a C Corp. do you pay taxes on loans

@LYFEAccounting 2 жыл бұрын

No, you normally wouldn't pay any taxes on loans or credit lines unless it was converted into a grant or something, like what happened with the PPP loans

@blakeharris6042 2 жыл бұрын

Can a holding company be taxed as a c corp?

@LYFEAccounting 2 жыл бұрын

Yes, of course

@nataliejerome4537 2 жыл бұрын

You made several references to a company’s physical year. Did you mean fiscal year?

@davidli3742 11 ай бұрын

that was really weird lol

@TorracaEnterprises Жыл бұрын

What would happen if the C-Corp is owned by a LLC 100% ? How does the tax status effect the structure ?

@headlibrarian1996 11 ай бұрын

Nothing.

@chicago9458 9 ай бұрын

Pretty informative bro. Check out how to pronounce “fiscal” 😉

@joshuamcintosh7706 Жыл бұрын

9:55

@JamesAutoDude 2 ай бұрын

LLCs are just liability protection but still self employment. Same with S Corps (and LLCs electing S Corp). Thats why investors don't care about them The fees are all the same, just go C Corp (which is default if you're a corporation) There's plenty of ways to avoid double taxation and anyone who says otherwise just lacks knowledge.

@darkghostninja2962 2 жыл бұрын

Bro really Asserting that C hard

@Alaska-01 9 ай бұрын

Not all the income is taxed with 37% there are tax brackets.

@crazycdn8327 6 ай бұрын

You can take loans out from your c-corp too at nearly any interest rate and term you wish. If you don't have outside shareholders with a say in the matter. Say for a family run business. Unless your wife votes it down lol.