Tax Differences EXPLAINED: LLC, S Corp, Partnership, Sole Prop

Рет қаралды 304,931

Жыл бұрын

In this video, I explain the tax differences between a sole proprietorship, LLC, S Corporation and Partnership. I also explain how much tax you might owe for each entity type, how to make those tax payments and when those payments are due so you don’t have to worry about late payment or filing penalties.
Links to websites used in video:
Federal Income Tax Calculator: www.ameriprise.com/financial-...
State Tax Information: taxfoundation.org/publication...
When to Pay: www.irs.gov/faqs/estimated-ta...
How to Pay with Direct Pay: www.irs.gov/payments/direct-pay
How to Pay with EFTPS: www.eftps.gov/eftps/direct/Ef...
🔗Useful Links:
🌐 Website: navimarajcpa.com/
📋 Enroll In My Course - Small Business Taxes: From Knowing Nothing to Savings Thousands: navimarajcpa.com/learn/
📁 Setup your LLC or Corporation for FREE:
FileYourBusiness.com: www.fileyourbusiness.com/
Inc Authority: bit.ly/incauthoritycoupon
IncFile: bit.ly/incfilecoupon
ZenBusiness: bit.ly/zenbusinesscoupon
If you learned something from this video, please like and subscribe and follow me on my various social media handles below. If you would like to contact me with a specific question, please visit my website or leave me a comment.
Website: www.navimarajcpa.com
Email: navi@navimarajcpa.com
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This video was created for informational purposes and it is not to be construed as legal and tax advice specific to your unique situation. Some of the links above are affiliate links which means that if you purchase a product or service with the provided link, I may receive a commission with no additional cost to you.
© Navi Maraj CPA PLLC. All rights reserved.
#scorp #llc #taxes #explained

Пікірлер: 315

@rogersmj 4 ай бұрын

This is by far the clearest explanation of this topic I have yet run across. Very well presented, having apples to apples examples in a clean spreadsheet format, as opposed to the random whiteboard scribblings that some others do that are really hard to follow.

@alansanchez3560 Ай бұрын

Great video! It helps understand the basics I’m going to keep watching at the more complex topics!

@lorapalacios8088 Ай бұрын

If i want to open my own behavioral health/ mental healthy therapy practice and I am a Licensed Clinical Social worker in California can I do a partnership? I am told I cannot do an LLC.

@roberts7363 14 күн бұрын

Thanks for the video. Nice Fastback in the background ;). I once had a 66' Coupe.

@NaviMarajCPA 13 күн бұрын

My favorite comment by far!!!!

@xcalybur75 12 күн бұрын

Fantastic info and great pacing. This is hard stuff for most people to wrap their head around and you did a great job. The only thing that would make it marginally better and might not be worth the time is to put together some slides you can show occasionally during the presentation, but I understand if it isn't worth it.

@lunamorris2091 3 ай бұрын

Would like to see more of these types of videos where small business owners can get educated on how to understand financials and use them to improve their business

@corystheboss Жыл бұрын

Taxes should not be this confusing…

@NaviMarajCPA 11 ай бұрын

Agreed but hope I was able to make it a little easier for you.

@vikkifairchild9858 8 ай бұрын

Agreed. Also, taxation is theft. They literally tax you 2x literally every direction you go. But then they say, no dollar can be taxed twice. It’s bologna

@savageazzligee5970 8 ай бұрын

He actually explained it so smoothly in my opinion. Plus he giving good examples with easy to understand numbers and this is my first time learning about business taxes. Only part I don’t completely get is where the $88,000 came from when at first it was $100,000 then the QBID made it $80,000. I’m just confused where the other $8,000 came from.

@nextgenerationsshow 7 ай бұрын

@@vikkifairchild9858How?

@jamisonmunn9215 5 ай бұрын

It's not, since the governments number one mandate is keeping the nation safe. Also a nation has clearly defined borders that requires people to go through a process to enter. Since the USA doesn't have those things currently all federal taxes are invalid and shouldn't be paid.

@josephinebardot8403 8 ай бұрын

I’m more than happy to discover this channel. I need to thank you for your time for this, particularly a fantastic watch!! I liked every little bit of it and I have subscribed you to look at new posts all the time.

@alihakim8680 27 күн бұрын

Navi, this was an absolutely phenomenal explanation compared to everything else I’ve seen on YT. I appreciate the disclaimers regarding QBI and SE deductions, since many people leave these out and don’t mention it. Your clear ability to share knowledge makes me want to use your course. Thank you!

@gummybears-n-crime1317 4 ай бұрын

This was excellent and helped me decide to open an s corp vs LLC as an independent contractor

@carlosgarcia4012 10 ай бұрын

Hi Navi. This video is great. I have tried to find a video with an expatiation like this one you just did and I have not found anything like this. You are great. Thank you so much!!!

@melittlelad 4 ай бұрын

This is exactly the kind of video I was looking for, super basic but thoroughly explained, thank you!

@katiehoponick1141 8 ай бұрын

Thank you so much!! Your video was so helpful in gaining a clear understanding of the different business models, how the taxation flows, and the importance of each part. Very Informative, thank you

@finalflare2049 11 ай бұрын

Best video online. Please keep up with the visuals of your explanations. It helps visual learning a ton.

@wittyk8581 5 күн бұрын

Fantastic content, I will absolutely 100% come back

@xpress-notary-pro 7 ай бұрын

☑ I don't leave a lot of reviews, but this video and another one in your list completely lifted the scales from my eyes. I was blind and now I see! You helped me make a decision about whether to go the S-Corp route and saved me from making a huge mistake. Thank you for bringing free content that is completely useful on its own. I have you bookmarked. I definitely want to take your course once I get my business up and running.

@cynthiagarcia2784 4 ай бұрын

Same as you. I’m started by own business and this has definitely saved me lots of money before starting.

@cathyjohnchang9812 2 ай бұрын

Excellent job! You explained very clearly with a clean easy understanding spreadsheet. Really appreciate it.

@islandst.maarten7081 9 ай бұрын

I'VE WATCHED A LOT OF VIDEOS BUT THIS ONE WAS VERY UNDERSTANDABLE. THANKS

@parleygentry5008 2 ай бұрын

Super clear explanation. Setting the numbers up like that gave me a visual idea of how I should set up the business

@MrElvin026 3 ай бұрын

Very well explained, I’m CPA in Puerto Rico and is very important get an advisory from a CPA.

@freddycuevas6595 2 ай бұрын

Great Video! Thank you. If anyone knows in the S corp case there was 40k of Income and the rest Business Income 60k. The employer paid Medicare and Social security on 40k but didn't pay anything on the Business income of 60k for medicare or social security?

@anitacobb1973 2 ай бұрын

Outstanding!! I agree with Roger below. You provided the clearest explanation to date!!

@nickoliwade 9 ай бұрын

Thank you for helping with taxes and your visuals were spot on , also keeping taxes interesting.

@mariabell8320 4 ай бұрын

Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This KZfaq channel is very informative and effective.

@mtmetzger 3 ай бұрын

Excellent video! Thanks for being so precise with your explanations. You are really taking the stress out of the entire process.

@user-iq3xk4xu9b 4 ай бұрын

Great explanation! Thank god I came across this video. Looking forward to watching the rest of your information. Thank you!

@riazgomez8100 10 ай бұрын

Navi!! I see many videos and feel like yours are the best to learn!! Hope to find you soon and would love to learn more from you

@denbestenmathchannel4180 3 ай бұрын

Great video! You do a nice job explaining a complicated topic. Thanks!

@shaunquilty8201 3 ай бұрын

You did a great job, explaining how each entity pays their taxes and what is required but you didn’t explain to me any advantages of what each one offers so you just wasted like an hour of my time and now I’m super convinced on why it’s just good to pay so I wanna do your taxes. Thanks.

@amyroberts3922 3 ай бұрын

We are thinking about converting from a LLC to an S Corp. This was extremely helpful. Thanks!!

@Mukimuki28 2 ай бұрын

Best video on tax differences !! thank you for taking the time to do this video 👏🏻👏🏻👏🏻👏🏻

@edentajas1624 11 ай бұрын

Thank you so much... this is very helpful. I am a freelancer and I need to learn more about US taxes.

@nasariosantos1117 2 ай бұрын

Navi, you do an excellent job teaching the layman ! 😊

@fixitfredhandyman 3 ай бұрын

extremely clear about all three categories. thank you.

@kasiwilliams5927 5 ай бұрын

Thanks for explaining I enjoyed following along the visuals and website.

@hot.alaska 3 ай бұрын

thank you for taking the time to share your knowledge on this

@Trader_Father 10 ай бұрын

new LLC and this is exactly what i need to know, i am going to the s corp after watching this video.

@RedDragonProtection 6 ай бұрын

Thank you for this video. It's exactly what I was looking for. I found your spreadsheet and will definitely adapt it into mine. I appreciate it. I subbed for you.

@n.trs1788 Жыл бұрын

Thank you so much. This knowledge is invaluable and I better understand Sole vs. LLC and not as freaked out!

@NaviMarajCPA 11 ай бұрын

Great to hear! Thanks so much for the feedback and glad you're understanding things better.

@shamszaynreacts1993 Ай бұрын

@@NaviMarajCPA❤❤❤

@Furygasm 9 ай бұрын

Great video, very informative and well explained/structured. Only problem is that I need a Canadian version of this channel!

@user-by7lo6zl5l 11 ай бұрын

Very informative. Thank you! How do you switch from an LLC to S Corp?

@nickp8 5 ай бұрын

You are phenomenal. Thank you for what you do!

@adamkalon7584 4 ай бұрын

I rearly leave comments but you are great! This is EXACTLY what I have been looking for so long. I graduated from financial university in Europe but now I live in the US and I need to understand your microeconomy regulations work. Your video is just a great example of top notch teaching, it helped my to obtain more clear vision on how to run my own company and what type of entity to choose. I didn't even know about QBID. I'm going to comple your whole course. Thank you again!

@ashburnconnecttv7860 2 ай бұрын

Rarely.

@adamkalon7584 2 ай бұрын

@@ashburnconnecttv7860 I wish I had someone who would correct me since I’m trying to improve my spelling. Thank you for noticing!

@jlopez821able 10 ай бұрын

This was so helpful! I’m trying to decide llc or S corp for my business salon in California

@jocoll75 4 ай бұрын

Best video on tax differences.

@fromjaxflorida 5 ай бұрын

I'm trying to understand business taxation and this video helped me to understand the differences. I'm a visual person; listening and reading don't help me. Thank you.

@nellycaldeira4145 3 ай бұрын

amazing video!!! WOOOW. I AM IMPRESSED!

@mariesafaite-antoine20 3 ай бұрын

Very helpful! I will implement your advise

@TheBookOfJane 4 ай бұрын

Ok I am going to learn this stuff come heck or high water..... Thanks for your help. Great Channel!

@lavadog13 4 ай бұрын

Great video. The social security tax is more nuanced then described. There is a max amount that is held per year. I think you want to max that out as many years as possible to get max social security benefits at the end of the day.

@rociozamora877 Ай бұрын

Excellent presentation!! 🎉❤

@jukestaposition 2 ай бұрын

Super helpful and clear! Thanks!

@joser08rodriguez 10 ай бұрын

Great video I really liked the visual chart. Thank you.

@munchkinm6929 8 ай бұрын

Very clear and educational video, thank you

@TripleLRusticDesigns 11 ай бұрын

This is incredibly helpful! Thanks so much!

@NaviMarajCPA 11 ай бұрын

Thanks for the feedback!

@MariaRosales-uv2ls Жыл бұрын

Thank you. Very helpful content and well explained.

@NaviMarajCPA 11 ай бұрын

You're welcome! Thanks for the feedback.

@MrMeli504 2 ай бұрын

Great info, thanks so much.

@margaritagordon3142 11 ай бұрын

This was very helpful!! Thank you!

@nandakumars2845 11 ай бұрын

Spot on, exactly what I was looking to learn. Thank you for your time in helping everyone! I am new to forming an LLC and learned a lot through your videos. As an S-Corp, when exactly can you withdraw the "distribution" amount (60k in your example). You pay taxes on 88k anyways - is there a reason to leaving that distribution amount there? At the end of your video, you suggest that over 60k can go to a Roth. What about Pre-tax retirement contributions? SEP IRA not an option for S-Corp?

@cynthiagarcia2784 4 ай бұрын

This is a great question. I would like to know this as well.

@christopermontez6109 5 ай бұрын

Awesome info you broke down simply thanks and a pay roll company seems the way to go

@ChrisGreen-fp3jd 2 ай бұрын

Thank you so much very informative.

@dipalir130 4 ай бұрын

this was really helpful, Thank you.

@Jay-es3vm 11 ай бұрын

This was very helpful! Thank you so much!

@NaviMarajCPA 11 ай бұрын

You're welcome. Thanks for the feedback!

@saheruddin06ify 5 ай бұрын

Amazing video , well explained

@Sam-fz3mx 8 ай бұрын

Great video. Thank you!

@falgunipatel5776 6 ай бұрын

Very informative. Thank u!

@thunderbomb501 Ай бұрын

Do you have a link to that spreadsheet? Amazing video, I watched it at 1.5x speed and didn’t need to rewind it was that straight forward ❤

@AnasKhan-uw7vf 4 ай бұрын

thanks mr.meraj ... thumbs up from Pakistan

@kareemaestrada6734 Жыл бұрын

This was awesome Navi!

@NaviMarajCPA Жыл бұрын

Thanks for the feedback! 👍🏼

@MasterYourBooks 10 ай бұрын

Hi Navi! I am very impressed with your teaching style and videos so I'll be investing in your course. Do you have an affiliate program for those of us that want to share you course with others? If YES, you can respond here so others know the answer and I will ask again once I locate how to ask questions inside your course. Great work!!

@karleenaudibert35 Жыл бұрын

Everything you explained was very helpful! Thank you for sharing!

@NaviMarajCPA 11 ай бұрын

You're welcome. Glad it was helpful for you!

@Osalikioficial 4 ай бұрын

Really good video. Thanks

@pasolero 2 ай бұрын

Great video...very informative. Do you have recommendations for a payroll company for beginner in NYC?

@QValpo Ай бұрын

Fantastic breakdown, one question. If you have W2 income not related to the business, does the business income get added to the W2 income flow through the tax brackets or do they flow through the brackets separately?

@bichli Жыл бұрын

excellent presentation!

@NaviMarajCPA 11 ай бұрын

Thanks so much!

@sergiolozano5116 6 ай бұрын

Thanks for sharing!

@Rico-ns5dt 2 ай бұрын

Man i need me a powerball jackpot because this is exhausting 😂😂😂 great video

@shawndisho7378 2 ай бұрын

Amazing!!!!!!!!!!!!!

@jatinranjan7954 11 ай бұрын

Thank You for explaining these terms so lucidly. I hope you make a video on different Corporations ELIGIBILITY criterial as an individual business owner . Can a individual file a S corp or C corp by himself managing all the business ?

@cwright272 10 ай бұрын

I'm not sure what state you reside, but in Ohio, I was able to file for any type of business entity he discusses in this video as well as a c-corp by myself, it just took some knowledge of which Ohio's gov websites I needed to visit. I did everything online without the help of a service/third party.

@831richram 2 ай бұрын

You’re the man bro!!! Great information bro!!! Is it a bad idea to ask if I could get 12:00 min of your time ? If so how ?

@emmanuelmorales9402 2 ай бұрын

Great video! Quick question, is the 40k w-2 salary for john a tax deduction/expense for the Scorp?

@bigstar111 10 ай бұрын

Thank you so much! Extremely helpful! As sole owner LLC, are the quarterly payments mandatory?

@taxleverage 5 ай бұрын

Yes but they're based on prior year tax due, so it's possible they're not mandatory given your situation. Search safe harbor estimate payments and that's the calculation to determine the requirement.

@mila_myart 2 ай бұрын

❤good information!!!!

@vincentjohnson7786 10 ай бұрын

Great info!

@donsergio2406 20 күн бұрын

I liked the explanation, but the QBI deduction confuses a lot. There so many business out there that can not qualify, that I would not show it as a typical way to write-off taxes.

@jeffkayode 8 ай бұрын

Thanks for this... I will like to know if this is also available for business registered by a non US resident?

@Crys_M1229 Жыл бұрын

Thankyou. This was a good video.

@NaviMarajCPA 11 ай бұрын

Thanks so much! 👍

@StokesGeorgia 3 ай бұрын

This used to be one of my most watched channels... sadly, it's been a while since i visited it has been a very rough year... i am experiencing one of the toughest phases of my life... Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround..

@TronStylias 7 ай бұрын

I learned how save money and not let IRS take more.

@Puppypaws-cr4ck 2 ай бұрын

Great video! very well explained. had one question. if you do a s corp and using your example .. if john is married.. does he file that 60K held in s corp on his joint filing with his wife or does he file that separately. trying see if you can reduce your combined income bracket in paying taxes by doing an s corp. thank you!

@erikdong Жыл бұрын

Great breakdown. Thank you for sharing!

@NaviMarajCPA 11 ай бұрын

You're welcome. Thanks for the feedback and taking time to comment.

@Traversable_Dale Ай бұрын

Hey there, thanks for the video! I'm still a bit confused by quarterly estimated taxes- Let's say a single member LLC has paid Q1 estimated taxes, but realizes afterwards that they may have underpaid for the quarter. Would it be better to make up the difference immediately? Or wait until Q2 and pay more than is estimated? If I understand correctly, the fees from the IRS would only be applied when the annual taxes are reported. Or is it per quarter that the fees are calculated?

@odehzedan 10 ай бұрын

What if you have a w-2 job filing jointly and then do independent contracting on the side. What do you recommend s-corp or SMLLC?

@tharas-merch-llc 5 ай бұрын

Thanks Navi Maraj, I enjoyed learning with you. I have some questions though: If a person is a non resident single member LLC(also called as disregarded entity), can he/she no have to pay social security and medicare? Since those benefits is not for foreigner/non resident. If so, how is it done?🌎

@wongjuan1 Жыл бұрын

thank you for the video

@NaviMarajCPA 11 ай бұрын

You're welcome!

@kunalmandal2447 4 ай бұрын

Thanks for the video. If I am already maxing out on my social security taxes from my fulltime job , do I still have to pay social security taxes on my side hustle LLC ( Sole Prop ) ?

@MannyBlue Ай бұрын

If you’re a SP or SM llc and have a W2 as well can you pay the taxes when you file at the end of the year?

@budgeting4u932 Жыл бұрын

Hi Navi, can you please share the tax estimate Excel file template?

@ElementalWildfire Жыл бұрын

This is awesome. Thank you from a small business owner!

@NaviMarajCPA 11 ай бұрын

You're welcome and thank you for the feedback!

@TheBookOfJane Жыл бұрын

Happy I found you! Great info New Sub

@NaviMarajCPA Жыл бұрын

Glad you’re here! 👍🏼

@rickcoona8368 10 ай бұрын

how does this apply to *Manufacturing* business as a new start up? it would seem that a lot of this advice is geared more towards on-line information sales , and perhaps Real estate. I am in the research phase as i have created my first line of products and am sourcing raw materials and equipment. as the saying goes, Ya Gotta start somewhere...