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S Corp vs LLC Should you choose an SCorp status
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=PYGZ8c0yJDk
*Smart Tax Strategies for Business Owners* • Small business owners often miss out on thousands in tax savings by: • Not using the right business structure • Missing key deductions • Lacking proper tax planning • *3 Ways to Keep More of Your Money:* • 1. *FREE 15-Min Tax Consultation* • ➡️ https://go.truic.com/3AGw8nT • No obligation, just pure value • See how much you could save • 2. *S-Corporation Setup* • ➡️ https://go.truic.com/3ZSADnf • Professional formation service • Limited time offer • 3. *Secure Business Banking* • ➡️ https://go.truic.com/4gUw9Eh • Up to $5M FDIC insurance with (20× the standard $250k) through their Sweep Network Account • 📙 Learn More :Learn More About S-Corps • https://howtostartanllc.com/what-is-a... • If you use our discount links, you get a discount and we receive a small commission. Thanks for supporting our work! • ------------- • LLC vs S Corp? If you run your own business, or maybe you are just starting out, and are confused about the distinctions between an LLC and an S-Corp, or S-Corps in general, you are in the right place. • In this video we are going to talk about: what an S-Corporation, or S-Corp is; the benefits of an S-Corp; the complications, and potential drawbacks, of an S-Corp; and finally, how to decide whether or not choosing an S-Corp classification is right for you. • For Businesses that are profitable, and the goal is to take the profit out of the company in a tax efficient manner, S-corp is a great tax designation to elect for your business., potentially saving thousands depending on the level of profitability of your business. • TIMESTAMPS • 0:00 - Intro • 0:30 - Disclaimer • 0:40 - What is an S-Corp? • 2:10 - The Benefits of and S-Corp • 3:53 - The Drawbacks of an S-Corp • 6:27 - S-Corp: How to Decide? • 7:13 - Conclusion • --------- • 🎯 Key Topics Covered: • What is an S-Corporation? • An S-Corporation is not a formal business structure but rather a tax classification that both LLCs and corporations can choose. The video focuses specifically on LLCs that elect S-Corp status. Key requirements include having no more than 100 shareholders who must be US citizens or permanent residents, and shareholders must be private individuals (not other LLCs or corporations). • Benefits of S-Corp Classification • The primary advantage of S-Corp status is tax savings through the unique treatment of income. Unlike standard LLC members who pay both employment and income tax on all distributions, S-Corp owners can receive both a salary (subject to employment and income tax) and distributions (subject only to income tax). This arrangement can potentially save around 15% in self-employment tax on distributions. • Drawbacks and Complications • Three major considerations are discussed in detail. First, owners must pay themselves a reasonable salary that meets IRS scrutiny. Second, S-Corps require more complex administration, costing approximately $1,000-$2,000 annually in professional accounting fees. Finally, S-Corps may not be ideal for businesses planning to reinvest profits, as other structures might be more tax-efficient for reinvestment strategies. • Decision-Making Guidelines • The video provides clear criteria for deciding if S-Corp status is worthwhile. The key threshold is having distributions exceeding $10,000 after paying a reasonable salary, which justifies the additional costs and complexity. S-Corps are most beneficial for businesses planning to withdraw profits rather than reinvest them. • ------------------------- • 𝗙𝗿𝗲𝗲 𝗚𝘂𝗶𝗱𝗲𝘀 𝗮𝗻𝗱 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: • 🎓 For more information on the differences of an LLC and an S-Corp, visit: • https://howtostartanllc.com/form-an-l... • 🧮 S-Corp calculator: • https://howtostartanllc.com/start-an-... • 🎥 S Corp vs LLC • • S Corp vs LLC (Should you choose an ... • 🔥 At TRUiC we are dedicated to providing the most useful information for small business owners, and would love to see your feedback in the comments on what other information you need to help follow your entrepreneurial dreams. • #llcvsscorp #scorp #s-corp #llc #vs #scorporation #tax #taxes #SCorpExplained #BusinessTax #Entrepreneurship #SmallBusiness #TaxPlanning #BusinessTaxation #SmallBusiness #LLCTaxation #EmploymentTax #BusinessStructure #TaxStrategy #trui
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