Handyman LLC Vs. S Corp (Let's weigh the benefits)

Handyman LLC Vs. S Corp (Let's weigh the benefits). When you are doing handyman taxes what is the best tax structure to set up your handyman business as? Should I be an LLC , S corp or a Sole Proprietor? In this video we break down the pros and cons to a handyman llc, S corp and sole proprietor. Which is best for handyman business taxes?
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Video Chapter Titles:
00:00 Business Structure for Handyman Businesses
Choosing the right business structure is crucial for handyman businesses.
Understanding LLCs, S Corps, and proprietorships and their tax implications is important for business growth.
00:14 LLCs Explained ️
LLC stands for Limited Liability Corporation.
It separates personal assets (house, car) from business assets, shielding them from lawsuits and debts.
LLCs offer pass-through taxation, where business profits and losses directly affect the owner's personal tax return.
01:23 S Corp Tax Advantages
S Corps offer potentially lower tax rates compared to LLCs.
LLC owners pay self-employment tax (15.3% covers Social Security and Medicare).
S Corps pay a flat corporate income tax rate (currently 21% on all profits).
S Corp owners can pay themselves a salary subject to payroll taxes (generally lower than self-employment tax).
Owners can also receive dividends taxed at their individual tax rate, which can be lower than income tax rates.
03:15 Choosing the Right Business Structure
There's no one-size-fits-all answer for the best business structure (LLC, S Corp, Sole Proprietor).
The best choice depends on your income level, growth potential, and comfort with complexity.
State taxes can also play a role in the decision (e.g., California has an annual $800 LLC fee).
04:11 Consult a Tax Professional
It's crucial to consult a tax professional (CPA) before making any financial or business structure decisions.
A CPA can help you understand your specific situation and recommend the best option for you.

[@jasontodd7236]

Great tips. I looked into this for my wife’s business a few years ago. Since she does not have any employees, we went with sole proprietorship and got some business liability insurance. Much cheaper than the $800 LLC cost in CA.

[@handymanjourney]

Nice!

[@sdsconstruction]

Great content Brother Lee! Information was very clear and concise. Thanks

[@handymanjourney]

Thanks for tuning in!

[@Freadman]

If you get sued, your LLC will be sued but you can be named personally as well. Having an LLC does not necessarily protect your personal assets.

[@kasforai]

I get SSI heard by LLC I can hide my income from social security make sense?

[@handymanjourney]

Sorry can you rephrase your question?

[@willdavis6350]

Thank you

[@handymanjourney]

You're so welcome! I'm glad this was helpful!

[@handymanjourney]

What was your biggest takeaway from this video?

[@jasontodd7236]

S-Corp is more complicated than LLC

[@MrBschunk]

LLC stands for limited liability company, not corporation.

[@handymanjourney]

Thanks for your comment! You are correct! I appreciate that!

[@Theillest13]

C corp