How to File Taxes as an S-Corp Owner [Step-by-Step] | S-Corp Tax Benefits

[@Deeboutte]

i am a tax professional and business coach and while i know the info, i dont communicate it as well as he does...

[@leoliuuu]

If you are the owner / shareholder of the S-corp, yes, you will need to issue yourself salary and only pay self employment taxes on those. However, if you pay yourself salary, don't you also need to withhold federal and state taxes from the paycheck? So in this instance, arent you paying double taxes (the company is paying taxes, and you also pay taxes as individuals from W-2)?

[@patrickhoban8574]

This is the best explanation of tax obligations as an scorp that I have come across. Thanks for posting. Subscribed

[@godoftalesyt5454]

First thought of doing it that way. Get 15.3 times my salary. But I was told by an accountant to only pay 7.65 of my salary and then match that with my leftover money on the business. So if 100k income, split 50% salary and 50% distribution. Pay 7.65% on that 50k which is 3825, then just match that on the distribution before distributing so the other 3825. It ends up been the same thing though honestly

[@Trump2024-b3r]

MY husband had a W2 income ~91k till August. A on going 1099, close to 100k. New vendor (same 1099 assignment) he plans to work with starting in October has two options either C2C (no 1099) or W2. Should he create a LLC/Scorp this late in the year considering two form of insurance will cost approximately $1200 and other costs you have mentioned in this video? He plans to use the the S-Corp in 2025.

[@Scooterp82]

Thank you so much for your channel! Question.... at the end of the year, with an S-Corp, can income made from the business stay in and be moved to "retained earnings" at the beginning of the new year?

[@jennycarmona-padilla5264]

As an S-Corp and being both the owner AND sole employee, do I need to file a W2 AND a K1?

[@maks4max]

Does the Employer Pay roll taxes will be considered as expenses for wages or will it be part of Taxes in the for 1120-S ?

[@kiaracouch9315]

Thank you for this information 🙏🏽 I am becoming a S-Corp this year! I am the manager,payroll specialist,advisor,administrative,hr,marketer and I'm planning to open another store front in another state, I already have a payroll software that's paying me....but I could have gotten a refund this year instead of owing back the IRS 10K....I will move accordingly.....also do I need to file quarterly taxes as an S-Corp?

[@kiaracouch9315]

@@untilco thank you!!! 😊

[@leonhuang8338]

can i pay myself a reasonable salary and the salary is in the form of W2?

[@sheleenhudelson9868]

Yes. I did this for last year.

[@miguellora8666]

You have a great talent of teaching. Thank you for taking your time to make a video like this.

[@SherifaNakalema]

Thank you soooo much🎉

[@youngsil11]

Excellent video. Thanks. At what point does a 1099 contractor pay the 15.3% SE tax. Is it before or after business expense deductions?

[@headlibrarian1996]

After.

[@vikb2251]

Can I switch my LLC from S to C and then to S next year? In general, can we keep switching between S and C every year based on the benefits?

[@Alyssa-io5ot]

Thank you! I never comment on videos but your video was very straight forward, professional, and very much appreciated.

[@jenkiatta77]

SO helpful. Thank you for sharing. You are a great teacher!

[@samuelramirez1640]

How do retained earning work with a S-corps? Let's say a single-person-owned S-corps makes 1 million in profit and the owner takes a reasonable salary of 30% or 300k. Can the remaining 700k be left in the S-corp as retained earnings untaxed? If if there is a tax, can the funds be allocated to a money market account or invested into real estate and the taxes deferred?

[@mike2959]

I own a LLC opted to be taxed as a SCorp. Well August of last year it was looking like 300K in profit is what I was heading too, well, I don’t really want to pay an estimated tax bill of 90K. So, I created another LLC. That LLC purchased multi family investment property. The LLC/Scorp loaned the LLC real estate holding company 250K for the down payments. My profit is now 50K. My tax bill is now 15K. At the end of the day (year). You have a choice. Pay the IRS or invest in yourself. Your businesses. Does my restaurant need a 20K Latte machine? Well, the one we have is getting old, the business is growing. I have the cash. Or pay taxes on the 20K.

[@TristanBoedeker]

Even if the company keeps the money as retained earnings the shareholders will still have to pay tax on the profits on there individual tax returns

[@kiaracouch9315]

For the business distribution do I need a form like a 1099 K? or 1099 NEC? For the S Corp. or do I just report it on Schedule C line 1?

[@headlibrarian1996]

No. The distribution itself doesn’t cause any filing obligations. You owe tax whether or not you take distributions from your S corporation. You sure as heck don’t report S corporation profits on schedule C, business income from form K-1 is reported on schedule E.

[@pech_wake_day1153]

So if your paying your self a reasonable salary, that’s the only taxes the business has to pay? Or the business in general still has to pay taxes on profit?

[@chozenson]

The business may be subject to other types of taxes apart from payroll taxes paid in the course of reasonable salary and paying other employees The business will not pay federal taxes on the profits of the business. The shareholders pay taxes on the business profit since an S Corp is a flow through entity

[@Scooterp82]

Could you make a video on all the tax forms S-corps need to submit throughout the year? Like 941s? 1120s? Anything else?

[@optionsaceinc.]

Clear and concise… very helpful thanks !!!

[@humangoodness]

Wow! Very informative. Thank you! At 4.37 minute, you said one should be kept as LLC if in real estate. Can you elaborate on that?

[@danielallmon2173]

Medical provider here forming my LLC now. I am working contract and will receive a single 1099 from the client. Are you saying I can't claim S Corp status?

[@shawnawestwood6110]

So i have a client that their prior CPA told them to go from an schedule C/LLC to an Scorp. The are a small RV park. I would not have had them go Scorp. What is your opinion?

[@darkbirdgraal2517]

What are "Sales corporations"??? you say that they can't file for s corp. is a window cleaning busines a "Sales corporations"?

[@JC-slammedaf]

Hello, i am part of a 2 owner s corp, i am a not an employee of the s corp, my other partner is. I am not active so I don’t have to pay myself a salary. However how do i pay myself my percentage of distribution that i am entitled to? Can i take the distribution and if so, how is it reported on tax filing? Thanks, there is no info on non employee s corp owners out there, maybe you can make a video on it, thank you 🙏

[@iamandresin4806]

What if you wanted to distribute distributions to your holding company from your subsidiary company? How would you file taxes on either your Subsidiary or your Holding Company?

[@allans7281]

Good video! Are the mandatory payroll taxes for the salary cheaper than the extra self-employment tax that you would pay on the income

[@justicescholar]

What do you mean when you say 'S-corps must reinvest during their tax year?'

[@ConcepcionBenavidez-kp7sc]

How can I get more information on the services you provide?

[@denisewilkinson5036]

Very helpful and clear cut! Thank you so much for organizing the information for new business adventure owners like myself.

[@KymBrosan]

Thank you. I am trying to learn as much as I can. You have helped me a lot.

[@Simonjose7258]

What's a "Regular Corporation"?

[@CryptoQueen8888]

So what happens to the distribution??

[@Chandler890]

how will it change for state taxes?

[@JBLLC2021]

How does someone can contact you?

[@allformsinsuranceagency5453]

So helpful!!!! Thank you

[@bigtime14]

You’re a godsend thank you!!

[@dross0123]

Is it true that if my filing date for LLC is the 11th of the month, I can backdate it and have LLC/S-corp election for the 1st of the month (so business income that came in the 1st-10th can be counted towards it? This is what I was told: “If the State is able to complete your LLC registration within the same month that you receive income, that money will be able to be roped under the S-corp tax rules. For example, if you get paid on March 10th, and the LLC isn’t completed until March 20th, all the money that you’ve made since March 1st will be able to be roped under the S-corp tax rules.”

[@NathanielCruz]

hi! did you ever figure this out?! thanks for the response in advance

[@dross0123]

@@NathanielCruz I was told that once, but consensus at the end of gathering info from people is that no, it's just whatever the date of incorporation is.

[@NathanielCruz]

@@dross0123 ahh got ya! well super big thanks for the info and responding so quickly 🙏 take care

[@intelimoteintelimote7448]

Can i elect to have Google issue a 1099 to my S corp as opposed to me as an individual creator for YT AdSense revenue? I intend to form a single member S Corp.

[@LYFEAccounting]

When you first sign up for at since they ask for that information. So you need to contact them about changing that or may need to register a new Google Adsense account

[@intelimoteintelimote7448]

@@LYFEAccounting Thx. To clarify, I haven't signed up yet so don't have a way to contact their Creators Support team, but I start all businesses with the end in mind. There would only be a point for me to set up an S Corp if Google would actually issue the 1099 to a corporation, not just an individual. Do you know if they do that? I think companies arent required to issue 1099s to corporation that isn't a law firm. But I imagine all bigger channels earning substantial $$ would deduct their channels' expenses and receive revenues gained from their business, not as individuals. I just don't know if only LLCs could be listed as recipients or if it could be A corp, too.

[@adekunleadeniran4562]

The first, yes, the first!!!

[@FloraJohnson-z4n]

Great info

[@dhavaldesai10]

Good and to the point

[@salpremiers]

This is a great video!!

[@ItsYourStartup22]

wow

[@crown_elm]

🔥

[@sharmettawilliams3935]

Wow, I needed this

[@LakeWebbMusic]

Excellent.

[@OdiseasGeorgiadis]

thanks!

[@jfit9739]

Love you guys

[@iamtheclout1912]

I hated being a S Corp...So I went back to a General Partnership

[@lashondagordon915]

what problems did you experience to make you change from S Corp?

[@inkaddict3576]

Please explain why you hated.

[@thepujats6889]

We registered an llc and elected to be taxed as an s corp during good times for our business, and the second we did that, our business started going down the drain and ended up being not profitable at all. We barely made anything to pay our personal bills. So paying for a payroll service and paying ourselves a ''reasonable salary'' didn’t make sense financially. We would end up losing money and going in debt. We ended up taking owner's draws and paying personal bills with the tiny business funds we had, and recorded them in our books as owner's draws and personal bills.. So my question is - is it okay to not pay a reasonable salary during these times of struggle and during the early start up phase ?

[@mattlebel]

Same situation here. I created an S corp back in 2017 as recommended by my accountant. The first couple years I made nearly $30k and paying the accountant $700 to do the taxes wasn't a big deal. But every year since it has tanked. So when I've only made literally $250 and my expenses were $1400, there is no money to pay myself a salary. My business checking has $80.00 in it. I of course have not paid the accountant and did the taxes myself the last 3 years. Totally nervous about it. I'm doing my 2022 taxes right now and I am going to check the Final return box. Hopefully the IRS won't want to audit me since my income has been less than $300 for 3 years in a row. I wish I had never done this.