How to Pay Yourself as an LLC in 2024

Рет қаралды 32,915

Karlton Dennis

Күн бұрын

Пікірлер: 74

@edwinhunnet2666 8 ай бұрын

Switch your LLC to be taxed as a s-corp benefits: deductions and lower self-employed tax. Using the 2553 form.

@TonyRodriguez-Trod312 18 күн бұрын

Thank you so much Karlton, first of all, for all your knowledge, and second for making realized what I can do in my life that I really enjoy, and get paid for it

@amandan2607 8 ай бұрын

Hey Karlton! I just wanted to say that I really like the style of this particular video. It was a lot easier to follow than some of your other flashier videos. I'm brand new to learning tax saving strategies and this pace was really good for me. Thanks for your videos and great content!

@BHIAFT 5 ай бұрын

This was honestly one the most informative videos I've seen yet. You're the man!!!

@EpicSterlo 8 ай бұрын

Thank GOD for you and Mark !!!! I often watch yall dual lives together

@lolabrownphd 7 ай бұрын

Who is Mark?

@EpicSterlo 7 ай бұрын

@@lolabrownphd Mark Kohler

@CarlosSLeon87 8 ай бұрын

Brooo. I was needing this information so bad . Thank you

@mrmedic2012 8 ай бұрын

Absolutely outstanding video I really appreciate the fact that you took your time to explain it so well. I am subscribed and I look forward to watching more videos and educating myself thank you

@splatterdaynightmares 8 ай бұрын

That's why I transfer a percentage off the top of every deposit into a high interest rate savings account for taxes later. And it hurts! Life is so expensive.

@acartman2 5 ай бұрын

What bank do you use for this. What percentage is considered high

@splatterdaynightmares 5 ай бұрын

@@acartman2 MVB and it's not that high but compared to Chase's 1%, 4 to 5% is much better.

@iamOAKland 4 ай бұрын

I use an insurance policy as my savings account

@al-mubdizahir8704 3 ай бұрын

🤔 interesting. I like this

@yossirubashkin 8 ай бұрын

What's the advantage of going as an LLC, why not do the whole structure as an SCorp?

@EpicSterlo 8 ай бұрын

Most important part... thanks for this

@JetskiMal 8 ай бұрын

oh its wraps, preciate the sauce big dawg

@allthingsmia007 2 ай бұрын

How did yall file for the startup cost for the new business.

@GinaFonseca-bd8jz 3 ай бұрын

Incredible! I will absolutely join the next event!

@iamhopen2 27 күн бұрын

Thank you. This makes sense. Very clear.

@2L8CO 2 ай бұрын

Thank you my friend. Solid information.

@IOEshopping Ай бұрын

new subscriber just watched your video from 1 yr ago with Mark Kohler good stuff!!!

@TravisBoardman 5 ай бұрын

Yes u can do both

@LAUGH_LINE321 5 ай бұрын

You hit the spot I want to know. Thank you.

@Hollywoodhousepromo 2 ай бұрын

This was fire! 🔥

@contextual_investor6139 4 ай бұрын

Question on owners draw. Since it’s not taxed on the actual draw amount and only on the profits of the business, can’t this be leveraged to draw money in excess of profits via using loans? For example: 1) LLC has $10k in profits expected for the year. This means the owner would be taxed on $10k of income (profits) if no additional revenue or expenses occurred. 2) Business takes out a loan of $10k. 3) Owner takes draw of $20k, since there was $10k of profits and $10k of excess cash in the account from the loan. 4) Owner still only pays taxes on $10k since that is the only profit from the business, and the excess draw of $10k originating from the loan is just “tax free money” Is there any restriction on withdrawing more than your actual profits for the year?

@johnpennington3601 6 ай бұрын

Thank you sir!: That made sense! I appreciate it!

@mattchavez26 Ай бұрын

This is good info.

@moisesromanrios1401 6 ай бұрын

You're awesome bro straight up😊

@lamaredwards4365 4 ай бұрын

Joined membership today

@Marie-xx5oi 6 ай бұрын

Beautiful video!

@cjvw24 8 ай бұрын

Just to clarify, as an LLC my company makes 100K and I take 40K in distribution, I will pay 15.3% SE tax on the 40K AND the 60K remaining that passes through to me. If I change my status to a S-corp and take that same 40K as a W2, I only pay the employee’s 1/2 of the 15.3% SE tax. Who pays the employers 1/2 and who pays the SE tax on the remaining 60K that passes through?

@dkame1851 6 ай бұрын

I had this exact same question

@bigbirdaccounting 5 ай бұрын

You pay the whole 15.3% on the $40k PLUS your regular income tax. The $60k passes through as a distribution from the company, so no SE tax.

@LuisSanchez-yp7wc 5 ай бұрын

Awesome recording.

@SharonMuschett 2 ай бұрын

Does karlton help with opening an LLC?

@wa.k2852 8 ай бұрын

If i am getting paid by W2, then i have to pay fed and state tax too .

@edwinhunnet2666 8 ай бұрын

Yes, but the amount you have to pay is lower when you file as a s-corp.

@aarronjones418 6 ай бұрын

TD Ameritrade no longer exists it was bought out

@carolinac4406 3 ай бұрын

So confused. Previous video I watched advised against an s-corp.

@ifeadedeji4839 Ай бұрын

Then how much do you pay in business taxes? On the remaining 60K

@miguelgumulak8084 4 ай бұрын

What do you think of aged shelve LLCs and Corporations?

@chaneilramsay8987 8 ай бұрын

Awesome

@santosthepic 3 ай бұрын

What about the federal tax rate though?! $60,000 taxed at a federal rate of 22% is $13,200. $40,000 taxed under self-employment tax of 15.3% is $6,120. This creates a total tax liability of $19,320, which is more than the 15.3% tax rate of $100,000. ($15,300). Solutions I am finding so far is increasing your payroll by more employees or distribution, if your expenses can no longer be increased. Is there anything I am missing? This would make a self employed LLC more beneficial than an S -corp, right?

@santosthepic 3 ай бұрын

Am i missing the fact that you have to pay a SE tax on $100,000 and Federal taxes on it as well?! This would make the tax liability on $100,000 with a regular LLC of $15,300 AND $24,000 (24%), which is $39,300.

@al-mubdizahir8704 3 ай бұрын

This has been created 5 months ago. When will the next one will be so i can attend

@tonyelliott5045 3 ай бұрын

If I am a W2 employee to a firm that contracts me out to work for a client, can I still create my own LLC that gets paid from my current employer? If yes is the assumption correct that all of the tax rules stated in this video would still be true, up to the point of being a s-corp type LLC?

@LeYang-gb3hk 6 ай бұрын

What about guaranteed payments paid to partners? How does that work

@LAUGH_LINE321 5 ай бұрын

LLC, Scorp is safe when you will divorce? Or need to do something to protect it?

@mikemercado1957 6 ай бұрын

Can you have two LLC under 1 S-Corp? Are filing Taxes separately better than joint?

@MercedesTalmage 7 ай бұрын

Doesn’t the 15.3% self employment tax just become the employee and employer portion of payroll tax? Then the corp pays taxes at a higher rate? And I would pay both?

@EpicSterlo 8 ай бұрын

You may get more views from video like this, Back to the Basics !!!

@amandan2607 8 ай бұрын

agreed!

@republicandan 2 ай бұрын

I'm watching this and wondering how it's tax free distribution if you are required to make estimated tax payments?

@joshuacooper4438 Ай бұрын

If you go back he stopped and said “tax free at that point” you still going to pay taxes for earning that money at the end. On April 15th

@anibalhernandez5873 3 ай бұрын

if i switched to an s-corp and now im a w2 employee why do i have to pay a 7.65 as an employeer??

@AndyM2011 8 ай бұрын

Karlton, thinking about buying VIP. Question...I paid myself $60k via W2 in an Scorp LLC, and took a $15k distribution in Q4 (the business netted -$2000 in 2023 after ITDA). Should I have taken more or less as W2 or should I have made that Q4 distribution a W2 deductible event?

@republicandan 2 ай бұрын

the wages have to be "ordinary" for your job. You can't pay yourself $40k as wages if you are a lawyer. The amount has to be higher than $40k to be the wages a lawyer would earn.

@edchristianaguinaldo3733 2 ай бұрын

My question now is if I’m employed making $250K / year and my LLC makes $150K do I still need to switch to S-Corp coz my initial employer already paid the maximum employment tax?

@karlaatherton 3 ай бұрын

How can I get a hold of your company

@moisesromanrios1401 6 ай бұрын

I'm assuming so I think s

@logankurtenbach1059 5 ай бұрын

So what is the tax percentage on the remaining 60k as an S corporation? I get that the 40k being taken out as “payroll” is taxed at 15.3%, so what’s the remaining 60k tax rate?

@bigbirdaccounting 5 ай бұрын

All of the profit ($100k) is subject to income tax. The advantage here is the $60k does NOT have to pay the self-employment tax (the 15.3%), so you save $60k * 15.3%, or $9,180!