LLC or S Corp? why not both?? || How to have an LLC and an S Corp at the same time

[@ElizabethPW]

Want to have your LLC taxed as an S Corp? --> kzbin.info/www/bejne/Y3S7eHyCia56o6s Ready to file your LLC in California? --> kzbin.info/www/bejne/bmbcp3Rmg7qInas

[@JORGELOPEZ-ik4fg]

Hi. Great advice, easy to understand..

[@mikeytfarrell]

Hi Elizabeth -- excellent video. Very informative. Question for you: I have an LLC that I recently achieved S Corp Status. For tax forms, like form 8879, would I still use "LLC" at the end of my business name, or would I use "Inc"? Would I only use Inc if I convert the business from an LLC to a corporation? This is somewhat confusing. Clarification here would be very helpful.

[@karolytamiko]

Valuable information thank you. I have an SCorp in CA and are planning to move to Texas. I want to form a LLC in this State. Can I merge my SCorp into my Texas LLC so that I can transfer my EIN number. I want to keep my credit and 13 years reputation of from my SCorp and transfer it to the LLC. Thank you for your advice.

[@ElizabethPW]

You can merge but my understanding is that the Texas LLC that already exists will be the "survivor" company, so it is the Texas EIN that will be the one that remains. But if you domesticate or convert the CA Corporation to Texas (not into another Texas LLC) then it is the same company and should keep the same EIN. Check out this info on conversion for Texas: www.sos.state.tx.us/corp/forms/647_boc.pdf

[@karolytamiko]

@@ElizabethPW Thank you so much for your answer. Do I need to hire a lawyer to do this for me or would you happen to know of any service like LegalZoom that can do this? Again I appreciate your help greatly.

[@karolytamiko]

@@ElizabethPW also I fould out that California does not permit corporations to use the conversion process. See California Corp. Code § 1150 - 1160.

[@ElizabethPW]

Ah I think in my head I was thinking of your California business as an LLC taxed as an S Corp. Right California doesn't let conversions "out" but does let them "in" to the state, for corporations (but it does allow for LLCs). Hm, you could convert from a CA Corp to a CA LLC, and then convert the CA LLC to a Texas LLC. A lot of paperwork and would take time, but possible to do. I don't know if LegalZoom does that or not -- you may need to call them.

[@karolytamiko]

@@ElizabethPWI thank you for your time you have a fan 😀

[@MasonMercer]

thank you very much

[@ironluxxtrader9075]

Great Video 😉

[@ElizabethPW]

Thanks 😁

[@barbaragalloway6190]

Good morning! Thank you for your video. How do you decide how much to pay yourself? Is there a rule of thumb on the matter?

[@ElizabethPW]

Generally you want to pay yourself enough so you can give the IRS a good logical argument of your reasons, if they audit your business. For example, if a biz makes $100K in profits and the owner-employee pays themselves only $10K in salary (and the rest of the $90K in distributions), that's not enough salary -- a full-time job is not $10K (minimum wage in California at full-time is a bit more than $31K). But if the business only makes $10K in profits, it would be fine to pay one's self just $10K in salary, since that's all the profits anyway.

[@barbaragalloway6190]

Thank you so much!

[@anikog]

Hi Elizabeth, Thank you for the information you provide on your channel! How do I find out which state is the best suitable for my LLC (foreign owned)? Is it possible to move an existing LLC to another state? And is it an easy process?

[@ElizabethPW]

You can move an existing LLC to another state -- it is not exactly easy because it is a bunch of paperwork that is not usually an online form (they are usually PDFs you have to fill out and mail). Generally the best state is where you have physical contacts (warehouse, inventory, where you ship from, employees), because you'd need to register there anyway. If no physical contacts, I usually recommend Nevada, but also Wyoming and New Mexico are good options to consider.

[@anikog]

@@ElizabethPW Thank you for your help!

[@bethbrown2060]

I have my own consulting business, set up my LLC and then later had a accontant file to have it taxed as an SCorp. Now I am having issues with the state because the pass through entity tax credit was not applied. How do I fix this with the state?

[@ElizabethPW]

It depends on the state -- that is a tax question for a business tax preparer or accountant

[@MichaelY135]

Very helpful! So if I understood correctly, LLC legal structure can remain but just elect to be taxed as S Corp and not necessarily have to change LLC structure to a Corp structure, correct? Also, if LLC profit wasn't significant in 2023 and taxes were filed under LLC; however, during 2024 profits increase significantly, can taxation as S Corp be elected before 3/15/25 for 2024 granted no payroll was processed?

[@ElizabethPW]

Yes exactly. Yes you can elect like that but you would do a back-payroll for 2024 to fix it. Best to do it before the end of the the 2024 year.

[@coletteluckie6612]

Hello! I have an llc in CA, however, I am now homesteading in FL at least 6 months out of the year. Would you recommend I establish an S-Corp in Fl since I will be working primiately from there or establish another LLC in Fl?

[@ElizabethPW]

You could have an LLC that is taxed as an S Corp, if you need the S Corp tax planning benefits -- LLCs are a bit easier to run

[@SnareTrapSurvive]

We have an issue with applying for our EIN. Many online comments say NOT to include the LLC in the name. Our business is "Grub Runner, LLC" Some have said write it ONLY as "Grub Runner" while others say writ it as "Grub Runner LLC" So which is right? we are totally confused

[@ElizabethPW]

If you have an LLC, the "Legal Name of the LLC" is Grub Runner, LLC. The time you don't use the LLC is for a "trade name" (which is another word for a DBA).

[@SnareTrapSurvive]

@@ElizabethPW Ok, so since it does not allow special character we would just write "Grub Runner LLC" correct? Thank you for your fast response, you are awesome!

[@ElizabethPW]

Right exactly

[@jpreston628]

I am an LLC and S-corp. When filing a personal tax return for state and federal, should I use a schedule C, K-1 or both?

[@ElizabethPW]

Is it that you have an LLC taxed as an S Corp? Then you'd prepare and file an S Corp tax return (1120-S) where you prep a K-1 as part of that. Then on your personal 1040, you input the k-1 on your schedule E.

[@monicaquinn6658]

can I stay an LLC and pay people? Or do I need to be an S corp to have a team?

[@ElizabethPW]

Yes you can have an LLC and have employees.

[@JonasBookham]

Hello, great videos. I want to file a trademark but I dont know if I should file it as an intent to use or as a current use. The reason why I don’tknow which to choose is because my plan is to file the trademark first and exactly the next day to launch my online store. (Note: i have already like 2 sales but they were made by myself just to test the online store, and then I set the store as Private again)

[@ElizabethPW]

So if you want to file it as current use, it is not just about whether you have launched the site -- you need to have made a sale (that's the first use "in commerce" date). If you have not made a sale, you'd be filing as "intent to use." A sale to yourself doesn't count.

[@brendavargas9770]

So I want to open a Boutique soon and I got my EIN number and that’s all I’m the owner what’s next. Should I register my business as a solo partnership or a s corporation or should I get my LLC ? Also when I got my EIN number it’s asking to file form 270 ??

[@ElizabethPW]

Sounds like you got an EIN as a sole proprietor. You may also need to get a DBA/FBN if you are using a name that's different than your legal name. You may also need a business license or permit (usually from your city/town, but sometimes from the state). Whether you should be an LLC or a Corporation is a bit of a bigger question, but if you do that, then you'd get a new EIN for that LLC/Corp. Not sure what form 270 you mean -- that could be a state form or for reimbursement for agencies, not sure if there's a form 270 for the IRS.

[@amandajones661]

I know this is odd, but can you spend all the money back into the company and not pay yourself for a few years?

[@ElizabethPW]

So yes, you can not pay yourself. The issue is that if the business makes a profit (and you don't pay any of it out to yourself), you'll still owe taxes on that profit anyway. You can, at the end of the year, pay yourself just enough to cover the taxes due. (Note - if you have a business that is a C Corp, the rules about this are different.)

[@dianevessels2632]

When you get new glasses get a non glare finish so we don’t get the glare from your glasses on your videos. Loved the video.

[@ElizabethPW]

yeah I do have that, I think it doesn't work very well because I have a super-strong prescription with very high-index lenses. But maybe they have better coatings now, we shall see the next time!

[@WellnessBeautyBrands]

What state are you in? Or should I say what state do you specialize in? Does it matter? Are you taking on new customers?

[@ElizabethPW]

I'm in California. It depends on the kind of work -- like trademark work is federal so it does not matter. I am only taking people via my Patreon - www.patreon.com/elizabethpw

[@andiaman5864]

Hi Elizabeth , I'd like to know if you can help me lite bet , I want to sell on amazon USA from Poland and have a question what I have to register ( LLC , open business in us , etc. ) Thank you for any help . Andrew

[@ElizabethPW]

Hm I have not made a video on setting up a business from outside the US yet, but you can start with this video to give you some ideas: kzbin.info/www/bejne/bKOpeZijhtaJibM