LLC vs S Corp: Tax Benefits, Differences, & Strategies 2025

[@raphaelsanchez4797]

This was the BEST video I saw about whether to file as an S Corp or LLC. Clear, succinct, and with practical examples. Excellent work! Thank you.

[@adventuresofandy2095]

I was having confusions whether to go LLC vs S Corp and this video made me decide to go for LLC. I asked a doctor friend of mine who already have an established practice, and she suggested to choose S Corp. But I am just starting out so an LLC makes more sense. This video is very informative

[@robwithrbk]

At around the 10min mark is where he points out the primary reason to be an S-Corp...the share holder distribution that is untaxed. 100k in net income is zero'd / split up as 50k as a W2 and 50k as a K1. You still report the K1 on your taxes but it is not taxed. Literally, 50% of your income is not subject to any tax withholdings at all. I have been doing this for years with my accountant. I believe the IRS code says Corp shareholders can receive a "reasonable" distribution that is not taxed. It's generally assumed that "reasonable" is half...

[@ChristiSeals]

I've spent months trying to understand LLC and S corp. I learned so much with this video. Good job. Great communication skills

[@msawyer110]

​@@ChristiSeals agreed. Same here

[@nikolaikrow238]

Thank you for breaking it down this way! I've flip-flopped on which structure to use to begin my business. Now I realize I've been wrong the whole time...I need to BEGIN as an LLC and hopefully grow to need/change to S-CORP.

[@jenninemorel7693]

What is your business model? You can start as a sole proprietorship.

[@nikolaikrow238]

@Jennine Morel sole proprietorship would not work for my business. That's why I had to figure out if I needed an LLC or an S-Corp.

[@jenninemorel7693]

@Nikolai Krow what is your business model? I am an accountant and business consultant 20 years now...just curious. I might have some suggestions

[@michaelcarrillo6790]

​@@jenninemorel7693what would you recommend for starting a pressure washing business?

[@TheWalkOnCoach]

Thanks for breaking down the consequences of becoming an s corp too early. Ive been searching for that info for weeks.

[@kronkron5478]

I appreciate your content. I would suggest people also consider the following. 1) the list of regulations, accounting costs huge difference, set up, servicing costs for the s-corp are substantial vs the LLC. 2) If an LLC is producing a K1 distribution into a SCH C the very same FICA tax benefit deduction is also available as employer/employee reducing the $15,300 tax to $7650. 3) depending on state income tax laws the tax on profits to an S corp far exceed the tax limits on revenues to an LLC $11,790 vs $15,000 on business revenues of $5mil with profits of $1mil in California. 4) once you start an S-corp you cant go back to an LLC but if you start as LLC you can always go to S corp status

[@kronkron5478]

btw LLC Ca state tax is maxed out in LLC $5 mil in revenues whereas S corp income tax @ 1.5% unlimited profits are taxed

[@badhairday86]

Wait can you type your 2nd point, differently? It is because i'm not quite sure i know exactly what you mean.

[@kronkron5478]

@@badhairday86 The SCH C business gets all the same self employment tax deductions the S corp W2 gets

[@misael008]

⁠​⁠@@kronkron5478so say me and a family member want to start a business, we should start as an llc, would we be required to have a k1 or schedule c

[@sheilamoreland574]

I not only liked this video. I Loved it! This was the most simple and clear explanation I've heard thus far. I'm so sick of people over explaining this. You just kept me from making a HUGE mistake in starting an S Corp tooo soon. I will most defiantly be hiring you in the upcoming year.

[@mstevenchapman]

You just saved me from jumping the gun and going to file as an S-Corporation. I'm gonna wait to acquire some more assets and increase my clientele before I give myself the headache and cost of S Corp. Very informative vid. Thank You!

[@mstevenchapman]

Subscribed

[@carmenc3067]

THIS VIDEO REALLY HELPED ME DECIDING WHICH ENTITY TO GET. I WAS PLANNING TO FILE FOR S-CORP FOR MY PART TIME BUSINESS BEFORE WATCHING THIS VIDEO. DIDN'T KNOW THE TAX FILLING FEE WOULD BE SO HIGH (AND OTHER COSTS) FOR AN S-CORP. GLAD I FOUND THIS VIDEO!!! THANK YOU!!!

[@LYFEAccounting]

I’m glad you watched and enjoyed it. S corps are definitely not for everyone!!

[@krpinckney]

Thank you for this video. This was the best explanation of how to choose I've ever ran across.

[@jackiechan6460]

I'm still filing as an S-corp because I don't intend on paying myself much and can easily do my own accounting.

[@DeathAngel-tg9yk]

👼😊

[@sumanpaladugu4914]

Excellent video ! Cleared my doubts and got clarity in deciding LLC vs S-Corp. Amazing work !

[@Zen_Nurse]

Omg, where have you been all these years⁉️Thank you so much‼️

[@DonTwizzlestix]

Thank you sir, kind sir! Was worried you were about to segue way in to "todays sponser, legal document company zyx, who makes it fun and easy to .......", but its non-stop crucial information in a digestible manner. I had to smiggity Smiggity SMASH that like and subscribe! Thanks again.

[@CCPodcastwithDT]

I appreciate this video !! You answered my question - I need to “lower” my SCorp to an LLC cause I DO NOT have the net income for an A Corp (at this time) lol.

[@Kistalradio]

Hi Sean, I have to say you are one of the best I have seen on thus far. Truly clear and concise

[@andregraf3000]

Such an good video. I was leaning towards starting the LLC S-corp right away, but after your points at the end of the video, it totally makes more sense to wait till I reach higher profits to justify the additional cost and headaches from the requirements in the S-corp world. Thank you!

[@nataliefriedman2941]

This was extremely helpful, thank you!

[@nomoreexcuses7847]

This has been thr BEST video Ive seen explaining in simple terms the pros and cons of filing as an LLC or an S-Corp. Thank you!!! Especially the recommendation at the end about when to file based on the soze of your business.

[@kelliramirez8315]

Best, most informative. Very good. Thank you

[@Yoz-ng9ej]

Oh my gosh! I have just paid £220 to register my sole trading trademark and now I will not eat properly this month. I feel like I am acting crazy!

[@totorogo]

Thank you! Please make several examples about scenario 3, looking for more information about that. For example about Real estate in scenario 3, about stocks, and about IT online business that make more than 1M in a year.

[@galachan2413]

What happens with the distribution in scenario2? and the net profit in scenario3 when becoming passive with the general manager?

[@Justicex]

My favorite topic good job with this!

[@babduda]

Wow, very good video. I feel like I just took a 2 week crash course. Keep up the good work!

[@vanessaibarra185]

Great information! Thank you, made making my decision to start as an LLC and once I have a nice net profit file as an SCorp :) Once I do this, should I completely change to running the biz as an SCorp? or continue as an LLC taxed as an Scorp?

[@PBow-go1ix]

This video was very informative. Thank you so much for sharing. My question is, how do I dissolve an S-Corp and form an LLC? Yes, I formed an S -Corp too fast. Plans didn't work out and nothing has been done to really begin the S Corp Business.

[@BudgetSenpai]

Great video. To the point and detailed. This is a great summary.

[@tyfitzpatrick3606]

Thanks for describing when a LLC should switch to an SCorp! That was helpful!!!

[@Glogb3100_records]

I got LLC sole member and plus I use trailor brand and they don't be taxing me that much this year in beginning this yr it was almost 300 hundred

[@Scorchas_Lounge]

After 11 days of searching.. i came across this video and got my answer in 15min and 20 seconds 😂.. 🙏🏽 🙏🏽 👏 👏

[@SyedVkax]

Exactly.. awesome content, that's what we were looking for 🎉

[@ToppFade]

Make sure you know how to do the proper deductions when filing your taxes or have an accountant that specifically knows the deductions that you can deduct that will save you tins of thousands of dollars in taxes

[@Cinnamoroll-c1w]

Very simply explained and helpful in choosing between the two. We were suggested to start with an S-Corp but in listen here, we are able to make a more informed decision on what to start with then move to later. Thank you for providing this information.

[@GaryJames-r1r]

Outstanding presentation. Very clear and informative. Do you have a video comparing a Disregarded Entity and a Partnership LLC?

[@leneebookhardt5635]

Excellent video on helping distinguish between the two. Very informative!

[@blueridgeocean]

I am in the process of establishing a logistics company and anticipate a gross revenue of approximately 560k USD within the first year of operation. As I consider operating as an S-corporation, I seek clarification on whether I am obligated to compensate myself with the minimum salary mandated by the state.

[@JohannaMartin-e7n]

This is a great video. How would you advise an entity that has elected a corporate status yet has yet to generate ANY income? For example, an entity has filed 0 returns in the last few years because the business was not operational. Boy, I wish I had this info years ago.

[@doublet147]

This video was a comprehensive overview for some of the info I was looking for. It was a perfect outline of the general knowledge with some specifics. I've got some questions that pertain to my exact situation & future, but I'm going to peruse your other videos to see if I can find an answer. Nevertheless, I'm subbed.

[@duncanleonard6266]

Unbelievably prompt and informative. Thank you for this treasure trove of information!

[@HA-ib8zk]

Hello! Thank you for your video. I agree with some of the comments. THE BEST VIDEO I've seen so far explaining llc to s corp. However, I do have a question. When becoming an s corp, you pay yourself a reasonable salary through a w2, limiting your 15.3% tax there, but what about the "distribution" that you also receive. If the a corp itself doesn't pay any tax, what happens with that distribution?

[@rahmanrucker4408]

Beautiful explanation of the pros and cons of LLC and S-Corp thanks 🙏🏾. I have one question if you file for $100,000 as an S-Corp and pay your taxes only on the $50000 when you go to purchase a home what would they consider your annual salary to be $100000 or $50000

[@kenrhem]

Thanks for this. Quick & clear.

[@nickwerber]

Very high quality explanation. Thank you.

[@ladibonkerz]

Thank you for this information. I plan on opening my business soon. From this video alone it’s seems more reasonable to start off as an LLC then later level two s corp. my dream is to become level 3 (passive owner) within a two year span. With the area that I am in and the demand for what is being requested I feel 1000% positive on this idea. It’s just time to make this dream a reality one step at a time #BBO ❤

[@bobdude816]

So clear man. First time watcher. Looking forward to more. Thanks for the concise and clear information

[@kelseecanturealtor7707]

AMAZING VIDEO!! THANK YOU SO MUCH FOR GVING EXAMPLES. WOW NEED TO SIGN UP FOR AN S CORP. GREAT VIDEO.

[@pedramnz8057]

By Far, One of the best video that I ever seen ! .. helped me a lot ... Thanks ❤❤❤

[@thedarklingthrush]

I love you, man ! and i love this channel. However, in several areas in several areas of this video (e.g., at time 14:23) as well as some of your other videos, you say "net profit" instead of "revenue" (sales). At 14:23 dont you really mean sales? I could be wrong, and frequently am.

[@mortizmetzger]

Thank you so much for your info and your super clear presentation and options, this is the most comprehensive list I've seen on YT on this topic

[@livelife7738]

thanks ma dude good video i was trying to tell my girl but couldnt explain it,

[@stevep1144]

Great clear and concise information! Thanks for walking us through it!

[@MasiAcademy2025]

Can we create an Amazon Central Account having an INC instead of LLC to sell products on Amazon FBA?

[@salinakif]

Great info delivered in a easy to understand and engaging manner!

[@Knowledgeispower2000]

You guys are always so clear in your explanations. Thank you

[@readingwithmyboys827]

How do you give your self a distribution?

[@henrykings7285]

This was an awesome video. You explained everything clear as day. I appreciate your time and keep up the good work.

[@sayitloudpartygames]

Thank you so much! I finally understand these topics!

[@joelhernandez5941]

Same boat

[@TheDivinegoddess639]

Best video on KZbin that sums it all up! I spent 3 hours watching videos until I came to this one. Knowledgeable company, worth using as a tax advisor.

[@m.77her5]

Omg! I can’t thank you enough for this video! I was conflicted on how to go about starting a new business and this video helped me tremendously. Thank You 🙏🏼 so much!

[@ibrahimacoulibaly5199]

Wow, Bro! You are one of the elite and best instructors I have heard in while. Kudo to you!

[@nelsonmandela9800]

This is great video. It is so informative and helpful. Thank you! I'm subscribing! and sharing!

[@kayen8459]

One of the best instructional videos I’ve seen. Very clear and concise. 👍🏼👍🏼👍🏼

[@darkstarknightfall]

Super great video for the non-accountants out there, thank you for giving me direction!

[@davidnovohradsky8871]

Such great information! Easy to understand, infomative, and very well structured. I really appreciate the warning on starting an S-Corparation too early. Thanks!

[@karenl9936]

If i have a full time job but want to start an LLC. and your current employer is taking the 15.3% from your paycheck is that still needed to be removed from your LLC?

[@blaikewellington1816]

Thank you! Thank You! This was a great video. I have been so confused and now I have a clear understanding. You explained everything very well.

[@lawbellevie]

Excellent video! I loved the last part on considerations. Great job!

[@dallasmuszynski7208]

Everyone in a buisness needs to watch this video Seriously, thankyou so much for that info! Unbelievably excellent and to the point explanation! One thing im curious of, if a s corp does do a 50k salary and pays the 15.3% on that, then has a distribution of 50k with no 15.3 self employment tax does the distribution still pay out fed 15%+- and state 7%+- taxes?

[@CPAOffice-u9z]

insightful basic but not at the at advance level. You can set up the LLC - manager with the lowest ownership or through teir partnership/-corp. LLC as partnership has many advantages that S-Corp does not have, such as cash and property ditributions, but the best part is special allocations that S-Corp cannot have. A SMLLC should always become the s-Corp.

[@markfray4052]

Thank you, this is totally my gameplan now

[@alyssarose2468]

What about for an independent hairstylist starting their business? Not salon- but just me myself

[@watchyamouth5053]

Great video! Very helpful

[@DeeJayDezG]

if you elect to be taxed as an s crop is your LLC then considered to be a s crop?

[@bobsouth5875]

New subscriber here, I thoroughly enjoyed your video, and the others that I’ve seen. Thank you for the information.

[@Lilzay407thamean]

Very informative, appreciate it brother !

[@JucSityBeatz]

So the moral of the story... We should start the LLC first.. and once you start making money you should switch to an S corp

[@patrickm6012]

Correct. Work with a good CPA who will guide you and make sure you track expenses.

[@itzzjh__]

@@patrickm6012any preferred method to track expenses, software to use etc?

[@CharlesNobles]

what if you don't make any money starting off with your LLC is there any taxes to pay?

[@itsjlotto]

Great info this was super helpful ! Subscribed

[@XinneH]

SUPER EASY TO UNDERSTAND. THANK YOU!

[@Isaactetteh_001]

Very great video overall. Under the Self-Employment tax section of this video, did you mention SE taxes are capped at $160K? I believe only the social security tax component of the SE tax is capped at the limit. It doesn't seem the medicare component is capped. I'm open to chatting about this further

[@RayRay-q9l]

i heard that there are 3 different types of LLC's? if so what are they?

[@pierredesircryptoexpert3544]

The best explanation so far.

[@qmtroyaltyrides]

what are the requirements of a llc that's owned by a single member that would allow them to be an s corp shareholder? Referencing 4:40 mark

[@jessiecorrine]

Perfect video! we watched tons of videos but they didn't touch on all of this

[@investidornasdaq]

Very insightful content. Thanks for sharing

[@DiegoVerde00]

Thank you very much! This was much more helpful than other information I found.

[@milaapostolovic7921]

Excellent video! Thank you for your amazing work!

[@Kenneth-t7e8p]

What would be recommended for a small startup for a car dealership?

[@LitVisions]

Great video straight to the key points

[@kbenefits]

super informative, very easy to understand. Great info. Thank you.

[@sugarsugar475]

Best video on this topic. Many thanks!

[@informnow8100]

Who should I use as my agent for business address my pobox physical address or myself

[@kekwirsching]

What is meant by the 'distribution' in scenario 2?

[@Inspirehopetoday]

Great message Thank you Please get some speech coaching

[@RockyBalboa-h6s]

Would like to know what is more suitable for only a 1 employee- self owned business in Texas. S corp or LLC? What would be the best option to save in TAX money but also not too liable

[@skbillionman]

I appreciate this video

[@UltraClean-fn3dh]

how much should we be setting aside for taxes? is that based on each time a client pays us or how do we figure out how much to set aside each time someone buys our service?

[@kellykade]

Thank you very much. I definitely liked the video. It was very helpful. I’m going to start an my second LLC

[@life_lived_well_8]

This is a fantastic video! Thank you for sharing!

[@lst7752]

Great Video !!! Very straight forward