How The Rich Use S-CORPS To Explode Their Wealth

[@nickn6211]

Homeless veteran here, I watch all of your videos and you give me hope. In a hard spot like everyone else but its temporary. Started a couple of different businesses, and I look forward to working with you in the future. This is not how the story ends for me. I wish everyone success while pursuing their dreams.

[@sarahlynnnnn]

With that mindset you will find your abundance ❤

[@nadel6285]

Cheering you on! Never give up and become an inspiration.

[@John-bx6if]

Keep your chin up and stay strong my man!

[@ravbarring]

How do you see yourself out of the situation you are in?

[@nickn6211]

@RavBarring my position got eliminated from my company, took a 50% reduction in pay, my transmission stopped working. Had to get a vehicle, saving money living in a car, and started some businesses with the extra money I make on side hustles because my jobs not cutting it. So I'm just not relying on my job anymore, and I've lost everything already so it's not like it can get much worse. Maybe a blessing in disguise...

[@wrbk19]

I formed my LLC earlier this year elected to be taxed as an S Corp. Im definitely adding strategy 2 and 3! Thank you for the insight!

[@kilnmaster]

This lowly potter was an S-corp for 35 years. I retired at 54 and have lived abroad ever since. Thanks for telling this. Anyone can have a s-corp.

[@Realms3113]

My wife and I started a business that grew much faster than we ever expected. Like many business owners, we found ourselves needing to better understand our revenue and make smarter decisions to support our growth. I took it upon myself to dive into financial education because I wanted to feel confident about managing our wealth rather than relying solely on others. While we do work with an accountant, educating myself has given me peace of mind and a sense of control over our future. Through this journey, I discovered your channel and podcast, and I can’t thank you enough for how much you’ve simplified complex concepts. Your content has been invaluable, and I look forward to the day I can share a success story of building generational wealth for my family. Thank you for all the effort and insight you put into your work it’s truly appreciated!

[@Mattxwill1]

As an s corp i will add 3 things that aren't as clear here and impact. 1) The employers (your corp) 401K is not a "match" but a maximum of 25% of your W-2 salary). So you can put your $30,500 with catch up in but if your salary is only $25,000, you certainly can't match the full 30,500. It does get confusing because the IRS lets you put up to 70K a year, But that is assuming your salary dictates that ability!!! 2) paying your wife a salary or a 1099: This will count as an expense to your business but you are married, So it's also re-portable self employment income which you then have to pay taxes on. She STILL must pay the 15.3% tax as self employment income even though its under your business. Savings here in some situations are hence often negligible, even of you roll the whole amount you paid her into her self 401k unless you are cheating. 3) Many of the videos on this type of stuff doesn't cover that very important fact: The lower your reasonable salary the less you put into social security and hence the less you get out in retirement.

[@LethalSami]

Social security is a ponzi scheme. Invest using roth Ira with risky investments and use other retirement vehicles for conventional investments.

[@JasonSpasoff]

#3 is moot so long as you're actually investing the money you're saving. You can/will far outpace social security with just about any investment vehicle.

[@zzzyyyxxx]

You can get solo 401ks that allow after tax contributions so you can put up to the maximum every year even if your salary doesn't technically allow. Yes, you get taxed first but you won't get taxed when withdrawing, that's the benefit.

[@POW_RYDER]

Yes, that is true. Social security uses your last 5 years of full time work w-2 incomes. So, of you paying yourself a low salary, your social security income benefits are going to be much lower. The point here is that the govvy still ends up collecting the full 15% fica or self employment tax. You pay 7.50% out of your w2 paycheck and your scorp pays the other 7.5%

[@YouilAushana]

Your wife is worth a paycheck? Lol

[@AstaKristjan]

Net worth snowballs after $1M! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to more!

[@bubbleboy821]

Sure hope it snowballs before that too not all of us have 1m

[@georgetteetourneaux3350]

BRICS will destroy the American dollar. Look it up. Brazil, Russhah (spelling to disguise algorythm) Indi@, Chin@, SuadiaRabi@ and many others have formed an alliance to purchase fuel in what ever currency they want. (Can you tell these countries are most of the worlds population?) So, you may have rooms full of 100 dollar bills and it will buy a loaf of bread if we do not get on with safely mining oil & gas like other countries. When we buy it from them- it means more polution than if done in the USA and hi cost and dependance on our enemies. Just a thot.

[@puddintime8107]

@@bubbleboy821😂 good point. It snowballs at 100k so there’s that.

[@alexs8312]

spot on!

[@NarasimhaDiyasena]

@@bubbleboy821making $100k and then $1m is always the hardest. But the more you make, the more you make- it multiplies. However, lifestyle inflation is what keeps many from getting past $10m and returning back to $100k or less.

[@thomasgore5959]

He is right. I had a S-Corp myself and closed the business. My accountant/CPA told me the same thing. I am ready to start up another business soon.

[@hooverelondono9946]

The best 15 mins acct advise I have ever heard .

[@joel_vargas_css]

I love the advice and even when I am a lawyer myself, you take things so easy.

[@daveo03minduis]

I’ve been operating as an S-Corp for the last 12 years it was a game changer. But this takes it to a whole new level especially # 2 and # 3 genius!!! Thanks for this you are awesome!

[@HighbornCPA]

In the beginning you should invest in your business not in 401k. You need a healthy, viable business first. Imo.

[@donknotts5625]

As a CFP i need a CPA like you. I argue with clients CPAs about this constantly

[@NickMirro]

I've saved a ton on FICA but your social security check, for what it's worth, will be much lower because of your low salary. I think I'll collect 1900 at 67 versus 3200. You're saving about 7,500 a year in taxes for a 100,000 gross income less deductions. But you're giving up $16,000 SS benefits per year in retirement. So this only works if you have a very profitable S Corp.

[@erezjr]

Ss is a scam. You can do so much more with that money now vs what the government can do with it. If there even is anything left.

[@gavnonadoroge3092]

@@erezjr very slowly explain how you do that

[@danielleon5074]

You can compensate for this deficit but utilizing qualified retirement plans to accumulate for future retirement income (ex: SEP IRAs, Cash Balance Plans, etc.)

[@NickMirro]

@@danielleon5074 Yes of course and we do. But the benefit of the S corporation election is not so clear. I think the decision should be made on some chart data instead of verbal advice.

[@askquestions4634]

Throw it in something that will grow. stocks with dividends, growing assets, IRAs...

[@alessandrahalliburton589]

This is the best explanation I've heard. Thank you, Thank you

[@LoveLocalMedia]

Ditto - sent to business owners I had suggested this strategy to previously, but still have not done it...thought it was well laid out in a way that should convince them where I failed to

[@k98killer]

My dad has been a tax accountant since before I was born. Wrt audits of S corps based upon these strategies, his saying is "pigs get fed but hogs get slaughtered". On the whole, this was a good explanation.

[@kims144]

This is remarkable. I am a first-generation immigrant, and I am getting my feet wet with real estate. Can't wait to learn more.

[@Donkor640]

My accountant talked me into being Taxed as an S-Corp but she didn’t explain it this clearly. I’m not complaining because it saved me money, but I feel like I understand the benefits much better now. I’m going to have to schedule a board meeting to notify the board of the exciting news.

[@agarbis6571]

I have 2 C corps and 1 S corp and its based off the income and the advantages of being taxed......so your probably doing good 👍

[@NickMirro]

😅

[@f.iyanda3838]

Great news. What business and industry are u in?

[@ramd7463]

That was so funny the last sentence

[@alexs8312]

good way to add unnecessary expenses, unless your already paying these costs personally. Not a way to increase wealth.

[@FahrvergnugenTaglich]

I’m a CPA. He’s making it sound much easier than it is. Most will need a CPA to do this for them. This works if you’re making much more than 100,000 gross

[@daylingonzalezroa332]

thank you Sr...im gonna be very rich!!!...Thnaks to bring light to us

[@user-dt9ye9nv7m]

Thank you for the insights! I just subscribed to your channel, and look forward to creating my S Corp , building growth and work with you in the near future!

[@discolemonade1745]

Protect this man.

[@diemtrangnorindr4028]

How do I contact your team?

[@MatteoMazzulloRevel]

This is great! Glad I found you here!

[@moderationgtar69]

I have an LLC taxed as an S Corp. My question is referring to timestamp 7:00 regarding taking a salary. I use a payroll company - ADP. What exactly do you mean when you say do a report every quarter with your payroll company? My wife and I are currently paying ourselves every two weeks through the payroll company as a regular W2 employee and we pay FICA on every paycheck. Are you suggesting we transfer funds from business to personal instead and then every quarter look back and do a report on the money transferred? What exactly do you mean by “do a report?” Thank you in advance for the clarification! I love your videos!

[@tonychilds884]

I like this guy. I have an S corporation/import company and it is everything that he described. You obviously need a functional business model, but the S corporation is a much smarter way to operate… Thanks for the great video.

[@digeratiart]

This sounds like a great strategy! Thank you Mark!

[@MurderMostFowl]

It would be nice to see an example or two of the how an LLC with a given amount of revenue, would end up paying out in taxes when maxing out a SEP-IRA and QBI vs S-Corp with 401k contributions, matching and profit sharing. Especially for finding the sweet spot where the company owner has personal expenses that are at different levels ( to be compared to the revenue of the business.. e.g. how much additional could you contribute to retirement because you have money left over after all is said and done for personal costs of living etc. what the ultimate bottom line is. I imagine there are some cases where the LLC and SEP-IRA path still comes out on top. ( particularly if you can’t afford to save anything about the 25% contribution limit )

[@captaint8878]

You have explained more in 16minutes than I have understood in 5 years in business. We do happen to take advantage of all of these strategies and taxed as an scorp. But I have never understood why 😂. Thank you Sir!

[@IrfanRomee]

Mark - Thank you for sharing these great strategies. Can you elaborate on the real-estate investment from the Solo 401K? Can we leverage those funds to purchase commercial / multi-tenant buildings?

[@elliejohnson3815]

so after i do this strategy and go to collect social security i don’t have many social security credits, i now have to pay for S corporation tax return preparation and a payroll preparation company. most landscapers love piles paperwork. brilliant advice. also your reasonable compensation sounds aggressive.

[@JuanGelogo]

Payroll company is cheap I pay 30per math and 7 bucks per employee, I do my own taxes because if you're not your a fool if your business is less than 5 million a year. My bookkeeping takes 5 to 10 min each work day and 30 min or less 1x each weekend and 2hrs at the end of the year. I don't use double entry. I use an expense ledger, a revenue ledger and a single entry hybrid system. I own multiple businesses with employees never owed taxes on an audit and they loved my bookkeeping method since it's fast and easy to cross check everything fast.

[@JuanGelogo]

Also you get full credits each year from very little income so doesn't take much payroll to earn maximum credits each year

[@davet11]

​@@JuanGelogoyou don't get any credits unless you pay fica taxes. This hairbrained scheme to avoid fica taxes is a sure fire way to find yourself Ubering or living in an RV in your golden years.

[@dbshaw-m5o]

As an accountant myself, I was going to mention this. If you pay yourself W2- income, there is state withholding, and federal withholding and quarterly reports that need to be done. You will most likely have to pay someone like myself to do that. Then you have to pay FUTA and in some states ,not all SUTA, that's federal and state unemployment insurance. Its not as clear cut as he is making it. Then if you want to ever buy a house, your income will be "understated" the pass through portion is not considered "earned Income".

[@olegvorkunov5400]

I have S-Corp, but I refuse to deduct travel not to raise red flags in 3 letter agency. Everything else, I deduct on 709, even cars. (5 year range)

[@victorycigarettes]

I love the energy. Im going 1099/independent rep beginning in January. How can this strategy fit? Also, on the assets side, can invest into life insurance? Thanks!

[@Florida_Life_Insurance_Agent]

Very solid explanation! I’m doing everything he mentioned, except the solo 401(k). I will max that thing out by the end of the year. October is usually a good time to buy stocks. I normally wait until tax loss harvesting season.

[@Biopsychosocial]

So let's say I'm an LLC+s-corp... Things like paying myself and partners a salary, "plowing" money into a 401k, putting money into investment vessels, having a board of directors where there are hundreds of ways to have things written-off... How much would my business need to gross to allow for all of this? I hope that question makes sense...

[@MissMyMusicAddiction]

"welcome back" + background music playing at medium volume = infomercial.

[@jeffsouza8008]

Profits with s corp still go onto the owners of the s crops personal taxes. Irs gets their taxes on profits either way

[@andrewyoungman5625]

Hey Mark, I like your video. I have only one concern. When I want to take money out from that 401k later on I'll be taxed. So basically I just postponing paying taxes

[@mattmartin3136]

Incredible!! Two thumbs up 👍 👍

[@nyacoustics8373]

can you have llc elected to be taxed as a s corp? will you get the tax savings and save on self employment tax etc

[@AH-ge2et]

What's your suggestion to S-corp in states that tax corporations like New Hampshire?

[@Plants_by_barrett123]

Thank you Mark

[@snapdrag141]

"It's easier to save money than make money" - No one except this guy

[@jasonchatham4170]

Hey Mark. Just found your channel. Wish I had four years ago when I started my pest control business as a DBA. need to figure out the best way to implement all these things. It’s just me so before I bring anyone else on board I need these systems in place. Will watch all your videos and scotch out a plan. I am in Texas. Does that have special ‘gotchas’? Thanks

[@backcountyrpilot]

Mark, you should do a show on funding a Defined Benefit Pension Plan from a single-shareholder S-corp.

[@danielleon5074]

The Cash Balance Defined Benefit Plan is a great tool for business owners to defer hundreds of thousands of dollars in income pre-tax generating massive tax savings. You took the words out of my mouth, I was going to comment the same thing.

[@smcox1983]

The cash balance db plan really should be criminal, if you’re a high earner you can defer literally hundreds of thousands of dollars a year

[@xnavyro]

I had heard of S-Corps but never understood the operation of them? Thanks, I’ll be investigating a home business just due to the growth potential. You RULE!!!

[@MariamthaGreat]

This is gold. So much info here.

[@taxstarmobile7200]

I have been following you since 2017. since when did you start favoring 401k over IRA's?

[@chadgriffith5819]

Far better off leveraging those profits into commercial real estate, doing tax free cash out refis then 1031 the gains upon sale. Not to mention meeting the real estate professional definition which unlocks your spouses W2 income. Thoughts?

[@LagMasterSam]

If my salary is not very high, would reporting my tax this way limit my ability to get a home loan later? I have an LLC, and the last time I looked into getting a home loan, it was declined because the LLC reported a loss, and that counted against my income in terms of qualifying for the loan.

[@gavnonadoroge3092]

this becomes really explosive after irs audits

[@be5718]

How so?

[@BlitzOfTheReich]

@@be5718 because the IRS doesn't like people artificially paying themselves a low salary.

[@ethansteeves229]

love it all until step 3. it’s all about substance over form. having your kids in your “board” so you can go on vacations or buy your kids iphones is not “audit protected”. audit risk may be low, but it is not zero and that is not gunna fly in an audit

[@noahziegler3478]

Yep, I saw a sketchy ass influencer pitching this the other day. The last CPA giving me too good to be true advice was indicted.

[@michaelrudolph7003]

I think he made it very clear that you are to actually involve them in the business (they don't have to work all the time on the business) and actually talk about the business for some portion of the trips. Yes, you can't just put all these people on the board, give them stuff to write off and never have them do anything. I mean you can until someone looks into it and you have no documentation.

[@ethansteeves229]

@ yea what do you think ppl are doing when putting kids on their board lol

[@janswee1]

Strategy 3 is a recipe for being audited every year. Ask yourself if business related expenses he is suggesting as legitimate and are reasonable. If not, you will have more paperwork and have to spend more money on penalties and audit defense.

[@kortyEdna825]

I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.

[@PatrickFitzgerald-cx6io]

Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k

[@Justinmeyer1000]

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.

[@KaurKhangura]

Impressive can you share more info?

[@Justinmeyer1000]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@KaurKhangura]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@BenjaminNickelTX]

The problem with 401k is that taxes are going to go up and then you’re screwed on the back end.

[@jem77469]

Higher taxes are definitely a possibility as federal debt continues to balloon, but I think the govt's main strategy will continue to be inflation and importation of cheap labor. In an inflationary environment, your best protection is to keep as much as possible in equities and real estate/real assets.

[@PaulW-db3ks]

I’m there now and it sucks

[@kevinfarrell2897]

Vs paying tax now AND then again down the road on gains? The numbers dont seem to support your claim.

[@Justsomguy1990]

Taxes are coming down under your father and savior Donald J Trump

[@aposyl7110]

So, I'm thoroughly confused. On once hand your using "S Corp" for tax averages- diverting profits to a 401k ( glorified savings plan) but how about when you cash out that 401k. Aren't most 401*'s taxed nearly at 50%? And even if its inky 40% taxed- aren't we in the same situation as the LLC.? Are the S Copr write offs more significant than an LLC?

[@JakeValentineStory]

Great info, but the whole looking in another direction instead of the live camera is distracting.

[@cobraspottedwolf8791]

Best S-Corp video ever. Kevin Rutherford a trucking accountant never explained it like this.

[@PatrickDuffy-u3s]

Remember the golden rule - he who has the gold makes the rules. And he who makes the rules will always get the gold.

[@cinemaxstills]

I’m sorry, I like the strategy up to the point where you talk about 401k. Why 401k instead of a like insurance policy? Life insurance policies have way more protections than 401ks.

[@bbarbadillo8693]

Hi there, I'm a little confused on what's the best corps should I fill for on w9 form. Im shareholder in a company & about to get bought out of my shares. They sent me a w9 & I'm not sure if I should fill for S or C corps on it. Thanks you in advance for the helpful tips

[@ongv2491]

Can you do 401K with LLC company too as well as S-Corp?

[@Aspenlogic]

Another overlooked advantage of the corporation structure is your customers don't have to send you a 1099 and you are explicitly an independent contractor. I dont like the LLC construct, although simpler, because the laws for LLCs are not uniform across the country. Board members are supposed to be independent. Use family members only if they have business relevant talents. Who wants to have their company sued and the plaintiff hauls all your kids into court? Stuffing profit into a 401k is the best plan ever!

[@my_tradingcoach]

Thank you Mark! This is incredibly valuable insight and clearly explained. Yes, some comments indeed point out that social security benefits may be significantly lower (I didn’t catch that in your video) but others also write valid comments on how likely it will be to actually receive full (expected) ss benefits after 2030-ish… Nonetheless, great structure and time proven concept. I might need to get in touch with you and your office soon!

[@jbrooksga]

For a business that has unpredictable income, we sometimes don't have the ability to do salary on a regular basis. So you are suggesting that we do a quarterly review and then pay out salary accordingly? Are there any tax disadvantages with larger payroll checks quarterly versus having a smaller check on a monthly basis?

[@PaulVazquezJD]

Great question. We talk about his issue with some frequency in Mark's Main Street Tax Advisor Network. In our weekly meetings, we have discussed this very topic. However, each case can be different, as you demonstrate here. Your best course of action is to book a free client interview with one of us Main Street Tax Advisors. This will begin the process of open the door to apply these wonderful tax strategies in your life, which have been shown to reduce taxes and increase your wealth generating opportunities.

[@EnFuego79]

My understanding is this is all about accounting: take what money you need when you need it, aggregate what you took once every quarter as a dividend.

[@realdata8624]

Do a distribution, I think 1065 is easier for that reason

[@MRT-xq8wd]

Pay an annual payroll at the end of the year once you know how much money you've made. You can then optimize how much you divert pretax into your 401k using the finance buff's solo 401k spreadsheet.

[@brandoncostea2254]

It truly is easier to save money than make money.. would S Corp work for less than 50k? I am about to rent out my house, but don't think I will make more than ~20k a year. I don't have any other business ventures, but I'd like to.. I'm a saver by nature

[@EZ-1969]

My issue with savings in SEP IRA is having to match percentage I put in with my employees. It’s been a killer. Any options?

[@azules9780]

Listened passively once. I'm going to come back and watch when I have a chance to actively listen and focus. Thanks

[@Paul-rk9xd]

This is great if you want to show income for loans, but if you don't need loans you can easily show next to nothing as a regular llc and pay almost nothing in taxes, if you take a salary you will have to pay unemployment and payroll taxes which can be the same or more

[@ThePurpleSnork]

Social Security has a terrible IRR, and it only gets worse the more you make. If you’d saved and invested every penny you saved in tax you would be WAY ahead. Sounds like maybe you spent it instead?

[@Paul-rk9xd]

@@ThePurpleSnork Absolutely spend it, you are going to spend it anyway why pay tax on it before you do? And you can get a mortgage or loan using bank statements anyway

[@williamhickey7829]

Excellent!

[@ijl1i]

Excellent video. I'm also a CPA and tax attorney, I agree with you regarding the reasonable comp issue.

[@NickMirro]

Agreed! 15 years at 24K a year with no issues.

[@Robaldeenyo]

I teach this at work and thought this video was great. We always do a bit higher comp but our clients are wealthy.

[@TXTractorLife]

Check up on your information. The IRS has released guidance and is saying that they’re gonna start coming after people on this issue… It is not worth having your pants down on this. They may go after you retroactively.

[@denisejohnson7686]

I don't think he mentioned S-Corps with employees and how that affects reasonable salary scrutiny.

[@puddintime8107]

@@TXTractorLifeeach state has workers comp minimum salaries. I think if you adjusted to those values you should be in the clear.

[@mathieuk119]

Guys, he's a smooth talker. It's not this easy, all these write offs have requirements. Watch out for anyone who promotes "you're chances for getting audited is lower".... you shouldn't be concerned or nervous of an audit if you're legit.

[@rafaelsegovia2730]

WOW! 🤩 I saved, liked and shared this video. You thank us in this video, but I actually want to THANK YOU for creating this amazing informative video. By the way, I subscribed to your channel 🥰

[@pearldrumgirl]

Interesting. Potentially getting into other details would be more theoretically helpful; such as the share holders in S corps, where liability sits, etc in comparison to other options. SS, deductions, and other can all take place in other business structures. It’s how it impacts the final outcome. It depends what you’re looking for. Interesting video but only explained a small little tid bit related to the equity of the business.

[@jem77469]

If I'm already maxing out 401k contributions at my corporate day job, can I still contribute to a solo 401k? My guess is the contribution cap is per person, not per account.

[@eNav7]

Great vid

[@creativeeyeconsult2089]

Will that will work in Canadian terms to? Do you work before writing the entity? Need to pay you guys first, right…

[@BlitzOfTheReich]

LLCs don't save tax? of course they do when taxed as partnerships. they may not save in terms of FICA, but you get tax-free contributions to the partnership, way more potential losses because of allocated nonrecourse liabilities, way more flexibility in the operating agreement in regard to profit-sharing, not having to deal with the restrictive S corp requirements, etc. Partnerships are literally top tier for any real estate. S corps are only better for small service businesses without much internal debt (imo). ESBT trusts are even taxed at the maximum marginal rates.

[@aprilbrown6124]

This is wild! ❤

[@k98killer]

Math on the audit likelihood was a bit off. If your probability of being audited as an S-corp is 1/15th compared to being a Sole-P, that is a 93.3% reduction in chance of being audited.

[@TacticalInvestmentAdvisors]

If you're netting more than 400k/year, do you still recommend the S Corp or would you look at other structures at that point?

[@YouilAushana]

12:16 - and this is cronyism. Taking and deducting more than you need as losses.

[@yotub1999]

My children are 7 and 9 is there school tuition a write off if they are on the board of directors? Or would it count as income for them? And if they had s-corps would the tuition be an expense for them being education to maintain their position on the board?

[@livelife1899]

Can’t you write off your meals, travel, etc. for your board of directors even with a sole proprietor status? I don’t think you need an S corp for that

[@ryanwilliams165]

Thank you for sharing your knowledge! I'm a recently retired veteran and about to purchase a franchise. Having a tax plan that leverages AND includes your life is immensely important! I'm doing a lot of learning - does your team specialize in franchise planning?

[@TorinoAccountingGroup]

I am part of Mark's tax advisory network and am have experience with franchising. Send me a message if you would like to schedule a discovery call or tax consult.

[@brettrossetti211]

Hello. I would like to schedule a meeting with one of your tax consultants to set all of this up for my business.

[@rayranson]

Mark, Excellent video! Just a clarification and a quick question if you don’t mind. You say LLCs don’t save on tax, and I understand it how you explained it - but can’t you avoid tax by holding back on S Corp. distributions by using an LLC? I guess my question is whatever profits go into the LLC don’t have to be distributed like an S Corp and could be reinvested elsewhere, hence avoiding tax?

[@gangsta8929]

I’d like to dive in deeper on the reasonable comp talk. I’m no expert, but I think it would be hard to justify paying an owner that works more than full time hours less than you would pay a lawn maintenance worker. I am having trouble seeing how that’s a reasonable compensation.

[@bryonkibildis]

And keep in mind the exit/cap gains strategy & implications of S vs. C. Great video!

[@truthsayer9534]

Politicians have made the tax structure so complicated because they don’t want you to know how much of your money they are wasting.

[@DeviaNZe]

The Ignorance has a price, don't blame politicians for your wasted hours watching TV, Netflix, etc. The IRS has all the information free to the public, so the people do not study the United States tax code is not the fault of the government or the politicians, it is your fault.

[@truthsayer9534]

@@DeviaNZe Oh, I don’t pay a penny more in taxes than required by law, but I’m not most people. My comment stands.

[@gangsta8929]

This isn’t true. The complicated tax code is caused by a mix of special interest and attempts to close loopholes

[@mamdore]

@@DeviaNZewhat an absurd statement. They waste literal trillions of dollars, and the big tax companies lobby every year to keep the tax code complicated to force average people to use their services. We’re getting screwed on every turn. Taxation is theft. Abolish the IRS, end the Fed.

[@truthsayer9534]

@@gangsta8929 Ross Perot said it decades ago. He was right then and it’s still true today.

[@bb5242]

This is great info but you have to have a business that actually generates profits, which is hard to do in this country these days due to runaway costs

[@j.l.6814]

Thank you for making this video. I'm 2 years into my LLC, I never knew about this stuff

[@richwahneEXPERTSmadeEasy]

Great video Mark! Do you have a link to your video(s) on the Corporate Book and how to maintain said book?

[@cjwalker247]

At what income level does this often make sense? $100k?

[@td4611]

I own several businesses and all are S corps except for one which is a C corp. I've been doing #2 but not #3. I need to do that.

[@Sarahsmydog]

This is a phenomenal explanation of this strategy

[@FLOODOFSINS]

It's so funny how amped up he gets.

[@finesigil]

Great advice thank you. So with teh new FINCEN rules, each of these S corps that we setup have to be reported right? So if you use the S corps and try out new biz with a S corp or series of entities, each of them have to be registered...lotta disclosure/compliance work!

[@jamescourtney2535]

If your business income is less thsn 50k does a scorp still make aense

[@johncarmelo555]

Thanks Mark, great eye opening topic. I needed to see this video and understand why it’s importance.

[@cleothalucas1021]

You lost me @9:18. Do i take the $30k max from my S-Corp's W-2, or the pass-through. I assume it's the former, so the S-corp then matches, but wasn't clear

[@ThePurpleSnork]

You can contribute as an employee ($23k or $30k over 50), and then your business can do a profit share of up to 25% of your compensation. $69k max this year for all contributions.

[@nommet]

It's all cool, but (1) that is 401k, you can't take it tax-free anyways, you could also pass it to Roth IRA, (2) those strategies seem to be kind of ok for $70-200k businesses and (3) it will likely cost 3-5k a year to support this legal entity (tax-deductible, but still).

[@PatThurman-q8s]

this works!!!! I know because I did it

[@FedrickWhite-jo2ed]

I’ve been running my LLC for a few years, but I’m still confused about the best way to pay myself. Should I take a salary or just draw from the profits?