Tax Differences EXPLAINED: LLC, S Corp, Partnership, Sole Prop

[@RobertsArthurs]

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[@BoianOlenberg]

Nobody knows anything; You need to create your process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

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[@RobertsArthurs]

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[@KennithsAbadies]

@@RobertsArthurs There are many independent advisors to choose from. But I work with MARGARET MOLLI ALVEY and we've been working together for almost four years and she's fantastic. You could pursue her if she meets your requirements. I agree with her.

[@RobertsArthurs]

@@KennithsAbadies I just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.

[@rogersmj]

This is by far the clearest explanation of this topic I have yet run across. Very well presented, having apples to apples examples in a clean spreadsheet format, as opposed to the random whiteboard scribblings that some others do that are really hard to follow.

[@alansanchez3560]

Great video! It helps understand the basics I’m going to keep watching at the more complex topics!

[@lorapalacios8088]

If i want to open my own behavioral health/ mental healthy therapy practice and I am a Licensed Clinical Social worker in California can I do a partnership? I am told I cannot do an LLC.

[@gummybears-n-crime1317]

This was excellent and helped me decide to open an s corp vs LLC as an independent contractor

[@parleygentry5008]

Super clear explanation. Setting the numbers up like that gave me a visual idea of how I should set up the business

[@xpress-notary-pro]

☑ I don't leave a lot of reviews, but this video and another one in your list completely lifted the scales from my eyes. I was blind and now I see! You helped me make a decision about whether to go the S-Corp route and saved me from making a huge mistake. Thank you for bringing free content that is completely useful on its own. I have you bookmarked. I definitely want to take your course once I get my business up and running.

[@cynthiagarcia2784]

Same as you. I’m started by own business and this has definitely saved me lots of money before starting.

[@adamkalon7584]

I rearly leave comments but you are great! This is EXACTLY what I have been looking for so long. I graduated from financial university in Europe but now I live in the US and I need to understand your microeconomy regulations work. Your video is just a great example of top notch teaching, it helped my to obtain more clear vision on how to run my own company and what type of entity to choose. I didn't even know about QBID. I'm going to comple your whole course. Thank you again!

[@ashburnconnecttv7860]

Rarely.

[@adamkalon7584]

@@ashburnconnecttv7860 I wish I had someone who would correct me since I’m trying to improve my spelling. Thank you for noticing!

[@rebecanelson207]

thanks for being so detailed oriented and having it all clean and organized--and for answering all these important questions.

[@MrElvin026]

Very well explained, I’m CPA in Puerto Rico and is very important get an advisory from a CPA.

[@cathyjohnchang9812]

Excellent job! You explained very clearly with a clean easy understanding spreadsheet. Really appreciate it.

[@islandst.maarten7081]

I'VE WATCHED A LOT OF VIDEOS BUT THIS ONE WAS VERY UNDERSTANDABLE. THANKS

[@anitacobb1973]

Outstanding!! I agree with Roger below. You provided the clearest explanation to date!!

[@TXRoeJogan]

This is exactly the kind of video I was looking for, super basic but thoroughly explained, thank you!

[@lunamorris2091]

Would like to see more of these types of videos where small business owners can get educated on how to understand financials and use them to improve their business

[@carlosgarcia4012]

Hi Navi. This video is great. I have tried to find a video with an expatiation like this one you just did and I have not found anything like this. You are great. Thank you so much!!!

[@shaunquilty8201]

You did a great job, explaining how each entity pays their taxes and what is required but you didn’t explain to me any advantages of what each one offers so you just wasted like an hour of my time and now I’m super convinced on why it’s just good to pay so I wanna do your taxes. Thanks.

[@briemalagarie223]

Great job explaining this! I have used this video to help so many people understand these differences!

[@amyroberts3922]

We are thinking about converting from a LLC to an S Corp. This was extremely helpful. Thanks!!

[@finalflare2049]

Best video online. Please keep up with the visuals of your explanations. It helps visual learning a ton.

[@bluedreamkush2392]

By far the best explanation on youtube. And the excel layout helps tremendously.

[@NaviMarajCPA]

Glad it was helpful!

[@Mukimuki28]

Best video on tax differences !! thank you for taking the time to do this video 👏🏻👏🏻👏🏻👏🏻

[@alihakim8680]

Navi, this was an absolutely phenomenal explanation compared to everything else I’ve seen on YT. I appreciate the disclaimers regarding QBI and SE deductions, since many people leave these out and don’t mention it. Your clear ability to share knowledge makes me want to use your course. Thank you!

[@corystheboss]

Taxes should not be this confusing…

[@NaviMarajCPA]

Agreed but hope I was able to make it a little easier for you.

[@TengoWiskeyFoxtrot]

Agreed. Also, taxation is theft. They literally tax you 2x literally every direction you go. But then they say, no dollar can be taxed twice. It’s bologna

[@savageazzligee5970]

He actually explained it so smoothly in my opinion. Plus he giving good examples with easy to understand numbers and this is my first time learning about business taxes. Only part I don’t completely get is where the $88,000 came from when at first it was $100,000 then the QBID made it $80,000. I’m just confused where the other $8,000 came from.

[@nextgenerationsshow]

​@@TengoWiskeyFoxtrotHow?

[@jamisonmunn9215]

It's not, since the governments number one mandate is keeping the nation safe. Also a nation has clearly defined borders that requires people to go through a process to enter. Since the USA doesn't have those things currently all federal taxes are invalid and shouldn't be paid.

[@nasariosantos1117]

Navi, you do an excellent job teaching the layman ! 😊

[@pazsugarspice]

Your videos are excellent. You have a dedicated agenda without jibber jabber, clear video and audio, and speaks to people who are not CPAs. I've seen a few other videos and you mention about book royalties may not be taxed as self employment, as it is intellectual property and not a service. I would love to hear more about this topic. I have set up my business as an author as a SMLLC, but was considering being taxed as an S corp if I do exceed $40k.

[@josephinebardot8403]

I’m more than happy to discover this channel. I need to thank you for your time for this, particularly a fantastic watch!! I liked every little bit of it and I have subscribed you to look at new posts all the time.

[@vebaharris5421]

Thanks! Very educative presentation. The visuals really made it clear. 👏

[@Joey-bq4hu]

Thank you - this is exactly what I was looking for in the way of S-Corp tax savings explained and broken down!

[@Narski6]

Excellent explanation. Big big thank you for clarifying the differences and giving a detailed example for us!

[@Trader_Father]

new LLC and this is exactly what i need to know, i am going to the s corp after watching this video.

[@mtmetzger]

Excellent video! Thanks for being so precise with your explanations. You are really taking the stress out of the entire process.

[@RobertCF428]

Thanks for the video. Nice Fastback in the background ;). I once had a 66' Coupe.

[@NaviMarajCPA]

My favorite comment by far!!!!

[@dsmtnr95]

Thank you for this clear concise breakdown. Really made it all make sense. Thanks!

[@ronaldoquiroz1023]

This was so helpful. Its my first video from you and i'm definitely gonna try to binge watch the rest of your videos. good job brother!

[@EvangelineNavarra-p7r]

I am from the Philippines and want to understand more about this topic. Thanks for the knowledge.

[@LucasMidas-o9j]

Awesome video! Thank you for making this clear!

[@TL-pe4jv]

This information was very informative. You broke it down so that the ordinary guy makes sense of it. The supporting websites tied it all together. I appreciate all the effort you put into your presentation.

[@NaviMarajCPA]

Thanks so much for the feedback. Appreciate you!

[@emmanuelcovingtoable]

Thank you for this information! You simplified a very confusing topic.

[@yanamiakshyla8498]

Thank you so much, Navi! This video is GOLDEN!!!

[@Rico-ns5dt]

Man i need me a powerball jackpot because this is exhausting 😂😂😂 great video

[@fromjaxflorida]

I'm trying to understand business taxation and this video helped me to understand the differences. I'm a visual person; listening and reading don't help me. Thank you.

[@fixitfredhandyman]

extremely clear about all three categories. thank you.

[@nickoliwade]

Thank you for helping with taxes and your visuals were spot on , also keeping taxes interesting.

[@maxinedejesus9233]

This was amazing! Thank you for the clear explanation 😅

[@denbestenmathchannel4180]

Great video! You do a nice job explaining a complicated topic. Thanks!

[@jocoll75]

Best video on tax differences.

[@mariabell8320]

Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This KZbin channel is very informative and effective.

[@nandakumars2845]

Spot on, exactly what I was looking to learn. Thank you for your time in helping everyone! I am new to forming an LLC and learned a lot through your videos. As an S-Corp, when exactly can you withdraw the "distribution" amount (60k in your example). You pay taxes on 88k anyways - is there a reason to leaving that distribution amount there? At the end of your video, you suggest that over 60k can go to a Roth. What about Pre-tax retirement contributions? SEP IRA not an option for S-Corp?

[@cynthiagarcia2784]

This is a great question. I would like to know this as well.

[@garlictoastreviews]

In another video I saw the guy said only SCorps get the QBID so I’m glad I found your video

[@RuthannAlterado]

Great explanation! Thank god I came across this video. Looking forward to watching the rest of your information. Thank you!

[@wittyk8581]

Fantastic content, I will absolutely 100% come back

[@xcalybur75]

Fantastic info and great pacing. This is hard stuff for most people to wrap their head around and you did a great job. The only thing that would make it marginally better and might not be worth the time is to put together some slides you can show occasionally during the presentation, but I understand if it isn't worth it.

[@lavadog13]

Great video. The social security tax is more nuanced then described. There is a max amount that is held per year. I think you want to max that out as many years as possible to get max social security benefits at the end of the day.

[@katiehoponick1141]

Thank you so much!! Your video was so helpful in gaining a clear understanding of the different business models, how the taxation flows, and the importance of each part. Very Informative, thank you

[@GabrielYeager]

Really helpful and great resources. Thank you!

[@TripleLRusticDesigns]

This is incredibly helpful! Thanks so much!

[@NaviMarajCPA]

Thanks for the feedback!

[@kuromifit]

thank you for taking the time to share your knowledge on this

[@n.trs1788]

Thank you so much. This knowledge is invaluable and I better understand Sole vs. LLC and not as freaked out!

[@NaviMarajCPA]

Great to hear! Thanks so much for the feedback and glad you're understanding things better.

[@shamszaynreacts1993]

@@NaviMarajCPA❤❤❤

[@kasiwilliams5927]

Thanks for explaining I enjoyed following along the visuals and website.

[@joser08rodriguez]

Great video I really liked the visual chart. Thank you.

[@riazgomez8100]

Navi!! I see many videos and feel like yours are the best to learn!! Hope to find you soon and would love to learn more from you

[@TheBookOfJane]

Ok I am going to learn this stuff come heck or high water..... Thanks for your help. Great Channel!

[@rociozamora877]

Excellent presentation!! 🎉❤

[@nellycaldeira4145]

amazing video!!! WOOOW. I AM IMPRESSED!

[@Quentyn73]

Nice explanation, thank you. Just one clarifying question - the SP is eligible for 50% deduction of the SE tax, which I don't see reflected on your spreadsheet.

[@freddycuevas6595]

Great Video! Thank you. If anyone knows in the S corp case there was 40k of Income and the rest Business Income 60k. The employer paid Medicare and Social security on 40k but didn't pay anything on the Business income of 60k for medicare or social security?

[@edentajas1624]

Thank you so much... this is very helpful. I am a freelancer and I need to learn more about US taxes.

[@nickp8]

You are phenomenal. Thank you for what you do!

[@christopermontez6109]

Awesome info you broke down simply thanks and a pay roll company seems the way to go

[@jahmenj]

THANK YOU THANK YOU VERY MUCH… 🙏🏽 I just subscribed 👌🏽👍🏽

[@kareemaestrada6734]

This was awesome Navi!

[@NaviMarajCPA]

Thanks for the feedback! 👍🏼

[@bichli]

excellent presentation!

[@NaviMarajCPA]

Thanks so much!

[@mariesafaite-antoine20]

Very helpful! I will implement your advise

[@saheruddin06ify]

Amazing video , well explained

[@RedDragonProtection]

Thank you for this video. It's exactly what I was looking for. I found your spreadsheet and will definitely adapt it into mine. I appreciate it. I subbed for you.

[@reneeholzbach7269]

Lots of great information 👍🏾

[@Jay-es3vm]

This was very helpful! Thank you so much!

[@NaviMarajCPA]

You're welcome. Thanks for the feedback!

[@karleenaudibert35]

Everything you explained was very helpful! Thank you for sharing!

[@NaviMarajCPA]

You're welcome. Glad it was helpful for you!

[@chilizchilizz3905]

Appreciate the information and I don't think it's boring at all, exactly what I want to know. You mentioned paying your own taxes at quarters, from what $ account is paying from, personal business account? Appreciate the information

[@milesvaniglia7854]

Excellent Video! Glad I got an S -Corp!

[@NaviMarajCPA]

Thanks for the feedback! Glad to hear the S Corp is working out for you.

[@dipalir130]

this was really helpful, Thank you.

[@MariaRosales-uv2ls]

Thank you. Very helpful content and well explained.

[@NaviMarajCPA]

You're welcome! Thanks for the feedback.

[@AnasKhan-uw7vf]

thanks mr.meraj ... thumbs up from Pakistan

[@justinleomartin]

can you please upload that excel sheet and can you do a video comparing C Corp

[@Furygasm]

Great video, very informative and well explained/structured. Only problem is that I need a Canadian version of this channel!

[@WendiMontano1986]

Whether or not you take the money from q C corp do you have to pay the taxes on your personal return? The dividends?

[@budgeting4u932]

Hi Navi, can you please share the tax estimate Excel file template?

[@Crys_M1229]

Thankyou. This was a good video.

[@NaviMarajCPA]

Thanks so much! 👍

[@jlopez821able]

This was so helpful! I’m trying to decide llc or S corp for my business salon in California

[@thunderbomb501]

Do you have a link to that spreadsheet? Amazing video, I watched it at 1.5x speed and didn’t need to rewind it was that straight forward ❤

[@yyvvy]

Hi Navi, can you explain why @9:17 the S-corp contribution for medicare & social security would come from the employee earnings rather than the employer earnings?

[@NaviMarajCPA]

The amount of social security and medicare taxes paid is derived from the amount of payroll issued. It doesn't have anything to do with the S Corporation's earnings.

[@ChrisGreen-fp3jd]

Thank you so much very informative.

[@falgunipatel5776]

Very informative. Thank u!

[@rickcoona8368]

how does this apply to *Manufacturing* business as a new start up? it would seem that a lot of this advice is geared more towards on-line information sales , and perhaps Real estate. I am in the research phase as i have created my first line of products and am sourcing raw materials and equipment. as the saying goes, Ya Gotta start somewhere...

[@bigstar111]

Thank you so much! Extremely helpful! As sole owner LLC, are the quarterly payments mandatory?

[@taxleverage]

Yes but they're based on prior year tax due, so it's possible they're not mandatory given your situation. Search safe harbor estimate payments and that's the calculation to determine the requirement.

[@FabiolaJeanbaptiste-t2i]

Very informative. Thank you! How do you switch from an LLC to S Corp?

[@Sam-fz3mx]

Great video. Thank you!

[@lyricsdaddy9494]

This was great. I like the way you explain it and tie things together so it's understandable.

[@NaviMarajCPA]

Thank you. Yea, I try to put myself in the viewer's shoes when explaining things.

[@adriandiaz5688]

This was extremely clear, thank you!

[@NaviMarajCPA]

You're welcome and thanks for the feedback! 👍

[@AlexanderDeShazo]

I started an LLC partnership and I find it very difficult to find helpful information, most of it seems to be S corp or sole proprietor. Thanks!

[@xcalybur75]

I actually had a question. If you are a Sole LLC and you pay taxes on profits as an individual, is there some kind of provision for putting some of that money back into the LLC like an S-Corp? I am guessing you pay the full taxes and you are free to put whatever you want back in the LLC. With your example, $100k profit, you want to take $50k as salary to yourself. You pay taxes on the $100k just like you showed, but whatever is left over from 50K is put back into the company as operating money?