Sole Proprietor vs. S-Corp vs. C-Corp (Here Are The Pros & Cons!)

[@TobyMathis]

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[@stacysouthard]

I have never had anyone sit down and explain things like this before. I have asked and asked and asked numerous people how I need to structure my business and all anyone ever says is an LLC. I learned more in 30 minutes from you than I have in years of asking people, including accountants. Thank you for being real and honest!

[@JamesAutoDude]

Ikr! Everyone pushes LLC because it's as easy as self employment lol. It still is self employment as an LLC lol

[@Photo66videos]

30+ years in business. Never knew some of this. Pure GOLD!

[@JamesAutoDude]

When you're a sole proprietorship: You earn, you're taxed, then you spend When you're a business: you earn, you spend, then you're taxed This alone has really opened my eyes.... Also everything else you explained, Literally the best explanation I've ever found As for the separate tax return... Not much different then doing a schedule C which is also separate and tax preparers charge more for that too Lastly, if you're an LLC, it's still just you with liability protection. But if you're a corporation, that's not you, you're just allowed to make decisions on its behalf lol. So even more protections and separation

[@kevinhynes6325]

Toby, I just want to say you are the bee’s knees man. I’ve never seen anyone else explaining these things to the peons like us. Super helpful. I hope you continue making content for a long time

[@terenceeans1577]

As per usual, you killed it!!! So educational I'm implementing every gem that you're passing along and also passing it along. I love the fact that you're passing all of this content from your passion of it!!! Has to be from your heart cause you have plenty of wealth, very inspiring!!! So I've spoken to my wife and we've decided that we're going all in, based on all of the copious notes 📝 we've been taking from your channel!!! Definitely going to I also invest into all of your other workshops 😊😊😊😊😊😊😊😊. We thank you!!!!

[@EpicenterLLC]

I'm always better informed when I listen to your videos. Happy New Year! Missed your cats :)

[@thepakitrucker6869]

Thank you so much for explaining this so thoroughly. Everyone says llc and not once I’ve heard of a c corp until my accountant brought it up and now with your explanation this makes so much sense

[@Sekona.realtor]

Definitely best and clearest explanation I ever listen to thank you so much

[@rhadiem]

This is gold, Toby. Thank you.

[@TobyMathis]

Glad you found the video helpful!

[@elguapo3811]

Lots of valuable information for someone who just started their LLC S Corp. Thank you

[@TobyMathis]

Thanks for watching!

[@efrenestrada2230]

I see the bottle of Petrone, now I know I can trust you hahaha happy new year

[@Biztalkcontrolcenter]

very clear explanation

[@michael_house]

Awesome video. Thanks again!

[@lisaevans5843]

I've listened to this a few times! Thanks so much.

[@leahmthompson1987]

Thank you so much for all this great content!!❤

[@TobyMathis]

You are so welcome! Thank you for watching our content!

[@botanyandboard]

Super helpful - thank you!

[@hugomontano5833]

I really appreciate the explanation for the different entities. Wife and I trying to start investing in real estate, we are both W2 employees in the higher end of the bracket. We also do stock investing providing another source of income. We currently don't have a structure, what do you think of having two LLCs (one each of RE and Stocks) being in a holding company LLC taxed at C-corp? Want to avoid any non W2 income to be taxed at the higher bracket and limit it to the 21% corporate rate. Thanks

[@yvonnesilva7716]

Geat video. Very informative. Thanks.

[@TobyMathis]

Glad you enjoyed it! Thank you for watching!

[@derekcasanares4785]

I always love watching your videos and I have a gut feeling that I will need your expertise within a year.

[@TobyMathis]

Thanks for the support, don't hesitate to reach out to my team. aba.link/a3f0ff

[@derekcasanares4785]

@@TobyMathis I'm going to start trading again and want to use your services and expertise but I really need to know what type of daytrading I will be doing. I'm looking at the Forex Indicie again or possibly day trading stocks and I have some special things that need to be addressed.

[@takeshi1242]

Very good points on liability protection most dont think the worst case!

[@bendertechnology]

Awesome video, Toby! This blew my mind. I got a ton of bad advice over the past years and I think this will help me to moving forward. If I plan to use an s-corp or c-corp for an entity, does it need to be in place on January 1 of a tax year? Thanks for sharing your knowledge!

[@JamesAutoDude]

As far as I know, no it doesn't. As a C Corp you get to choose the closing month, as an S Corp it'll just be December as the last month. And you just file whatever you did from the time it was opened until the close date

[@cicsrh]

Thank you for the info as usual

[@hrstories2]

Thank you. Just started a new family trade with zero $ and applying for EIN. I will be choosing S corp.

[@TobyMathis]

Thanks for watching!

[@moneylifetv1754]

great video will like it many people need it

[@nolebeeks303]

Wouldn't it be beneficial for the sp to have insurance ? And can they right it off ?

[@MartyMarz]

Depends. The 21% tax was implemented in 2017 and the c-corp tax rate fluctuates based upon laws passed

[@earningscall]

If someone qualifies for the trader tax status and his/her trading account is under an LLC that's taxed as a C-corp...Would that person pay a 21% flat tax even on short-term capital gains? Thank you

[@TobyMathis]

Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby

[@aaronjaggers3117]

Thank u great advice for the average person who would walk right into trouble . Thank you

[@TobyMathis]

Glad it was helpful!

[@roxulerz]

Such a helpful video! I learned so much as an entrepreneur just starting out. Thank you!

[@TobyMathis]

Glad it was helpful! I hope you subscribe for more future videos 👍

[@matthewsalathe5491]

Good stuff Toby! Thanks.

[@TobyMathis]

I'm glad you enjoyed the video!

[@hyojinlee]

Thank you so much for this video!! So helpful :)

[@nadmeldev]

It is my understanding that if you are involved in a car accident they can "attack" the assets of your LLC ( outside liability ). The LLC limits the liability on law suits related to cases arising inside your business. Your auto insurance, preferably supported by an umbrella insurance is your only protection if you are involved in a car accident. Do we agree?

[@ellenoir5678]

Happy holidays!!

[@TobyMathis]

Happy holidays to you too!

[@jrgvb]

Thanks for this video. I am starting an online business now with expectations for little net income the first year. I am moving from CA to another state later this year. Can you “move” an LLC in California to the other state when I move so that I no longer have to lay $800 the second year when I don’t live here?

[@davidpeterson7850]

I've heard of people layering entities, with an C-corp as a holding company, and an LLC or S-corp as the operations arm that deals in the day-to-day money flow. Is there an advantage to layering like that? For instance, if I'm interested in setting money aside to buy a competitor, or maybe expand my own business if a big contract comes in and I need to hire engineers to get the job done. Thoughts? I'm about to file for something... LLC, S or C within the week [Engineering / AI-ML data company with 5 principles]. Typical contact = 5-6 digits.

[@TobyMathis]

Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. aba.link/a3f0ff

[@IrwingMartinez]

great value in this video

[@TobyMathis]

Glad you think so! Thank you for watching my content. 👍

[@huiyuliang-frazier1241]

Thank you for the information. We just change our business to S-Corp. We need a good,experienced accountant to help us to prepare our next year tax return. Do you know any experienced, honest and caring accountant at the near centeral Columbus Ohio area? Or do you think we can do our own tax return? We have been filing by ourselves.

[@TobyMathis]

Here is the link to schedule a free strategy session, aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741. Anderson would love to help you file your taxes.

[@anandradhakaurthewanderer749]

I am a sole proprietor now, can I switch to an llc now or do I have to wait till the end of the year?

[@TobyMathis]

Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby

[@NicholasVaccariello-pr2cg]

3:13 Waivers?

[@dennisholle1005]

Thanks good info.

[@pastormosesmaloney1604]

Thank you so much man. Just helped me decide between s and c. Going with S corp.

[@TobyMathis]

That it was helpful! Thank you for watching!

[@AuGold808]

What about states like Tennessee that aren't as friendly to s-corps? Single member llc here w roughly 100k gross annual profits looking at a s-corp election possibility.

[@ImRAM428]

Hi Toby. I have a question regarding S vs C corp. Our family has a side business which we do not rely on for living expenses. Would a C corp be a better option for us, since we use the money as “fringe benefits “ and paying for incidental expenses (car repairs, insurance deductibles, etc). Our accountant wants to convert our C corp LLC to an S corp LLC.

[@JamesAutoDude]

In my opinion, stick to C Corp so the losses and incomes don't pass through to you and stays in the business... But I'm not a professional in any manner

[@LeoSS570]

Can you offer guidance? I'm considering starting my own enterprise representing various manufacturers in the valve industry (valves, pumps). As a sales representative for multiple companies, I'll solely receive commissions on sales. Given these circumstances, which legal structure would be more suitable for me: an LLC or an S corp?

[@TobyMathis]

Hi Sangeet! Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby

[@Flossy_Female]

If you’re operating under the sole proprietorship and therefore subject to paying your self-employment tax, does that mean that upon retirement, you are able to pull from that?

[@stevenbastian3882]

Yes, in the form a social security check and medicare coverage.

[@mar91942]

I like the c-corp for the no salary requirement

[@HODL-Diamond-Hands]

good stuff.

[@intelimoteintelimote7448]

Can i elect to have Google issue a 1099 to my S corp as opposed to me as an individual creator for YT AdSense revenue? I intend to form a single member S Corp.

[@hansklauaa]

Hello . I write you from Uruguay ( south america) i am interested to open one company your country . Can can you recommend me for to beginning ? S corp .. or one LLC am so confused. Thank you so much

[@TobyMathis]

Thank you for reaching out! Opening a company in a different country can be confusing, but our team can help. I would recommend setting up a consultation so we can provide tailored advice based on your specific goals and circumstances. Visit: aba.link/a3f0ff Good luck with your venture!

[@J2NMP]

I'm from California... can we hire you to do our tax... we just started our business/foundation .

[@TobyMathis]

Hello, we have five physical offices located in Nevada, Wyoming, and Washington and we operate virtually in all 50 states. andersonadvisors.com/locations/ Here is the link to schedule a free strategy session, aba.link/tobyss. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.

[@willmallory9085]

Thanks

[@TobyMathis]

Thank you!

[@overarmourinc.7783]

i would really try to annunciate "S-Corp" from now on. the subtitles make this video go in a very different direction 😅

[@valerieleuba]

I want to protect my property from any tax lien frauds. I am constantly getting post card and calls to sell my house. I want to make the house invisible.

[@sb9791]

Always appreciate for your videos that are very helpful to me.

[@AKDisobey]

Great video!

[@TobyMathis]

Thanks!

[@AKDisobey]

Wish i watched this 7 years ago, when i took bad advice from a tax preparer to file as sole prop while having an llc, just to save on 2 filings 🙈