📝LLCs can be easily set up and provide strong liability protection for new business owners.
💰As an LLC, the amount of taxes you pay can be high, especially with self-employment taxes.
💼By electing S-Corporation status, you can cut self-employment taxes and save thousands of dollars.
🔑S-Corporations allow you to control the salary you pay yourself, reducing overall taxes.
💡Using S-Corporation status opens up opportunities for additional tax write-offs.
What is an LLC?
—An LLC (Limited Liability Company) is a popular business entity type that provides liability protection for owners while being relatively easy to set up.
What is an S-Corporation?
—An S-Corporation is a tax status granted by the IRS, allowing certain businesses to be taxed like a corporation while also avoiding some taxes.
How can an LLC save on taxes?
—By electing S-Corporation status, an LLC can reduce self-employment taxes and potentially save thousands of dollars.
Can I be both an LLC and an S-Corporation?
—Yes, you can have an LLC for legal purposes and elect S-Corporation status for tax purposes.
What other tax benefits can I get with an S-Corporation?
—S-Corporations provide opportunities for additional tax write-offs, such as deductions for vehicles, home offices, and retirement accounts.
00:00LLCs, or Limited Liability Companies, are popular entities for new business owners, providing liability protection.
02:39As an LLC, the amount of taxes you pay can be high, especially with self-employment taxes.
05:36By electing S-Corporation status, you can cut self-employment taxes and potentially save thousands of dollars.
07:15S-Corporations allow you to control the salary you pay yourself, reducing overall taxes.
07:48Using S-Corporation status opens up opportunities for additional tax write-offs, such as deductions for vehicles, home offices, and retirement accounts.
