LLC vs. S-CORP: When NOT to become an S-CORP

llc versus escort what is the difference and can it save me a ton of money in taxes what's up guys i'm prince deinel founder of jumping jack tax franchise appreciate you for watching this video uh first and foremost before i even get into any of this shout out to all of our newest subscribers i think we're about to hit 40 000 subscribers as of today that of people that have joined our family and i appreciate you thank you for liking thank you for commenting uh thank you all for putting for inserting so many questions that i can make videos about and uh i thank you for being a part of the family so please like like comment and subscribe to this video if i provide you with a ton of value here this isn't even going to be a long video today because i'm just going to be breaking down the facts and the reason why i thought it was important to make this video today is because i've been getting a ton of direct messages like don create a video about llc versus escort please i heard it saves a ton of money in taxes i'm about to switch over to an s corp i even saw comments on my youtube page like nah don don't do another you need to move to s corp and it sounds great in theory but here's the thing and i and this this is rule number one of entrepreneurship and y'all know i like to give a lot of lessons on entrepreneurship as i'm going through the video and talking about the facts number one if you're a new entrepreneur that's watching this video right now um please please please please please please i am begging you do not just do things without understanding the knowledge behind what you're doing or not hiring professionals that are going to be educating you on this process let me also state a disclaimer for you i am not a cpa i am not an attorney although i have a tax franchise i still have a cpa that i have hired that handles my taxes and i still have attorneys that handle all of my legal things that i have to take care of for my business why because that's what a smart entrepreneur does because you don't know everything so please do not just scroll on social media and because everybody says move to s corp because this theory went around or you're looking through my comments and you got this message from somebody who is like hey move the escort and you like hey i'm just gonna do it no please get the knowledge first that's what makes you a great entrepreneur and i'll disclaim this before i keep moving forward about llc versus s corp having an s corp is a different type of beast okay there's a lot of different maintenance hiring attorneys having cpas payroll all the things that i'm going to get into in a second that if you're new here as an entrepreneur or if you haven't even made a certain amount of profit then an escort might not even be for you right you can still watch this video because it's going to give you the knowledge for the future but it may not be for you as of right now an llc is perfectly fine for you if you're just starting out and you may not be making enough in net profit or you can't handle all the maintenance and things that are required of an escrow that's fine guess what when i first started my business five years ago i started out as a sole proprietor right and then i as a sophomore like literally sole proprietor businesses in directly in my name like i had no legal protection nothing just me as a sole proprietor and then i moved up and said oh you know what somebody told me i need to get an llc for asset protection to be able to shield my business from my personal assets so let me go ahead and move into an llc and i gradually moved up to llc and then once net profit came and i moved over to s corp so understand that this is a journey this is not something that you have to do overnight this is not something that you got to keep figuring out all i want you to figure out right now right if you're new as an entrepreneur you're not making much profit all i want you to figure out right now is how to get your business to start getting sales right that's what i want you to figure out how can i get sales how can i worry about my marketing right that's what that's the main things you need to worry about here now for my entrepreneurs that are starting to generate some net profit right you are getting customers right now we have to start talking about exposure okay the reason why i talk about exposure is because the more customers you get the more money you make exposures come exposures come from a legal side exposures come from a tax side and that's where now you have to worry about these issues on how to save money on taxes on how to protect your personal assets that's where that conversation starts to come into play and this is where we now start talking about llc versus s corp okay so that's very important now i would suggest if you're watching this video definitely make sure you have an llc because i would always advocate advocate for that you want to be able to have some type of legal protection in place to protect your personal assets if you're dealing with customers right that's the main simplest thing you can do from here but now that we're going to be going into this video let's talk about llc versus s corp and before i do that let me just break down the science of an llc for those who are new entrepreneurs here right so that you understand how this works because i did see a couple myths about an llc because like i'm on instagram and like i see everybody told me get an llc get an llc it saves you a ton of money on taxes well that might not necessarily be the case here and um we have to iron out some things so you understand what you're doing okay but again like i said before i move forward always make sure you have a professional whether it be a cpa or tax professional and an attorney that's in place to make sure that they're overviewing and looking through these things i will advocate for that any day of the week okay especially if you if that's not your specialty your specialty is an entrepreneur not being a legal expert okay not being a tax expert your job is to make money your job is focused on marketing and servicing your customers okay so first things first if you are an llc owner right now which odds are watching this video that's the case as an llc an llc is a legal structure for operations and for asset protection that's what an llc is a limited liability company okay that's all it's for legal structure for operations and asset protection okay that's the simple concept how is an llc taxed an llc is taxed as a sole proprietor a partnership or an s corp okay so a lot of people say hey well i'm taxed as an llc well that's impossible you can't be taxed as an llc there's no such thing as being taxed as an llc the irs only recognizes a few things they only recognize sole proprietors or uh or they only recognize sole proprietors partnerships or s-corps i was going to say a disregarded entity it slipped my mind right disregarded entity partnership or an s corp they don't recognize an llc because an llc is a legal structure it's not how you're taxed okay so you're not taxed as an llc okay so these are the only ways that you're taxed here okay now mostly i would i would assume if you're watching this video that you're probably being taxed as a sole proprietor or as a partnership as it right now have you just started your llc and you're new to this i'm talking to new people here you're most likely being taxed as a sole proprietor or partnership if you actually have a partner on your llc right if that's the case let's talk about the tax myth here the tax myth is that my llc saves me so much money on taxes again an llc does not save you any money on taxes it does not save you any money on taxes unless you elect to be taxed as an s corp which we'll talk about later on in this video if you're not electing to be taxes in s corp you're not saving any money on taxes okay all you're doing is creating a level of asset protection and allowing the business to operate more smoothly with an llc and i'll break down why let's get into the science of this here okay and i gave an example so that we have a full understanding because i love numbers and this example is a real life example like for me my these numbers may not be actually my numbers but i'm going to take you all through a journey because i love learning i love learning these things through actual numbers so you have an idea and an understanding of how this works as well okay so let's give an example of why an llc does not save you any money on taxes and why you have to elect us to be taxed as an s corp and when to do that first things first as an example let's say that i just started a business prince donnell llc hooray i just became an entrepreneur congratulations if that's you congratulations to you on starting your business and you went ahead and got your llc because you got smart you want to make sure you're legally protected all that good stuff amazing job shout out to you right i started prince.net llc my focus is on marketing my focus is on youtube and tick tock and i get paid i get paid from the youtube ads i get paid from tick tock i get paid from sponsorships i get paid from people uh wanting me to market their products and services and they all pay my llc that's great right boom i'm making some money here that's the that's the most important piece i'm making money because none of this tax stuff matters if you're taking a loss you ain't even making no money at all right the goal of the business is to make money okay now i'm making money at the end of my year i just made a hundred and fifty thousand dollars in revenue mind you i did not say net i mean revenue like total amount of money that came to prince donnell llc's 150 grand that's not a bad that wasn't a bad year i mean geez i made six figures in that year if it was my first year in business man you're high flying a lot of businesses don't make 150 000 in their first year so that's huge even if you made any type of revenue in your first year congratulations to you because we understand how hard it is to go into business any type of revenue you should be proud of yourself for that but as this example i pulled off 150 000 in revenue great let's say my expenses now are thousand dollars my expenses from the cameras i had to buy from the lights to the the studio equipment to me having the travel places and all these other things i had to do in order to facilitate the marketing to youtube the tick tock and etc right it cost me 50 000 in expenses which means that out of my 150 000 spent 50 now that means that i'm netting about a hundred thousand right i'm netting 100 grand here that's my that's my take home okay now that i'm netting 100 000 here now let's talk about the tax side and by the way this is a simple example again simple there's a lot of more there's more variables that go into this and that's why you want to talk to a cpa or a tax professional or an attorney because i'm not going to go into every variable here i'm only going to state the simple the simpleness of it so you understand how this works okay now i'm netting 100k now that i'm netting 100k guess who guess who now wants their money right uncle sam he's like hey i need my cut before you keep whatever's left so now uncle sam comes into play right now that uncle sam is here the first thing that you have to pay when you have your llc and your tax as a sole proprietor right um first thing you're going to pay is self-employment tax now let's break down self-employment tax now normally if you just transitioned over from working um from working at a job and you moved over into a business you probably saw that that f word that fica right you saw it on your paycheck right every time you got your check from your employer now normally when you were working at a job normally that that fica tax is split in half right so you pay half of the fica tax i believe 7.6 and then the employer pays the other 7.6 and from there now you pay half the employer pays half but guess what since you're a sole proprietor and you're taking on the entire business you have to pay the full uh you got to pay the full self-employment tax aka the fica tax which is medicare social security you got to pay 15.3 percent on your net okay you pay the whole thing now as the entrepreneur right so if it's 15.3 percent that i got to pay on my 100 grand that means that i got to cut a check for 15 300 right off of my 100k right 15 15 300 that's a lot of money okay it's a lot of money now of course you know you still made money that's great but now we got to start lowering we got to start figuring out how to minimize our exposures but you pay fifteen thousand three hundred well fifteen thousand three hundred on a monthly basis is one thousand two hundred and seventy five dollars a month and we were looking at it like having to write somebody a check every month you're writing a check for 275 to the government right what what could you be doing if that money was actually in flow like you kept that as cash flow to pay for advertising marketing and et cetera right but i got to write the checkout for 15 300. self-employment tax that i got to pay now after i'm done paying self-employment tax i'm not done there right government got a lot of ways to be able to get into my pockets here the next thing is federal and state taxes now let's just take me for an example on my person now or my personal tax return right well my tax return let's say that my taxable income is eighty thousand dollars that i that that's taxable income for that year if my taxable income is 80 grand let's just say i'm paying a total between federal and state oh by the way and i live in the city too philadelphia they pay i gotta pay city tax local tax expensive now on top of federal state let's say federal state local i'm not even taking into account other type of taxes that are out there let's say it's around about 25 uh 25 that i got to pay in tax on my taxable income well if i'm paying 25 on my 80 grand of taxable income that i have i gotta push out another check for about twenty thousand dollars right now that twenty thousand dollars is about one thousand six hundred and sixty six dollars a month as another check that i gotta write to the government on top of my self-employment tax that i gotta pay okay so when we think about that now my self-employment tax and my federal state local and other tax that could be out there that i gotta pay now ultimately overall for that year i had the right the government to check for 36 thousand dollars roughly 36k which comes out to be about 3 000 per month that i'm paying in taxes i mean i could think of a lot of ways that i could use the extra three thousand dollars to continue to grow my business right so when i think about that here this is why when i say you're not saving any money when it comes to taxes on the llc you're literally not saving any money in the next part of this video i'm going to be talking about how you can save money by electing as an s corp on how you can now save money on this piece right here this is the part where people talk about here's where you can save money on an escort they're talking about self-employment tax which i'll be talking about in a second self-employment tax as an s corp you can start to bypass some of those self-employment taxes to save yourself some money and keep it in your pocket and that's what we'll be talking about here in this next step all right now we're down to the fun part let's break down an llc that's taxed as a sole proprietorship llc tax is an s corp and really showing you the numbers from a tax standpoint right and then we'll get into when is it actually worth your time to be elected to be taxed as an s corp because there is a breaking point of when it's worth your time right because me as an entrepreneur taxes let's just take taxes away from this there's there's there's a there's a a cost of time right as entrepreneurs we we have time that we need to make money marketing et cetera right and then on top of that we're paying for attorneys and we're paying for tax tax professionals or cpas or if we have to pay state fees for our s corp then there's a certain amount of time that's involved to do all of these things which means that it needs to be worth my time to save that money by electing to be taxed as an escort which we'll talk about in that next part after that but let's break this down here um of why an s corp can be an advantage to those that are netting a certain amount of money so i i'm going to compare both here so you'll see llc taxes and that's uh sole prop and llc taxes and s corp and we're going to talk about both here so again we still got prince.now llc you all know that he prince.net llc i do marketing tick tock youtube all types of stuff right and um like i talked about in the last example same example here made a hundred and fifty thousand dollars in revenue right um 50 000 in expenses i netted 100k now my llc is taxed as an s corp over here same thing 150 000 in revenue 50 000 in expenses and then i net it 100k same examples here on both sides on both both sides of the tax now remember as an llc tax is a sole prop remember you're paying a self-employment tax on the entire net of the 100k okay self-employment tax uh medicare social security 15.3 percent you're paying 15 300 a bill that you got to pay to the government right and then remember let's say to my taxable income when uh when that money passes through to my personal tax return let's say that my taxable income is eighty thousand dollars but now on my taxable income of 80 000 i got to pay federal taxes state taxes local taxes i'm here in philadelphia and other there's other taxes that could be involved as well so let's just assume that i'm paying about 25 between federal state local and other tax then let's say it's 20 grand that i got to cut out to the government as well well okay that means total between self-employment tax in my federal state local and other taxes i'm paying about 36 000 for that year in taxes that's about 3 000 a month like we talked about in the last part of the video that's a lot of money okay and i could think of like 50 different ways i could use this money right here okay so that's that's being taxed as sole proprietor you're not getting any savings here on the sole proprietorship no savings right but again like i told you on the earlier part of the video that's okay if you're just starting out and you may not be making a lot of profitability remember this is on netting 100k if you only net in 1520k 30k then slow your roll for a second and i'll talk about that you're still you're still gearing yourself up okay now let's talk about llc taxes in escort but the same example where i netted 100 000. here's the difference with the s corp and where the tax savings comes into play that you've heard all over the internet with that hundred thousand now remember on the sole prop side i'm paying self-employment tax on the entire 100 000. here's the difference with the s corp the difference with the s corp is that i am able to control how this hunt how this 100 000 is paid okay now i have two ways that i can pay out this 100 000 in net income that my business made the first way that i can pay it out is to a reasonable salary and the second way i can pay that out is through a distribution let's talk about both right now i'm i'm sure that y'all know that when you're an llc as an uh sole proprietor you're not you're not you're not paying a salary as an llc that's so sole prop there's no salary involved right you just write yourself a check but you don't there's no payroll system for you as the actual business owner the lsu the sole prop when you're taxed as an s corp you actually become an employee now of the company of your own company you're an employee you have to pay yourself a reasonable salary now which i would suggest going to a payroll service in order to do that please do that because if you don't and you're just writing yourself now you're going to have other tax situations in the future go with the payroll service uh run your reason run your salary through there so that they can already take the taxes and everything out so you don't have no problems you get yourself a w-2 at the end of the year you want that trust me don't be like me in the past but i'll learn from that mistake okay now you have to pay yourself a reasonable salary what is a reasonable salary well if you look up on the irs rules they have certain they have certain rules around what a reasonable salary is it can be based upon expertise how much money the business generates um uh the the economy where you're low it's a lot of things that are involved in this okay when it comes to reasonable salary that's why you want to talk to a um a legal or a financial professional to be able to discuss what a reasonable salary is based off your business i'm just giving you an example here now the example i'm going to give you is i'm going to say out of this 100 000 in net i only want i want 50 of that to be paid out as a reasonable salary to me so i'm going to take a salary of 50 000 and i'm going to have the other 50 000 being paid out as a distribution to me the distribution is still going to come to me i just wanted to be done differently and i'll talk about why the reason why is because on your reasonable salary of fifty thousand dollars you have to pay self-employment tax on that reasonable salary okay so now that i'm only taking a salary of 50 000 my self-employment tax that fifteen point three percent instead of it being fifteen thousand three hundred dollars that i'm paying on a whole on the entire 100k i'm now only paying seven thousand six hundred fifty dollars in self-employment tax because my salary is only fifty thousand dollars you get it fifty thousand fifteen point three percent seven thousand six hundred fifty dollars in self-employment tax instead of fifteen thousand three hundred because the entire one hundred grand i'm breaking it up into reasonable salary now what happens to that other fifty thousand dollars in net i'm paying it to me as a distribution that's one of the advantages of having an s corp you can pay a distribution to yourself that distribution that you pay to yourself there is no self-employment tax on the distribution so now that there's no self-employment tax on the 50 on the distribution i'm getting the 50 000 bypassing that 15.3 percent in tax i still have to pay of course the federal state local and et cetera taxes on that 50 000. i'm bypassing that 15.3 though that becomes expensive to me over time as i start to make more money so now no uh no self-employment tax on that other fifty thousand zero dollars in sc tax so now i only had to pay seven thousand six hundred fifty dollars because i distributed it out now i know what you're probably saying to yourself well don why don't i if i can bypass the self-employment tax of the 15.3 percent why don't i just pay out my entire amount as a distribution i know you're probably thinking that as an entrepreneur because look i would think the same thing 15.3 i've paid out of the distribution trust and believe me the irs keeps a very close eye on that and that's why they say reasonable salary because if you start paying if you try to abuse this rule and out of this hundred thousand you say you know what i'm only going to take a reasonable salary of 10 of 10 000 or 10 percent of this and the other 90 is going to be a distribution i can guarantee you're going to get flagged almost guarantee it you don't abuse this here right so i say 50 50 there's others online that say 60 40 right some people it depends talk to your talk to a professional right but you want to make sure that it's a reasonable salary i'm going 50 50 and i'm being modest here okay don't abuse this rule they put this in place for a reason because they know people are going to try to bypass and pay out an entire distribution of themselves to bypass the 15.3 percent in tax right so that's the reason why as an entrepreneur don't try to get don't try to do any funny business here right 50 50 goes reasonable the other 50 goes distribution cool i'm able to bypass now if we talk about it from a savings perspective now remember between my fifteen thousand three hundred dollars that i'm paying a self-employment tax on this entire 100k plus that 25 percent that i'm paying in federal and state taxes i'm paying about 36 thousand dollars over here as an llc that's taxes as a sole prop but now since i'm in s corp i'm only paying seven thousand six hundred fifty dollars in self-employment tax and i'm bypassing the self-employment of that other fifty thousand and i still gotta pay my federal and state taxes right which is still gonna be twenty thousand dollars over here same thing but the difference is now instead of me paying thirty six thousand dollars i'm actually paying about twenty eight thousand dollars in taxes on this side so now that i'm only paying 28 on this side and i'm gonna write this down [Music] now that i'm only paying 28 on this side instead of actually paying 36 on this side now when we talk about that i'm saving myself about 8 000 in total amount of taxes for the year which comes out to be a bit of an advantage for me at that point now i know what you're probably saying now okay well don what's the breakeven point for me to move from an llc as a sole proprietor what's the difference between me being where is that breaking point to move from here to s corp and now i want to break down the breaking point because there are a few different breaking points here of when you should move what your profits should look like the main point of when you decide to move is based on what your profit looks like and there's another factor that i want to talk about which is your time in conclusion now when is it time to break out from an llc that's taxed as a sole prop and to move into an escort what's that net profit that that we want to get to in order to do that well i gave two examples so we can show this right now let's say that you're watching this video right now and you're somebody that has a net profit of about 30 000 okay your net is about 30. so total if if you were to be paying self-employment tax because you were an llc tax as an s corp your self-employment tax would be four thousand five hundred ninety dollars right if you were so proud as an llc but if you decide to move into an s corp and you were only netting thirty thousand dollars let's see how that work out for you well first things first like we talked about in the last part of the video we're just going to do a simple 50 50. 50 of that net profit goes towards reasonable salary the other 50 goes out as a distribution well okay cool if we do that then that means my reasonable salary is fifteen thousand dollars my distro is fifteen remember i'm only paying self-employment tax on a reasonable salary i'm bypassing the fifteen point three percent self-employment tax from the distro okay so now at this fifteen thousand dollars that i'm being uh fifteen thousand i'm being taxed at fifteen point three percent now that means that my total savings for my self-employment tax is only two thousand two hundred ninety five dollars so instead of me paying four thousand five hundred ninety as a sole proprietor i'm saving now 2295 by distributing the other 15 000 to me and bypassing self-employment tax right so i got a 2 295 savings by moving to s corp if i was if i netted 30 000. that sounds great in theory but now let's talk about that 2 295 savings that's supposed to go in your pocket right that 2295 was supposed to go in your pocket and it's supposed to be used for operations to to be able to market and do different things right so it needs to be worth my time to move to an s corp well at this 30 000 here's this 2295 savings well let's talk about it now let's say that i have state fees that i got to pay if you have an s corp you got to pay state fees depending on what state that you're in depending on the price if you're in the state of california man you got to pay like about 800 in state fees right so when we think about that now let's say that your state fees are five to eight hundred bucks to maintain this s corp every single year okay that's one fee i gotta pay let's say that i got i got to pay my attorney and my cpa well if you got an s corp i would always recommend paying your attorney or your cpa or tax professional because guess what you have to you have to uh file the right type of tax returns you got to make sure that your documents are up to date like that's not a game here so you need to pay you need to put an attorney in a cpa or tax professional in this mix let's say it cost me a total of two thousand dollars in order to pay my attorneys cpas and different things that i need to year to year to get this up up and going because remember time is most valuable to you you're not an expert at this stuff so i wouldn't suggest you to try to figure this out and then get in trouble at a later time so you need these people and then the most valuable well before we even talk about time just between state fees and your attorney and your cpa you've already done spent that entire savings just on this here you already spent it so technically speaking at a 30 000 net profit you really didn't even get a savings because you just put the money back into somebody else's pocket and on top of putting the money back into somebody else's pocket now you also wasted a lot of your time too as opposed to moving to an s corp instead of keeping it as an llc tax as a sole prop and kept it very very simple right you had you kept it more simple you would have had more time to make money now that you've added a little bit more complication and complexity to this now since you're an s corp now your time so now not only did you not get the savings here on top of that you just wasted time and time mean time means money when you're an entrepreneur now you don't lost you actually lost money by moving over to an s corp if you only needed 30 000 you really kind of almost lost money in a sense or broke even but there's no break even when your time is associated with that as an entrepreneur there is no break even my time is super valuable every minute that i'm thinking about my business instead of thinking about the craziness of an escort and all the things that go on man i make more money right so at 30 000 it's probably not probably it's not worth it so if you're an entrepreneur that makes 30 000 in net or less stop listening to the internet telling you to move over to an s corp because you're going to get yourself into a lot of you're going to get entangled and we don't want that to happen stick with the llc right now focus on making money focus on having some net profit and growing your company that's what i want you to focus on right now and then make sure you still hire a tax professional that can go ahead and make sure your taxes are filed each and every year gets you the proper deductions all that good stuff yes of course but if you only netted 30k or less then your business is not at the size yet to go escort that's fine you're right where you need to be right now keep making money keep netting some profitability and keep growing from here okay now for my people that are now doing 50 000 plus in net profit 50k plus i'm gonna use 60k as an example but if you're doing about 50k if you're doing about 50k net or more then that's when escort may start being a conversation for you to say you know what is it worth my time is it worth the savings to move into an s corp uh my llc being taxed as an escort is it worth my time now let's talk about that so i netted 60k now remember at 60 000 if i was just an llc that was being taxed as a sole proprietor at that sixty thousand i would have paid nine thousand one hundred eighty dollars in self-employment tax if i was a sole proprietor for my llc but now if i have my llc being taxed as an s corp okay great i'm going to do the same thing now 50 of that of that net is going to go towards my reasonable salary the other 50 goes towards distribution where i get a k-1 at the end of the year okay great my reasonable salary is 30 000 i'm only paying 15.3 self-employment tax on the reasonable salary i'm bypassing the 15.3 on the other 30 000 right that i'm getting cool that means that i have now a 4 590 tax savings now four thousand five hundred ninety dollar tax saving right net seating well now remember on the same side we're talking about state fees we're talking about attorney cpa your time that's associated well if i'm paying about five to eight hundred dollars in state fees and i pay about two thousand dollars to my cpa let's just say in total i'm paying about twenty five hundred dollars out well i'm putting twenty five hundred dollars out now you're talking about another two thousand dollars that's there in the savings after i'm done paying out but now it may start being worth my time at that point if i got a two extra two thousand dollars in my pocket now which comes out to be let's say uh uh an extra of 180 to 200 a month that extra 180 200 a month that i got now i can put that towards my marketing i could put that towards facebook ads i could put that towards a lot of different things over here i'm not getting anything i'm wasting my time over here i'm actually getting a net savings now after i'm done hiring the proper professionals and paying my state fees right so that's the reason why 30k is not um a good uh really for me this is just me not a breaking point for you at 30k once you start hitting 50 60k that breaking point becomes now uh it becomes better at that point it becomes worth your time and not to mention if you if you did 60k on the net odds are you're going to continue to grow each and every year from that point so maybe next year 70 80 and as you begin to make more net now at that point you'll start to see more savings and it becomes even more of your time that that that more savings now which now you can put into your pocket that's ultimately the goal so the entire point of this video here is that as an entrepreneur you have to make the right decisions for your business okay you got to make the right decisions don't take my word for it again don't take my word i'm giving you just my experience and with having a tax franchise and having a lot of tax professionals that are around me every single day cpas and etc and even with my experience you got to do what's best for you and you got to make sure you get the right people on your team that are going to give you the right information please do not go on instagram do not go on youtube and just say hey this guy john said get an s corp because it saves money on taxes and john didn't even he doesn't even understand your business he don't know how much profit that you make he don't know where you currently are in your business he don't know your responsibility level your organization level if you don't if he or she don't know none of that you shouldn't be taking advice from that person sit down with somebody first that's going to understand the business understand your numbers and crunch them to figure out if it's worth your time and i'll say this one more time to end out this video it's not just about the savings it's about your time as an entrepreneur i value your time i value my own time and even if there was a savings if my time is calculated into it and it's costing me more time-wise as opposed to actual money in my pocket i would never do it i'd rather just pay the bill and keep my sanity and my time right that's the goal because time makes money okay so that's the difference between llc versus s corp um when you should llc versus s corp reasonable salary versus distribution when moving to s corp and when is the breaking point of moving into an s corp and i hope that you have a profitable year i hope that you generate revenue i hope that you grow and expand so that one day in the future you can indeed move over to an s corp and even then if you need your taxes done you could come to jumping jack tax and we can assist you with that right but to in this out as an entrepreneur i just want to say congratulations to you for moving into business or if you haven't gone into business yet um congratulations in advance and i hope this video helps you right i hope it helps you to have a clearer mindset around it and i hope that you got the value system set in place to make sure that you're getting your information from the right places and that you're not just acting on decisions without understanding what you're doing entrepreneurship is hard you have to be responsible you have to be organized there's a lot of bills there's chargebacks there's payroll there's taxes there's emergencies there's everything involved and you got to make sure you keep your head on the swivel but people that are professionals can help you right so make sure that you do that guys this is llc versus escort what's the difference does it save you any money in taxes please like comment subscribe post this on instagram twitter and have other people watching other business owners aspiring entrepreneurs and i hope i was able to help you see you next video peace

Channel: Prince Donnell

Views: 416,860

Keywords: prince donnell, dana chanel, jumping jack tax, taxes, man, men, discipline, supression, ron vann dam, masculinity, femininity, manhood, million dollar life lessons, financial literacy, man cave, sprinkle of jesus, earn company, alakazam apps, telsa, investments, finding customers, qualifying customers, good customers, customers for business, business, customers, customer data, data, LLC, SCORP, business taxes, LLC vs SCORP

Id: eeTfuwb802k

Length: 37min 0sec (2220 seconds)

Published: Mon Mar 08 2021