@melissa.san.roman: Two mistakes LLCs make when paying themselves: 1️⃣ Placing Owner Draws as Wages Instead of Owner’s Draws: Many single-member LLC owners mistakenly classify the money they take from the business as wages or salary, which is incorrect. Owner draws are not expenses and should not appear on the Profit & Loss statement. 2️⃣ Assuming No Taxes Are Due if Profits Are Left in the Business: Some LLC owners believe they won’t owe taxes if they leave the profits in the business without taking a draw. However, with a single-member LLC, the owner is taxed on the business’s profits regardless of whether they take money out or leave it in the business. Remember, a single member LLC with no S Corp election is treated as a disregarded entity in the eyes of the IRS. #entrepreneur #businessowner #SmallBusiness #llc #smallbusinesstips #businesstips #businessfinance

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Melissa San Roman

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Monday 09 September 2024 20:51:47 GMT

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Joey :

This is exactly why the trend is away from LLCs and back to S Corps for non passive activities

Money Pit Motors :

How do I change from this type of LLC to S Corp, is there a specific time I need to do this ?

Kc_LuxuryAutoWholesaler :

When you try to buy a home do you show your business income or do you need to pay your self to show your income or can you use your business income to buy home

Kevin Schafer :

I did this through taylorbrands and used my parents address for this process but working from home I want to see if I can have a rundown on a checklist of operating

Dawn Thunder Ranch :

So that’s why you make a trust and have your business owned by the trust. Correct?

Harry :

means I have to pay 3 tax😂😂 state, federal n IRS

Ensentech :

how does it work for partnerships? I just started one. ran a single LLC prior

🤍Miāni🩵 :

I’m starting a sensory-friendly year-round brand & a nail care brand and I’m wondering what setup you would recommend. What’s the best structure for these types of businesses?

Mike Merrill :

So I’m going through this right now. I set up a single member LLC as the owner of another LLC. My assumption is income to my single member LLC just flows to schedule C. There are 0 employees.

JB :

I’m a sole proprietor. How does putting is as equity help exactly. I pay less in taxes?

ROKS diesel :

I’m one and the same. Send what I want.

🤍Miāni🩵 :

I paid for two LLCs in Virginia back in 2022 but never received them. Now I’m about to restart should I get my LLC in Virginia again? I think it’s $50 a year to maintain.

Corey Taylor :

wanna do my taxes this year?

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