When NOT to have your LLC taxed as an S Corp | Sole Proprietor vs. S Corporation
In this video I discuss 4 scenarios when you should NOT have your LLC taxed as an S Corporation. Specifically, I discuss:
1. How much profit should you be earning before the S Corporation election makes financial sense. Detailed Video discussing when an S Corp make financial sense: https://youtu.be/QFYFGfHOuwI
2. How large amounts of W-2 income can negate the tax savings of an S Corporation. Detailed video discussing W-2 and small business income: https://youtu.be/1kufkdonBEU
3. What happens when your state doesn’t recognize the federal S Corporation. Detailed video on cities and states that tax S Corporations: https://youtu.be/f89yMwDzzTU
4. Why passive income, such as buy and hold rental real estate, should not be taxed as an S Corporation. Detailed video on how passive income is taxed: https://youtu.be/kg2t2Y-xdmc
Take what you learn from this video and ask your legal or tax professional all of your specific questions. If you want to contact me, my information is below.
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Email: navi@navimarajcpa.com
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This video was created for informational purposes and it is not to be construed as legal and tax advice specific to your unique situation.
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#LLC #SCorp #Taxes
