๐Ÿ’ฐ When NOT To Have Your LLC Taxed As An S-Corp

When NOT to have your LLC taxed as an S-Corp

1. How Much Profit Should You Be Earning Before the S-Corp Election Makes Financial Sense:

Detailed video discussing when an S-Corp makes financial sense:

When does an S-Corp make financial sense for your business?

2. How Large Amounts of W-2 Income Can Negate the Tax Savings of An S-Corp:

Detailed video discussing W-2 and small business income:

What happens when you have a business and a W-2 job? Does S-Corp still make sense?

3. What Happens When Your State Doesn’t Recognize the Federal S-Corp:

Minnesota recognizes the Federal S-Corp: Link

If you filed federal Form 2553 with the Internal Revenue Service (IRS) to elect to become an S corporation, you do not need to file a similar form with Minnesota. Minnesota automatically accepts your S corporation status once approved by the IRS.

Detailed video on cities and states that tax S-Corps:

Does your state or city tax S-Corps? If so, does it still make sense?

4. Why Passive Income, Such As Buy and Hold Rental Real Estate, Should Not Be Taxed As an S-Corp:

Detailed video on how passive income is taxed:

Why rental property income should not be in an S-Corp

๐Ÿ’ฐ 5 Reasons You Want to Be An S-Corp

5 Reasons You Want to Be An S-Corp

1. You Will Pay Less Taxes:

We all have to pay personal income tax. However, as an LLC, you will pay an additional 15.3% self-employment tax on top of that for any net income that you have for the business.

Once you turn into an S-Corp, and become a payroll employee of your own business, some of your self-employment taxes just dissolve. Simply by shifting half of your self-employment tax liability to the business as an expense, instead of treating it as an income, you get a lower tax rate.

You also won’t have to pay the big quarterly tax payments, since as an S-Corporation, most, if not all of your tax liability, is held every month through your monthly and even quarterly tax withholdings.

2. You Get Amazing Benefits:

Check out Formationscopr.com/blog regarding this.

By running your health insurance and retirement benefits through your S-Corporation company payroll, for yourself, you knock down your net income considerably, and at the same time, create more tax savings, through the form of deferred compensation and 401k.

3. You Protect Yourself:

As an S-Corporation, this division between your personal finances and business activity gets set in stone. Being an S-Corp is a signal to the state and federal agencies that your business is a fully-fledged entity that should be treated as different from other personal financial activity, further protecting you from audits, legal judgments, and other things that might occur.

4. You Earn Credibility:

A corporation is a more trusted source for commercial activity these days than an individual. By becoming an S-Corp that is registered and licensed by state and federal authorities, you are communicating you are a serious business with real services to offer.

5. You Are Less Likely to Get Audited:

As an S-Corp, you are 4000% less likely to get audited by state or federal agencies than a Schedule C. Such a reduced risk simply by filling 2553 form and properly managing your S-Corp financials.

๐Ÿ’ฐ S-Corp Indices

  1. ๐Ÿ’ฐ 5 Reasons You Want to Be An S-Corp (08/26/20)
  2. ๐Ÿ’ฐ When NOT To Have Your LLC Taxed As An S-Corp (11/16/20)
  3. ๐Ÿ’ฐ Beginner’s Guide to Running an S-Corp (11/08/22)
  4. ๐Ÿ’ฐ Questions to Ask During My Meeting (Protected) (11/08/22)
  5. ๐Ÿ’ฐ The 5 Reasons Why Self-Employed Professionals Incorporate Their Business (11/09/22)
  6. ๐Ÿ’ฐ LLC vs S-Corp (08/14/20)
  7. ๐Ÿ’ฐ S-Corps and Self-Employment Taxes (09 Mar)
  8. ๐Ÿ’ฐ 10 Frequently Asked Questions About Business Expenses (28 May)
  9. ๐Ÿ’ฐ Business Use of Home (18 April)
  10. ๐Ÿ’ฐ Formations Business Spread Sheet with Home Office and Auto (11/18/22)
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๐ŸŒบ The Ancient Moon Shines Upon the Present Ashes

This Mandarin Taiwanese Song, translated as “The Ancient Moon Shines Upon the Present Ashes” speaks of the fall of the Republic of China (that retreated to Taiwan in 1949), and how we will rebuild our country again. It makes me think of my marriage and my life in general…

ๅคๆœˆ็…งไปŠๅกต ~ The Ancient Moon Shines Upon the Present Ashes

This song speaks that every night, we look at the moon that has been around since ancient times, shining down on the ashes of the earth, yet not realizing how much history lies within these ashes. How many dynasties and empires have risen and fallen in these ashes? Does anyone know? Does anyone care?

I gave it my all for this marriage. I put in my blood, sweat, tears, commitment, and love into this marriage for 15 years. My empire has fallen. It has now been burned to the ground and all that is left are ashes of this earth. Does anyone know? Does anyone care?

I CARE!!! I AM REBUILDING MY EMPIRE AGAIN, ON MY OWN!!! Only someone that is worthy of me will ever be accepted into my empire again! If not, then so be it!

ๅคๆœˆ็…งไปŠๅกต ~ The Ancient Moon Shines Upon the Present Ashes – Alternative Version (Taiwan ~ probably 50 years ago)

ๅคๆœˆ็…งไปŠๅกต

The Ancient Moon Shines Upon the Present Ashes

~ ๆ–‡็ซ 

ไธ€้ƒจๆ˜ฅ็ง‹ๅฒใ€€ๅƒๅนดๅญค่‡ฃๆทš

A history of Spring and Autumn, the millennial tears of lone courtier.

ๆˆๆ•—้›ฃ้•ทไน…ใ€€่ˆˆไบกๅœจ่ฝ‰็žฌ้–“

Victory and failure are scarcely permanent, the vicissitude changes fleetly.

็ธฝๅœจ่Œถ้ค˜ๅพŒใ€€ไพ›ๆ–ผๅพŒไบบ่ชช

Always chatted about, by posterity after tea;

ๅคšๅฐ‘่พ›้…ธใ€€ใ€€่ฉฑๅ› ๆžœ

So much misery tells the cause and effect.

็™พๆˆฐ่ˆŠๆฒณๅฑฑใ€€ๅคไพ†ๅŠŸ้›ฃๅ…จ

In the hundreds of wars of the country in olden days, honor was hard to be achieved since ancient times.

ๆฑŸๅฑฑๅนพๅฑ€ๆฎ˜ใ€€่’ๅŸŽ้‡ๆ‹พไฝ•ๅนด

However many times has the land been separated? Whatever year can be rediscovered in the ruined town?

ๆ–‡็ซ ๅฏซไธ็›กใ€€ๅนฝๅนฝๆป„ๆก‘ๅฒ

No articles can record the whole vicissitude.

ๆ‚ฒๆญกๆญฒๆœˆใ€€ใ€€็›ก็„กๆƒ…

The days of sorrow and joy, are all ruthless.

้•ทๆฑŸ้•ทๅƒ้‡Œใ€€้ปƒๆฒณๆฐดไธๅœ

Thousand-mile long the Yangtze River, unceasingly running the Yellow River.

ๆฑŸๅฑฑไพ่ˆŠไบบไบ‹ๅทฒ้ž

Country as before, but the people not,

ๅชๅ‰ฉๅคๆœˆ็…งไปŠๅกต

Only the ancient moon shines upon the present ashes.

่Žซ่ฒ ๅค่–่ณขใ€€ๆ•ˆๆญทๆœ่‹ฑ้›„

Don’t disappoint the past sages, and emulate the heroes of each era.

ๅ†้€ ไธ€ๅ€‹่ผ็…Œ็š„ๆผข็–†ๅ’Œๅ”ๅœŸ

Rebuild a country as mighty as Han and Tang Dynasty.

ๅ†้€ ไธ€ๅ€‹่ผ็…Œ็š„ๆผข็–†ๅ’Œๅ”ๅœŸ

Rebuild a country as mighty as Han and Tang Dynasty.

Source(s):

Lyrics Translate: Link

๐Ÿ’ญ Thoughts for November 2022 ๐ŸŒบ

Thoughts for November 2022 Lotus Soul
  • Theme for the Month:
  • Welcome New Friends and New Experiences!
  • Affirmations for the Month:
  • I am open to all new possibilities!
  • I am allowing my blessings to come to me!
  • I have everything I need to move forward!
  • Wednesday (11/02/22):
  • ๐Ÿ˜† I am welcoming new friends and new experiences into my life each and every day! I rode a Harley on Monday and it was so much fun! On to the next shiny object!
  • ๐Ÿ˜ I received my mom’s care package this afternoon. She gave me two very expensive healing items, some little stuff that you can only get from Taiwan, and she packed the extra space with yummy probiotic gummies! Thank you, dearest mommy! I Love My Family So Much! I AM so Blessed to have such a loving family that has supported me all my life. I Love You So Much! You Are My Rock! You Rock!!! โค๏ธ
  • ๐Ÿ˜ƒ I am starting to enjoy my new life with my newfound freedom! My cage door has been permanently dismantled now! I do not have to answer to anyone. I can do whatever I want to do! I can come home whenever I feel like it, at whatever time I want to. I only have to clean up after my own mess! FREEDOM!!!!!! ๐Ÿ•Š๏ธ
  • Saturday (11/12/22):
  • I finally confronted him today for all the harm he has caused me.
  • I had been going through trauma bonding and having flashbacks all this time.
  • It’s time for me to heal from what he did to me.
  • Thursday (11/17/22):
  • Getting my life organized.
  • Planning until January 2024 for now.
  • Friday (11/18/22):
  • ๐Ÿคข I’ve been feeling like throwing up since the beginning of this week right after I eat breakfast (small, not a heavy breakfast), hope everything is OK with my health.
  • and, No, I’m not pregnant. Zero chance of that.
  • I finally decided to put on my heart monitor (which I was supposed to do after I passed out at the beginning of this year), to make sure that I don’t have any heart-related issues that caused me to pass out back then. However, I found yesterday that it expired in June.
  • Good thing I called the company just now and they’re going to send me a replacement one.
  • After I put on the replacement heart monitor, I need to: a. wear it for 2 weeks (24/7) constantly. b. no showering for the first 24 hours. c. no long showers. d. no baths. ๐Ÿ˜ฐ