Which Business Type Saves You More on Taxes? (LLC, S-Corp, or C-Corp?)

Key Takeaways:

1. LLC vs. S Corp vs. C Corp = Different Tax Rules Think of your business like a costume—it can dress up as different types (like LLC, S Corp, or C Corp). Each costume changes how much tax you pay and how your money is handled.
2. How You Pay Yourself Matters If you run your own business, you can pay yourself like a worker (salary) or take money out like an owner (distribution). Each way has different tax effects, so you want to choose smartly.
3. Keep Up With the Rules Tax laws can change, kind of like rules in a game. You need to know the current rules to keep winning, but don’t get so caught up in the future that you stop growing your business today.
4. Plan Your Income and Deductions If you know how much money you're making and spending ahead of time, you can use that info to lower how much tax you owe. That’s called “strategic planning,” and it saves you money.
5. Think Big Picture With Your Finances Taxes are just one part of your business. To really succeed, you need to look at everything—how much you make, spend, save, and grow—like one big puzzle.

Chapters:

Timestamp Summary

0:00 Strategies for Entrepreneurs to Minimize Taxes Legally

1:39 Choosing Between LLC, S Corp, and C Corp for Business

4:27 Understanding Tax Implications of Paying Yourself in Different Business Structures

6:25 Strategic Tax Planning for Business Growth

8:32 Strategies for Managing Year-End Business Expenses and Taxes

9:26 Big Picture Strategies for Business Finances and Investment Advice

 

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Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.