Which Option is Best for YOUR Small Business: LLC, S-Corp, or Neither?

Which Option is Best for YOUR Small Business: LLC, S-Corp, or Neither?

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as a reseller do you need to create an llc or  an s corp for your reselling business i am not   going to tell you because i don't know any of  that stuff but i have with me my friend day   so stay tuned to learn more hi everyone my name is becky park i am a  part-time reseller and i have with me my friend   day say hi day hello and we've been friends for a  really long time and even long no actually we've   been friends before you even were an accountant  i think so yeah yeah like you're friends with my   sister right yes i lived with your sister and  i knew you when you were working at express   wow so but since then he has added to his list  of credentials wow that was you didn't know i   was gonna bring that up wow okay so i'm gonna  have him share with you why he knows what he's   talking about when it comes to taxes when it  comes to llcs us corpse all that kind of stuff   and at the end too i'll share with you what i  decided to do for my reselling business and under   my business i also you know incorporate youtube  and affiliate marketing and all that kind of stuff   but i'll let you know because of his advice and  wisdom what i decided to do but why don't you   tell us a little bit about what you do sure what  your you know career has looked like since express   okay now you're gonna have to make me talk about  that okay so uh so just to bring clarity to the   situation i actually worked in public accounting  right out of college from starting in 2002   and actually after about seven or eight years  i went to africa and i came back and i had this   kind of period in my life where i was re  evaluating what i wanted to do and in that time   when i was evaluating i had resigned my full-time  position as an accountant and i worked at express   to pay the bills so that's why i was working  at express um but all in all i worked at a   public accounting firm in the tax department  for about 20 years i worked as a tax partner   for a couple of them and and i actually  resigned this past november and i recently   made a career change to do wealth management and  so currently i'm working in wealth management   as well as doing some taxes as well more of a  comprehensive approach to helping people with   their finances and i am apprenticing under uh  the chief investment officer right now and uh   in a couple years a retire and i'll succeed  him so that's kind of what i'm doing and   probably what i'll do for the next 25 odd years so  awesome so he knows what he's talking about he has   a lot of experience under his belt um and that's  the only reason why we're even trying to talk   about this topic on my channel because if it were  left to me like we would all collectively be going   to jail together because i have no knowledge to  share with you so what i did was on my instagram   i asked in my stories what questions you had about  llcs and s-corps and before we actually dive into   the questions that you all asked i wanted dave to  just kind of talk us through what even is an llc   and what is an s corp and then we'll start kind  of diving into you know which one makes sense   for your business do you even need one right now  like maybe the answer is like wherever you're at   in your reselling journey like you don't actually  need one for the time being so uh we're gonna talk   about all those things but first can you talk to  us about what is an llc and what is an s corp sure   um i think if i understand the reselling  business a little bit i would presume   most people are either a sole proprietorship which  is just basically you're operating under your own   name and social security number and you would  file on your tax return under the schedule c   and so that's typically how people would  start now some people have often asked   should i create an llc or an s corp and these are  just two different types of entities and an llc   which is short for limited liability corporation  and s corp is just as the name suggests it's an s   corporation and so these are just two different  types of entities that one can choose depending   on what your goals are what context you're in i  don't think there's a right or wrong answer per se   but one can choose between an llc and an  s corp if they would choose to want to   no longer be a sole proprietorship and actually  incorporate their business okay um maybe you   answered this already i had a little bit of like  an 80d moment in there but sure what does it mean   to incorporate your business yeah so i think uh  the main reason why or one of the main reasons why   apart from tax reasons or to incorporate is  to obtain some sort of legal protection and so   typically when you're operating as  yourself under your social security number   if someone were to bring a lawsuit against you  and i don't know in the reselling business if   there's any room for lawsuits so an example  that i've heard sure is for example if you ship   out something in those clear like cellophane  bags and let's say you know god forbid um   someone's like baby like grabs it and like  puts it i you know like there's some sort of   um like injury or something regarding like a  bag right so the protection would be for the   buy or for the seller if the buyer were to try to  open a lawsuit saying like because of this thing   that you sent me okay maybe something like that  yeah that's a great example so for example say   that situation happened and the buyer then wants  to press charges against you and so if you're   operating as a sole proprietor as a schedule c  under your own name and social security number   then they can bring the lawsuit against you  personally which means that now your assets   your personal assets are they have the ability to  uh get to those as well so that's like your home   your car right i mean just everything right  exactly and so the reason why people just from   a legal standpoint may choose to say hey i want  to incorporate and become an llc or an s corp   it's you create this entity where you  have created this buffer between you   as the seller as a business person individual  from the business and so if they sue you   they can sue the business the llc of the s  corp and your personal assets are no longer in place so to speak they cannot get to that  and so a lot of reasons why people would   incorporate is to create that buffer if you will  between the individual and the business itself   awesome so that's good clarity and then  again you may have talked about this but   what do you think is the biggest difference  between an llc and an s corp and are there   other entities that people with small businesses  or entrepreneurs could create for themselves   yes i mean there are but i would say these  two are probably the most popular and so uh   so to avoid you know going down this rabbit  hole of talking about all these crazy things and   jargony being all jargony i just want to focus  on the llc and escort because if you google it   these are the two main players that  everyone's always kind of talking about so   so i would say the the main difference is so  from a legal standpoint the two are the same   whether you're an s corp or you're an llc you  still enjoy the legal protection so that's   similar i'll talk about the pros and the cons so  in llc one pro is the fact that there are no not   as much additional administrative costs meaning  typically in a reseller business i would presume   you don't have employees i feel like a lot of  people on your channel and i don't want to assume   but are probably just single member or just doing  it on their own on the side or full time and they   don't have any employees now they would typically  be what they many would call a single member llc   and they can just file on their personal return  on the schedule c like they normally would even   as a sole proprietor so meaning like why is that  different from an s corp if you're an s corp   you have to file a completely separate tax  return even if you're a single shareholder   and so from that perspective there are some  there are less administrative costs if you will   working in an llc whereas in an escort there  can be potentially greater administrative costs   because you're having to follow an additional tax  return you may have to run payroll you may have to   you know have another accountant so to speak  because obviously some of these things can   be pretty complicated so you have higher  um professional fees that you might incur   and so i would say those are that's  one difference when it comes to costs   whereas llc you probably don't have as much  administrative costs as as opposed to an s   court where you might incur some of that on  the flip side one of the things that an llc does is different than an s  corp is from the tax standpoint   and so you know for many of us we have a w-2   when we get a w-2 or when we get our pay stub  what we'll often times see is we'll see our wages   and we'll see how much our employer withheld from  our federal taxes and then we'll see what we call   what we typically would refer to as fico which is  social security and medicare who's fica why is he   getting all my money and that's 7.65 and so when  we're the employee uh when you and i get a w-2   half of that is our responsibility they take it  out of our paycheck and the other half 7.65 is the   employer's responsibility so they match that so we  put in 7.65 and then our bosses our employers put   in 7.65 right now in an llc what ends up happening  is you are both the employer and the employee so   what does that mean is that now you're on the hook  for both so now you're paying 15.3 percent because   you're paying 7.65 as the employer and 7.65 is  the employee and so that's what oftentimes people

choose to get taxes and escort from an llc because   when you take into consideration their income  tax and on top of that you have to pay the 15.3   self-employment tax that could be quite a  tax burden and so um whereas in an s corp   you don't have you're not hit with the  self-employment tax and so you know you may pay   yourself a compensation or a salary so you have  to pay some of that but some of the income can   be distributed out as distributions and i don't  want to get too technical here but that's why   an s corp can actually be more tax advantageous  after a certain income threshold and so i would   say those are the two differences specifically  as it relates to even from a tax perspective   the llc you're hit with a self-employment tax  whereas in an s corp that tax burden is just   not as great and so people do after a certain  threshold where i would say probably and this is   not black or white there's dyrus does not have  a rule on this but i typically would advise my   clients once you hit the net income range of 50 to  60 000 i would say it's probably worth considering   the escort route mainly because the tax savings  between i mean again like i mentioned before there   are more administrative costs than an s corp but  the tax savings that you get from being an s corp   far outweighs the potential additional cost so i  think it's worth considering at that point so yeah   yeah and that was definitely one of the questions  that someone asked when we get there i'll say who   asked the question and whatnot but that's good to  know so they're both good they both kind of offer   the same protections and do the same thing but  long term especially if you see growth in your   business and you know that you're gonna hit that  threshold that's maybe when it's a good time to   consider sure um kind of going back to something  that you said earlier too about how when you do   have an s corp there are probably going to be more  professional uh fees that you incur because now   you've got you know another tax return that you  have to file and whatnot sure um i know my answer   to this do you think that the average american  can file uh that like s corp tax return on their   own or is it better and smarter for them to hire  a professional to do that the average american   yes the average american i don't know who that who  falls into that category but um yeah i mean you   know to be honest i think if you are not confident  and sure of the fact that you can do it correctly   um i would hire an accountant just to do it and  it's kind of like you know sometimes we want to   save money and we want to do it ourselves but  we end up costing us more time stress and i've   said this to you before becky like quite frankly  some of the time that you or someone may devote to   trying to figure out their taxes trying to figure  out their finances and and whatnot a lot of times   not only just the time but the emotional toll  that it takes like you can really channel that   to growing your business you know and you  can make more money in that in the meantime   that can actually even pay off the cost of doing a  you know hiring an accountant so you know i think   like there's this notion that hey i'm to save  money by doing it myself but it's kind of like   a lot of times you know i do this even at home  right i'm just i'm like yes i am the cheap asian   and so like the reality is if something breaks  in my house somewhere in my mind i feel like i   can do it and what ends up happening is i do a  shoddy job and it makes it eventually over time   it breaks or wears out and it's worse than it was  before and then i got a higher set professional   and just dole out the money and so but the one  thing is i know that it's done well i know it's   done right i know that it's the problem is fixed  so in the same way there's a you know i think   there's just a comfort level that when you hire an  accountant they know what they're doing um they're   signing their name and so there's a you know if  something were to come of the irs with a question   obviously like someone who's licensed has signed  off on it so i think you know there's just an   ability to just sleep at night knowing that you  know you have someone to kind of represent you   should something come up and i think you know as  we all know like the tax laws are ever changing   they're changing every day it seems like and  so even for accountants we have a hard time   tracking this oh my gosh what change what's  going through the legislation and so i just   think for the average joe or for the average  american um it would be rather difficult to   just keep track of all of that yeah and so i  would just advise unless you're super confident   i think it's worthwhile just to hire an  account and they just know a lot more   like nuances and ways that you can save money  and different things of that nature that   you know most people wouldn't know yeah you know  so yeah yeah this man i think we were like i think   it was just when we were filing for the entity  that i ended up going with and he was like oh it's   really simple like i was like i think i texted you  like eight times like but like what do i put here   like what is what is where do i find this for it  so you know it's it's definitely like you said i   think you're smarter so don't you remember  i think we were at a we're at a wedding   yeah i literally was looking over your tax  return on mikey's phone yes and yes with the   press of a button i think i literally saved  you guys like a couple thousand dollars yes   because because again i mean not to get all  germany but it was this notion of this qualified   business income deduction which is again very  technical that the average american wouldn't know   that you guys didn't know about it  and i remember just typing in a number   on his phone and it you know saved a couple  thousand dollars so yeah my point being you   know like you know many people go to school they  get licensed to do this stuff so they're able to   see things that most people can't so yeah oh mikey  was so happy that day yeah i'm sure he was all   right so what we're gonna do is i'm gonna ask you  some of the questions that i got from instagram   um before we do that i have a question that kind  of came up while you were talking okay um and that   was you kind of talked about things are probably  a little bit different if you do have employees   which okay like you said probably most of you  watching right now don't but in the event that   you do or in the event that you know eventually  you're gonna get there and that's your ultimate   goal is to you know have employees working for you  and on a payroll sure is there a better option llc   or s corp i wouldn't uh base your decision  on llc versus escort base whether you have   employees or not because i think either entity  choice classification you can have employees and   having employees in one or the other is not  any more advantageous than the other and so   i just think if you do happen to have  employees just know that there are   greater costs involved with that because  especially you know you'll have to file payroll   tax returns things of that nature you'll have to  register in different states depending on where   you're living and so i think just you know think  twice about having an employees but if you really   haven't and i think you know obviously part of the  business is having employees if you can scale your   business because of that then obviously that's  you know that's what you want uh another thing i   threw out there just for um just food for thought  is if you can i think another thing that would   be is uh worthwhile considering is rather than  having employees maybe having just independent   contractors there are very strict rules under  the irs as to what constitutes an employee   versus independent contractor and so there are  certain circumstances that if you like determine   when they come to work and what they do and where  they work and so if you have you know then they're   considered an employee whereas if you're a little  bit more relaxed on some of these rules and maybe   they can qualify as an independent contractor  and that is probably the easiest for you   as a business owner because you really just have  to pay cut them a check and then at the end of the   year just send them a 1099 and that's it so yeah  that's definitely smart advice especially if it's   yeah like i know a lot of people for example will  hire out editors for their youtube videos and it's   not a set like you need to work this many hours  a week and i need you to clock in and clock out   but it's kind of when i have projects  come up or when i'm feeling overwhelmed   i'm going to throw a couple videos your way yeah  um that it would definitely make sense to not   call them an employee and have all those extra  responsibilities that come with it okay that's   helpful i didn't know if there was one that  was like better not no not specifically as it   relates to like having employees i would say but  i would say again like the biggest driving factor   typically is is the tax as i mentioned before  it and i will want i do want to say this um   you can be an llc and eventually choose later on  to be taxed in an s corp and so say you're you're   someone who wants to have the legal protection  but maybe your income threshold is on the lower   end of the spectrum where you don't feel like it  makes sense to be an s corp then i would say yeah   just still incorporate an llc and then when you  get to that point you can file a specific form   with the irs uh it's a one-page form uh it's  called we'll we'll link it in the description i don't because ashley wheeler they actually  asked that exact question like is it easy to go   from being an llc to becoming an s corp yes um so  apparently it is one form we will have it linked   it's called an entity classification form and uh  we'll link it and yeah basically if you fill that   out you're basically letting the irs know hey i  was an llc but now i want to be taxed as an s corp   and obviously that would then trigger different  types of returns that you have to file and whatnot   but uh so there's that flexibility to start up  as an llc and eventually convert to an s corp so   awesome yeah okay let's get into some of your  questions sorry i just made the camera shake   but um and let me say too if at any point  you are you know thinking of more questions   as we're talking about things definitely leave  them down in the comments below even if you have   questions specific to like filing taxes as a  reseller i know i know absolutely nothing about   that topic but um day has agreed to come back for  more videos and so if you have questions for him   specifically centered around taxes or even this  like if you have more clarifying questions about   escort versus llc or whatever you can leave  them down in the comments below and we'll try to   address them the best that we can but i did have  some instagram uh people ask some great questions   mcdeals just said all of them they just have all  of the questions so hopefully we answer all of   them for you but tina kraft said where do i even  start to form an llc how difficult is the process   how long does it take are there forms that we can  link down below there's a good question there's a   couple of things that you have to consider one  there's a legal side of forming an llc and so   typically you would you know it's  called the articles of incorporation   and depending on what state you live some of the  processes might be different and my advice to   to you know whoever's listening would be you  know it's a one-time fee and i just think like   it might just be best to hire an attorney to do it  i mean it's it's probably a couple hundred dollars   and you know oh again again depending on what all  they do for you sometimes they do too much but   you know like i think the reality is when you  just want to start off on the right foot make   sure you know you cross all your eyes and hurt  all your eyes cross out your teeth you know   and make sure you have all these uh nuances  set up and so uh first of all so the legal   side you'd have to file with the secretary  or state of whichever state you're living in   and that's the website uh well again each website  would be different for your respective state okay   but in every state it is a website correct okay  it's not like you have to go to like a building   uh i guess no no no i don't think so okay but but  again if you're going through an attorney they'll   do that all for you okay yeah okay and so there's  a legal side and then you'd have to again file   an ss4 and we can link that on and that's just  you can apply online they give it to you pretty   much instantaneously and the fein is basically  short for federal employee identification number   and that would be typically what basically like  the social security number of the business and   so every business would have to have one and while  you're doing that it'll ask you are you an llc or   an escort what type of entity are you and so you'd  have to file an fein because that's what's going   to enable you to now open a bank account under  your business name they'll ask for your fein   and so you'll have to file an ss4 and then from  there that and then assuming you don't have any   payroll things of that nature that's what's going  to let the irs know what type of entity you are   and then if you choose an llc and you're a single  member llc obviously there are no additional tax   returns you need to file you just throw it  in on your person or turn on your schedule c   but if you choose to be an s corp the irs will  know that and then they'll expect the tax return   from you and so again so i would say just the two  steps would be the legal side with the attorney   secondly would be uh filing for the fein and we  can you know as you suggested we'll leave a link   below and then that's a one-time filing and then  later on when tax time comes you have to do the   annual tax return if you fall under that okay  so the fein is a universal it's the same website   for everyone yes it is an irs website where you  would go and apply for it and they'll ask you   just pretty general questions so okay um so  kind of piggybacking off of that you mentioned   when you have your fein that's what you can use to  create a bank account for your particular business   sure are there other things that you suggest like  putting under the umbrella of your business so for   example i don't know like credit cards or just  yeah what i would suggest is um as much as you   well not even as much as you can like i would  make it best practice or common practice to   uh have everything separate you know meaning  like you know have a business checking account   have a business credit card run everything  related to the business through those   through those means uh you know i've had so  many times where people would you know at a   convenience use their personal credit card for  business and vice versa and you know come tax   time it just becomes a mess and there's two things  that ends up happening one is sometimes you can   miss out on deductions on tax deductions because  you put it on your personal credit card and you   forgot and so you know that's obviously um you  know that's you missed out i mean you could   have obviously lowered your taxes or secondly  what ends up happening is because it's so much   work to piece everything together you know it ends  up costing the person a lot more money so if you   just put all your business stuff on your business  credit card checking account keep it there and   all your personal stuff separate that would make  life easier for you in terms of tracking it making   sure you have an accurate uh you know accurate  activity make sure the other numbers are right   and it's i think will come tax time it's  just a lot cheaper for the account to   make sense of all the numbers so yeah yeah  okay good um so west coast girl 32 asked a   question that i think you already answered which  is what if you are still a small full-time seller   do you still need to start an s corp and your  answer was kind of yeah again when you say small   i don't really know what that means but i think  as i suggested before i would say probably like   when you're right around the net income number of  50 to 60 000 that might be a good time to just you   know think through hey should i be an s corp or  not you know but if you want the legal protection   because of the potential losses that might  happen in the reselling business which   again uh i don't know how much there is but  then i would say maybe just start off as an llc   in the meantime and then give yourself that  buffer between you and the business so that   you know you have that protection and then later  on as you grow your business then you can you know   elect to be an s corp so savannahfarin3 asked what  happens if you elect an escort tax status too soon   so what if you're making ten thousand dollars  right in that a year but you're already an s corp   what should you do if you're gonna elect to be  an s corp too soon i would say just keep it i   mean depending on if you're gonna continue to  grow eventually you might grow to a place where   you know well or being an escort is advantageous  now now if you're in a position where you feel   like you won't ever get to that place then  i would definitely consider perhaps maybe   filing a final s corp return and then just  filing as an llc because that's when again   the the the additional admit administrative  costs of finding an additional tax return   may actually exceed the potential tax savings  because when the income is not high enough the   tax savings may be relatively small and so  maybe even smaller than the cost of doing an   additional tax return so in that sense then you  may be losing out and so for savannah fahrenheit   uh if depending on what your future outlook is  on your business i would definitely consider   keeping it if you feel like it's going  to grow to a place where it makes sense   from a tax standpoint but if you think you're  kind of going to stay at that level and   maybe not then you know i think it would be worth  considering just filing a final tax return for the   s corp and then just filing as an llc and that way  you still have the legal protection but you know   you wouldn't you'd be coming out ahead because the  tax savings would be still you know less than the   additional cost of finding an additional return so  and if you were to flip-flop from an s corp to an   llc same process as what we talked about earlier  if you're trying to go from an llc to escort   yeah so i think if you're going to be a s-corp and  then you're going to file a final return you have   to file a final return and just liquidate  the business and then you would have to   probably just re-start as an llc okay yeah  which kind of takes me into my next piggyback   question about that let's say you're just done  reselling or you're done kind of running yourself   i wanna i wanna take this back okay let me just  take a step back i believe if you start as an llc   and you decide to be an s  corp you elect to be an s corp   and now you decide you no longer want to be taxed  in escort i believe the llc has a flexibility to   go back to you know okay however i believe if you  start as an s corp you don't have that latitude to   go back obviously you go back to nothing because  you started as an s corp so so i do want i think   that that that makes sen i think that's the nuance  there if you start as llc elect to be an s corp   and you decide you know what i don't want to i  do believe there's a the flexibility to go back   whereas if you start off from inception as an s  corp you might not have that flexibility so so   when you say you can go from llc to an escort  you're keeping your same fein correct correct   everything stays the same it's just you're just  same name same everything just electing to be   taxes in a school all right um so ashley wheeler  of eight also asked what's the main benefit of   doing an s corp over llc which you kind of talked  about it's the tax savings if you're earning over   a certain amount correct um i think this is a  really cool question because i don't think about   it like this but i think very business-minded  people think about it like this in terms of   as resellers or whatever small business you  have the idea of like paying yourself of like   giving yourself a salary or whatever sure so  the question is do you pay yourself the same   or differently between an llc and s  corp it is a different scenario and so   the llc when you follow as an llc the net income  that you make that's all considered you paying   yourself which is why that whole amount your tax  on that for social security and medicare so that   whole amount is kind of like your w-2 so to speak  now in an s-corp it's not and so as an s-corp you   have to you know pay yourself for reasonable  compensation now maybe the business makes 150   000 this year right and you decide uh you want  to pay yourself a salary of 50 then that's what   you do and then you pay the social security and  medicare under 50 000 right and so in an escort   you have the latitude to decide what would be  considered reasonable compensation to yourself and   pay yourself okay whereas and the other remaining  amount of money is considered business income   whereas in an llc you are the whole net income  amount is considered like your w-2 that's that's   where you know the tax savings come in okay  so i want to make sure i'm getting this right   so everyone has to file a personal tax return  correct so when you are filing as an llc right   it's kind of it's all kind of intermingled in your  personal taxes correct when you have an s corp   if you make a hundred thousand dollars in net  profit in any given year you get to say to the irs   but i only paid myself out of that hundred  thousand net fifty thousand dollars right so for   that fifty thousand dollars that you said you  paid yourself is going to show up on your personal   tax return and that's what you're going to have to  file and claim or whatever and then the other 50   that you did not pay yourself is what your  business is getting taxed on correct so okay so   so in your example say you  made a hundred thousand dollars   um before you pay yourself right so you decide  out of the 100 i'm going to pay myself 50.   so now the business gets a deduction of 50 000 of  your wages right so now the business income is 50   and you so so now you have a w to a 50 000   from becky park right on your w 10 your personal  return and then you have business income of 50 000   which an escort will pass through  to your personal return and so the 50 000 of business income on an llc  that would get taxed at 15.3 percent   right and that would be roughly like 7 500  of tax when you do the s corp that 50 000   is only subject to your tax rate and not the 15.3  percent so already right off the bat you're saving  

7 500 if you were to you know do a side-by-side  comparison there so what is to keep someone from   saying i'm only paying myself 10 000 right so and  that's a good point the irs will look at that very   closely well they i'll say very closely but that  is something that they've definitely kept an eye   on because to your point people would um you know  pay themselves very little and then you know not   get and kind of circumvent the tax typically the  rule of thumb is i typically have told my clients   whatever you want your take-home pay to be  like say you want to take home a hundred   thousand dollars a year i would say 50 50. so pay  yourself 50 000 in wages and then the other 50 000   you know you can just take it and so that's  the rule that i typically have used as a 50 50   approach and in my 20 years i've never had any  questions from the irs regarding it and so um   yeah so again like you want to pay yourself a  reasonable compensation if your business is making   four or five hundred thousand dollars and you're  paying yourself a ten thousand dollar salary   that's clearly not reasonable yeah right they're  gonna fly right right yeah so that makes sense   yeah um yeah i did not really know how any of  that worked but that makes a lot more sense in   my brain so thank you for that i think the final  question then and this was kind of more of a tax   question but i think it applies to everything that  you've been talking about um kind is beautiful too   that is a beautiful handle um he said tips  to finding a good tax accountant for online   reselling businesses um he is mine so you you can  like if you're not here you can't use him and plus   he's doing different things now that you know  like he's playing do you have a monopoly on me   i mean listen i take up a lot of this time i have  a lot of questions and so does my husband so we   keep him very busy but um no but for real like i  know some people just go to like h r block like   what is your thought on whether you're a reseller  whether you you know just have a different kind   of small business entrepreneur whatever uh  how can you secure a good tax accountant   accountant i i'm not gonna speak to any specific  firms because um you know obviously i don't   you know want to um yeah put myself in that  position but um you know interestingly enough   i would say you know speak to other people that  you know um and ask for referrals only because   you know you go on someone's website you know of  course they're gonna say they're the best i mean   that's just a reality right i mean there's that's  the world we live in like no one's gonna come onto   their website and say you know what we really have  no idea what we're doing but hey we would like   your money yeah i mean we would like to try yeah  of course yeah you know um in this day and age   i would say like you know it used to be such  that you know we operated so much on on paper   and we had to kind of sit face to face with  our accounts and see but with in our day and   age with technology with the ability to  portal things and things of that nature   i really don't even think that your account needs  to be in state or you don't even need to sit down   yeah yeah you don't need you don't even need to  know them you know i mean quite frankly like and   so i would say you know talk to your fellow  reselling like friends in your community and   try to get a feel for you know what hey who are  some people that you've had good experiences with   who are very responsive that's helpful and and  i would say just go off of that and because   there's in our business and in in tax and  i guess now even in just wealth management   there's just nothing that is of greater value  than referrals it's just the greatest compliment   because when you're dealing with people's  finances yeah there's a certain level of   trust that it entails and if someone is willing  to trust you with their money and you know refer   their mom their dad or their best friends to you  that's you know that speaks volumes right and so   i would say you know rather than going on google  and then trying to you know look for these google   reviews which maybe their mom or dad will like  you know i would say you know talk to your friends   you know talk to becky park talk to whoever you  know they have uh had experiences with different   accounts and i think even if they're out of state  i think you can make it work with technology   and still have a good experience nice  yeah one of the beautiful things about   these llcs or s-corps is the ability to put away  more money into retirement plans that you normally   wouldn't be able to if you didn't have business  income and i think that's just an opportunity to   again put more money into retirement save  for the future um and you know also get a   tax deduction for that so i don't know i guess  that is a really old-school way of thinking   the idea that like in order to have someone  file your taxes like you have to sit down   in front of them with all of your you know like  receipts and all of your whatever i mean when i   you know when he did my taxes last year he was  like i need you to send me this information   and it's just one email with all the figures and  stuff so it's not like they're sitting there with   a highlighter going through all your receipts  and stuff um so yeah i mean i didn't even think   about that um and just for full uh transparency  my husband and i have you know had him doing our   taxes since i started reselling just because  at that point it got really confusing like   you know it's a different way of filing compared  to when we were just you know filing for our   teacher stuff um and you know like he said earlier  like we didn't want to make mistakes especially   mistakes that would cost us or mistakes that would  put us in jail like i mean i don't think the irs   is coming after two school teachers right but like  you know just we wanted to make sure that we were   um doing things properly i'd bail you out just  that far thank you so much um but yeah so not only   has he been doing that but since he's entered this  new chapter of his career too that's definitely   something that we've been meeting with him about  is having him yeah manage our assets because again   this is a world that we don't know very much about  and if you would be interested in a video about   that let us know in the comments too or you know  make sure you like this video like smash all that   stuff i told him i was gonna put all that in there  but um no for real you know it's i a lot of us did   not grow i don't know what the term is but a lot  of us don't have generational wealth right like   for us like our parents immigrated here  and just worked uh kind of menial like   labor-intensive jobs and they didn't have you  know stocks or wealth management or ir you know   all that kind of stuff so we're all kind of  learning as the first generation nothing's   getting passed down to us um so if you're in  that boat or even if you know you are part of   a generational whatever like if you are getting  stuff passed down you but you don't know   what you're doing with it um the idea if you're  making good money what are you doing with that   and is there a way to have that money make more  money for you right yeah absolutely you know what   like um to your point um i was talking to one  of my clients who who owns subway uh a couple   of subways not the whole enterprise obviously he's  a franchisee but the reality is like inflation is   real yeah like you know i i go to subway and like  literally they sent like the footlong is costing   over 12 dollars that's insane yeah whatever  happened to the five dollars that's right and so   inflation is real the reality is if you have cash  sitting in your cash account or your money market   account or your 0.1 savings account you're losing  money yeah because everything's not keeping yeah   the prices are you know all going up and so  uh you know this is definitely something that   as becky alluded to you want to let your money  work for you you know because we only have we   have a limited time limited you know energy you  know we want to have a work-life balance we want   you know we want to live there's a certain quality  of life we want to live and so you know you can't   constantly be working working working you know  i think it's you want your money to work for you   yeah but you want to work another 25 years  well you know i'm just saying like my my   predecessor if you will he's 79. oh my goodness  so and he's still grinding so you know i'm just  

trying to make the most of it and so you know  i'm not working nearly as much as i used to so   yeah yeah yeah i'm retiring the second that  i can and this man is helping me get there   so that that's why i can't continue to work  because like rich rich youtubers like you know but literally the second that i can i am done  and yeah anyway that's that's a whole nother   topic for another video but i mean you know  even before we sat down to film we just kept   brainstorming about like different topics that  we would be interested in making videos about   things that i just again don't know very much  about so let us know in the comments below like   potential video ideas or things like taxes for  resellers you know whatever questions you have   about filing your taxes am i allowed to deduct  this am i whatever any of that kind of stuff   if you have those kinds of questions and  you'd like a specific video for that topic   you can leave that down in the comments below  if you have questions about what to do with the   money that you're making and um you know how to  like they said have your money working for you   and that would be a video that you're interested  in seeing let us know in the comments down   below and thank god i will not be the expert  talking you through or walking you through   that because i don't know what i'm talking  about but i'll have day here with me to   talk to us about that kind of stuff so any last  comments or words or pearls of wisdom that you   would like to share no well again i it's my first  youtube video ever yes but he did so good right but yeah no i i think just want to you know  encourage you all you know i think really   use your time your energy to grow your  business i keep telling becky this all the time   you know don't don't use you know what little  time that you have to try to figure this stuff out   and and frustrate yourself and you know lose  the emotional as well as physical capacity   right uh to grow your business that  you channel that energy to growing   your business how can i scale what are  different ideas that i can do and i think   the more you do what you're good at right your  business will produce and it'll easily pay   off whatever cost that you incur to you know  file your taxes and things of that nature so   you know do what you're good at leave the experts  to do what they're good at and then i think you   know we'll be good so i like that that's good  so this is my friend day thank you so much for   coming on it is like it's like 10 32 p.m we're  both kind of night out so this is just one week   the night is young i'm just starting my night  so seriously yeah and we both have kids so it's   just you got to do stuff after kids go down so  thank you for being here sure for the rest of you   make sure that you hit that like button subscribe  if you haven't already and especially let me know   down in the comments if you want to see more of  this if you don't want to see more of it let us   know all right thank you so much for watching and  we'll see you in the next one bye have a good one

2022-02-09 16:55

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