Sole Proprietor vs. LLC vs. S Corporation vs. C Corporation | Legal & Tax Differences

This video discusses the Sole Proprietorship, LLC, Corporation (including S Corporations) both from a Legal and Tax perspective. I also discuss what a Professional Limited Liability Company is as well as the difference between a Single Member LLC and a Multi Member LLC.
If you're ready to form your business, I've partnered with the following companies. Use the links below as some of them include coupon codes to receive up to $100 off their services:
Inc Authority: bit.ly/incauthoritycoupon
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Note: The due dates for when to file the various tax documents have recently changed...they are as follows:
Sole Proprietorship: April 15th
S Corporation: March 15th
Partnership: March 15th
C Corporation: April 15th
I created this video because there is a lot of misinformation out there on CZcams and other various channels and it’s crucial you do this correctly when you start a business.
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.
If you learned something from this video, please like and subscribe and follow me on my various social media handles below. If you would like to contact me with a specific question, please visit my website or leave me a comment.
Website: www.navimarajcpa.com
Email: [e-mail]
Phone: [phone]
Instagram: / navimarajcpa
LinkedIn: / navi-maraj-cpa-78b9b250
Twitter: / navimarajcpa
Facebook: / navi-maraj-cpa-pllc-10...
This video was created for informational purposes and it is not to be construed as legal and tax advice specific to your unique situation.
© Navi Maraj CPA PLLC. All rights reserved.

[@NaviMarajCPA]

You can file your LLC or Corporation for FREE using the links below! If you use the links, you can receive up to $100 off any additional services you may want to add:
Inc Authority: bit.ly/incauthoritycoupon
IncFile: bit.ly/incfilecoupon
Zenbusiness: bit.ly/zenbusinesscoupon
Northwest Registered Agent: bit.ly/northwestregisteredagen...
BetterLegal: bit.ly/betterlegalcoupon
Also, the due dates for when to file the various tax documents have recently changed and I misspoke in this video. The correct due dates are as follows:
Sole Proprietorship: April 15th
S Corporation: March 15th
Partnership: March 15th
C Corporation: April 15th

[@Sandra-Ibrahim]

Thank you

[@la_privatechef4530]

How can i get a code $100 off for LLC?

[@nstv23]

If I am building a business to sell it. What’s the best approach to save on taxes at the final sale of the company.

[@user-bp9oj1su6t]

I work at a law firm that specializes in asset protection and business structuring, and you were spot on I am glad you used the different colors for the electives taxation and what is default for new business owners this is hard for people to understand. Thank you for taking the time to do this explanation video.

[@NaviMarajCPA]

Hi Karen. Thanks so much for the feedback. You’re absolutely right, very hard concept for new business owners to understand.

[@TaraWagner]

Thank you for the visuals! It's so nice to have an idea of all of the options to narrow down what works best for each small biz owner.

[@Katmom23]

Thank you SOOO much for this video!! This is super helpful. I am starting a business with a partner that lives in another state and wanted to make sure we set everything up correctly. I have spent hours researching this and this video was THE MOST HELPFUL in breaking down the different types of entities and where to start out. I feel like I finally have some clarification. Thank you again!

[@bronsondiamond2025]

Man you are an incredible Teacher. Easy to understand and follow. You explain this stuff really well, and even the way you use your hand as brackets to discus a particular structure is super cool. I'm trying to start my enterprises up and spent hours finding the right corporation to file and this was the vid that made it all click for me. Thanks a TON man. So humble and grateful right now.

[@NaviMarajCPA]

Thanks so much for the feedback Bronson! Best of luck to you with your new venture.

[@kimnwaneri]

Great Video Navi, super informative and I appreciate you mentioning that most people make the switch at about $40k to opt into being taxed like an S-Corp. Super helpful!!

[@NaviMarajCPA]

Thank you. I've got other videos in my library breaking down the reason why $40k makes sense. Here is a link to that video if you want to check it out: czcams.com/video/QFYFGfHOuwI/video.html.

[@joanalinares8667]

Love the visual and your verbal explanation. It's so true that there is so much bad info out there. I cringe when I hear someone say their company is S-Corp because that's not a business entity and rather a tax structure. Thank you for putting this video together and sharing with the masses! Saving it and will be sharing it with others.

[@NaviMarajCPA]

Thanks Joana...appreciate the feedback!

[@AlejandraGonzalez-nl1wj]

This was a great video, straight to the point. Makes me a little more secure about getting my llc started thank you.

[@NaviMarajCPA]

Thanks for the feedback Alejandra! Glad it was helpful. Don’t forget to check the links in the description to form your LLC for free if you’re ready.

[@crujax1554]

Thank you so much this video was exactly what I needed!!!

[@NaviMarajCPA]

Thanks Cru - glad you found it helpful. Please share with others if you think it will help.

[@jonathandeveaux3635]

This was the single best explainer video of the different Corp types I needed to learn about. Thank you!

[@invoicepayment1371]

Hey Navi! Thanks for posting this video. I've seen so many of people making these videos and they are so convoluted and hard to follow. My one recommendation is for you to state where you work- a lot of people may want to hire you but if they don't realize you're local or certified in their state, they may not even bother going to your website.
Thank you for taking the time to educate us.
All the best!
Tom
Brooklyn, NY
-NYC Video Podcast

[@NaviMarajCPA]

Thanks for watching and for the feedback! I appreciate it.

[@whitneymorgan7181]

I've been researching information all day. your video was straightforward and very helpful. Thank you.

[@NaviMarajCPA]

You’re welcome Whitney…glad it was helpful!

[@sheenabrown1393]

I cannot overstate how helpful this video was. Thank you!

[@NaviMarajCPA]

Thanks so much Sheena! Really appreciate the feedback.

[@ShiningShiningShining]

Thank you so much! I have been trying to decide how to structure my business for a very long time. You helped me finally make the decision.

[@NaviMarajCPA]

You’re welcome! Glad you found the video helpful.

[@shinchun5229]

Excellent video! Short, to the point, with easy to understand illustration. Thank you!

[@jackierogowski6607]

Super helpful, Navi. Thank you. Such a great, concise explanation that I haven't found anywhere else!

[@johnnewby2043]

Thank you! Your videos are most informative and very easy to listen to. The best!

[@NaviMarajCPA]

Thank you for the feedback John - means a lot!

[@robinamunduru8420]

Thank you. A team discussing with me my Financial Reporting course.

[@classyaccountant6218]

Excellent video! Thanks for sharing! I have shared with others studying for the CPA.

[@edgaralfaro8981]

Just subscribed to your channel. That was an awesome vid. Simple, and straight to the point! Thanks

[@NaviMarajCPA]

Thanks for watching and subscribing Edgar! Glad you learned and found it helpful.

[@orionarielle]

Very helpful man! Thanks! Even wrote down all these notes since I am going to have to start doing taxes for my business and side business. Once again thank you very much for this!

[@NaviMarajCPA]

Thanks for the feedback. You're not the only one who has told me they take notes while watching!

[@Cornnugget4]

This is excellent - coming from a tax attorney / CPA! Looking back through your videos to see how you got into doing this!

[@MarkNealJr]

Navi I appreciate you for making this video! I feel like I have a much better understanding now.

[@NaviMarajCPA]

That’s great to hear Neal! Thanks for watching!

[@amandalyon9624]

Thank you! it was so hard to find this information. You got right to the point

[@alenavas4852]

Thank you so much for this valuable information! Be blessed!

[@talkingmango8658]

Thank you so much for not having an accent, this was extremely pleasant to watch.

[@ahsanali50]

Thanks for the easy explanation. Subscribed ! 👍

[@BdManus]

Amazing information. Easy to follow and understand. Great presentation.

[@NaviMarajCPA]

Thanks for the feedback @Bd Manus!

[@rolberg]

Short and to the point - much appreciated!

[@NaviMarajCPA]

Thanks Rinaldo!

[@user-ws1si4dv9v]

Thank you Navi. Grateful.

[@EtherealAeonsActivation]

SO helpful and very effective at explaining. Thank you!

[@NaviMarajCPA]

Thank you for the feedback Lesly...glad you found it helpful!

[@MangatSingh-no1gf]

Sir, you explain in a way that an average person like me can understand. Thank you.😇😇😇

[@markn1841]

I appreciate you mention the SM LLC, no others yet have.

[@elmiraoganyan3903]

Thank you, awesome explanation!

[@rass1818]

Thank you, good Sir!
Wonderful video and please make more!

[@NaviMarajCPA]

Thank you baba black for the feedback!

[@amandacnfb]

I didn’t even know about PLLC.. this video was so helpful and necessary

[@hhernandez1230]

Really good video. Cleared some things up in my head since I am a noob.

[@joegrow1273]

Amazing explanation! thank you so much!

[@NaviMarajCPA]

You're welcome Joseph! Glad you found it helpful!

[@joshuazeigler7876]

Thank you for this breakdown.

[@msanng1107]

Thank you for simplifying this

[@NaviMarajCPA]

Hi Angela - you're welcome! Not sure why it isn't explained like this more often.

[@kushagramittal4275]

Thank you so much for making this video. It is very helpful.

[@NaviMarajCPA]

You’re welcome Kushagra!

[@gnarrdog]

Thanks Navi! Very helpful information

[@restoringbonaire]

Nice content. I found this very helpful.

[@rosenkruez2]

Very well put together. Thank you.

[@NaviMarajCPA]

You’re welcome…let me know if there is anything else you need help understanding.

[@puakala1]

Thank you so much! This clarified so much for me!

[@NaviMarajCPA]

You’re welcome…glad you found it helpful!

[@gracechronicles2024]

Thank you.You are a great teacher.

[@anastasiya5742]

Very useful video! I'll recommend it to my colleagues

[@NaviMarajCPA]

Thanks for the feedback Anastasiya. Hope your colleagues find it helpful as well.

[@polyangles]

You are so clear thank you so much. You got a new subscriber 😊🤓👍🏾

[@NaviMarajCPA]

Appreciate the feedback Cocoa...thanks for subscribing!

[@mikemeros1124]

Easy to follow, well done.

[@seanernst3235]

Thank you. That was very helpful.

[@NaviMarajCPA]

You’re welcome Sean! Glad you found it helpful!

[@brad265]

Excellent diagram and explanation. I haven't seen anything explained this well. These CZcams attorneys just throw out terms like "schedule c" and "1065" like your supposed to know without ever explaining what's what.

[@NaviMarajCPA]

@Braden Souder Thank you for the feedback! Glad that you found it helpful and informative.

[@joshshaffer2666]

Good information, thank you 🙏🏻

[@nataliekidd5408]

Mr Navi this was great information as a novice beginner

[@huguisimomusic]

Wow, just a fantastic explanation.

[@dennisrawlings7642]

Thanks for the great overview!

[@NaviMarajCPA]

You’re welcome Dennis! Thanks for watching.

[@Panicmicelf]

Nice video, my friend. Thank you

[@thandiesimone]

Great information. Thank you !

[@NaviMarajCPA]

Thanks Thandie!

[@JerryStreich]

Thank you for sharing your knowledge.

[@NaviMarajCPA]

You’re welcome! Thanks for watching.

[@ang123]

Very helpful. Thank you!!

[@NaviMarajCPA]

You're welcome Ang L! Glad you found it helpful.

[@helvetiaresearch9973]

Thanks for the useful video.

[@NaviMarajCPA]

You’re welcome! Thanks for watching.

[@G-lato]

your a legend, thank you for the info

[@TGray-ez4vc]

Thanks. So helpful

[@benhuggins9913]

Thanks. I've been meaning to change to S-Corp from C-corp

[@NaviMarajCPA]

You’re welcome Ben. Consult with your tax professional to make sure it is the correct thing to do based on your specific situation.

[@stazzeh]

super helpful thank you!

[@NaviMarajCPA]

Thank you Shijia! Glad you found it helpful.

[@eldonlbbrown6564]

Thank you so much!

[@treg6848]

Thanks I replayed this too many times

[@NaviMarajCPA]

You’re welcome!

[@kariza375]

Very informative!

[@williamley2043]

Very helpful thank you

[@_JohnnySav]

Thank you for the good info!

[@NaviMarajCPA]

You're welcome @Johnny Sav. Thanks for watching and subscribing!

[@DanielCardenas23]

I just started my LLC. Thanks for the info.

[@NaviMarajCPA]

You're welcome Daniel...best of luck to you and your new business!

[@tiffanycraddock9426]

@@NaviMarajCPA to

[@jimross2101]

Daniel, why?

[@wracquel27]

Thanks for the info

[@roberte.bainesjr.7164]

Great material

[@ray1472]

This video is a life saver

[@NaviMarajCPA]

Thanks! I wish it was around when I was first learning about these concepts. 👍🏼

[@burstofknowledge4237]

really great video.

[@nekeeciacox9283]

Very Informative!

[@NaviMarajCPA]

Thanks for the feedback!

[@squallyhunter2627]

sooo helpful thank you!!

[@NaviMarajCPA]

You're welcome Squally! Glad you found it helpful!

[@jayantrai1898]

Really Helpful.. Keep Up The Gud Work Bruh✅❤

[@NaviMarajCPA]

Thank you - appreciate your feedback and support!

[@imanhosseini6908]

Keep up the videos boss, the community needs more information from qualified individuals!

[@NaviMarajCPA]

Will do!

[@fungalaxy100]

you are professional, thanks a lot

[@gacayana]

This is the most helpful video about this topic. Thank you so much!

[@NaviMarajCPA]

Thank you Angelica for the feedback! Glad you found it helpful.

[@egod7m995]

Thanks you much for information

[@NaviMarajCPA]

Thanks Steven. You’re welcome.

[@vivizhou273]

Great Presentation!

[@NaviMarajCPA]

Thank you @Vivi Zhou - hope you found it helpful.

[@PaolaBarrientos]

Thank you so much, I'm currently researching the best option for a brand new small business.

[@NaviMarajCPA]

Great - glad the videos are helpful!

[@santokhsmann5590]

Very good information

[@NaviMarajCPA]

Thank you!

[@turagkhan3469]

Wow really helpful thanks

[@NaviMarajCPA]

Glad it was helpful, Turag!

[@tylerheldreth4565]

Thank you

[@aselfguru]

Great video as always, Navi! You explain things so much better than others. Do you do tax filings for small business owners or just consults? I’d love to work with you!

[@NaviMarajCPA]

Thank you @A Self Guru....my clients outsource all of their accounting and tax to me. What I mean by this is I help them with their bookkeeping, tax planning, payroll (if necessary), tax filings etc. In other words, although I do prepare tax returns, I only do it for businesses where I handle everything else for them as well.

[@aselfguru]

@@NaviMarajCPA thanks for the information, Navi! My business is already setup as Florida LLC with S corp and payroll is also outsourced, so I just need help with tax preparation and filing. So sounds like you don’t handle just that? What would be the best way to get in touch with you?

[@angiegrancea405]

Thank you 😊

[@clivemorgan7632]

I learn much more about forming a business

[@NaviMarajCPA]

@clive morgan I’m glad you’re learning!

[@jyaz8348]

Thank you so much for this information. My mom wants me to register her cleaning business and I’m learning all this new stuff. I’m going for LLC 😅

[@NaviMarajCPA]

You're welcome!

[@Nomadikh]

Great video

[@NaviMarajCPA]

Thank you for the feedback...glad you found it helpful.

[@aclegacy7]

Navi one of the missed information that most all of us don't received is that we have to pay $ annually to our Estate if we decide to file and articles or be treated as S Corp if we want to save money on taxes.

[@Elethia441]

It's kinda important to mention WHERE you are and which jurisdictions oversee that!

[@drwombat]

Intro warning = instant sub

[@NaviMarajCPA]

Thanks for the sub!

[@LetsPhilosophize101]

Great content!!! My question is, does it apply in Canada?

[@dougg229]

Great video! Wish I watched this video beforehand. I did not know about the deadlines for S-Corp and got hit with the late fee. Won't happen again...well not on purpose anyway LOL

[@NaviMarajCPA]

Hi Doug G. Thanks for the feedback and for letting the community know about your experience. Hope others will learn by your willingness to share.

[@mostafatabaa6982]

very useful

[@NaviMarajCPA]

Thanks Mostafa!

[@elijahcarlwilliams1808]

Thank you :)

[@NaviMarajCPA]

You're welcome!

[@EverythingHR]

Big strategic person-person business development is the key to success in today's business world.

[@yerandysilva4815]

Great video. My wife and I are nurses. We work as self employed 1099. I could open a single member LLC and do S election. And they both work in the same LLC as an S corp. And that the 1099s are reported from both of them through the S Corp. Then the S corp generates w2 for each one and the dividends pass through K1 to the owner. Or each would have to open their own LLC and make S election. thanks