Bookkeepers: What you need to know about legal entities and owner compensation

In this video, I discuss the importance of understanding legal entities and owner compensation for virtual bookkeepers working with US clients. I explain the different tax forms and compensation methods for each type of legal entity, including sole proprietorships, LLCs, S Corporations, partnerships, and C Corporations.
Chapters:
00:00 Introduction
01:25 Sole proprietorship
01:44 LLC
02:32 S Corporation
03:10 General partnership
03:46 C Corporation
03:58 LLC's taxed a S, C, and Partnership
05:14 Conclusion
05:39 Resources
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[@tdexter4959]

So helpful!! I really appreciate the length and focus on one topic.

[@5MinuteBookkeeping]

So glad it was helpful!

[@beckyh3041]

Thank you. Always great content and information from you!

[@5MinuteBookkeeping]

You're welcome, Becky.

[@glenw.3813]

Thank you Veronica!

[@5MinuteBookkeeping]

You're welcome!

[@danielm.wekesa809]

Thanks for sharing these useful tips dear Veronica.

[@5MinuteBookkeeping]

You're welcome, Daniel!

[@user-zp4lu6ku1n]

I have been looking for a video like this for ages!! Thank you!!! Question - If a entity is filing a 1065 and paying the owner guaranteed payments - should those guaranteed payments be a business expense (on the p&L) or a distribution (on the balance sheet)?

[@5MinuteBookkeeping]

Guaranteed payments to partners are expensed. They are not a distribution.

[@user-zp4lu6ku1n]

@@5MinuteBookkeeping Thank you!! I thought that is what I understand. I appreciate the confirmation.