LLC vs S-corp! | Why You Need To Know This!

Okay, here's my first punch. Why the LLC is great. No matter what type of small business you are starting, no matter even if it's a rental property and you're buying your first rental, you've got a side hustle, you're doing Uber, you're doing whatever. The LLC is the great first step. It's the best to start with because it gives you flexibility to make changes later. And you need that entity to get your ein, get your name, get legit, get out there, go hard. You're going to feel confident, you're going to feel proud. You're like, damn it, I started my company. It's going to motivate you. I don't think you can say that for the escrow.

Okay, well, let me just say, LLCs do not save taxes. Big misconception. People think, I got an LLC and I'm gonna save taxes. I can't tell how many clients told me, hey, man, I'm so excited. I set up my llc, I'll be saving taxes. That's not gonna do anything for you. But I'll tell you what will save you taxes. An S corporation.

Welcome, everybody, to this week's episode of the Main Street Business podcast. This is a WWF Unplugged. Is it wwf?

I think it's wwf. That's old school. That's like Hulk Hogan.

Okay.

You know, era, I think it's wwe.

I don't know. What we're doing today is we are going head to head on the LLC versus S Corp. There's people out there that, like, they think the world revolves around one of those entities. Well, they both have pros and cons. And we are randomly going to choose a side here shortly. Yeah. And have to defend it. This is like high school debate.

High school debate. You don't know what position you're getting, but you're stuck with it and you got to argue for it. So we're going to talk about LLC versus S Corp. Now, keep in mind, sometimes you need an llc, sometimes you need an S Corp. What are the differences between the two? Maybe you're in a situation where you need both because of what's going on in your life and your business and investment, so we'll hit that, too. But critical topic, we're, of course, setting up hundreds of LLCs and S Corps every month at our law firm, KQS Lawyers. So we feel like we've been down this road. And Mark and I both have s Corps and LLC.

We do.

Proud owners of s Corps and LLCs here.

It's going to be good. It's going to be good. I wore a leather jacket today because

you knew there was a fight.

There was a fight. I had to, you know, put on me. You know, what do they call it? In grease or in, you know.

Who wore a leather jacket and got beat up in a red leather jacket? Johnny in Karate Kid.

Oh, that's true.

This kind of looks like that, but

I was going with John Travolta in Greece. You know, he's pretty, pretty cool. All right, so we're gonna have some fun with this. Now, our studio producer, Tristan's gonna bring us a slip of paper right now and tell us who we are arguing for.

Oh, this is drama.

Okay, what do we get? Oh, Roth ira. Oh, okay, you got the S Corp. S Corp. I got the llc. Ooh, you are toast.

Oh, we'll see about that.

It's gonna be good.

Okay, Are you gonna throw the first punch?

Yeah, I'm gonna go say, yeah, I

just want you to throw the first punch. I started it.

There we go. All right. So all of you out there, okay, here's my first punch. Why? The LLC is great, okay? No matter what type of small business you are starting, no matter even if it's a rental property and you're buying your first rental, you've got a side hustle, you're doing Uber, you're doing whatever, the LLC is the great first step. It's the best to start with because it gives you flexibility to make changes later. And you need that entity to get your ein, get your name, get legit, get out there, go hard. You're gonna feel confident, you're gonna feel proud. You're like, damn it, I started my company. It's gonna motivate you. I don't think you can say that for the S Corp.

Okay? I'm gonna throw a punch, you know, right at the LLC's face.

Wow, I'm getting nervous here. I gotta get my Krav Maga going.

I'm gonna deflect that, make sure I have it.

Okay?

All right, here goes the body shot. Little to set you up there. LLCs do not save taxes. Okay, well, let me just say, LLCs do not save taxes. Big misconception. People think, I got an LLC and I'm gonna save taxes. I can't tell how many clients told me, hey, man, I'm so excited. I set up my llc. I'll be saving taxes. That's not going to do anything for you. But I'll tell you what will save you taxes. An S Corporation. Okay, an S corporation, if you have ordinary income, you're selling goods or services, the S corporation entity is the one you're going to want. Now you got to have some net income of maybe 40 grand, but the S corporation is going to save tax. We have separate podcasts on how that works, but it's basically saving you on self employment tax.

Okay, ready? Okay, coming back. This is the right hook. I can always convert my LLC to an S corp if I need to, even retroactively. So my little Uber driver's like, okay, Mark, I'll get my LLC going. And they have a kick ass year. They do great. They're making money. And then they're like, man, I should have done an S corp. Oh, we can take care of you. We can back take that LLC to an S corp to the first of the year and save those taxes if necessary. What do you got to say about that?

I like that. I like that. So you're kind of like, you know, you knew you should have been an escort, you know, you're like, I know, I just want to do the escort part.

Well, you never know.

But sometimes you do got to grow into it. And that is, I'll be, you know, candid here. You know, I don't want to beat up the LLC too much because we love them, obviously. So a lot of times that's a great move. If you're a small business owner starting out and you're like, man, I got a lot of expenses, maybe I'm making five or ten grand a year at first. And let's be real, a lot of businesses don't make money their first couple years. It takes a while to really get the ball rolling, get things profitable. You're spending money to make money. You got to get over that hump to where you start making net income. And so I like that for a lot of clients who are like out of the gun, they want an entity, they want some asset protection, they want to be legit, but they don't know they have the net income yet. We can add this election and. But what I would say then is once you do that, you're in my camp. Because how are you? You may be an llc, but the irs, you're an S corporation, right?

That's right.

And now you're on my team.

That's right. You know, I was going to say that would be a good counter argument if Matt said that. He said it. You're smart. That's why I love you. You're smart. Well, I will. This is the Reconciliatory portion of the fight. You know, this is like in. Where they kind of hug while they're resting.

Yeah.

Okay. So I want to concede as well. It is true. The LLC does not save taxes. That LLC opens the door for the S Corp conversion later. It creates legitimacy, just like I said. It gets you out of the gate, off to the races you're cruising, but it does not save taxes. Please, please, please do not think that the LLC is going to open up this wonderful, you know, tax write off regime that you weren't able to participate in. I was, in fact, in a workshop up in Idaho Falls over the weekend, and after teaching for an hour or two, someone raised their hand and said, well, I just started my company, but I have to have an LLC before I can write off my home office, Right? Like, no. So all of you out there, you know, this is a little defense for anybody that's thinking LLC or S Corp. You don't have to have either one of these. If you want to just start your sole proprietorship, start tracking your income and start taking write offs, get in startup mode, start taking. Tracking your expenses. So there is that camp. You know, you could. You could go either way.

Yeah, but I like that you put a little. Little defense in there. What does Dick Cheney call that? You know, a little preemptive. Preemptive preemptive strike right there.

Yeah, there we go. That is a crazy movie, too. That's a good one.

A Vice

Christian. Oh, Christian Bale. I can't believe what he looks like in that.

Great movie.

Such a good actor. Okay, we should have Christian Bale on

the show since you got to take some. You know, I'm gonna make a little preemptive strike on the escort.

Okay.

Or kind of like, you know, kind of confess. Make a little confession.

Oh, I. I was gonna come at you. I can come at you. I'll hit you. You don't. You don't need to. All right? You don't need to give me arguments. You don't need to let your guard down. I can take. I can throw. I throw another punch. The S Corp requires a tax return and payroll. They can be a little more costly to maintain. I like this simplicity and affordability of an LLC compared to the S Corp. There you go. Take that.

Okay, I like. That's a fair point. That's a fair point. But you know what I get with that tax return and that payroll? Less audit risk.

Ooh.

You with your sole proprietorship, your LLC flowing down on a schedule C or your. You Know your partnership flowing on your personal return. You know What? You're getting 13 times more likely to get audited.

Okay, fair enough.

Fair enough. So I'll take the extra paperwork I got to send to the IRS if I'm 13 times less likely to get audited.

Okay, not a bad deal.

Okay, but unless you like audits.

So that was kind of a let's, like, audit. I like that. It was kind of. It was like a defense and a jab. It was kind of like a block jab. Block jab.

When you're down. I'm like, still hitting.

Yeah, you're still hitting on me. You're kicking me here, kicking me. Where's the ref in here? Tristan, you're supposed to be the ref. Okay, all right, all right, fair enough. Okay, well, I will throw this out. With an llc, you can file a two member llc. So let's say you're a husband, wife, or you have partners in a rental property. You're going to have to file a two member LLC, which is a 1065. And guess what, Mr. Sorensen, my chances of an audit risk go down by the same 13 to 15%. Or. Sorry, 13 to 15 times. Or 13 to 100 to 1500%. Less chance of an audit with a two member LLC. So if I want the audit protection.

Yeah, you can still get it. I like it.

And, you know, when this happened for some of you out here, that was interesting. I had a client that had a rental property in, I don't know, Minnesota or somewhere, and they had one rental property in Minnesota. I remember they. And they were so excited to show me. They had like $30,000 in travel expense. I'm like, it's one rental. What the freak is going on? And they go, you know, wink, wink. Well, it's where grandma lives. And we check on grandma when we check on the rental. So it's a write off. Right? And technically it is true. Every time you go to town and you're going to meet with your tenants,

you know, where do they stay?

Well, half the time was airfare, I think, too, but they were like, you know, but. But it's true. If you fly across the country to go check on your rental property and meet with your tenant, your property manager, they. That is a legitimate write off. But just because you can do it doesn't mean you should.

It's gotta be reasonable and necessary.

Well, still, I mean, you could. I mean, they may be able to argue that all day long, but they're gonna.

You still had to throw away $30,000 to the airlines.

What I'm saying is, is the juice worth the squeeze? Okay, so that's what I'm trying to get at, you know, like you could write it off.

Age old question.

Yeah, the age old question is. And you know, you guys know what

I'm talking about, don't turn this sexual.

I'm not. I'm just saying that ladies and men, you know, you gotta. Is this guy really worth dating? You know, or is this woman really. Anyway, we won't even go there. But the point is, just because you can take a tax write off doesn't mean you should. But what we suggested to them, the moral of the story was we did convert it to a two member llc. I said you got, if you're going to be aggressive here and you're entitled to that write off, you might have to defend it. And you can defend it. I don't know if you want that fight. Yeah, but let's do a two member llc. And by doing a two member llc, they reduce the chance that the IRS even catching it. An honest write off even more so. So. Okay, good point.

Yeah.

So we can, we can save some audit risk.

Yeah. Okay, now let me. I'm going to say something negative about

the S Corp. Well, I've got another one. I know, because you got to say

it, you got to expose. In a few spots are. I know, Exposure. I'm trying to like, you know, there's like some good pr, you know, just get the bad news out quick.

Okay. All right, well, I've got another one.

Okay. Hit me.

I'm gonna hit you. I, I don't need you to help me out in this fight. I got you. I got you. I own you. Okay. S Corps under state law have to do minutes every year.

Yeah.

And so you know what? I as an llc, don't even have to. I might not even do a minutes because I don't have to. But your S Corp has to. So your S Corp. There you go.

Yeah, I don't know. I buy that one.

I don't know if I buy it either, but that was a sucker punch. But I'm just getting it out there,

getting it on the table block, you know. Okay, well, here's the thing with the S Corp. It is true in the statutes. It says you need to keep an annual set of minutes at a minimum. Now every entity has to have a renewal for most states where you got to file a renewal to the state to say, hey, we're still in business. Here, here's my fee to the State, and then you're doing your minutes. You know what I mean?

Fair enough.

But then. But LLCs, for the most part, still got to do that annual filing. Well, we do a company compliance service at Main Street Business, and we've been doing our law firm for years where we do it for you. It's only 150 bucks. We take care of it for you. We do your minutes. We do your renewal for you, so you don't even got to worry about it. And you know what? There's still stuff you got to do with the LLC anyways. If you want asset protection in an llc. Oh, you should be doing your minutes.

There's a good counter blow. I was waiting for that counter blow.

Yes. You should be doing them anyways.

Yep.

Now, that is a. That is a misconception, though, because you'll see a lot of people online. Oh, do the llc. Because you don't have to do annual minutes. No. When people get sued and you're trying to say, hey, you can't sue me, you can only sue the llc. There becomes a time where the plaintiff might say, ah, I want to get to your personal assets. I want to make sure you really treated this LLC like a separate business. What do people do that have a real business?

They file.

They do minutes.

Yeah. And I know.

I admit cases that'll come out.

I knew that that was a long shot. You know, you may have deflected that punch because just because your dentist doesn't require you to floss doesn't mean you shouldn't floss. And so, same story. Just because the state of Arkansas doesn't require you to do minutes for your llc, but they do for corporations, doesn't mean you're off the hook. Yeah.

And, you know, nine out of 10 lawyers recommend you do minutes once a year for your llc.

That's true. Yeah. As do the dentist.

Yeah. And that other lawyer. I mean, he's a moron. Let's be honest.

That's true. That's true. So, you know, that is such a good point. We need to at least make that for everybody. For both the LLC and S Corp. Sorry, a little digression. Because whether you do an LLC or S Corp, both. Number one purpose before we get to the tax issue is, is to create that barrier of protection and amenity, possibly some privacy, possibly tax savings. But number one, first and foremost, is you're creating that veil of protection. So we both have to admit, I think, that the setup has to be proper. Minutes every year have to be proper. Make sure you're paying the fees to the state and we go back to that company maintenance program. Little spoiler alert. Heads up. Next week, we may be talking about that a little more in depth. And there's a special coming, people. You may need to get your entity cleaned up.

So analyze your business structure. Did you do it right? Maybe you need some new stuff, an improvement, a tune up. We don't know. We might have a special for that.

Okay. Do you still have exposed areas?

More exposed areas, but I like to just get it out on the table.

Okay.

I don't have to, like, you know, take the punch. Yeah. So I don't have to take the punch.

Okay. All right. What do you got? What are you feeling awkward about?

S Corps just aren't great for partnerships. Ooh, when you got partners we don't love. I don't love having partners in an S Corp. I got an S Corp. Mark's got an S Corp. We do not have one S Corp. We actually use an llc. We excuse limited liability partnership for our law firm, and that is that the partnership entity that receives the income, pays the employees, pays all the expenses, and then it sends profits down to Mark's S Corp. And then it sends profits down to my S Corp. And then we're doing our own thing on our S Corp because S Corps are clunky for partnerships. How much payroll are you taking? How much profit are you taking on the K1? The tax strategy of saving on self employment Tax can sometimes get clunky. Plus, we just like, have our own entity to do our own things. I want to buy a laptop. You know, Mark doesn't want to let

me throw this out. We're both terrible fighters because it's embarrassing that you had to expose yourself there. So I'm gonna. Okay, I'm gonna meet you quid pro quo here.

You could have thrown a couple of fast punches.

Okay, here's the thing. Matt is correct. We do not want to use an S corp for a partnership. And I was gonna say, the drawback of an LLC in a partnership is there is no ability to save on self employment tax. So don't take Matt's statement that, oh, use LLCs for partnerships is the get all end all. Because it's not. I have to concede and say layer two needs to be that S Corp level. So I guess S Corp. Do we change teams there?

I don't know. Maybe.

We're both lovers, not fighters. We want to get along. LLCs and S Corps can play together.

I tell you what it is. The reality is it's not LLC versus S Corp. It's when to use one in the right situation. They can be in harmony. They're not. They're not against each other and they can be used together.

Hey, can we queue up a little Karen Carpenter? Can you, can we play? Da da da da da da da da da. You know, a little Tommy, was it Tommy boy, You know, they're driving in the car singing a little Karen Carpenter.

I don't know that song.

Okay, we're going to get it. We've got to get the studio on that. Yeah, you know. Okay. Anyway, so we're having a love fest now. We went from fighting. Yeah, yeah. We're Apollo Creed and Rocky hugging after. So grateful for the fight.

What if there was a world where LLCs and S Corps could live together?

Oh, man.

In perfect harmony.

Perfect harmony. Let's feed the world. Okay, now, all right, a couple other points here. Okay. I want to. I want to get another jab in here. So I think the LLC is nice. Because here's an important point, people. When you set up your LLC with the ability to change the character later to an S Corp if you need it, the LLC name does not change. You may still be Green Tree Enterprises llc. And then behind the scenes, you're now an S Corp. Your ein stays the same. Your company name stays the same. Your bank account stays the same. You don't even need to tell the bank. And so where this is helpful and really there's many of you listening or watching here on YouTube, if you're a brand new business owner and you're not sure what your income level is going to be this year in 2023, pull the trigger now. Get the LLC going. Our attorneys will help design your trifecta. Put it in perfect harmony for the future. Then later in the year when you start making money, we can backdate it into an S Corp. If you don't have an LLC now, you can't backdate. And so that, that llc, it becomes S Corp insurance. Yeah, I like to call it that.

I like that. So once again, you can. You can get over to the cool party, the escort party.

That's true. True.

Well, let's. This is. I'm coming on your team for a moment here because I got. I'm run out of S Corp arguments because the big one is really saving on self employment tax. That is why you do an S Corp. But you know what, if you got rental properties, do you need that? You don't pay self employment tax on rental properties anyways. Why get an S corp in the mix. Also, S Corps have loss restrictions on rental properties. So we love LLCs for rental properties. So for any of you real estate investors that are buying, buy and hold real estate, you're not even thinking S corp. You're in the LLC lane. You need it for asset protection and you're out of it. You don't have self employment tax anything. You're just paying income tax on the rental income. And obviously you're taking all your write offs and depreciation. And when you're selling the property, you have capital gain income, self employment tax, Medicare on that either.

You know, I'm really disappointed. I thought I left myself exposed. I set you up for a punch. I left, I left down my, I put down my guard for a moment. Is this, this is second edition. Okay, which chapter is on four? Oh, chapter 19. This is Matt Sorensen's book, his playbook for fighting. I'm going to pull out his own playbook. Chapter 19. Self directed solo 401ks are based on your payroll for maximum efficiency. So I thought you were going to go with quoting your own book. Having an S corporation is ideal for the Solo 401k so you can get the maximum contribution.

I don't know, I just fell into my trap there. Right in the last round. I was like on the ropes.

Do I set myself up?

Totally set yourself up. And here I'm coming right through. No, love that. Great point. And most of our clients that are doing a solo 401k, we have thousands of them here at directed Ira. We set them up in the law firm with the plan, handle the accounts at Directed Ira. Great one, two punch there. More boxing analogies. But yeah, that's the ideal entity. So for, and that's like for any of you solopreneurs making 40k or more net a year, the S corp is your perfect entity and the Solo 401K is your perfect retirement plan. That's a great combo. We have thousands of clients in that

structure and you don't want to do that with an llc. You don't, because your match from the company is going to be less with an LLC solo because you can't take a W2 from an LLC unless you have the S election. So you get a 5% increase. Bump your solo 401k match once you're an S corp. And so that's kind of the little subtle trick and a lot of old school accountants forget that, that the Solo 401K or the SEP really equates to a 20% match. Where with the Solo 401K and an S Corp, you get the 25% match. So it's, it's just powerful.

You know what we need to still do, though, that we haven't done yet. We need to beat up the C

Corp. Oh my hell, this is a Nacho Libre. Throw in someone.

Let's tag team the C corp. Because I just want to make sure some of you might be like, what about the C corp guys?

Yeah.

Are you like, going to be a publicly traded company? Do you have to be a C corp for your business? Don't be a C corp. You're going to pay more tax. Double taxation. You're going to pay corporate tax. They're going to pay tax at the individual level. That tax rate is higher than any individual bracket. So just avoid the C corp. Never do it for real estate. You're crazy. Every. Every year or two, I'd say it's probably every like six months we run into a client has a lot of real estate in a C corporation. And you know what? We're like the 100th law firm or tax professional they've called to figure out how to get out of it because they know it was the dumbest thing they've ever done.

Yeah. And they got taken advantage of. Usually it wasn't even their own idea. They got sold it. So the C corp's kind of like that fighter they throw in the ring and we just get a beat up on them. Throw me a folding chair, I'll just hit it over their head. You know, let's just tag team them now. Here, here's an important.

He never wins. You know, he always gets beat up.

And now we're going to come up together with the perfect plan here in a moment. That's going to be the climax of the show. So don't go anywhere. Some of you might be like, I don't know if I like this format. Well, hopefully, you know, maybe you learn something new here. Let me throw out another interesting point. When you start to look at this dynamic between the LLC and the S Corp. I forgot what I was going to say, to be honest.

The trifecta.

We got to get there. I had really insulted. Insightful comment. Okay.

Anyway, I think both of them are tools that can be used in different instances. And so.

Oh, I remember now.

And so by beating them up, I hope you can see some of the weaknesses, benefits and limitations of the different entities. That was the purpose of all this.

Yeah.

You know, not to like, you know,

Okay, I remember What I was gonna say.

I gotta remember, I bought you some time there.

Yeah, you bought me some time. Maybe our studio, the producer just doesn't take the time to edit that out. Maybe he will. So, okay, here's where I was gonna go on the C Corp point. Now, some of you that have been following us know that this year we've launched this Main Street Certified Tax Pro network where we are helping train enrolled agents, CPAs, financial advisors, business consultants, attorneys around the country on real world street smarts, tax strategies. There's no one else out there doing that. This is a Main Street CTA program, Certified Tax Advisor program. You're gonna love it. You know what we talked about Tuesday in our weekly training? When you join the program, you get a weekly training where we all collaborate, the attorneys and CPAs and enrolled agents. The C Corp really was the highlight. When it comes to medical expenses, there's a lot of benefits. When you have a C Corp with a couple or a single individual, maybe they have employees in their main company, they've got discrimination issues. When it comes to not including employees in an hra, the C Corp can be a really nice escape hatch for someone that has a lot of medical expenses and they're single and they want to try to write those off. The C Corp is that one place where it really has a good spot to be. So I don't.

It's got its limited scenarios, but you know what? For the typical Main street business owner, entrepreneur, small business owner, real estate investor, C Corp is not your game. You're gonna pay more tax. It's, it's just, it's not your game. And the problem is people get out there googling and they're like, well, when Uber started, they became a C Corp. You know everything. They're gonna be the next Uber. It's like, okay, well, they had an intent to be a publicly traded company. They had all these. This startup funds that required them to be a C Corp. So. So just be careful in getting like the big Fortune 500 advice of what your entity should be. That's not for you. That's not small business. You're not going to get all those benefits that they're going to get. And they're doing it a lot of times for other reasons. So LLC S corps, even though we are fighting over them here, that's what you're going to be using in the small business, entrepreneurial space.

Yep. So I'm going to. I think we can bring this around here. I want to. Here's the. From my position I think we've argued a lot of the hot button topics, so we could get into some technical issues. Maybe. But here's the main takeaway. I would say 80. I want. I'd like to say 90, but I'm going to go with 80. Percent of our clients use the one two punch. To bring it around to our boxing analogy, they have an S Corp for all of their ordinary income operations, online sales, consulting, affiliate work products, services. And S Corp is the perfect fit for that. Maybe a solo 401k is a little added benefit. And then on the right side of the equation, they have their LLC for the rental properties. You might be using an LLC with your Roth IRA or your 401K to do some additional investing. The LLC. Oh, I should have used that one. The LLC can be used as structure with retirement accounts.

The fight's already over, so. Oh, yeah, can't throw a punch after the final.

You do. You did. And what was the movie with Clint Eastwood and he directed what's her name that she does all the capital one? Hillary Swank.

Yeah, yeah.

She'd won the fight and that girl punched her and she broke her neck on the chair. Remember that? That was terrible. Into the show. I hated.

What was the name of the Million Dollar Baby?

Million Dollar Baby. Oh, sorry. If you haven't seen that.

Totally ruined it.

The movie's 20 years old. Whatever. Okay, so here's the point, people. If you're a business owner, if you're an investor, if you're needing someone to bring this all together, that's what our tax lawyers do at KQS Lawyers, our certified tax advisor network. They're trained on this to help work in conjunction with the lawyers to bring together your plan. You want that one two punch? That's what's going to make you most effective in that bar fight this weekend. Tristan, you need the 1 2, because you know that bar fight is going to happen and you got to go one, two.

You need both.

You need both. You need the S Corp analysis. I'd say 80% of our clients use both. Yeah, yeah, you need.

I love it. And many of you know the trifecta. And just if you're like, man, this is my first time hearing these guys and you're learning about the business entities. We have separate episodes just on the llc, separate episodes just on the S Corporation, separate episodes on what we call the trifecta, which is understanding how they work together, when to use which. Separating your business and operations from your assets and investments, coordinating your estate plan. So there's lots of important ways to think about these and how they come together. So just know we got a lot more content on that if you just kind of. This is your first exposure to us.

Oh, and you know what we did this morning? We do two trainings a week for our certified network. This morning, one of the questions a CPA had asked, I mean, this is where really you think all of us accountants and lawyers, we learned this in school or in the CPA exam or the bar exam. You don't. You learn it out on the streets? Well, we're the only ones teaching street fight techniques out here. So on our call this morning, a CPA asked, well, I didn't think a revocable living trust could own an S corp, but yes, it can. The IRS is allowed for a see through grantor trust, which an S corp is even on the 2553. We'll list the trust with the one of the spouse's Social Security numbers on the second page of the 2553. So for you accountants out there, that trifecta is really comes together with that revocable living trust owning the S corp and the llc, bringing it all together because I hate to tell you, someday you're gonna die. Your clients are gonna die, and you don't want to have a train wreck with a disorganized business structure. So make sure you bring it all together. And if you need a console, our links are down below. The lawyers are out maybe a week and a half, but they'll build a plan for 2023. Get a plan. 2023.

Yeah. Well, thanks, guys. Hope you enjoyed this episode of the Main Street Business podcast. Make sure you're subscribed. You give it five stars. You like? Wherever you're at, do something positive about the show. Don't be a fighter.

You'll love her.

You'll love her.

Yeah. Let's make the world a better place. What was it? We're going to feed the world or. Yeah, it was some song. We're.

We're disaster dwindling here.

Yeah, we're going down in flames here.

Yeah.

Million Dollar Baby. I'm about ready to hit my head on the chair. Thanks, everybody. We'll see you next week for another episode of the Main street business podcast. Keep living the dream.