This is a YouTube video titled "Should I be an S-Corporation or an LLC as a coach?" containing a monologue or single-speaker explanation about the differences between LLCs and S Corporations, focusing on tax implications and payroll requirements. The content was created in July 2025 and provides guidance for coaches considering their business structure.
Most people will start out with a single member llc. It's what they call a disregarded entity. In an llc, just like a sole proprietorship, you don't take salaries, everything. All the income that the LLC earns will be subject to income tax. When you convert to an S Corporation, you now have to take salary like an employee. You become an employee of the corporation, that salary is now subject to Social Security. But the difference is you don't pay self employment tax or Social Security tax on anything beyond the salary salary. Corporation is a little more complicated than an LLC because now you have to file payroll tax returns on a quarterly basis to.
