Transcription
If your books are kind of a mess, it's going to cost you more. I promise you, whatever you spend in good bookkeeping, you'll get back double in tax savings.
Someone's going to say, "Hey, your LLC, the tenant slipped and fell, and they're like, 'I want to sue you.'" They're like, "Well, you can't sue me, you got to sue my LLC." They're going to be like, "Did you really treat it like an LLC? Did you have annual minutes? Did you actually keep your entity renewed?" Someone trying to sell you an LLC that it was simple and easy, didn't tell you this. IRS is going to ask for it in an audit. It's on their list to get these documents. You're like, "I don't have it. Did you really have a company?"
Sorry for the reality check, but there's thousands of people listening right now that have a rental property and an LLC. Can I just say, I actually disagree with [Music].
You. Welcome everybody to another episode of The Main Street Business Podcast with yours truly, Mark Kohler, and the amazing Matt Sarson, my incredible partner. Glad to be here with you. I'm excited. I'm excited for today and the topic because people need to hear this. Yeah, yeah. How we need to help you. Okay. Yes. And if you haven't, uh, read, uh, if you're multitasking, you just hit play. Let's tell you that topic, and it is, "How to Maintain Your LLC or S Corp on Day Two." It's, yeah, everybody's all excited about setting it up, and now I got it, and you're not done. And we want to make sure that you're maintaining this entity. You know what you've got to get done. There's resources, of course, you can get help, but we want to go through the list so you know because you got to be informed. You're captain of the ship. And I think just an overall point that I want to make right out of the gate is that it's just not one sheet of paper. I set up my LLC, I'm done. I know. So many business owners would love that's how it works. If I could just click my heels together and wish it, so it's not that way. If you have an LLC, there's a lot, or S Corp, which we're going to talk about both, there's a lot of benefits and a lot of reasons to do it, but it's, it's just not a one-and-done, right? Yeah. I mean, you have to use it too. I mean, this kind of goes without saying. So we want to just make sure for those of you that are like, "Guys, I'm a business owner," and you're, you know, a side hustle, a main hustle, small business, big business. I think a lot of people just kind of get it set up and they maybe open up a bank account and they're starting to run their income through it, but then they forget about all these other things. And you're busy, so we want to make sure you're remembering the key things to get done every year. I wonder, we got to find a good analogy here. Like, everybody would never not maintain, like, you buy a car. Yeah, you got to put gas in it. You got it, or it's just going to sit there. If you maybe get the first, yeah, I don't know. There's, but hopefully many of you getting that point. So here's what we want to do today too. So let's, let's talk about whether it's an LLC or an S Corp, uh, what you've got to do to maintain it. Right out of the gate, just no matter what type of entity you set up, some good practical steps that are going to give you the benefits you think you got and, and continue to receive them and use them. Then for us corporation owners, we're going to give you an added layer of things that you need to do and the benefits too. Not everybody needs to be an S Corp, but once you make that pull that trigger, there's some extra things you need to do and to get those benefits. Right, right. Extra work, but extra benefits. But again, not everyone needs it. Not right for every situation. So now we talk about all the time whether to use an LLC or an S Corp. We've got other videos on that. LLCs are great for holding assets, rental properties, partnerships. We love S Corps for operational businesses. So not the point of today, but let's break down the things you have to do no matter what you've got, an LLC or corporation, no matter the state. Yep. Okay. So let's start right from the beginning. Um, when you set up a new entity, and I know some of you are told to do it by your family member, you're at a conference, you're just like, "Oh, that's what I'm supposed to do." The first mistake that we see is that so many owners think it's just a one sheet of paper and I can just go online and do it for 50 bucks. And these are sometimes some very savvy business owners. They don't like calling their lawyer, they think it's worthless, it's going to cost them more, so they just kind of do the DIY thing. And the first step in maintaining your entity is setting it up properly. I, I've got to just say that because it's so many people like, "It's one sheet of paper. I paid the state, I'm good." No, there's about seven or eight other pieces, whether it's an operating agreement or it's bylaws if you're an Inc. Uh, do I have minutes? Do I, did I file it properly with the state? Do I have a, a corporate book and stocks? Because see, you don't have the asset protection unless you have the structure set up properly from the beginning anyway. Yeah, yeah. So, yeah, so, and that's important because one of the things you're going to need to do on an annual basis is minutes. Do you have the initial minutes when you set it up? You know, and so, and these are the things that are important if you do get into a lawsuit, um, if you do need to go get a line of credit, if you do get audited, I mean, these are the things that they ask for. Right. Plain and simple. A lawyer is going to ask for this stuff because they want to pierce this LLC or corporate veil. If you didn't do these things, the IRS is going to ask for it in an audit. It's on their list to get these documents. You're like, "I don't have it. Did you really have a company?" Yeah. See, if you want to write off home office, a mileage reimbursement, pay reimbursing yourself for travel expenses, any sort of what's called an accountable plan, some health care expenses, maybe all of those provisions need to be in your minutes. Well, I don't have to do that with an LLC. No, you do. Someone trying to sell you an LLC, it was simple and easy, didn't tell you this. Are they, did they sign a piece of paper and tell you they're going to stand behind their crappy advice? Are they a lawyer, an accountant, or some sort? Are they an advisor with licensure and and malpractice insurance? Probably not. Well, I went to the seminar and this guy makes millions and he just says, "Do it this way." That doesn't mean it's the way you should do it. And a lot of times behind the scenes there, you know how many influencers we meet with on a regular basis that everybody thinks they're crap's all together? It's not. And they're coming to us behind the scenes, "Help me get my stuff together." So just be careful who you're getting that advice from. I'm sorry for the reality check, but point number one, let's summarize. Set it up properly. Get your minutes done. Have the provisions that the IRS requires that if you're in a lawsuit, a lawyer, a lot, you're going to, a lawyer's going to want to see in there. It's not that hard. It's, and it's not that expensive. We can do it right. Yeah, we call a cleanup. I mean, our law firm does those every 30 minutes. We're cleaning up someone's. We have a service for that. So haven't done that, that's right. Call our law firm. Our links down below. If you go somewhere and say, "Hey, I need a cleanup," you don't even have to talk to one of our lawyers. Our paralegals know what to do. They're going to get you all the pieces and parts. And they sometimes they see it and go, "This is not repairable. You do need to talk to a lawyer too." The turd comment. Yeah, I mean, sometimes you just have to dissolve it and start over because we cannot polish a turd. So, you know, that's Matt Sarson's quote that will go down in infamy. Yeah, I stole it from someone, but yeah. Oh, you did? I thought that was always yours. Yeah, somewhere. I mean, I've used it so much, I've kind of, I've made it my own. Yeah, we made it your own. Like, you've used it more than anyone else. So, but yeah, so if your entity is a mess, that's another point we want to make here. We don't want to make you think the sky's falling. You've got to start over. We're trying to sell you something new. Maybe what you've had for the last five years just needs cleaning up. M. Um, and by the way, can I say on those minutes? This is a great tax write-off opportunity. Don't see this as, "Oh, I got to do minutes every year. I don't have to." You want to. You want to. This is a great time to get your board put together with your family, your spouse, your partner, your kids, your mom and dad, your best friend. This is the golf trip you want to write off. The annual vacation you want to write off because you're going to have a board meeting. You're going to talk about your business and finances and wealth. You're going to start collaborating and doing it what wealthy people do. And those minutes are that write-off. So maybe we should just, that's point number two. You get it set up right, you've got to do your annual minutes. You want to on that a little? You, yeah, yeah. So let's just tell that number one item you need to do is your annual set of minutes, whether you're an LLC or corporation. And we've already been beating up the LLC because a lot of people do say, "You don't need to do minutes for an LLC." Because in the corporation statutes, in all 50 states, there's a requirement that you're doing annual minutes. You don't need to show them to anybody or give them to anybody. You don't file them anywhere, but it's in the statute. Whereas LLCs, it's not in the statute, but you still need to do it for the tax purposes. Mark talked about the tax benefits you can get from it. Also for the asset protection that you're going to want to have. Because here's what happens when you get sued. Someone's going to say, "Hey, your LLC, the tenant slipped and fell," and they're like, "I want to sue you." You're like, "Well, you can't sue me, you got to sue my LLC." And they're going to be like, "Did you really treat it like an LLC? Did you have annual minutes? Did you actually keep your entity renewed?" We'll talk about that. Like, did you treat it like a real entity separate from you personally? And the minutes are one of the things that you go to show I treated this like a real company so they can't get through the LLC and do what's called piercing the corporate veil. So there's many benefits to doing it, but that should be number one on your list. Get your minutes done. And here's what should be in the minutes, if you don't mind me saying. Go, just a couple things. What were the main things that happened that year? Did you hire people? Did you acquire more assets? Did you sell a property? If this is an LLC for rentals, did you get more debt on the company? Like, just think of the main key things that happened in the business. It's kind of like memorializing the year of what happened in the business. Don't overthink it. I, you know, some clients, we get their minutes and it's like 10 pages. I mean, good Lord. Like, you don't need to do that. Let's just get the main things, the big changes that might have happened in the business during the year or the major accomplishments you have. And it doesn't have to be expensive. I've been dying to say this too. We, we charge, uh, $200, uh, at our office to take care of it for you, start to finish. And we're going to come to the BOI report here in a moment, which we include for that same price. So for $200, we send you a questionnaire, just to get your juices flowing, go on your vacation, fill it out, send it back in, and it's done. So, uh, it can be affordable, simple. We'll help you do it. Uh, our Main Street Business Services, it's a sister company, the law firm can expedite that for you. So that'll be down in the description if you want to get signed up for the Main Street Bus.com. Mainstreetbusiness.com. Now let's back up to, uh, day two. So we get it set up right, we know we're going to be doing our annual minutes. Some of you need to do a cleanup, so we're off on the right path. Um, some practical points. When you have a separate entity, you have to respect it. They call it respecting the veil in the law. And so that veil of protection between you and a potential creditor means you're going to open a separate bank account in the name of that entity. You're going to use that entity's name on contracts and agreements. If you're owning real estate with that LLC, you want the LLC on title. And do not worry about the due-on-sale clause. Banks do not care. Deed that property over to the LLC. Yesterday, get, get it done. Banks again are not going to call the due-on-sale clause. We haven't seen it in 25 years. Now, if you go into the bank and start asking permission, you're going to, they're going to freak out and not even know what to say. So just take care of your LLC. Make sure it's on agreements, on titles, you have a bank account, you're using it. If you want to get a separate credit card in the name of the LLC, that's great, but you don't have to. You can, uh, just dedicate a credit card to the LLC or Inc. Um, but just use it. Yeah, I don't know. That's, that's my point. Yeah, I mean, yeah, well, well said. I mean, you just have, if you want the benefit of it, you have to be using it. And you don't want any confusion of, "Was I doing business with Matt Sarson, or was I doing business with Sarson Enterprises LLC?" You know, like, who was I doing business with? And if it's not clear, you're going to lose. They're going to sue you too. They might sue you in your LLC and be like, "I thought I was doing business with Matt Sarson." You know, and so I want to get anything that Matt Sarson has. I want, I want to be like, "No, no, it's pretty clear. You're doing business with Sarson Enterprises LLC." All right, that was on the contract. That was on the invoice. That was on the marketing I sent you. That was on the deed of the property that you lease for me, you know, you want that super crystal clear. And let me give you one example we see all the time. I know there's thousands of people listening right now that have a rental property and an LLC. Now, let's just do a little quick, uh, intervention here. Is the LLC set up in the right state? Because it needs to be either set up or registered in the state where your rental is. Is your rental property on title? Your LLC on title for the ownership, not you? Have you deeded the LLC to be the actual owner of the property on title? Is the lease agreement with your tenant in the name of the LLC, or your name? Is the tenant paying the rent to the property management company you might have involved, and hence to you? Maybe there's a middleman, but is the money for rent going to your LLC bank account, not your personal bank account? Are the utilities set up in the name of the LLC? What else would you ask in that question? So is it, oh, is your LLC in good standing with the state? Have you ever Googled, "Tennessee Secretary of State," and you're, and go there and click on your entity? Oh, it hasn't been renewed. Uh, I didn't pay my fee a year ago. It's dissolved. I don't even have an LLC. Have you done your minutes lately? So maybe these, just seven or eight questions, all of a sudden you're like, uh, if you miss even a third of those, and there's a, a tenant that gets pissed or wants to file a lawsuit, you don't have an LLC. You lose. You literally lose. Yeah. And if you were trying to write off expenses related to that LLC in a creative way, and the IRS audits you, that LLC, it's, it's not going to help you either. Yeah, it's definitely in question. So let me tag on to what you just said there, though, because you talked about the renewal, okay? And and that's a very critical point here, okay? In most states, and there's some variation to this, there are 50 states here, so we're generalizing this for purpose of the podcast. In most states, you have to file a renewal with the state every year. Now, there's a couple of different states that do this differently. I just want to give a couple of different things to think about. Examples. Yeah, let's give a couple of examples. It's like, you might have a state that's very common. It's like, you file with the Secretary of State, a form, and you pay us $50. You're good. I don't care if it's an LLC or corporation. Yeah, like a Utah, Michigan, in Illinois. It's like $15 or $25, $50 a year. Illinois is a little more. Illinois is a little, yeah, Illinois is a more. That's true. I brought up the B one there. But, but say 30 states are like that. Exactly. And so, and, and, and that's nice. And but you still have to do it because if you don't, now your entity gets dissolved. Like, we didn't hear from you. You didn't pay your $50, your $100, your $20. It's kind of, you know, and, uh, you know, if you don't do that for a couple of years, all of a sudden you don't have an entity. You go into default. Then you go to administratively dissolved, which means the company is no longer a company. And this has nothing to do with the IRS or paying the state taxes, the state tax return that you may need to file. This is the Secretary of State. Yeah. Now, there's other states where they want a little more. Yeah, they want a little bit more, or don't care at all. Like, AR, that's true. There's nice. There's some states like, "Hey, we don't care." Like LLCs in Arizona, for example, you don't have to file anything. Once you set it up, you pay your initial fees, you're good. Which is the weirdest thing. Yeah. Now, corporations in Arizona, you have to file an annual filing. There's a little nuance there. But then you have other states like, I think like, uh, Colorado, they don't want anything year to year either. And so they're just like, "We don't care. You paid us once, you're good until you tell us otherwise." Y. Now, then you look at other states like Tennessee. They have a franchise exemption, a whole separate form. That if you don't file that, they're going to assess some state tax to your LLC, even if it's just a little rental property you've got. Texas with a franchise. You've got Washington State, Hawaii. California has the minimum franchise tax form 568. So you've got these different states where they are a little more pain in the butt. Yeah, but you found a good deal there, you're doing business there, that's okay. Just play to play. Yeah. And so, but a lot of times it's just the mechanics of getting it done. And Texas is a classic one where it's like their damn franchise form you have to file for your LLCs. And it, and if you're a small business owner or something, it doesn't, it doesn't cost you any more tax because they have exemptions for small businesses, you know, if there's like revenue below like a million and two. If you don't file the form, but if you don't file it, they like lock down your entity. You're like, "This isn't an entity anymore." And so, but then there's California. Bucks. Five. There's California on the other hand, that's like, "We don't care if you lost money or you made a dollar, you're at least paying us $800." Yeah, we want something out of you. So the moral of the story here, we're giving you a lifeline. This is where Main Street, this is not an infomercial, but we just want you to know if you don't have a resource to help you, Main Street Business Services, this is what we've been doing now for 15 years. Early on in our practice with our law firm, setting up entities all over the country, clients were all of a sudden having problems with this. And we had, I think it was in the first two years, Matt and I were partners, we said, "We got to have a paralegal just dedicated to doing this." Now we have a 20 to 25 person team that all they do is maintain entities for clients around the country because it's so important and so needed. Yeah. And so don't worry about all these little nuances. We got you. If you sign up for our program, we're going to let you know, "This is what you need to do every year. This is what you missed. This is what you, you know, da da da." Yeah. And there's even some states that are like, "And every other year." I mean, it's just, you know. So, but that's the thing. You get to know your state. Oh, yeah. There's another good one too. It's like, you set up in January or February. Yeah. And then you think, "Okay, my renewal is every January, February." Nope. In the state of Rhode Island, once you set up in Jan, your renewal is every April. Yeah. Like North Carolina's like that. I know. It's like, "We don't care. You set up in March." "Oh, you got to, because it's April." Yeah. Yeah. And so there's a weird, you know, sometimes during, it's going to be November. Who knows? So every state has their weirdness. Where my calendar? I don't have one here at my desk, but my, uh, Mark J. Kohler annual planner calendar, you can get it at Markjkohler.com. We're in our fifth year of producing that. And the calendar, it we list all, and throughout the year, all the renewal dates for entities in all 50 states. I'll tell you, it's quite the big to-do because when I call the paralegals in November, when we're ready to print for next year, they're like, "All right, let's see, you know, when is North Carolina versus North Dakota and Washington, Alaska, and LLC versus." So it's all in the calendar. If you'd like to get a, a copy of that, I think it's like $25. Uh, it's a great little resource. It's got tax resources in there too. But okay, so we got the renewal done. So we've done our minutes, we've got the renewal done, and maybe there was an additional form with the state depending on your state where the entity is set up. Now, also, I will say this too, if you have an entity that's registered in multiple states, you got to renew the foreign registrations too. Let me just add that in. Next. Okay, what's the next thing that's big on the list? I think, um, I got, I, I'm going to, I was going to say, follow your tax returns. Um, that's the tax guy here. So we've talked about doing, setting up bank accounts. So I'm going to just presume you're doing bookkeeping and you're doing a tax return. Uh, that's going to close out the process on that end. What, what else did you have? I mean, I got a massive one. Oh, my 24. Oh, my gosh. I knew it. BOI. Your Business Ownership Information report. You have got to get done. And I know there's some litigation out there and some people are like, "Ah, this is BS. I don't have to file this thing. The government doesn't need this." I know. I agree with you. But the law says you have to file this. Yeah. And this, and this was Republicans and Democrats that came together. If some of you, okay, let's start over. For some of you that are still just getting up to speed on this or have ignored it, let's just summarize. BOI stands for Business Ownership Information Reporting. BOI. It's to the federal agency called FinCEN, which is the sister to the IRS. And their job is to make sure that there's no financial crimes out there being committed under these names of entities that just come and go. Like everybody's just setting up entities and ripping people off. And so the Republicans and Democrats, I'm summarizing generally, yeah, I know you can add some bells and whistles, but for the average layperson, just know there's bad people out there using entities to hide behind and then disappearing on day two. They've been doing that for years. So Republicans and Democrats about three years ago said, "Enough." Whether there is human trafficking, drug dealing, money laundering, we need to know who is owning these freaking entities and hold them accountable to report that ownership and control. And we're going to try to clean up this mess. So they said, "Starting three years from now," yeah, "in 2024," yeah, "everybody's required to do this, or the penalties are going to be significant, thousands of dollars per day. Go to jail. You need to tell us who owns your freaking entity and controls it. We're not going to make it hard on you to do it, but you got to do it." And that was the law. Everybody said, "Oh, that's nice." Okay. And forgot about it. Well, it's 2024 now. Yeah. And it's time by December 31st to report, or you're going to have some issues. So how would you, how did you like that summary? That was a good summary. I like that. That was a good summary. And, you know what? It's not that complicated. Um, but it is something again on this list of these little things you got to do. This is kind of like the change in the oil in the car example Mark gave earlier. Like, you got to do it every once in a while. Now, the BOI is a one-time filing. So we've got to do it at least once. Now, if information on that report changes, you may have to amend the BOI filing. But otherwise, this is a one-time report. This isn't an annual thing like your state renewal. When we're setting up new entities right now, we automatically do the BOI right when we set up the entity for a new client right now. But if you had an entity before 2024, like you have your entity set up in 2017, you've never done this, the law never existed, and it went into effect this year. You couldn't even file it until this year, but everyone's got to go comply with this. So make sure you understand what that is. Now, Main Street Business Services, we talked about that. Mainstreetbusiness.com. We include that in that company compliance service. Mark talked about where we do your minutes, we do your state renewal, and we do your BOI filing and any amendment if you have any changes to the company. Yeah. So good. And the BOI filing, let me just say, it's just kind of like informational. It's, it's not a tax return. There's no fee to the government for it. It's kind of like, who owns 25% or more? Who controls it? And you have to give a government-issued ID of those people. And so, and I want to just try to give you a good reason or feeling when you do this. Don't go in bitching and moaning and complaining, "The government's trying to intrude in my life again." What they're trying to do, and I, I believe in it, is they're saying, "Hey, everybody, let's all get together and report what entities we're using because there's some bad people out there that are hiding behind entities that we need to find out who they are." So if everybody comes together, 90% of us, and reports honestly, "This is what we're doing." And by the way, it is, it is private. Between the, under the Privacy Information Act, only the equivalent to the IRS government has this information. It's not public record. It's not going on Google. It's just with the feds. Our goal here is to try to flush out all the actors that are using entities in this country and they're not wanting to tell us who owns them. So the feds can then focus on them and go shut them down, find them, chase them down, whatever the case is. So this is a, there's a lot of bad actors out there. I mean, Tony Robbins, by the way, Tony Robbins just came out with such a great movie on human trafficking and what he's trying to do. There's just some. Can I just say, I actually disagree with you. Okay. All right. That's okay. We can take two different sides. I totally disagree with. I think the law is totally stupid and insane and the people that wrote it have no freaking clue, I'll be honest. But you got to comply. You don't have a choice. Get back that up. Why you don't think it helps at all? I don't think it helps at all. Why? Here's the thing. If you, you don't have to file if you're a big company with more than five million revenue, right? There's a bunch of. Yeah, we already know. Let's get there. Let me get there. Let me get there. Okay. And then, um, if you, if you were a real company, you were filing your information on a tax return, whether as even a sole proprietorship or it's an S corporation or partnership, you're actually filing your information on a tax under the federal government, claiming the income, right? No, LLCs don't have to do that. Well, that, that income's going on somebody's sole prop on their personal return somewhere. Part. But the LLC may have no income and the tax return doesn't say who owns it. Well, here's the problem. The people who are the money launderers, the criminals, or the people already not giving information to the IRS, but what the heck's happening? These L, you just said it, they're not giving it to the IRS. So the IRS doesn't have it. And they're the same ones that aren't going to voluntarily file this. That's right. So now we have an entity with no trace at the IRS and no trace at FinCEN. Let's go after it. Let's figure out. Let's shut that down. Let's go after. What we're trying to do is get all the people that are doing it right so we can go after the people that are doing it wrong. I agree with you. They're not reporting to the IRS. They're not reporting to FinCEN. So now we know that entity is suspect. That entity is suspect. You know, I, so we're going to go after that entity. So that, so it's, it's a, it's a reverse methodology. Here's, here's the I that could happen. The federal government will not do that. When the federal government is crap, they're idiot. They're going to send letters out. They're going to fine people. And let's see, then I see in this law, they actually have, they're required to report back to Congress the, uh, results, the, the value and benefit of this, which will be interesting to see how this goes over time because I think this has been a kind of a pain in the butt for small business owners. Big businesses don't have to comply because of the big company exemption, $5 million or more revenue, certain amount of employees, you don't have to file anything on this. It's just, it's just kind of a pain in the butt. And I don't think the juice is worth the squeeze. Okay. Well, I, I could get on board with your, I could get on board with your concept that if you would, or your principle that on in concept, it works. But in, in theory, communism works in theory. Well, I forgot what that's. Yeah, in concept, this works. But is the federal government going to be able to execute it and really accomplish what they want? Yeah, I get that. That's very, um, precarious. That's usually a winning argument. Yeah, that's usually a winning argument. So I don't, you know, I, anything that the government can do to try to keep fentanyl out of this country and bad actors and, you know, whatever. And people are hiding behind these LLCs. And I don't know, I get it. I get it. Hopefully it works. What a great debate. Yeah, it's good stuff. Okay, um, so, so you got to file this BOI report, whether you believe that it's going to be worth it or be helpful or not. So now let's turn to those S Corp owners. So now for those of you that have made the decision to take your LLC and make an S election, or you file as an Inc to begin with, or a PC or a PLLC or whatever, and now you've made that 2553 S election. Now we have other podcasts on why you would do that. They're fantastic. If you're in, uh, creating ordinary income, not going to do an S Corp. If you have just rental property, so listen to some of our prior podcasts on when to convert to an S Corp. Matt and I both have articles and ongoing, um, uh, shorts and videos everywhere to help you understand that. But if you've made that commitment to be an S Corp and you're getting the benefit of saving on self-employment tax, um, and opening the door to some additional write-offs and as, and really greater audit protection, your chances of an audit go down dramatically with an S Corp. You're actually not increasing your risk, decreasing. So if you make that decision, you've got to do a couple other things to get those benefits on top of what we've already talked about. What, what comes first for you? Well, now you're doing an actual payroll report to the IRS at least every quarter. That's going to say, and this is where you're getting the tax benefit. You're doing payroll to save on self-employment tax. So don't think of this as a burden. Think of this as the S tax savings opportunity filing report. Not your report, right? Yeah, you're, ching, you're making money every time you do that report. Yeah. So quarterly payroll. Yeah. Um, those forms are going to be a 941. You, some states you have to deal with SUTA, state unemployment, even if you're the only employee. Those are few states. There's FUTA, federal unemployment. You're going to file a 940 at the end of the year. You're going to get a W2. The easiest way to just deal with that whole process is get a payroll service. We, we've got a good relationship with ADP. We think they do a great job. We'll make sure down in the description is a link to, uh, the the best route to get their help. But ADP does a great job of just saying, start to finish, here it is. Pay your payroll. And you don't have to take a paycheck every two weeks. You can do a quarterly payroll report. Just claim how much payroll you want to do. It's simple, it's easy, it's straightforward. Yeah. Boom. Bank. Yeah, you're pretty much just transferring money from the S Corp bank account to your personal bank account. And then in that quarter, you're just saying, "All right, how much of that was going to be allocated to payroll that I took versus what is kind of profit out of the business, so to speak?" And so, and that's where you get into the Kohler payroll matrix. You know, that's true. So, you know, how to nail that. And, uh, and so, but that's it. I think payroll, think of this is unique to the LLC. You know, you're not doing payroll unless maybe you have employees you're adding. You might be starting to add payroll, but you're not doing an actual payroll for yourself as the owner. Yep. Now, the second thing that you want to worry about if you're going to make that S election is now you're required to do a separate tax return. With an LLC, you might just throw that all on your 1040, your personal return, a Schedule C, a Schedule E, whatever. But once you make that S election, you got that quarterly payroll, and then you've got an 1120S tax return at the end of the year. Uh, the, the goal is you're going to save money on your 1040 because the reporting is not going to be there anymore. And all the reporting will be on the S Corp, which has a 15 times, that's 1500% less chance of an audit. You're going to create tax savings on FICA or Social Security. But you have to do that tax return. It's due by March 15th. If you don't file an extension, the penalty is $300 per month until you, uh, for up to six months. It's bad. It's ugly. Make sure you file an extension, get it done. Um, but I think it's just quarterly payroll and the annual tax return that's really the, the added layer. Other than that, it's all that list we already talked about. Yeah, it's the same set of stuff. Make sure you're doing your annual renewal. You got your annual minutes. You've got the BOI report. Again, this is the new thing on the new kit on the block of things to do. And then you got the payroll, annual tax return. And you could have had an annual tax return on the LLC. Maybe it's a partnership entity. Mark, I have some LLCs together that own real estate, you know, and that's a partnership because we got to do a 1065 return for that. So you might also have a company return at the LLC level if you have partners in it and doing a partnership. Or let's not forget, let's say you did the LLC at the state, but you did an S election for tax purposes. All these little S Corp things we just talked about, you're doing those. You're doing payroll, you're doing the 1120S because you are an S corporation for tax purposes now. Yeah. I'm trying to think if there's, I, the one thing I would just say finally is maybe you're going to do a little better bookkeeping. Uh, because if you're going to do an S Corp tax return, a balance sheet, a P&L, it's got to tie out. And so if your books are kind of a mess and you just make this S selection and think you can keep being a train wreck at the end of the year, it's going to cost, cost you more. You're going to have to pay your accountant more to clean it up, tie it out. So I think it's just a, a greater commitment to either using a, a monthly or quarterly bookkeeping service, just really stay on top of it. It's going to make you a better business owner. You're going to make better decisions. You're going to get better write-offs. Don't think of better bookkeeping as a burden. Think of it as really setting you free. You don't have to stress about it. How many of you listening right now are stressed that your books are a mess? Get over that. The money is well worth it. I promise you, whatever you spend in good bookkeeping, you'll get back double in tax savings because you just get better write-offs. You know it. You know what I'm saying? It's true. So, and if you don't, you can't find a good bookkeeper, you don't know what to do. We've got our Tax Pro Network. Oh, almost a thousand tax advisors around the country in our, our Tax Pro Network now. Go to Markjkohler.com, Network at the top, start searching. Big, small, young, old, male, female, Le, West Coast, East Coast, speak Spanish, don't, no crypto, don't, whatever you can find an advisor that speaks your language. Um, whatever that, not literal language, but speak whatever you do. Pao, Espanol. Yeah, yeah. Whatever. And, uh, help you get your, uh, books in alignment. So, love it. Great tip. That's kind of the boring tip, but there's a lot of money in that tip. Y. There is a lot of money in that one. Benefit, sir. Well, all right. Well, hopefully we've given you the things you need to know to make sure you're actually maintaining your LLC or S corporation so you're getting the real benefits out of it, the tax savings, the asset protection that you're hoping for. We want to make sure you're actually getting that. So make sure you keep it maintained. We've given you lots of places to go. We're here to help. The companies we mentioned and our, our networks and other places, um, or go get it from the professional that you're using, or maybe ask your, a lawyer, accountant, "Hey, do you guys help us or have a service to make sure I'm maintaining this and keeping this up to date?" Yep. Love it. Thanks everyone, and we'll see you next week for another episode of The Main Street Business Podcast. See you then.