Why the Rich Use S-Corps Instead of LLCs (CPA Explains)

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Video Summary
Two business owners can make the same profit… and keep very different money… because their tax structure is different.
In this video, I break down why wealthy business owners use S-Corp taxation (when the math makes sense), how it actually works (salary + distributions), and the simple rule of thumb to know when it’s worth it.
Best for: LLC owners, self-employed, and businesses with consistent profit.

Free Download
• 7 Tax Strategies eBook: https://online.twcouple.com/e-book

Useful Resources
• Elect S-Corp (Fax IRS Form 2553): https://www.irs.gov/pub/irs-pdf/f2553...
• Get a Free EIN (IRS): https://sa.www4.irs.gov/modiein/indiv...
• Pay Federal Estimated Taxes (IRS): https://www.irs.gov/payments

Tools I Use & Recommend (you'll receive my special discount )
• ADP (Payroll): https://api.leadconnectorhq.com/widge...
• Gusto (Payroll): https://gusto.com/r/teamfd5da553

Timestamps
0:00 Introduction
2:01 Roadmap: What Will Be Covered
2:31 What Is an LLC?
3:01 How are LLCs Taxed by Default?
4:04 What Is an S Corporation?
5:10 S Corp Income Split: Salary vs Distributions
7:06 Is Switching to an S Corp Worth It?
10:12 Step-by-Step Guide to Setting Up an S Corp
12:36 Using Tax Savings to Build Wealth
13:06 Monthly Best Practices

⚠️ Disclaimer
This video is for educational purposes only and doesn’t create a CPA-client relationship. Tax outcomes depend on your facts, income, and state rules. Always consult your tax professional before implementing strategies.