The Step-By-Step "Zero-Tax" Blueprint For Business Owners

19:30 CPA here and just want to add for business owners to think about--this often gets missed. When you become an S-Corp, you need to become an employee of your corporation (hence the wages), so you'll need to run your own payroll or pay a firm like mine ~$200/mo. to run payroll, and you'll need to file informational return 1120-S each year, which currently costs ~$800 from a CPA.
All this is to say you need AT LEAST $21K in net income in your business AFTER your "reasonable" wage to make the S-Corp worth it. (I'm sure you can do these things cheaper if you DIY, but if you're a business owner, I hope you're smarter than that... You will mess these up.)

Baller suit man

You mention not using a c-corp as a small business owner, but is there any benefit to a c-corp if the business is an business investment bringing in 7 figure income? If not, who does a c-corp really benefit and why would they use it?

Answered my question! Thanks!

Wouldn't paying for business expenses with personal credit/debit cards be considered co-mingling?

I messed up and took a consult job from my normal contracting business, made 170k in one year for a project but, after office and admin expenses over the next year during covid, all that money literally paid for keeping the doors open and none of my taxes were paid just to keep the doors open, i'm still trying to figure out how to reconcile this; do you have any advice?

Very new business and everything coming out of my own pocket. How do I pay myself and my 20 yr old when we have not made enough to have a paycheck?

Still learning, but thank you for explaining that I can't use inventory as a tax write off.

This is the most basic crap gift-wrapped as something innovative.

Actually you definitely 100% could have wrote off the cost of that vehicle. You get to choose do you want to take millage or depreciation and actual expenses

Clothing - you have a business/repair service/etc. and have uniforms/polo shirts/etc..
If those shirts/uniforms have your business logo/name/address/ and/or phone number on them, then you can write them off........as advertising expenses.

Income in an LLC absolutely saves taxes since it produces Qualified Business Income (QBI), 20% of which is NOT TAXED. This was introduced with the TCJA years ago and was made permanent with OBBBA in the last month.
So in the example if I make 100K gross and have 50K or 60K profit, in an LLC I am taxed on only 40k or 48K respectively.
With the S Corp, there are lots of complications with S corps for a max tax benefits of 15.3%
1000% or more agree with writing off every business related expense you can.

My accountants keep telling what you presented is not accurate. Do you have curent cients who can provide legitimate testimonials?

Can I go from sole-prop straight to S-crop without being an LLC?

Just found this video. That was Juicy!! Thank you for that basic clarity as it was well-needed. Going to purchase your books for more clarity. Thank you!

You can write off the clothing only if the clothing was absolutely necessary for your job, and you cannot reasonably use them for something else.

Mark, when you go sub S don't you lose the free stepped up basis at death?

How is this a plan to pay zero in taxes?

Wait, so if you open a store that makes and sells candy 🍬, in the first year you spend 4k for all your costs. Then you sell all the candy and make 10k, so you profited 6k. If you reinvest all 10k in materials to make more candy, then you can't write off the 10k because you haven't sold the candy yet?

In another video you promote the c corporation

Does this apply to sole proprietors? I’m a real estate agent.

My husband and I went out to lunch recently at a restaurant with the purpose of pitching a product to that restaurant. While we were there we paid a babysitter to watch our kids for us. Would the babysitter fee be considered a write off? Btw, we got the sale!

Can you help me with this scenario? I buy a house under llc, the profit is 100k so how I save tax?

Couldn’t we take the owner distribution and instead of re-investing back into the business couldn’t I then loan the business money for scaling the business because debt isn’t taxed and neither is debt repayment?

I’m about to start a business with my partner. We are inexperienced in this business. If we use the example of the $50,000 paying to our mortgage debt of the business since we’re getting a big debt purchasing thw property? Is this an expense?
How can we have advice from you before the closing date which is June 16? We really want to have successful in this unique kind of business. Thanks

Absolutely amazing content and such great Value.! The amount of knowledge this man provides in this video, cant believe it is free to watch on line. Thank you Mark! Subscribe!!

Hi I have a small business if can connect me with a tax advisor. Thanks.

New business owner here 👋🏼 I really need to consult with your team!!!

I just started my LLC in February 2025...do I have to complete an ECE within 75 days? Or can I file the ECE to change to an S Corp once I start making the 40-50K?

Hi Mark, I was wondering if you could elaborate on different strategies for vehicle reimbursement.
You only mentioned the mileage option, but it seems there might be better ways that also include reimbursement for depreciation, insurance, etc. if the vehicle is used primarily for business.
Would love to hear your thoughts on how workable that is in practice, what the audit risks are, etc.
Thanks so much for all your videos, I love them!

Amazing video! Sooooooo much useful & helpful info! BUT, I would LOVE to see a video like this for someone who wants to start a business as a franchise owner.

You can also elect s-corp under the c-corporation just like the LLC …

The S-Corp does come with its specific requirements that can become undesirable when the goal is to grow the business. You may pay a double tax on business income for a C-Corp but I believe the negative connotation is misplaced.

I tried calling your office once, got some guy that was so thoroughly unhelpful, really couldn't get passed the first few sentences before I gave up trying to coax him into any meaningful discussion. He seemed completely uninterested in explaining anything that you do

If your car weighs 6K lbs you can write it off.