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Hook
Sole Proprietorship.
@shermanthecpa
153.1K followers · usually 2.5K views a post
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Why it worked
The video provides clear, concise, and actionable information on business structures and their tax implications, directly addressing a common pain point for small business owners. The use of on-screen text and distinct visuals for each structure makes the information easy to digest and remember.
Summary
The video discusses different business structures and their tax implications. It highlights sole proprietorship as the worst due to higher audit risk and self-employment taxes, while an S-corporation is presented as arguably the best option for small business owners due to tax advantages.
Structure
- 1Sole Proprietorship: worst option
- 2Single Member LLC: similar to sole proprietorship for tax purposes
- 3C-Corporation: avoids self-employment tax but has double taxation
- 4S-Corporation: best for small businesses, avoids self-employment and dividend tax
- 5Partnership: works well, especially when structured through corporations
On-screen text
Sole Proprietorship
THE ABSOLUTE WORST
YOU'RE 10 TIMES MORE LIKELY TO
BE AUDITED
AND YOU HAVE
TO PAY AN
EXTRA 15%
SELF EMPLOYMENT TAX
Single Member LLC
ABOUT THE SAME
THE IRS
DISREGARDS IT FOR
TAX PURPOSES
AND IS TAXED
THE SAME WAY
PROPRIETORSHIP
C - Corporation
WORKS GREAT NO
SELF EMPLOYMENT TAX
PLUS THERE'S A
FLAT 21%
CORPORATE TAX RATE
BUT OWNERS ARE
TAXED AGAIN WHEN
DIVIDENDS
S - Corporation
ARGUABLY THE BEST
FOR SMALL BUSINESS
OWNERS
EMPLOYMENT TAX
NO DIVIDEND TAX
SO OWNERS ARE
ONLY TAXED ONCE
INDIVIDUALLY
Partnership
WORKS GREAT
ESPECIALLY WHEN
PARTNERS
OWN THEIR SHARES
THROUGH THEIR
CORPORATIONS
INSTEAD OF
INDIVIDUALLY
Original caption
The Best & Worst Business Structures In 2026 #businessstructure #businesstaxes #taxsavings #taxstrategy #selfemployment
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