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in this video I'm gonna explain the difference between a sole-proprietorship and I'll see and a corporation from both a legal and tax perspective my name is Navi Mirage I'm a certified public accountant and we've got a lot to cover so let's get into the video all right so no matter where you're watching this video whether it's on your various social media platforms you can always find this video on my website which is Navi Mirage CPA com a quick disclaimer before we get into the details I am NOT an attorney however I am a certified public accountant so I can speak to the tax implications of setting up these various legal entities but I have consulted with attorneys across the nation and I'm pretty sure they would agree with most of the things that I might touch on from a legal perspective but you would want to consult with your business attorney to see if they agree with what I'm saying here so as I mentioned when you form a business you are actually making two decisions you are making a legal decision and a tax is decision so let me kind of lay the foundation for this video and that will kind of make a little bit more sense so when you form a business you are going to be treated as the ways up above here from a legal perspective and then down here are the different ways you could be treated from a tax perspective all right so up here I have the different legal entity types and down below the different tax types let's talk about the colors for a second the green is going to indicate how this particular entity is taxed by default what I mean by that is you know there's no box that says hey check here to be treated this way this way from a tax perspective the blue represents how that entity type could be treated from a tax perspective and I'll get into those details here in a second now there are some less common structures that I didn't put on here and you can also have an LLC treated as a c-corp but that's not very common and this video is for your average small business owner so let's get into the details so the sole proprietorship you can form a sole proprietorship by simply walking into your bank and if your name is John Doe for example you could talk to your banker and he or she will open up an account call john doe's landscaping if you're in the landscaper and you could just go out and start mowing people's lawns if you want now I don't necessarily recommend that because that the sole proprietorship doesn't have what's called limited liability protection so if someone Sue's your you know john doe's landscaping your individual assets as john doe the individual are also now at risk okay so how is this entity treated the sole proprietorship treated from a tax perspective well its treated as a sole proprietorship but what I mean by that is you are going to complete you or your tax professional is going to complete a Schedule C and attach it to your form 1040 individual tax return what I want to help you understand is that there's no separate set of tax documents that you're completing or having your accountant complete when you form our sole proprietorship it's an additional Schedule called Schedule C that's attached to your individual tax return now let's for a brief moment talk about these entity structures on the right-hand side so I mentioned that the sole proprietorship does not provide limited liability protection these entity types may and I say me because you want to treat them as though they're separate entities so you don't want to come in commingled funds between your business and personal you want to use your entity name on all your marketing documents you might if you're an LLC have a articles of organization of course but also an operating agreement maybe you have a Board of Advisors you take meeting minutes when you have business discussions even if it's by yourself I know that sounds a little silly but yes you want to record meeting minutes and all those things will help you you know prop up and support that yes your LLC is actually different than you as an individual but let's kind of break these down one by one so here I have SM l ec LLC rather or s MP LLC this means that s M stands for single-member so you're a one-man shop if you will and how this is treated is by default is as a sole proprietorship so it's exactly the same as this entity type the sole proprietorship so you are simply adding Schedule C to your individual tax return a single-member LLC by default is taxed the exact same way a sole proprietorship all it does is give you that limited liability protection let's move on oh briefly let's touch on the P LLC so a lot of you are probably like what is this P LLC I've never heard of it P LLC stands for professional limited liability company so who should be forming a PLLC someone who holds a license with the state that they're forming the entity in most of your states across the nation support a plc so if you are a certified public accountant or an attorney or a physician or a realtor or maybe a general contractor holds a license you should be forming a professional limited liability company if it's available in your state all right moving on mmm LLC that stands for a multi-member LLC the owners of an LLC are called members now the default tax classification for a multi-member LLC is a partnership and so you would file a separate set of tax documents call its form 1065 and that's the tax return a partnership completes or your account would complete for you there's no sort of I mentioned this a moment ago there's no check the box when you're forming your multi-member LLC for you to know that hey it's going to get treated this way from a tax perspective this is just information that your accountant should advising you on and let's touch on the c-corporation a lot of you might have heard this this is your you know Amazon's of the world or C corporations but if you are a professional just like I mentioned here the P LLC if you're a professional and forming a C corporation you're a corporation is actually called a professional association so again your attorney your realtor let me touch on the Realtors for a second many Realtors have some you know top producers in their office who have pas but you know the corporations have been around and existence much longer than the LLC's have and that's why they may be doing so it may not be right for you you might prematurely create a PA if you're if you don't have a conversation with your attorney or CPA so how is the corporation treated for tax purposes well it's subject to double taxation which means that the profits from the corporation are going to pay tax when they form file file form 1120 and then the shareholders the owners of a C corporation our cars are called shareholders and they will then again pay tax when they receive distributions from the C corporation or the professional association so how can these entities be treated as S corporation so quick point I want to make is you can't go to your state and say I want to form an S corporation these are the entity types that you would form with your state from the single-member LLC on this way I mentioned that the
Thanks for your comment Denis Zavodny, have a nice day.
- Blair Bertrano, Staff Member
hi everyone welcome to plastic on plastics my name is tristan and today we're going over the seven different types of plastic categories a lot of people think plastic is just one thing but that couldn't be farther from the truth there are more than seven but they are generally segregated into seven different categories we're going to be running through these categories today in a pretty brief and short point form video we do have videos on all each individual categories as well the first type of plastic also known as number one is polyethylene terethalate or p-e-t p-e-t is generally known or most well-known for being in soda or pop bottles around the world there are so many of these produced that it's actually quite easy to recycle p-e-t p-e-t has the highest recycling rate of around 30 percent but that does depend on the country one of the reasons why it's so easy to recycle pet is once we remove the cap we have such a simple plastic product here there's no residue it can easily be rinsed grinded out generally all these that are going to be recycled are going to be the same wear and tear so if this was in the ocean maybe degrading for 30 years it'd be a lot harder to recycle but because there's so many plastic bottles produced and recycled every day the stream of materials is quite consistent and these can be grinded down and turned into new plastic bottles so pet is actually one of the more environmentally sustainable plastics because of the higher recycling rate compared to other plastics however that doesn't mean that pet is a fantastic material for all sorts of applications and should only be used when required some other areas of pet might be in use for example would be like cosmetic containers pet rope different applications for cars and automobiles such as bumpers for example are sometimes made out of pet and the list goes on the next type of plastic number two is hdpe or high density polyethylene high density polyethylene it has a very very good chemical resistance property so you will most commonly come in contact with hdpe uh in chemical containers so like this like window spray or this tile cleaner both of which are hdpe you will also find hdbe in milk jugs for example the reason why is because hdpe is actually extremely strong this is why a relatively light hdbe container two ounce milk jug can hold a gallon milk without any problem and if you drop it generally it won't crack or anything it is very strong now because it's so well used and used in a similar application as pet with liquids something clean easy to separate easy to grind down hdpe is also highly recycled compared to the other plastics at around 25 but this does vary on country to country the next type of plastic is number three or polyvinyl chloride pvc pvc you will probably remember from if you'd ever done construction pvc piping is very well known in the construction area pvc can be used in both a hard and soft application so pvc pipe is obviously a hard application and then you also have pvc inflatable boats so that's also pvc just a different form of that you will come in contact with pvc generally around the house so for example underneath the floorboards they may be some pvc levelers or the rain gutters maybe made out of pvc you will also find pvc in your wallet with credit cards gift cards and stuff of that nature pvc is rarely recycled out of you know depending on the country it can be as low as one percent this is because the applications that it's used in for example pvc piping underground this is generally something that degrades over time and that's very hard to recycle such a low quality plastic also the nature of pvc does also make it hard to recycle the next type of plastic is low density polyethylene so it's kind of the cousin of high density polyethylene and this is going to be your number four plastic the most common use case of number four is in poly bags so something like ziploc bag here that's soft is often made out of low density polyethylene as well as oftentimes the clear grocery bags that you get in the store will be made with this plastic now hdpe high density polyethylene can also be made into bags for example this grocery bag here with the crinkly sound is actually made of high density polyethylene both high density and low density and medium density can be used in very similar form so it's kind of hard to tell the difference and that's why sorting between plastics is such an ongoing challenge whether it's with hdpe or pet or polypropylene number five plastic a lot of things can look the same this leads us to number five plastic polypropylene so polypropylene or pp for short is used in a wide variety of applications pp is extremely strong very good for chemical resistance it is not brittle so it can bend and wear over time and still not break it's also very good for different cosmetic applications auto applications heat applications cold temperature applications it is used in a variety of ways it's kind of like your brick and mortar classic so that's why it's used so much however because it's used in so many of these different applications it is actually very hard to recycle for example polypropylene is used in this camera for example for the camera housing and stuff like that as you can imagine trying to recycle the bits and pieces of plastic on this polypropylene camera is a lot harder than recycling this bottle and just throwing it in a grinder so that is why polypropylene the recycling rate is around five percent again this does a vary country to country however unlike pvc polypropylene is just as easy to recycle as pet or hdpe when we're just talking about the chemical compound the reason why it's actually so hard to recycle is not the material aspect but just again the sorting aspect because of the variety of applications this is used in is very hard to sort these plastics get enough together so you can actually grind them down into pellets and then sell them to a plastic manufacturer polypropylene is actually a plastic that we use quite a bit at plastic on plastics but we actually use pcr polypropylene so post-consumer recycled material we're trying to get polypropylene to have a more consistent recycle flow so we can increase that recycling rate like pet or hdpe so in the future recycling polypropylene can be a more standard practice the next category is number six polystyrene or ps polystyrene is generally known as styrofoam polystyrene is one of the worst plastics for the environment one of the reasons why is because it's extremely brittle as you can imagine this polystyrene container is very easy to break and when this gets thrown or littered into the environment for example the ocean it gets quickly broken down faster and faster into smaller and smaller microplastics so instead of being able to float around for example and get picked up eventually and cleaned and recycled it just instantly disperses into a hundred pieces so it's almost impossible to reclaim the environmental damage it may cause because it just gets dispersed so quickly it is also very hard to recycle and has to be sorted individually so a lot of munic
Thanks Pam your participation is very much appreciated
- Blair Bertrano
About the author
I've studied history of computer science at Bridgewater State University in Bridgewater and I am an expert in geometrical optics. I usually feel guilty. My previous job was industrial relations specialist I held this position for 11 years, I love talking about hiking/backpacking and marbles. Huge fan of Jim Carrey I practice rope climbing and collect basketball cards.
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