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Marketing School - Digital Marketing and Online Marketing Tips

How Marketing Agencies Structure Finances: C Corp vs. Pass-Through LLC

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.61.3K Ratings

🗓️ 24 August 2024

⏱️ 19 minutes

🧾️ Download transcript

Summary

In this bonus episode, we give you a sneak peek into what our Agency Owners Association (AOA) hangouts look like. Join their discussion about the pros and cons C Corp vs. pass-through LLC, salary vs. distribution, maximizing profit share, and tax implications. Don’t forget to help us grow by subscribing and liking on YouTube! Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT) TIME-STAMPED SHOW NOTES: (00:00) Introduction to the Agency Owners Association (00:30) Question on How Marketing Agencies Structure Finances (01:26) Different Approaches to Paying Yourself (02:25) Choosing Between C Corp and Pass-Through LLC (04:17) Advice on Getting Started and Setting Up (07:25) Strategies for Maximizing Profit and Deductions (11:52) Borrowing Power and Mortgages for Business Owners (16:43) Finding New Clients Online Go to https://www.marketingschool.io to learn more! Leave Some Feedback: What should we talk about next? Please let us know in the comments below Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency X @neilpatel X @ericosiu

Transcript

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0:00.0

All right, so we have a little treat for you.

0:01.4

So this is a coaching call from the Agency Owners Association.

0:06.0

This is a group that Neil and I have for agency owners to help you grow faster.

0:10.1

So if you're the agency space, you are a services business, this is applicable to you.

0:14.0

It's a little preview of a call, it's probably 10, 15 minutes or so,

0:17.0

and you get a sense for what it looks like to be in the group.

0:19.5

If you want to learn more about the group, you can go to marketing school.

0:22.0

I.O. slash agency. Again can go to marketing school that I.O slash agency again it's

0:23.9

marketing school the I. Oh, slash agency hope you enjoy the episode I was actually

0:28.8

reading no man's post on school and I kind of have same question it's I was wondering how

0:37.9

people run marketing agency what's the structure of the marketing

0:43.5

agency? Because I know that in the companies, in the entities in the US

0:47.6

would be different with the entities that I have in my country, there are different laws and different tax

0:54.3

tax legal works are really different but I was wondering what how do you guys

1:00.5

keep your finances how do you guys pay yourself? Is it by distribution or is it by the monthly

1:08.7

salary or yeah, that was that was a kind of a question that I had. I think no man has more to say on that. He has, I think, more in-depth question.

1:18.0

But yeah, nobody if you want to say, if you want to add on something, yeah. No, man, I had the same thing.

1:23.7

I think I've been operating an agency, and I've been kind of like using the, like a salary

1:29.6

based model, but I was just kind of curious of like how other people do it.

1:33.0

So I can put my two cents worth there.

1:37.0

So we were C Corp in the States,

1:41.0

and the C Corp is basically we pay ourselves a salary and then you know you can

...

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