LLC vs S-Corp: which is right for your business?

When you formalize a business, one of the first decisions is which legal structure to use. Two of the most common are the LLC and the S-Corp. They sound similar, but they work differently and carry important tax implications.

What is an LLC?

An LLC (Limited Liability Company) separates your personal finances from the business, protecting your assets. It’s flexible, easy to maintain, and passes profits through to your personal return.

What is an S-Corp?

An S-Corp isn’t an entity type — it’s a tax election. It can help you save on self-employment taxes when your business earns consistent profits, but it requires more formality: payroll, extra filings, and a reasonable salary for owners.

How to decide?

• Just starting or variable income → an LLC is usually enough.
• Stable, significant profits → the S-Corp election may be worth evaluating.

The right structure depends on your specific situation. In a consultation we review your numbers and guide you clearly.

Not sure which fits you? Schedule a consultation and we’ll review it together.