Compare Structures

Which business structure fits you?

A side-by-side look at the three most common structures, plus a starting point based on your numbers — always worth confirming with us before you file anything.

Educational comparison only, not legal or tax advice. The right structure depends on your full financial picture — this is exactly where a real conversation with us helps.

Side-by-side comparison

LLC (or Sole Proprietor)

Simplest to set up and run. Profits pass through to your personal return; owners typically pay self-employment tax on all business profit.

S-Corp Election

You pay yourself a reasonable salary (subject to payroll tax) and can take remaining profit as a distribution, which isn't subject to self-employment tax. Usually most valuable once profit is meaningfully above living-wage salary levels.

C-Corp

Taxed separately from its owners, at a flat corporate rate. Most relevant if you plan to raise outside investment, reinvest profits in the business, or offer stock options.

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