Blog
S Corp vs. LLC: Choosing the Right Business Structure for Your Company
Main Takeaways:
Choosing between an S corp vs. LLC is a critical business decision that impacts taxes, compliance, ownership flexibility, and long-term growth.
LLCs offer simplicity and flexibility, providing liability protection, minimal paperwork, and fewer ownership restrictions—ideal for startups and growing businesses.
S corporations can provide significant tax savings by allowing owners to split income between salary and distributions, reducing self-employment taxes.
Reasonable salary rules are a major compliance requirement for S corps, and failing to follow them can trigger IRS audit…
