LLC vs S-Corp & Entity Choice
“How are my taxes different if I use an LLC versus an S-corp?”
The tax comparison between an LLC and an S-corp often depends less on the label and more on how the business is actually taxed, how much profit it earns, and how owners are paid. An LLC is commonly treated as a pass-through entity, while an S-corp can change how owner compensation and remaining business profits are reported. Factors such as payroll, self-employment tax exposure, bookkeeping complexity, and state filing requirements often shape the outcome. The best fit can also vary based on whether there is one owner or multiple owners and how consistently income is expected to flow through the business. Sitting down with a CPA for thirty minutes is usually enough to draw a clean line on this.
In your 60-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“As a freelancer in Alabama, should I form an LLC or elect S-corp?”
“As a freelancer in Alaska, should I form an LLC or elect S-corp?”
“As a freelancer in Arizona, should I form an LLC or elect S-corp?”
“As a freelancer in Arkansas, should I form an LLC or elect S-corp?”
“I formed a single-member LLC but forgot to get an EIN, can I just use my Social Security number on my Schedule C without issues?”
“I am transitioning my W-2 income into a consulting business, does electing S-Corp status actually lower my self-employment tax?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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