LLC vs S-Corp & Entity Choice
“How different are my taxes if I stay an LLC or elect S-corp status?”
The tax difference between staying a single-member or multi-member LLC and electing S-corp status often comes down to how profits are reported, how owner pay is handled, and what payroll filings become part of the picture. An LLC taxed by default may keep income flowing through to the owner’s return in a simpler way, while an S-corp election can change the mix between wages and distributions, which affects payroll records and self-employment tax exposure in many cases. The best fit usually depends on profit level, owner involvement, and the cost and complexity of maintaining payroll and extra filings. Working through the specifics with a CPA is the cleanest way to land on the right move.
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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