LLC vs S-Corp & Entity Choice
“I am transitioning my W-2 income into a consulting business, does electing S-Corp status actually lower my self-employment tax?”
For someone shifting W-2 income into a consulting business, the S-Corp question often turns on how the work will be paid, how much profit is expected to remain after reasonable compensation, and how much administrative complexity the owner is willing to carry. In many cases, S-Corp treatment can change how earnings are characterized for tax purposes, but the outcome depends on the business’s net income, payroll setup, and whether the consulting activity is steady enough to support separate wage and profit treatment. Entity choice also depends on state filing obligations and recordkeeping needs. A CPA who reads your specifics can usually tell you, in plain English, where this lands.
In your 90-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.
“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?”
“My solo business is making about the same as my old salary, should I switch from a sole proprietorship to an S-Corp?”
“I have a profitable side hustle on top of my day job, is it worth the administrative cost to form an LLC just for that income?”
“I operate a high-volume e-commerce store out of my home, will an LLC protect my personal assets if my business is audited?”
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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