Single-Member LLC

• One owner
• Reported on Schedule C by default
• Option to elect S-Corp

Multi-Member LLC

• Two or more owners
• Partnership tax treatment (K-1s)
• Can elect S-Corp

S-Corporation

• Reduces self-employment tax
• Requires reasonable salary
• Payroll + Form 2553 required

C-Corporation

• Ideal for startups / investors
• QSBS potential
• 83(b) elections & equity planning

Not Sure Which Entity is Right for You?

Answer a few quick questions to help guide your decision.

  • If yes, you’ll likely begin as a Single-Member LLC. From there, we evaluate whether an S-Corp election makes sense based on profitability.

  • If your business is generating consistent profit (generally above ~$75K), an S-Corporation may provide meaningful tax savings.

  • If yes, your business defaults to a partnership structure. We can then evaluate whether an S-Corp election makes sense.

  • If yes, a C-Corporation is typically the preferred structure for investors and equity issuance.

  • If yes, an S-Corporation may be the right structure—but it requires payroll and compliance.

How It Typically Breaks Down:

Starting alone?
→ Begin as an LLC
→ Consider S-Corp once profitable

Multiple owners?
→ Partnership by default
→ May elect S-Corp

Raising capital / issuing equity?
→ C-Corporation