LLC vs S-Corp: Which Is Right for Your Small Business?
Starting a new business? One of the most important early decisions you'll make is choosing the right legal structure for your company. Two of the most popular options—LLCs and S-Corps—each come with their own unique advantages. Here’s a straightforward and easy-to-understand breakdown to help guide you in making the best choice for your situation.
What Is an LLC?
A Limited Liability Company (LLC) is a flexible structure that protects your personal assets from business debts. It's easy to manage and great for solopreneurs or partners.
Pros:
Simple setup and fewer rules
Pass-through taxation (profits taxed once)
Flexible ownership and management
What Is an S-Corporation?
An S-Corp is a special tax election for corporations or LLCs that can reduce your self-employment taxes.
Pros:
Lower self-employment taxes if you pay yourself a reasonable salary
Still offers liability protection
Attractive to investors and partners
Not sure which business type is right for you?
Compare your options at a glance — and find the best fit for how you want to operate and grow.
So… Which One Should You Choose?
If you want simplicity, go with an LLC.
If you want tax savings and plan to pay yourself a salary, talk to your accountant about an S-Corp.
Need help setting up your LLC or S-Corp?
SimpleCorp makes it fast, affordable, and hassle-free.