Notably, an LLC can opt for S-corp classification for tax purposes. Therefore, it’s essential to compare LLC vs. S-corp options when forming your business or reaching a certain profitability level.

An LLC with S Corp election files an informational tax return (Form 1120S) with the IRS and sends its members a Schedule K-1 form indicating their share of the profits and losses.

S corporation: To avoid the double taxation of a C corp, file form 2553 to choose S corporation status, setting your organization up as a pass-through entity. With S corps, taxes are filed based ...

Both an LLC and an S corp are pass-through tax entities, so you'll pay personal taxes on the income at the end of the year. Ultimately, the best business structure for you depends on your business ...

An LLC can, however, elect to be taxed as a C-corp or an S-corp. How to choose between an LLC and a corporation When selecting an organizational structure for your business, there are many factors ...

Key Points. A Redditor is wondering about the merits of an LLC for tax purposes. LLCs only shield you from liability. They don’t reduce your tax bill, but having it taxed like an S Corp can lead ...

Tax Law Republican lawmakers proposed a retaliatory tax on foreign investors that experts warn could lead to job losses in the U.S. Where to Invest in the Back Half of 2025 The crystal ball has ...

For an owner-operator previously banking $80K in income annually who moves to pay him- or herself a salary of $50K and file tax returns as an S Corp, the tax savings on that additional $30K would ...

S Corp, C Corp, sole proprietorships, partnerships, ... 1065, 1120 and 1120-S. Standout benefits: ... so there's less to do by Tax Day.