What’s the difference between an LLC and an S-Corp?
Short Answer: An LLC is a legal structure. An S-Corp is a tax election.
LLC describes how your business is legally organized. S-Corp describes how it is taxed. Many small businesses are LLCs that elect S-Corp tax treatment.
Common mistakes:
• Thinking LLC automatically reduces taxes
• Choosing structure without planning
• Electing S-Corp too early
What we recommend: Choose structure based on profit level, complexity, and long-term plans.
Still have questions?
If you’re not sure what applies to your situation, we can help.