When to Choose an LLC vs. S-Corp: A Decision Framework

The business structure you select significantly impacts everything from your tax burden to your personal liability. While LLCs offer simplicity and flexibility, S-Corps can provide substantial self-employment tax savings for profitable businesses. This post breaks down the key differences between these popular structures, outlines the financial thresholds where S-Corps typically become advantageous, and provides a practical decision framework to help entrepreneurs select the optimal structure for their specific situation.