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.

Keep in mind that S-corp distributions are not subject to self-employment taxes, while profits from an LLC may be considered self-employment income—depending on the LLC’s tax classification.

Another option is an S corporation structure, aka S corp, which can pass its taxable income, losses, deductions and credits through to their “shareholders” or owners. Pursuing the LLC After a few ...

To switch your business from an LLC to an S corporation, you’ll need to do the following.

Whether or not you decide to pay yourself using an LLC or S Corp depends on your business needs and goals and your unique tax circumstances.

Entrepreneurs who meet the requirements and choose to be an S corporation could see lower taxes and experience several other advantages.