LLC vs S-Corp: What’s Right for Your Business?
Compare the key differences between LLC and S-Corporation structures to make the smartest decision for your business. BusinessFormations.com helps you form the right entity—fast.
Start My BusinessLLC vs S-Corp: Side-by-Side Comparison
| Feature | LLC | S-Corp |
|---|---|---|
| Taxation | Pass-through | Pass-through (w/ potential savings on self-employment taxes) |
| Owner Flexibility | Unlimited members | Limited to 100 U.S. shareholders |
| Management | Flexible | Structured (board, officers) |
| Payroll Requirements | Not required | Owner must be paid a reasonable salary |
| Formalities | Fewer | More formal (IRS rules & filings) |
| Best For | Freelancers, solopreneurs, partnerships | Growing businesses with steady profit |
