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S Corp vs. LLC: Key Differences, Tax Impacts, and How to Choose
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When should you set up an LLC, and when should you switch to an S corp? Here’s the simple rule: if you’re netting $50,000 or more, boom—you should be an S corp. We can even backdate it to grab the whole year of tax savings. That’s why an LLC is like S corp insurance, it gives us flexibility when you’re ready. But if you’re just testing an idea or running a hobby with little profit, skip the LLC for now. Don’t burden yourself with unnecessary fees and paperwork until you’re sure it’s a real busin
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