LLC, S-Corp, sole proprietorship, and partnership tax comparisons and formation guides.
A sole proprietorship is the default structure the IRS assigns the moment you earn self-employment income. Here is exactly how sole proprietors are taxed in 2026 — Schedule C, the 15.3% self-employment tax, quarterly payments, and the deductions that lower both income and SE tax.
Read Article →An LLC is a legal entity, not a tax classification. Here is how single-member and multi-member LLCs file taxes in 2026 — default disregarded entity status, partnership Form 1065, and the S-Corp and C-Corp elections that change everything.
Read Article →The S-Corp salary-plus-distribution strategy can eliminate self-employment tax on tens of thousands of dollars of profit — but only above a clear breakeven point. Here is the 2026 math on when an S-Corp election actually saves money after payroll and accounting costs.
Read Article →LLC and S-Corp are not competing structures — one is a legal entity and the other is a tax election. Here is how to compare them in 2026, with side-by-side tax math on $120,000 of profit and clear guidance on when each wins.
Read Article →A single-member LLC is taxed exactly like a sole proprietorship by default, so the difference comes down to liability protection, banking, and credibility. Here is how to decide whether the cost of forming an LLC is worth it for your business in 2026.
Read Article →Multi-owner LLCs and partnerships file Form 1065 by March 15 — a separate return that issues Schedule K-1s to each partner. Here is how the 2026 filing works, how profit splits flow to partners, and how to avoid the $245-per-partner monthly late penalty.
Read Article →S-Corp owner-employees must pay themselves a reasonable salary subject to payroll taxes before taking distributions. Here is how the 2026 reasonable compensation rules work, how the IRS audits salaries, and how to document your number to survive scrutiny.
Read Article →Forming an LLC in 2026 costs anywhere from $40 to $800 in state fees, plus a registered agent and ongoing annual expenses. Here is the full breakdown of one-time and recurring costs, with state-by-state examples and tips to avoid the upsells.
Read Article →A DBA ("doing business as") lets you operate under a trade name without forming a new entity — and it has zero effect on your tax classification. Here is how DBAs work in 2026, when you need one, and what it changes (and does not change) on your tax return.
Read Article →Converting an LLC to S-Corp taxation in 2026 means filing Form 2553 — no new legal entity required. Here is the deadline, the reasonable salary requirement that kicks in, and the breakeven math that tells you when the election actually pays off.
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