Back to Resources
Business

When Should You Form an LLC or S-Corp?

DA TAXGUY
February 5, 2026

Choosing the right business entity is one of the most important decisions an entrepreneur can make.

LLC Benefits

  • Limited liability protection
  • Flexible taxation options
  • Simple maintenance requirements

S-Corp Benefits

  • Potential self-employment tax savings
  • Established credibility
  • Pass-through taxation

When to Consider an S-Corp Election

Generally, when your net self-employment income exceeds $40,000-$50,000, an S-Corp election may save you money on self-employment taxes.

Every situation is unique. Book a consultation to discuss your specific circumstances.

Need Help With Your Taxes?

Our team is ready to assist you with personalized tax guidance.