LLC vs S Corp
We firmly believe that every business of one should have at least an LLC to protect personal assets. From there the choice between LLC & S Corp gets more complicated.
Learn the pros and cons here, these assume you are operating as a business of one (no additional owners/employees).
LLC
01
Value
- Legal protections of a company with similar operations to a sole proprietor
- Maximum flexibility for lifestyle, no reasonable salary requirements and no board of directors required
02
Legal/taxes
- Protect your personal assets as an owner, you contract as a business
- Passthrough taxation just like being a sole proprietor – Schedule C of 1040
- You can use a solo 401K to shield pre-tax dollars
03
Downsides
- More compliance filings and fees than being a sole proprietor, but typically only once a year
- Must be formally dissolved if you want to stop doing business
S Corp
01
Value
- Same legal protections as LLC
- Empowers additional tax savings (3-6%) through the use of a reasonable salary (W2 payroll) for yourself as the owner/employee
02
Legal/taxes
- You have to run a W2 payroll for yourself to see the tax savings
- Must have separation of business & personal finances
- You can use a solo 401K to shield pre-tax dollars
03
Downsides
- You should consistentlaly be making at least $80-100K net business income, otherwise costs can trump savings
- Payroll & accountable plan adds burden that can impede on flexibility
- More compliance filings than an LLC + an additional Federal tax filing (1120s)
Start as an LLC today level up to S Corp later
With Besolo, you don’t have to choose between one or the other. Start as an LLC to enjoy all the value of our platform. We’ll guide you if/when transitioning to an S Corp is the right move for your business.
Solo
LLC
Legal protection, flexibility, low maintenance
For solos & side hustlers who want protection with flexbility
Solo
S Corp
Everything that an LLC gives + tax savings
Great for seasoned full-time solos with larger annual income
Start as an LLC today
level up to S Corp later
With Besolo, you don’t have to choose between one or the other. Start as an LLC to enjoy all the value of our platform. We’ll guide you if/when transitioning to an S Corp is the right move for your business.
Solo
LLC
Legal protection, flexibility, low maintenance
Solo
S Corp
Everything that an LLC gives + tax savings
For solos & side hustlers who want protection with flexbility
Great for seasoned full-time solos with larger annual income
Core Besolo features
Included for all Solo LLC & S Corp members, the first all-in-one platform on the market
Company Formation
Compliance System
Time Tracking & Invoicing
Accounting
Quarterly Tax Estimates
CPA Consultations
Tax Filing - Personal & Business
Solo 401K
Additional Benefits Options
Solo S Corp features
Included for all Solo LLC & S Corp members, the first all-in-one platform on the market
S Corp Election
Solo W2 Payroll
Accountable Plan
CPA Consultations
Quarterly Tax Estimates
S Corp Tax Filing
Personal Tax Filing
Compliance Calendar
Complete Benefits Package
PEO